By Judith Fiander

There is a single statistic that has stayed with me from the moment I first saw it, and it’s one I come back to at this time of year.

According to the Australian Taxation Office, roughly half of Australians earning more than $1 million a year don’t claim a tax deductible charity donation. I’ve spent 15 years helping high-net-worth Australians turn their wealth into lasting impact, and this number still surprises me.

Philanthropy is deeply personal and should remain so, but it still astonishes me because so many people with genuine capacity to give aren’t using one of the most powerful, tax-efficient tools already available to them. And far too often, that comes down to a simple absence of conversation.

That is where financial advisers come in.

For advisers working with high-net-worth clients, structured philanthropy sits squarely in the middle of their core offering – tax planning, estate planning, wealth transfer, family governance, and values-based advice. And for the right client, it can be one of the most effective strategies in their toolkit.

Australia has one of the most supportive frameworks for philanthropic giving anywhere in the world. Private Ancillary Funds (PAFs) and Public Ancillary Funds (PuAFs) – allow clients to make substantial, tax-deductible contributions now while retaining full flexibility over how and when that capital supports the causes they care about. The deduction can be claimed in the year of the gift or spread across up to five years. Inside the fund, earnings are tax exempt, growing the corpus. Meanwhile, annual distributions deliver ongoing grants to charities over years, or decades. This separates the timing of the tax event from the timing of the giving decisions, and that matters particularly for clients who want to give thoughtfully rather than reactively at 30 June.

A PAF suits families and individuals who want their own philanthropic foundation though a structure they govern. But it is not the only way to give for lasting impact. A public giving fund, through a provider like the Australian Philanthropic Services (APS) Foundation, offers a simpler entry point. Clients can establish a fund with as little as $40,000 and it can be established in just one business day, recommending grants to charities of their choosing all without the administrative burden of running their own structure. In both cases, the structure often delivers other benefits as families use it as a place to discuss values, responsibility and purpose. A particularly rewarding aspect we see is adult children getting involved in decisions about how a family can deploy its wealth for good.

At APS, we have seen this play out for client after client. Some want a light-touch solution while others want to build a multi-generational giving structure that becomes part of their family’s identity. Where a trusted financial adviser can offer real value is integrating giving in broader wealth discussions and knowing how to access specialist support.

Since our founding 14 years ago, APS clients have committed more than $2.9 billion into ancillary funds, with over $1.5 billion already distributed to charities across Australia. The APS Foundation, Australia’s fastest-growing public ancillary fund of its kind, welcomed 123 new giving funds in FY25 alone. Private ancillary funds continue to grow too, with ATO data showing distributions approaching $800 million in 2022-23 and more than 2,300 now operating across the country – APS helps establish around a third of new private ancillary funds each year.

Yet, as we’ve outlined, awareness and uptake remain low among the people who would benefit most. Many Australians give generously when disaster strikes, such as bushfires and floods, but regular, structured giving hasn’t become the cultural norm it is in comparable countries. And it’s a real missed opportunity as regular grants from structured giving provides charities with the ability to plan, invest in people and programs, and respond to community need with confidence. So instead of constantly chasing one-off donations, organisations can bank on reliable capital they can build on.

Many clients don’t think of themselves as “philanthropists”, and some aren’t aware of the available options. Others simply haven’t considered that giving could be part of a solid financial strategy. This is where financial advisers can close that million-dollar gap, and the key point is that they shouldn’t wait for clients to raise philanthropy first.

In Australia, the tax settings are already generous. The structures already exist. The need in our communities is clear. What is missing is the conversation – and advisers are uniquely placed to ask the question that could open the door.

Not every client will want to build a foundation, but many will – once someone they trust shows them what is possible. And in our experience, it’s some of the most rewarding work an adviser can do.

This article was originally published on FS Advice on 22 May 2026 here. 

26 May 2026