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Private Ancillary Funds (PAF's)

PAF's 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 full franked income.

PAF's 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 right 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 Private Ancillary Funds (PAF’s)