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Private Ancillary Funds (PAFs)

A Private Ancillary Fund (PAF) is a fund established by trust instrument to which businesses, families and individuals can make tax deductible donations. The fund may make distributions only to other deductible gift recipients that have been either endorsed by the ATO or are listed by name in the income tax law. PAFs must not fundraise from the public, and a PAF can be controlled by an individual, family or corporate group.

The first PAFs were established in 2001; they were then known as Prescribed Private Funds (PPFs). The change to Private Ancillary Funds took place in 2009 as a result of a new regulatory regime being introduced. As of 31 October 2010 there were 863 PAFs. These funds have a corpus of some $2 billion and made grants of $153 million to DGR organisations in the year ending June 2009.

Philanthropy Australia is eager to assist the growing number of PAFs being established in Australia, and is working constantly to develop support networks and research around their practice.

Visit our special PAF Website designed for those who have established a PAF, would like to do so, or are wondering whether a PAF is right for them.

 

PAF Membership

PAFs will find Membership with Philanthropy Australia beneficial for the following reasons:

• The opportunity to participate in the wider philanthropic community, including our PAF Network, allowing members to discuss issues and concerns relevant to PAFs, and to share information and learn from one another's experience
• Access to resources, information and research via our Knowledge Centre, including information on effective grantmaking strategies
• Information on current news and events via our membership newsletters, including Pressing Matters, a weekly media round up; Philanthropy Review, a monthly e-communication; and Australian Philanthropy, our journal which is published three times a year.

Please contact us if you'd like to discuss any issues with regards to establishing or operating PAFs:

Louise Burton
l.burton@philanthropy.org.au
(02) 9223 0155

Bruce Argyle
b.argyle@philanthropy.org.au
(03) 9662 9299

 

Other PAF Resources

Tax Office overview of PAFs
The ATO's website on PAFs includes links to a model trust deed, guidelines and a Frequently Asked Questions page on PAFs.

Private Ancillary Funds Trustee Handook
This free downloadable handbook comments on what is required of the trustee, and directors thereof, of PAFs under the Guidelines and at law. It is not a legal document but a "plain English" introductory guide to the role and duties of the trustee(s) and all directors thereof.

Private Ancillary Funds Guidelines
The current Guidelines for Private Ancillary Funds

Philanthropy Australia Inc. - ABN 79 578 875 531 - Assn. No. A0014980T
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