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.
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.
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.
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.
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:
In short, it turns generosity into legacy.
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.
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.
To explore your options for structured giving, get in touch with your Cutcher & Neale advisor.