Judith Fiander

There’s a quiet revolution building in Australian wealth management, and advisers sit at the centre of it.

Over the next two decades an estimated $5.4 trillion will change hands across Australian generations, a figure that dwarfs the previous Productivity Commission estimate of $3.5 trillion, updated in JB Were’s landmark Bequest Report to reflect surging asset values and an ageing population. This isn’t an abstract demographic statistic predicting a generational wealth transfer to come in the future. It is something that is happening in your clients’ lives right now. Whether it is in the form of inheritances received, business sales completed, or a retirement with a large superannuation balance, for many of your clients it is the culmination of lifetime of work and family.

And yet, if the evidence from T. Rowe Price’s recent study of US-based high-net-worth investors and their advisers is any guide, most advisers are not having conversations with their clients about what it means.

The gap no one talks about

Rowe Price’s research found that while 92 per cent of advisers who engaged clients in charitable giving conversations reported positive business outcomes (such as more referrals, stronger retention and deeper trust) the vast majority still only discuss the topic once or twice a year. Thirty-five percent of clients said they were waiting for their adviser to raise it. The charitable conversation is sitting there, ready to happen, with both parties waiting for the other to begin.

In Australia, the disconnect is particularly striking given our wealth position. The UBS Global Wealth Report shows we rank second globally on median wealth per adult, suggesting our wealth is more broadly distributed than in many other wealthy nations. And yet our charitable giving as a proportion of income remains modest relative to our international peers. The JB Were Bequest Report highlights that Private Ancillary Funds (PAFs) – one of Australia’s primary structured giving vehicles – number just over 2,300 today, despite the fact that nearly 100,000 Australian households hold net assets above $10 million. The gap between wealth and structured, purposeful giving is vast and it is one of the most significant opportunities in Australian financial advice.

What clients actually want

One of the most noticeable findings from the T. Rowe Price research is how personal charitable giving is for investors. When asked to describe it in their own words, investors chose phrases such as “helping others,” “making a difference,” and “kindness”. They used values-driven language, not financial or technical reasoning. For younger high-net-worth investors under 50, the desire to teach values to their children and build a meaningful legacy ranked far above tax benefits as a motivation. Nearly one in four investors said personal connection to a cause was their primary driver of giving.

This matters enormously for how advisers should frame the conversation as philanthropy is not, at its core, a tax minimisation strategy – though the tax benefits are real and material. It is however an expression of identity, about how clients want to be known, and how they want their families and legacies to be shaped. The JB Were report captures this through the concept of the “full family balance sheet”; the idea that true family wealth encompasses human, intellectual, social, spiritual and financial capital, not just assets on a spreadsheet.

The tax case is compelling too

Of course, the financial implications matter. And structured giving, whether via a PAF or a giving fund in a Public Ancillary Fund such as the APS Foundation, offers a significant tax benefit.

A client who establishes a giving fund receives an immediate tax deduction for their contribution, which can then be used immediately or spread flexibly over up to five years. The funds are invested and earnings are tax-free, with distributions made to eligible charities each year. This effectively separates the timing of when the donation is made and the tax deduction banked, from the decision of which charities to support.

The contribution goes in now; but the giving decision can be thoughtful, considered and strategic over time. This structure is particularly valuable for clients navigating a high-income year such as the sale of a business, a significant capital gain, or a bumper year of income, where bringing forward deductible giving delivers real tax savings at precisely the moment they’re most valuable.

Consider a client who sells a business and faces a substantial taxable gain. Establishing a giving fund in the same financial year allows them to take an immediate deduction, reduce their tax liability meaningfully, and then spend the next several years thinking carefully and joyfully about which causes and organisations they want to support. The financial planning and the values conversation become one.

And with the end of the financial year now approaching, timing matters: a giving fund within the APS Foundation can be established in just one business day with a starting contribution from $40,000. There is still time, this financial year, for clients to act, and to act in a way that is both financially and personally meaningful.

