Donations
Taxation benefits
Family charitable foundations well within reach
Australian citizens are expected to contribute to the general welfare of the community and typically this is achieved through the payment of taxes. However when individuals elect to make contributions direct to recognised charitable causes, the government gives recognition in the form of income tax deductions for the sums donated. This gives donors some control over the direction in which their welfare tax dollars are to be spent.
Whether paid to the taxation office or direct to favoured charities, the money can be said to disappear from view. However this can be avoided and nowadays persons with philanthropic intent can assist their favourite charities and retain sight of their compounding generosity through a family charitable fund within a community foundation. Donors may name their charitable fund, recommend the deductible gift recipient charities to benefit, receive an immediate tax deduction for their contribution and see the charities benefit from the income generated throughout the years to come.
Named charitable funds are increasingly popular overseas and now have a firm foothold in Australia. With the launch of the Capital Region Community Foundation (GreaterGood), residents of the region will have a locally based foundation through which to conveniently realise charitable intentions.
Persons with philanthropic intent can settle capital amounts or assets (from a value of as little as $20000) into a family fund under the auspices of GreaterGood.
The sum settled is an irrevocable gift that will generate income for the benefit of charities under recommendation into the future. An immediate tax deduction is available either fully in the year of donation or spread over five tax years. GreaterGood offers flexibility and allows donors to tailor their charitable fund to their needs. The donor can watch the family fund grow with added contributions over the years and can recommend additional beneficiaries provided they are also deductible gift recipient charities.
A family charitable fund under GreaterGood is a simple and cost effective way of establishing a private foundation. GreaterGood provides the record keeping, investment facility, tax deductibility, annual auditing and board governance. The family appointor can nominate the degree of recognition desired, have involvement with the donation of annual income to the charities or alternatively enjoy complete confidentiality. Once the fund is established, further contributions can be made during lifetime or under will and appointer status can be passed on through successive generations.
Professional advisors are in a good position to include the option of GreaterGood when advising clients on year-end taxation strategies, on lifetime philanthropy aims or on testamentary charitable bequests.
Further details are available through the trustee for the foundation, the Public Trustee for the ACT on 62079800, GPO Box 515 Canberra 2601 or email publictrustee@act.gov.au