Growing generosity of wealthy Australians

The latest figures from the Australian Tax Office’s Deductible Gift Recipient Listing (17/07/2014) highlight growing philanthropic investment by wealthy Australians with the largest number of new private ancillary funds (PAFs) being established since before the global financial crisis.

141 PAFs were established in the year ending 30 June 2014, bringing the total number of PAFs in Australia to 1,225.

PAFs are the fastest growing segment of philanthropy and also likely the largest. PAFs held $2.93 billion in funds as at 30 June 2012, and distributed $250 million to the community across welfare, education, culture, research and other sectors during 2011/12.

Chris Cuffe, Chairman and founder of Australian Philanthropic Services said the increase in the number of funds is evidence of a growing tradition of philanthropy among wealthier Australians.

“The continued success of private ancillary funds is crucial to engage the next generation of philanthropists”, he said.

“It is great to see increasing numbers of families sharing their wealth with the community and particularly encouraging to see increasing numbers of those listed in the BRW rich list also known for their philanthropy.”

Australian Philanthropic Services, one of the key champions of the PAF model in Australia, provides independent, not-for-profit advice to individuals and advisers.

Since its launch in 2010, Australian Philanthropic Services (originally known as the Social Ventures Australia PAF service) has grown rapidly and is now establishing over 25% of all new PAFs in Australia.

Australian Philanthropic Services currently supports over 100 clients with their philanthropy, offering businesses, wealthy individuals and families the ability to donate tax effectively to a trust they have created. The trust can then disburse funds to a range of eligible not-for-profit organisations over a chosen time frame.

A wide range of financial advisers from advisory firms large and small are now working with clients and Australian Philanthropic Services to structure their giving.