The business case for advisers

The T. Rowe Price data makes the commercial logic plain. Advisers who incorporate charitable giving conversations into their practice report enhanced trust with clients (67 per cent), improved satisfaction (65 per cent), better retention (54 per cent), and perhaps most valuably, strengthened relationships with the next generation (40 per cent).

That last point deserves emphasis. As the $5.4 trillion intergenerational transfer accelerates, the adult children now receiving or anticipating significant wealth are, according to T. Rowe Price’s research, the most values-motivated and guidance-seeking investor segment of all.

Younger high-net-worth investors are more likely to want their adviser to proactively raise philanthropy, more likely to involve their families in giving decisions, and critically, 100 per cent said their family would be more likely to continue with an adviser who was actively involved in philanthropic planning.

One of the most important questions an adviser can ask their client is “beyond your family, what do you want your wealth to stand for?” Engaging this cohort now through the lens of purpose and structured giving is how an advisory relationship survives and deepens across a wealth transfer, and how an adviser moves from a financial manager to a trusted family adviser.

There is also a straightforward referral reality. Ninety-two per cent of clients who work with their adviser on charitable giving say they are more likely to refer others, meaning the giving conversation becomes a material driver of new business.

Starting the conversation

The research suggests many advisers feel uncertain about raising philanthropy, either because they are unsure of their role beyond investment management, or concerned about intruding on something personal. But the research shows this fear is unfounded and that clients welcome the opportunity to talk about what really matters to them.

The approach can be something as simple as “Are there causes or communities you’ve always wanted to support?”. From that question the conversation about structured giving, the tax efficiency, the flexibility, the family engagement potential, flows naturally. There’s certainly no need to be a technical philanthropy expert, any more so than you need to be an estate planning lawyer. The value lies in recognising when giving is important to a client and ensuring it becomes part of the broader advice conversation.

Australia is sitting on an extraordinary confluence of wealth, demographic change and civic opportunity. The assets are there. The values are there. The vehicles to give (PAFs and giving funds) are there and accessible. What’s missing, far too often, is simply the conversation.

Advisers who start having it now won’t just be doing right by their clients. They’ll be building the kind of practice that endures and helping reshape what Australian wealth means for the communities that surround it.

By Judith Fiander, CEO

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Judith Fiander

Australians considering charitable giving before the end of the financial year should not be put off by uncertainty surrounding the proposed tax changes in the Federal Budget, Judith Fiander, Australian Philanthropic Services (APS) CEO, says.

Fiander says the ongoing consultation and political process around announced budget measures actually reinforces the value of making a tax-deductible charitable contribution before June 30.

“Although it is not clear, and will not be clear, until the political process around the various measures and what they mean for personal tax circumstances is complete, the advantage of tax deductible giving via a giving structure is you can make that gift now, and have that tax deduction at your disposal for as long as the next five years.”

Fiander says that by contributing to a structured giving vehicle such as a private ancillary fund (PAF) or a public ancillary fund (PuAF) before the end of the financial year, donors can secure a tax deduction now while retaining flexibility to apply that deduction over a five-year period.

“When the tax arrangements become clearer, donors will be able to deploy that deduction in the most tax-efficient way,” Fiander says.

Charities across Australia continue to face growing demand driven by cost-of-living pressures, inflation and broader economic uncertainty. Structured giving provides charities with a more reliable source of funding, helping organisations plan programs, deliver essential services and invest in longer-term projects.

“Charities need certainty just as much as donors do,” Fiander says.

“Structured philanthropy can support multi-year giving commitments and create sustainable revenue streams that help organisations make a greater impact.

APS is also encouraging greater awareness of the tax advantages of giving among high-net-worth Australians, with Australian Taxation Office data showing that around half of Australians earning more than $1 million annually claim no charitable donation deductions.

“That shows some people with the capacity to give are not, and that’s a missed opportunity both for the community and for donors themselves.”

Fiander says now is the time for people who have something to give, whatever that might look like – whether it’s time, money, labour or expertise – to step forward.

“With June 30 rapidly approaching, there is still time to make a charitable donation and gain a tax deduction.

