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By Trish Harding

Philanthropy, the word, the act, has different meaning for every individual, family and community.  And how each starts their philanthropic journey, and how they execute it – it is different for everyone.

We often see philanthropy through:

  • TIME: the giving of time in the service of others
  • TALENT: sharing unique skills and expertise with the community, anywhere there is a need
  • TIES: sharing personal or professional network and connections with favourite causes and organisations
  • TESTIMONY: using voice to promote the work of chosen causes / organisations, or encouraging others to practice giving
  • TREASURE: financial (or in-kind goods and services) gifts to for-purpose organisations that hold meaning for the donor.

Any individual who participates in one or a few of the Ts – you are a philanthropist.  You are playing a role in furthering the love of humanity and the creation of a better, more equitable world.

While time, talent, ties and testimony are important – we think treasure, and particularly the concept of structured giving, can offer individuals, families and business a powerful way to create ongoing, sustainable impact in the community.

What is structured giving?

The world is facing very complex and challenging social issues, and the community sector needs sustainable income, often on a multi-year basis, to fund innovative solutions to complex problems.

Structured giving is about putting a plan in place – for many, into perpetuity – to wisely invest and grow a pool of funds, generate income from the portfolio, then each year, strategically allocate an amount of income to eligible charitable beneficiaries, who are doing their part to create a better world.

What can structured giving look like?

Philanthropists often start their giving journey by leveraging charitable trust structures.

Equity Trustees proudly works with over 450 families, who are actively giving during their lifetime, and have more than 1,200 trust structures under stewardship, executing the philanthropic legacy of those still with us and those that have now passed.

First we seek to understand if you, as the prospective philanthropist would like to start giving now, or after via your Will. We then ascertain the types of causes and organisations you might like to support. Then we find the best structure to execute your giving objectives.

Some of the structures available to prospective philanthropists that can maximise impact for the community, and allow individuals and families to have a fulfilling experience with their giving, include:

Equity Trustees Charitable Foundation (public ancillary fund sub-account)
Creating a sub-fund within the Equity Trustees Charitable Foundation (ECF) is an easy and tax effective way to begin a journey into philanthropy:

  • Can be seeded with just $5,000
  • Tax-deductible contributions to your sub-account are invested together with the contributions of other families, collectively creating long-term impact for community
  • Equity Trustees manages all the investment, compliance, governance, and administration of your sub-account, leaving you to recommend which deductible gift recipient (DGR1) charitable organisations you’d like to support each year
  • Fees are adjusted according to each philanthropist’s need for additional support and service
  • Your experience is enhanced by an easy-to-use portal which offers transparency and accessibility to your sub-account
  • Also appropriate for those wishing to activate structured giving via their Will.

Private Ancillary Funds
Another tax-effective way for those wishing to make philanthropic contributions to organisations that qualify as DGR1:

  • Perfect for philanthropists who desire a standalone structure
  • Ideal for those who have more than $1,000,000 to seed
  • Founders will be keen to be involved in the investment decisions
  • PAFs can invest in a range of investments including cash, shares, fixed interest securities, and property.

Perpetual Charitable Trusts
A Perpetual Charitable Trust is established via a Will to:

  • Continue your giving, supporting charities, charitable causes, scholarships, and awards in perpetuity
  • A trust can have your name, your family’s name, or even be named in the memory of someone you loved or admired
  • Can act as an effective estate planning tool and once created can offer a degree of flexibility in terms of the types of assistance that the Trust can provide each year.

Whether treasure is shared via an Ancillary Fund during one’s lifetime, or via a trust activated by a Will instrument, structured giving is a powerful way to experience the joy of philanthropy, leverage a tax-effective vehicle and grow investment income that will be shared with the community sector, to build a brighter, more equitable future for all.

By contributing to the for-purpose community sector, we are all philanthropists.  Structured giving enhances the effectiveness and sustainability of philanthropy, leading to more meaningful and lasting positive changes in communities.

For more information, reach out to your Sterling Planners adviser or the Active Philanthropy team at Equity Trustees, activephilanthropy@eqt.com.au

 

Article by Denise Cheng, National Manager – Active Philanthropy, Equity Trustees
https://www.eqt.com.au/philanthropy/be-a-philanthropist/structuring-your-approach

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