Some of Australia’s wealthiest people give away their money through public and private ancillary funds. But (almost) anyone can set one up and become a philanthropist.
Australia isn’t a stingy country, but looking at the numbers, you may be forgiven for thinking so.
As a percentage of GDP, Australia gives at a lower rate than other developed countries.
That’s 0.81 per cent in Australia in 2021 compared with 0.96 per cent in the UK, 1.84 per cent in New Zealand and 2.1 per cent in the US, according to research by the Centre for Social Impact released in August last year.
The same research found that among people with a taxable income above $1 million, only 55 per cent of Australians made tax-deductible donations, compared with 90 per cent of Americans.
Why aren’t we donating more?
According to investment industry veteran and founder of Australian Philanthropic Services Chris Cuffe, it’s not so much that Australians are poor givers, but that they lack the understanding of how to go about it.
He founded Australian Philanthropic Services in 2010 after establishing his own philanthropic vehicle, a private ancillary fund, in 2007 and found the process arduous.
Australian Philanthropic Services supports clients to establish their own private ancillary funds, or invest in the APS Foundation’s public ancillary fund. It has $2 billion under its auspices, and donated $140 million to charity in 2022.
FULL STORY
How to give away your money like a billionaire (even if you’re not) (Australian Financial Review)
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