“Every day is a good day for giving. But the days between now and June 30 are exceptional days for giving.”

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Judith Fiander

With the end of the financial year fast approaching, strategic philanthropy can solve a familiar problem for wealthy clients: a last-minute tax bill, Judith Fiander, CEO at Australian Philanthropic Services says.

Private Ancillary Funds (PAFs) are a popular choice for people who have a large tax bill as a result of selling a business or property, with the added bonus of ensuring they can also leave a long-term charitable legacy. A donation to a PAF delivers an immediate tax deduction that can be used that year or spread across up to five years and the fund itself is tax exempt, so the money can grow over time.

But with just weeks until 30 June, Fiander says many potential donors worry it is too late to start.

“Setting up a PAF typically takes about five weeks. However, a lesser-known alternative called a Public Ancillary Fund (PuAF) can be established in as little as one day with no setup fees. That means there is still time to claim a deduction this financial year,” Fiander says.

“Many of our clients don’t think of themselves as “wealthy” and this can be a barrier to structured giving. But experiencing a windfall, such as selling a business or a property, opens the door to this highly tax-effective and enormously satisfying opportunity.

“A giving fund with a provider like Australian Philanthropic Services can be started with just $40,000.”

A recent survey conducted by Australian Philanthropic Services highlighted a shift towards long-term, values-led philanthropy, with the majority of respondents aiming to maintain their fund in perpetuity, ensuring their charitable impact continues for generations.

Fiander says the end of financial year (EOFY) presents an opportunity for individuals, couples and families considering philanthropy to identify causes close to their hearts, and put a plan in action that shapes a more purposeful legacy.

“People are increasingly looking for strategic advice on philanthropy, from setting up foundations to making sure donations are tax effective,” Fiander says.

Some people come to APS direct, and others come with the assistance of their financial adviser.

“By partnering with a specialist provider, advisers can expand what they offer clients without getting bogged down in red tape.

“While tax advantages grab attention at this time of year, the real power of structured giving is what it makes possible. Our clients are driven by having meaningful impact, family conversations about shared values, and the simple joy of giving.”

Latest Australian Taxation Office statistics from 2022–23, show PAFs made distributions of just under $800 million, with 114 new PAFs approved, adding to a total of 2,196 now operating in Australia.

The APS Foundation – Australia’s fastest growing and most generous PuAF amongst its peers – saw the creation of 123 new Giving Funds (or sub-funds) in FY2025. Since its establishment 14 years ago, APS clients have given away more than $1.4 billion to charities and now have over $2.9 billion in funds donated into ancillary funds for future charitable use.

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Judith Fiander

Australian women are being encouraged to embrace philanthropy this UN International Day of Happiness (20 March), as they get set to inherit $3.2 trillion in the nation’s largest-ever intergenerational wealth transfer, Judith Fiander, CEO at Australian Philanthropic Services (APS) says.

“Days like this are an important reminder of the role we can play in boosting not only our own happiness, but also that of those around us and the wider community,” Fiander says.

Fiander says that while one-off donations are valuable, impact and legacy come from turning generosity into a sustained habit. Research also shows that charitable giving can improve personal wellbeing.

Research shows that 85% of people get more joy giving gifts to others than receiving gifts themselves and that giving sparks the brain’s pleasure and social connection regions, lowers blood pressure and stress, and enhances positive emotions and mental health^[1]. But structured giving, through vehicles such as private and public ancillary funds, allows donors to go a step further by turning generosity into a long-term habit rather than a one-off moment,” Fiander says.

“With the intergenerational wealth transfer set to see women gain control of a significant portion of wealth, there is an opportunity to make long-term decisions about how that money can be used for the greater good.

“We want to encourage more women to get behind charitable giving, not just today, but as an important part of their financial legacy.”

Fiander says structured giving is increasingly accessible to everyday donors, as vehicles such as Giving Funds in the APS Foundation (Australian Philanthropic Service’s public ancillary fund) allowing people to build a philanthropic pool of funds that can distribute grants to charities perpetually.

