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Ancillary funds (private and public)

Private Ancillary Funds (PAFs) are a charitable trust that allows businesses, families and individuals to make tax-deductible donations to DGRs with Item 1 status.
 
PAFs can apply for endorsement as a tax concession charity (TCC) which provides tax exemption for any income earned, allowing the PAF to apply for a refund of imputation credits on any fully franked income.
 
PAFs are required to have a corporate trustee, invest prudently, subject to a written policy, and distribute a minimum of 5 per cent of the value of the trust each year.
 
Factors to consider when considering a PAF:
 
  • Is this the most appropriate structure for you? 
  • How much do you want to give?
  • Timeframe of grants
  • Nature of the organisations you want to work with
  • Level of control you require
  • Level of involvement from other family members
  • What is required to set up a PAF?
  • Ongoing administration
  • Investment management.
 
Follow this link to read more about PAFs.
 
Public Ancillary Funds (PuAFs) collect tax-deductible donations from the public to distribute to DGRs with Item 1 status.
 
A PuAF is also endorsed by the Australian Taxation Office as a DGR and TCC.
 
Donations are normally (depending on the service provider) credited to an individual management account within the PuAF.
 
Factors to consider when considering a PuAF:
 
  • Is this the most appropriate structure for you?
  • Requirements needed to establish a PuAF
  • Ongoing administration
  • Investment management.