Geoff Harris on why he gives
August 2017
PHILANTHROPY
Geoff Harris’ philanthropy is guided by the philosophy, “there’s no point being the richest man in the cemetery”. By Nicole Richards.
9 June 2014
They say it’s the thought that counts.
But having the right structures in place can make your charitable dollar go further for longer.
Just over a decade ago, the practice of setting up your own fund for charitable giving was relatively rare in Australia, even among high net worth individuals.
But according to the JB Were Philanthropy Survey conducted in December 2013, there are now 1, 116 Private Ancillary Funds (PAFs) established in Australia since 2001 – collectively giving approximately 1.5 billion to charity each year. These figures do not include charitable foundations established as legacies in wills, for these there is no reliable data.
For high net worth individuals, establishing a foundation can be an effective way to execute your particular style of philanthropy. The first step is understanding your options.
A foundation is generally one of two types of organisations:
Each of these types of foundations can apply for and receive Deductible Gift Recipient or ‘DGR’ status from the ATO, which means they can provide a tax deduction for donations over $2 received by them.
Foundations that deliver benefits to the public receive DGR 1 status, while foundations that fund charitable activities receive DGR 2 status. Below is more information about the common foundation structures you can establish if you want to fund the charitable activities of other organisations or individuals in the community.
These foundations are usually started by donating an endowment (or ‘corpus’). This endowment is prudently invested to produce income that can be distributed to charities on an ongoing basis, following guidelines set by the ATO.
Having charitable status with the ATO means the endowment can grow in an environment where:
This can help the endowment go further than a large one-off donation to a charity, providing a sustainable income stream to support your chosen charities.
The type of structure you choose will determine the legal, financial and operational requirements of your foundation. The main options are:
Public Ancillary Fund (PuAF) | Private Ancillary Fund (PAF) | Testamentary Charitable Trust | Private Charitable Trust | |
---|---|---|---|---|
Can claim charitable status | Yes | Yes | Yes | Yes |
Donations received are tax-deductible | Yes | Yes | No | No |
Can receive donations from the public | Yes | No | Yes | Yes |
Can commence while you’re still alive | Yes | Yes | No | Yes |
The most suitable foundation structure for you will depend on your philanthropic objectives, how much financial support you want to give and when, and how personally involved you want to be in all aspects of the foundation.
In many cases, particularly if you prefer to allocate all of your available philanthropic funds immediately and directly into the community, a foundation might not be the structure for you at all.
Through ANZ Private, you have access to philanthropy specialists who can help you articulate and execute your giving goals, whatever they might be. To find out more speak to your ANZ Private Banker.
To discuss what this insight could mean for you, talk to your ANZ Private Banker directly, or contact us below.
August 2017
PHILANTHROPY
Geoff Harris’ philanthropy is guided by the philosophy, “there’s no point being the richest man in the cemetery”. By Nicole Richards.
November 2017
PHILANTHROPY
Social impact investing took off about five years ago, and now investors are seeing the results.
September 2015
PLANNING
Professional estate planning advice can help you ensure the people and causes you would most like to support are recognised in your will.
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