“Structured giving allows individuals and families to support causes they care about over time, while seeing the impact of their contributions,” Fiander says.

“Women are often deeply engaged with their communities and causes, but many haven’t been given the tools to step into formal philanthropic leadership. Structured giving gives women the opportunity to shape how wealth is used for social impact.

“Women give across a wide spectrum of issues but are often more likely to apply a gender lens to the causes they support, helping to drive broader social change. We also know that over the past decade, women have given a greater proportion of their income, and so as awareness of structured giving grows, so too will their ability to drive change.”

Structured giving can also encourage a conversation about legacy. Many donors use philanthropic structures to involve children and family members in decisions about where funds should go, helping build a culture of generosity across generations.

“In a world where so many people are searching for purpose, giving can be one of the most rewarding ways to find it,” Fiander says.

“Structured philanthropy simply provides the framework to make that generosity go further, and on a day dedicated to happiness, that long-term perspective matters.”

APS works alongside sector partners such as the SheGives initiative and Australians Investing in Women, to help more women direct their resources toward the causes they care about.

“International Day of Happiness, and every day, is a timely moment to recognise and celebrate the impact of philanthropists and to encourage more Australians to consider how they can give tax effectively now through a structure and leave a legacy for future generations,” Fiander says.

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Notes:
[1] Gifts that Give Report, FPA, 2019.

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Judith Fiander

The Government’s decision to raise the minimum distribution rate for Private Ancillary Funds (PAFs) from the current 5 per cent to 6 per cent and for Public Ancillary Funds (PuAFs) from the current 4 per cent to 6 percent is disappointing, running counter to the Government’s stated aim of building the giving culture in Australia, Judith Fiander, CEO at Australian Philanthropic Services (APS) says.

Addressing the serious community issues facing Australia requires encouraging more people to give rather than squeezing those already engaged, Fiander says. The current 5 per cent rule – high by international comparisons – represents a minimum, not a ceiling, with many APS clients already distributing well above the requirement.

“On the surface, raising the minimum might sound like a way to push more money to charities faster, but Treasury’s own modelling shows this is only a short-term fix with a negative impact into the future,” says Fiander.

According to Treasury’s Discussion Paper (Giving Fund Reforms, June 2025) “Higher distribution rates see aggregate distributions to deductible gift recipients (DGRs) maximised over the short term. [However,] in the longer term, distributions are maximised when the distribution rate is set at its current rate of 5 per cent.”

The 5 per cent rate of distribution is consistent with targets set for the Government’s own future funds such as the recently created Housing Australia Future Fund (HAFF) and Medical Research Future Fund (MRFF). As recently reported, the MRFF has failed to achieve even that level of distribution.

“If the Government is serious about increasing the flow of funds to charities, why are they applying a different standard to philanthropists than they are to themselves?”, continues Fiander.

Fiander says so far, the system has worked well.

“Since their inception PAFs have provided more than $6.7 billion to charities, while preserving long-term capital and encouraging generosity by Australians in a structured context. The system does not need changing.”

She says one of the key elements in the success of ancillary funds promoting a more generous Australia over the last two decades, has been a stable and relatively consistent compliance regime – this change risks derailing the progress that has been made.

“This is particularly important given the long-term nature of philanthropy. Increasing minimum annual distributions – even modestly – creates uncertainty and potential donors will question whether the rate may go up again. Tinkering with the regime risks future giving,” Fiander says.

“The 5 per cent minimum that applied before this change was well-founded, aligning with international best practice as well as the Government’s own future funds, and crucially, maintained the capital base to ensure sustained giving for generations to come.

Fiander says there is a once-in-a-generation opportunity to embed philanthropy deeply into Australian culture, and the latest move by the government is putting this at risk.

“Since its establishment 13 years ago, APS clients have given away more than $1.4 billion to charities and now have over $2.9 billion in funds irrevocably donated into ancillary funds for future charitable use. APS consistently establishes roughly one-third of all PAFs created in Australia each year and has the fastest growing and most generous public ancillary fund of its type in the country”, Ms Fiander said.

