Set Up Your Own Family Foundation or Fund
Setting up your own Foundation or a Fund is a good, tax effective way of committing to philanthropy.
Key features include:
There are generally two ‘entity’ options for donors:
Public Ancillary Fund (PuAF) – a ‘sub Fund’
A Public Ancillary Fund is generally a pool of funds contributed by many families, which is fully managed by a professional organisation. Your contributions are regarded as a ‘sub Fund’ of a larger pool of funds (‘the Fund’). It is a bit like having your super in an industry super fund. Someone does all the compliance and investment work for you – but you still get to choose where you want your sub Fund money to be granted (ie. the charity you wish to support).
A PuAF is most suitable for a family that wishes to donate initially up to $1M , although some families donate larger amounts. A PuAF is very convenient, and a good ‘first step’ in your philanthropy journey.
Private Ancillary Fund (PAF) - a Family Foundation A Private Ancillary
Fund is the best option where the family wants to ‘self-manage’ the investments of the fund held. For this reason, a Foundation, or PAF, is only suitable where $1M or more is held and the founders have the time to give to the running of the Foundation.
Other key features of a PAF include:
It is recommended that if you establish a PAF, you consider having the Foundation’s administration professionally managed.
More Information
Interested in finding out more? We suggest you contact an organisation that professionally manages sub Funds and Foundations. We recommend Australian Philanthropic Services:
Email: hello@australianphilanthropicservices.com.au
Address: Level 5, 8 Spring Street, Sydney NSW 2000
Phone: (02) 9779 6300
Website: www.australianphilanthropicservices.com.au
If you do set up your own Foundation, we would love to hear from you. Contact us at info@give52.org.au