Private Ancillary Funds
Establish your own charitable foundation so this year’s generous gift can grow, and keep on giving every year
Your Private Ancillary Fund gives you flexibility to endow charities or to fund causes important to you and to build a tradition of philanthropy within your family or organisation.
Established via a trust deed, a Private Ancillary Fund must have relevant Australian Taxation Office approval. As the benefactor, you start by nominating a target capital base for your fund and then set out an ‘accumulation plan’ that shows how you aim to achieve your target.
A Private Ancillary Fund is allowed to accept tax-deductible donations from the public provided these are not the primary source of gifts to the Fund. If you prefer, you don’t need to receive donations from the public.
Equity Trustees can set up and administer the fund for you, ensuring it complies with all statutory requirements. We use our independent investment knowledge to ensure your money is invested prudently and responsibly.
The net income generated by the Fund each year must be distributed for approved charitable purposes. The only exception is where income is retained in order to maintain the real value of the capital base.
AT A GLANCE
Advantages
- Any income produced within the Fund is tax-free.
- Generous tax concessions are available for donations.
- The Fund can be named after you, a company or organisation, or it can perpetuate the memory of someone you admire.
- The general public can make tax-deductible donations.
You can
- Play a key role in the distribution of money.
- Act as trustee and have an equal say in investment choices.
- Nominate successor trustees and set the criteria for charitable giving.
- Make a further donation through your will.
Factors to consider
- Minimum $500,000 to establish Fund.
- Charities to benefit must be Deductible Gift Recipients.
- Equity Trustees can fulfil the role of ‘responsible person’ required by legislation.
- Donations are irrevocable.
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