“With patient capital, philanthropy can help tackle long-term challenges like homelessness, disadvantage and medical research. But this requires confidence in a system that works. The Government’s decision on minimum distribution levels is disappointing and doesn’t align with their own stated aims”, says Fiander.

“However, we remain firm believers that ancillary funds are one of the most effective and efficient ways to support the community.”

It’s not all bad news. Fiander says the Government increasing the number of new Community Charities is welcome. “The two-year lead time for application of the new minimum distribution level for existing ancillary funds is sensible and aligning distribution rates across all ancillary funds is sensible. Further, the provision of smoothing of distributions levels over three years will support large charitable projects.

“Finally, stability of ancillary fund guidelines was recognised as being important by the Productivity Commission which recommended that changing minimum distribution levels should only be considered once a decade.

“We urge the government to confirm its agreement on this point and on increases to distributions levels from its own funds”, says Fiander.

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Kate Stone

With the festive season fast approaching, Australians are being encouraged to embrace the spirit of giving in a way that lasts well beyond Christmas morning, while at the same time reducing their immediate tax liabilities.

Kate Stone, Head of Philanthropic Giving at Australian Philanthropic Services, said while the end of the year often inspires spontaneous generosity, now is also the perfect time to make philanthropy a lasting part of family and financial planning.

“The festive season brings out the best in people, and we see enormous generosity across the country at this time of year,” Ms Stone said.

“But for many charities, that generosity peaks in December and then drops sharply once the celebrations end. The initial donation to establish a Private Ancillary Fund (PAF) or a sub-fund within a Public Ancillary Fund (PuAF) is tax-deductible, and the funds within the structure are invested tax-free, growing the capital available for charity over time.

“This means your festive season generosity can keep giving, year after year.”

Structured giving allows individuals and families to make a significant commitment to their chosen causes. The APS 2025 Client Survey highlights the growing role that PAFs and Giving Funds play in enabling Australians to give strategically, efficiently and with long-term impact.

“Our clients are deeply motivated by purpose, and these vehicles create a legacy of giving,” Ms Stone said.

“There’s plenty of scope to grow giving in Australia. ATO data shows that while the size of donations is increasing over time, the number of donors is shrinking. Giving structures buck this trend. There are now 3,500 private and public ancillary funds in Australia , showing that more and more givers are seeing the benefits of giving in a considered, future-focused way.”

“Setting up a giving fund is one of the most powerful and positive New Year’s resolutions a family can make. It allows you to take a strategic approach, supporting causes you are passionate about well beyond the festive season. It can also be a wonderful way to connect the family within and across generations by giving back together”

Ms Stone said that while Christmas is a time of celebration for many, it also shines a light on the needs that remain across the community.

“This time of year reminds us that not everyone experiences the season the same way. For some, it’s a time of loneliness or financial pressure,” Ms Stone said.

“Philanthropy gives people a way to respond to that through supporting organisations that provide shelter, food relief, mental health support, or gifts to ensure every child finds joy in the season.

Since its establishment 13 years ago, APS clients have given away more than $1.3 billion to charities and now have over $2.4 billion in funds irrevocably donated into ancillary funds for future charitable use. APS consistently establishes roughly one-third of all PAFs created in Australia each year.

“The festive season is a natural time to think about giving, and establishing a philanthropic fund turns that seasonal impulse into something that lasts,” Ms Stone said.

“It’s a way to celebrate what you have by creating something that keeps giving back, not just this Christmas, but every year to come.”

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Kate Stone

As headlines explore the coming intergenerational wealth transfer, the narrative often centres on “next gen” inheritors, typically imagined as tech-savvy, purpose-driven 30-somethings. But this framing misses a critical truth.

The next decade of wealth transfer will not be led by Gen Z or even Millennials, instead, it will be Generation X.

