Booklet: Private Ancillary Funds (PAFs) (Chapter 1 – Giving back to the community)

Booklet: Private Ancillary Funds (PAFs)

Below is Chapter 1 of our ‘Private Ancillary Funds’ booklet. To read the other chapters of our booklet, click the links below:

Introduction

Charitable giving can take many forms.  Most of us do it on an ad hoc basis but there are many advantages to formalising your approach to strategic long-term giving.  This booklet is for people who may be:

  • Starting their philanthropic journey;
  • Rethinking their approach to charitable giving;
  • Hoping to build a relationship with one or more charitable organisations;
  • Looking to make a bigger impact; or
  • Seeking to give their family a larger role in their giving.  

One way to achieve these goals is to establish a Private Ancillary Fund (a PAF) – your own charitable foundation that provides a link between you and the charitable organisations that you wish to support.

This booklet has been developed to assist you to understand 

  • What a PAF is;
  • How it works; and
  • Whether it is the best charitable strategy for you.

Giving back to the community

To date, your charitable giving has taken the form of volunteering, making a gift to an existing charity from your own pocket or leaving a gift to a specific charity in your Will.  However, you have reached a turning point in your life where you wish to use your resources to make a more significant impact on the community without going so far as to establish your own charity. 

Perhaps you have received an inheritance, sold a business, undergone a major health event or become more aware of an issue that you care about, either locally or globally.  For those of you who have a focus on family, you may be looking for a mechanism for inter-generational giving which allows the whole family to become involved in philanthropy from an early age and contribute towards creating a family legacy. 

A PAF is an effective way to use cash, property and investments to support charitable causes without providing services or undertaking charitable work yourself.  A PAF requires you to consciously allocate a portion of your assets to philanthropy and, along with the benefits referred to above, you will be able to access the tax advantages offered by PAFs.

 

To download a PDF of our booklet, enter your email below.

 

The information contained in this post is current at the date of editing – 26 March 2024.

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