Turbocharge your donations with a Private Ancillary Fund
What is a Private Ancillary Fund?
A Private Ancillary Fund is a type of charitable trust that enables an individual or family to put aside funds for philanthropic purposes. The PAF provides financial support to charitable organisations. The funds within the PAF can be distributed to not-for-profit organisations of choice over a shorter timeframe or managed over a longer-term.
Maximise tax benefits
Bequests made to a charitable organisation under a Will generally do not provide any tax deductions to the deceased estate. In contrast, gifts to a complying PAF are tax deductible to the donor at the time the gift is made. The funds are invested by the PAF, and the earnings are tax exempt. The tax exemption maximises the funds available for charitable purposes and helps the PAF manage its capital base by reinvesting profits.
Compliance requirements
A PAF is a specific trust structure and has a number of operating and compliance requirements. PAFs are regulated by the Australian Charities and Not-for-profits Commission and must adhere to the Taxation Administration (Private Ancillary Fund) Guidelines 2019. In addition, PAFs need to apply for endorsement as a tax concession charity (deductible gift recipient) from the ATO and are subject to the relevant income tax laws and requirements.
Legal costs
Forvis Mazars use legal specialists to establish the PAF. We can provide referrals to experienced industry specialists when required.
Management
Clients can choose how involved they would like to be with the management of their PAF. Forvis Mazars can provide administrative support, accounting, taxation advice, assistance with ATO endorsement as a tax concession charity, taxation compliance and corporate trustee services. The PAF would be audited by an independent auditor. Investment management can be handled by a trusted investment advisor selected by the client, ensuring alignment with the fund’s philanthropic objectives and risk profile.
To find out more, please contact your usual Forvis Mazars advisor or one of our specialists below:
| Melbourne – Michael Jones | Sydney – Jeremy Mortlock |
| +61 3 9252 0800 | +61 2 9922 1166 |
Author: Michael Jones
Published: 29/9/2025
Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.
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