Australia is part of a global shift, with the Productivity Commission estimating $3.5 trillion expected to pass between generations over the next 20 years. More recent analysis places that figure even higher – approximately A$5.4 trillion over the next 20 years (JB Were^[1]). While much attention is given to younger heirs, the most recent Household, Income and Labour Dynamics in Australia (HILDA) survey found inheritances are most commonly received by people over the age of 55, while a 2021 Productivity Commission report found the age of receiving an inheritance peaked between 55 and 59. This puts Gen X squarely in the spotlight, not as future inheritors, but as current recipients.

Gen X, now in their late 40s to early 60s, stands at a crucial intersection commonly called ‘the sandwich generation’: many are still supporting children while stepping into roles caring for ageing parents. Potentially at the peak of their career, they carry mortgages, are saving for retirement, and are multitasking complexity in ways other generations are not.

Gen X’s ‘sandwich’ status influences how they think about wealth, risk, giving and purpose. Because of this, their perspectives differ from both Boomers (who are considering their legacy) and younger cohorts (who are often positioned as philanthropic ‘disruptors’). The values, life‐stage pressures and motivations of Gen X will strongly shape how that wealth is used, including in giving.

It’s not just Gen X as a whole we need to consider, a gender lens matters. Women are expected to inherit around 65% of Australia’s intergenerational wealth transfer, equating to roughly $3.2 trillion over the next decade (The Growth of Women and Wealth^[2]), making their values, priorities, and approach to wealth stewardship and philanthropy fundamental.

What do Gen X care about?

Generational data from McCrindle’s The Future Donor (2023) and Blackbaud Institute’s Charitable Support Across Generations (2024) suggests that Gen X are most motivated to support medical and cancer research, animal welfare & wildlife protection, children’s charities, social service organisations and emergency relief efforts. Their choices are driven by personal values of hope, duty and empowerment, and when it comes to choosing charities, reputation, efficiency and transparency matter.

Whilst many of the well-known philanthropic foundations are established by and named after men, it is often the women in the family driving decision-making around giving. In her research on the role of Women in Philanthropy^[3], Kimberly Downs found 77% of women indicated that they model or guide their family’s philanthropic giving, while 75% of women said they want to understand the needs of the community and then do something about it. It’s not just about giving and having an impact, women want their family to learn social responsibility, compassion and generosity through giving back.

Implications for wealth managers, philanthropy advisors, family offices

If you are advising families or structuring philanthropic vehicles, recognising the nuances of Gen X as incoming wealth inheritors is vital. Some key implications:

• Timing matters: Since the average age of inheritance is around 55, we should look to engage Gen X now, rather than assume it’s “20 years away.”
• Motivations differ: Gen X may prioritise stability, family security, real estate/mortgage paydown, education of children, and support for ageing parents. Wealth and philanthropic advice must reflect the complexities of that sandwich stage reality.
• Engaging women: Women are looking for holistic and tailored advice. They want someone who understands their expertise, available time, lifestyle and family obligations. They value trust and communication, and expect the same high value opportunities to be presented to them as to their male counterparts. They are also more likely to seek investments with a good social element, both for their personal wealth and their philanthropy.
• Legacy conversations: Engaging Gen X in discussions about family values, long-term giving, the benefits of intergenerational structures (e.g., family foundations, giving funds) is important. They will serve as gatekeepers of both wealth and values for younger siblings/descendants.
• Philanthropic vehicle design: Giving programs might need to be customised for Gen X’s time-horizon, liquidity needs (mortgages, children’s education), and risk appetite, rather than defaulting to all-in “impact investing” models geared at younger disruptors.
• Communication style: While Millennials and Gen Z may respond to “technative”, social impact brand messaging, Gen X may prefer evidence, pragmatism, legacy frameworks and structured governance.

Gen X will shape how much, and in what way, family wealth translates into legacy giving, intergenerational values, and community impact. We need to shift our focus now to engaging and nurturing Gen X if we want to make the most of the impending wealth transfer.

Advisors, philanthropy sector professionals and families should stop seeing Gen X as a passive bridge between Boomers and Millennials. They are active custodians now, and increasingly so. If their motivations, constraints and life stage pressures aren’t part of the conversation, we risk missing one of Australia’s most significant wealth and philanthropy inflexion points.

