What You Can Gain by Giving Back
Have You Always Wanted To Give Back And Support Causes You Believe In, But Have Simply Been Unsure Of The Best Way To Go About It?
Philanthropy continues to be an area of financial management that individuals would like to participate in, but have a lack of understanding around or are unsure of the best approach to take. In fact, Australians have long been rumoured to be lagging behind in their philanthropic efforts in comparison to the United States, but the evidence suggests our philanthropic culture is blossoming as we’ve seen the rise of philanthropic structures that reward and support greater levels of giving.
Social media has further encouraged a broad trend towards sharing our success as we observe financially successful businesses and individuals giving back to the community or those less fortunate.
However, even with this cultural shift and the greater media attention philanthropic efforts receive, there continues to be a general misguided belief that implementing a long-term philanthropic structure is complex and difficult.
It isn’t! But, you do need to know the lay of the land in order to set up a structure that provides the most benefit to the causes you choose to support, whilst working harmoniously with your complete financial plan and structuring.
Most of us already support charities or causes close to us on an adhoc basis. And, many of us will leave a bequest to our favourite charity in our Will, but there’s no reason to delay supporting your favourite causes until we’re buried in a coffin.
Giving while living can be a much more rewarding experience, and setting up a charitable foundation is one avenue you can take to amplify the financial and emotional benefits such as tax advantages and bringing families together under a united altruistic endeavour.
Discussing money matters in a collective family setting that includes children, grandparents and other close relatives can connect the whole family under a common interest that is both personally meaningful and valuable to the community.
It’s also a great opportunity to educate children on your family’s values around money, motivations for giving back and the legacy you wish to create.
If you’re interested in setting up a charitable family foundation, there are the three main legal structures to consider all with various benefits. These include a Private Ancillary Fund (PAF), a sub-fund within an existing Public Ancillary Fund (PUF), and a testamentary charitable trust.
Ultimately, there are many life and business lessons we can gain from engaging in the community through philanthropy. Among these are a greater awareness of the world in which we live and the people we share it with, and a deeper level of empathy for others.
Interested in setting up a charitable fund, or wanting further clarity on how your earnings can help support your chosen charity? Give us a call on 1300 893 000 or send us an email at email@example.com to chat further.