Charitable Trusts and Organisations:

The general trend is that as a person becomes more financially secure and stable, there often comes a point in their life where he or she feels like he or she needs to 'give back'. Australians are renowned for their generous spirit and ‘fair go’ attitude and it is only natural for those who are affluent and secure to turn some of their wealth and influence towards philanthropic causes. More importantly, regardless of your where you are in your life, giving to others, even a small amount can make a huge difference in another, less fortunate, person’s life.  It is important not to overlook the fact that one does not need to be extremely wealthy or powerful to be able to make a life changing impact on another person’s life.  Having a discussion with one of our qualified Charity Lawyers can greatly assist you in your matters.

One of the primary ways we can devote ourselves to philanthropic causes is through donations or direct giving to charitable organisations.  You may donate as an individual, a family, community or business.  This may involve many considerations such as the amount you intend to give, the time frame for giving (one off or regular donations) and the level of engagement you want as the donor.

In addition, it may be more efficient and tax-effective to establish a philanthropic structure such as a charitable trust fund, a Public Ancillary Fund (PuAF) or a Private Ancillary Fund (PAF).  A charitable trust fund is a trust established with a charitable object; that is it is for a charitable purpose, and not anything else, and this means it cannot be for the benefit of any direct person/s.  A charitable purpose has been defined by law to include for the relief of poverty, the advancement of education, the advancement of religion and other purposes beneficial to the community not falling into any of the other heads.  A charitable institution is a body or organisation which holds property upon a charitable trust and carries out the trust’s purpose; this it is essentially the instrument for carrying the charitable purpose into effect.

A Public Ancillary Fund (PuAF) must be controlled by a committee the majority of each are ‘Responsible Persons’ and there are rules governing how grants or donations are made to charitable organisations.  A Private Ancillary Fund is a trust fund for business, families and individuals where the trust fund is controlled by a company with family members as directors and at least one independent ‘Responsible Person’.  In addition, you may create a charitable testamentary trust by Will, a Private Charitable Trust or a company.  Sound legal advice in the area of Charitable instruments and organisations may be immensely useful in this area, as there are many considerations such as legal, financial and operational requirements and costs.

If you need further legal advice on your matter, you may book an appointment with us by telephone on 02 9233 4048 or by email to info@navado.com.au.  

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Tax or Accounting Advice. It does not take into account your objectives, financial situation or needs or your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.