Giving back is an important part of life, whether that’s through volunteering, donating, or supporting a cause that aligns with your values. But for those wanting to make a more strategic and long-term contribution, structured giving provides a powerful way to create meaningful change.
What is structured giving?
Structured giving is philanthropy with a plan. It involves establishing a formal structure or vehicle for giving, such as a private or public ancillary fund, a sub-fund, or a charitable trust. These structures allow individuals, families, and businesses to donate larger sums in a managed, tax-effective way that can continue to make an impact for years to come.
Unlike one-off donations or crowdfunding contributions, structured giving is designed to be ongoing and purposeful. It can help donors support causes they care about in a way that’s both strategic and sustainable.
Claiming a tax deduction for the donation
Donations to Deductible Gift Recipients (DGRs) in Australia can be claimed as a tax deduction in full or over five years (subject to eligibility). Spreading the donation over up to 5 years allows you to align the deduction with income in future years.
Approaches to structured giving
There’s no one-size-fits-all approach. Some people prefer the flexibility of corporate donations or planned family giving, while others establish dedicated philanthropic vehicles. Common options include:
Private ancillary funds (PAFs): A PAF is a private charitable trust that allows donors to make tax-deductible contributions and retain control over how funds are invested and distributed.
Public ancillary funds (PuAFs): PuAFs are similar to PAFs but open to public contributions. They are professionally managed and often host sub-funds, allowing donors to create a named giving account without the administrative burden.
Sub-funds and giving circles: A sub-fund is a donor-advised account within a PuAF. It allows donors to name their fund, recommend charities, and build a giving legacy over time.
Testamentary trusts: A testamentary trust is created through a will and activated upon death. It can be used to direct assets to charitable causes or support beneficiaries in a structured way.
Each structure comes with its own governance, tax, and operational considerations and choosing the right one depends on your goals, values, and capacity for involvement.
Why structured giving matters
Philanthropy plays a unique role in addressing today’s challenges. It provides critical support where government or commercial funding may not reach helping to kick-start new initiatives, fund innovation, and amplify diverse voices working for positive change.
Structured giving enhances this by:
- Encouraging long-term and intergenerational giving
- Creating a dedicated pool of funds that can grow and be distributed strategically
- Supporting projects that require patience, innovation, or higher risk appetite
- Strengthening community and institutional connections through shared purpose
In short, it turns generosity into legacy.
Growing a culture of giving
Philanthropy Australia’s Blueprint to Grow Structured Giving by 2030 outlines a national vision to strengthen this sector and inspire more Australians to give in planned, enduring ways. The idea is simple: when structured giving grows, the ripple effects benefit the entire community, from local grassroots programs to nationwide initiatives.
How Cutcher & Neale can help
At Cutcher & Neale, we understand that philanthropy is both a financial and a deeply personal decision. Whether you’re looking to set up a private ancillary fund, explore tax-effective giving strategies, or create a lasting family legacy, our team can guide you every step of the way.
We’ll work with you to build a structured giving plan that aligns with your values, supports the causes you care about, and provides comfort and clarity in how your generosity can make a lasting difference.
Speak to a trusted advisor today
To explore your options for structured giving, get in touch with your Cutcher & Neale advisor.
Jace joined the firm in 2005 and has over 20 years' experience in the taxation and business services field. By immersing himself within the industry, he has developed a deep understanding of the financial and operational issues that face businesses and, as a result, provides tailored solutions to bring the best possible outcome to his clients.
Jace takes a holistic approach, allowing him to plan for all aspects of his clients personal finances including their practice / business, investments and superannuation.
