Today, the Assistant Treasurer released a media release titled "Philanthropic sector expands sharply", which highlights the continued growth of private philanthropy in Australia, particularly through the use of Private Ancillary Funds.
Private Ancillary Funds (which were previously known as Prescribed Private Funds) are a tax effective vehicle for individuals and companies to undertake private philanthropic activities. The benefits of a Private Ancillary Fund include:
- contributions to the fund will be deductible in the year in which they are made;
- a capital base can be accumulated over time in a tax free environment to be used for philanthropic purposes (funds must be distributed to other organisations that are endorsed as a deductible gift recipient);
- the Private Ancillary Fund's founders can maintain control over its assets and operation; and
- Private Ancillary Funds can outlive you and allow for a legacy of philanthropy to be carried on by subsequent generations.
If you wish to establish a Private Ancillary Fund before 30 June 2010, the time to act is now!