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Private Ancillary Funds (PAF)

PAFs are funds established by trust instrument to which business, families and individuals can make tax-deductible donations.

As a charitable trust, a PAF has deductible gift recipient (DGR) status and can apply for endorsement as a tax concession charity (TCC) which provides tax exemption for any income earned and allows 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% 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?
    • Time frame of grants
    • Nature of the organisations you want to work with
    • Level of control you require
    • Level of involvement from other family members.
  • How to set up a PAF
  • Ongoing administration
  • Investment management.

Follow this link to read more about PAF.