By Kate Stone, Head of Philanthropic Giving

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Notes:
[1] https://www.jbwere.com.au/content/dam/jbwere/documents/campaigns/JBWere-Bequest-Report.pdf
[2] https://www.jbwere.com.au/campaigns/growth-of-women-and-wealth
[3] https://kimberlydownes.com/wp-content/uploads/2021/08/Influence-of-Women-in-Australian-Philanthropy-WEB.pdf

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Judith Fiander

Australians are giving more generously and with greater purpose than ever, with new data from Australian Philanthropic Services (APS) showing a shift towards strategic, legacy-focused philanthropy as the leading motivator for establishing structured giving vehicles such as Private Ancillary Funds (PAFs) and sub funds within Public Ancillary Funds (PuAFs).

The 2025 APS Client Survey, one of the most comprehensive studies of structured giving in Australia capturing responses from nearly 300 respondents, found that 86 per cent of donors were driven primarily by a desire to give, which highlights a shift towards long-term, values-led philanthropy. More than six in ten intend to maintain their fund in perpetuity, ensuring their charitable impact continues for generations.

Respondents also highlight the tax effectiveness of philanthropy. Establishing a PAF or a Giving Fund (also known as a sub fund) in a PuAF such as APS Foundation, is especially valuable during major financial events, like business sales or asset disposals, where capital gains tax liabilities arise, as funds within these structures provide immediate tax deductions which can be spread up to five years and the ancillary funds are income tax-exempt.

Judith Fiander, CEO of APS, said the results reflect how philanthropy in Australia is evolving from transactional giving to strategic, sustained impact.

“Our clients are deeply motivated by purpose,” Ms Fiander said, “many of them want to build something enduring that their families can be proud of.”

The APS 2025 Client Survey highlights the growing role that PAFs and Giving Funds play in enabling Australians to give strategically, efficiently and with long-term impact. Among the findings, 87 per cent of PAF clients and 65 per cent of Giving Fund holders in APS Foundation have already nominated or engaged a successor in their giving, highlighting the growing importance of philanthropy as a tool for intergenerational connection.

The survey also found that Australians value simplicity, trust, and strong governance in managing their giving. Respondents also expressed a keen interest in more educational content, charity insights, and tools to support their giving.

“Our clients want to learn, connect, and collaborate with peers. This shared enthusiasm gives us even greater confidence that we can achieve even more together,” Ms Fiander said.

Satisfaction across APS services was exceptionally high, achieving an industry-leading Net Promoter Score of 73, well above the professional services average of 48. Nearly all respondents rated governance, compliance and administrative support as top strengths, and cited the organisation’s not-for-profit model, streamlined administration as key reasons for choosing APS. Clients with giving funds in APS Foundation cited those reasons plus the investment performance of APS Foundation as reasons for choosing APS.

“People want confidence that their philanthropy is handled with integrity and care. We’re investing in technology and tools that make giving easier, more informed and more rewarding, helping our clients focus on what really matters,” Ms Fiander said.

The survey comes as APS Foundation delivers another year of strong returns. For the year to 30 June 2025, the APS Foundation’s General Portfolio returned 10.6 per cent after fees, bringing its seven-year annualised return to 8.2 per cent. Since inception in 2012, the portfolio has achieved 10.2 per cent after fees.

The APS Foundation has a strongly diversified General Portfolio guided by an investment committee overseen by Chris Cuffe AO. Many of the Foundation’s investment managers provide their services on a pro or low bono basis. While Giving Funds in the APS Foundation are managed by APS investment managers, Chris Cuffe AO and David Wright, PAF funds are managed by the PAF’s directors or an investment manager appointed by PAF directors.

“The APS Foundation continues to meet or exceed its long-term targets, proving that philanthropy can deliver competitive, risk-adjusted returns,” Ms Fiander said.

“People want to maximise their impact, and the strong returns generated by APS Foundation have compounded that impact over time. By applying institutional-quality investment management within a charitable structure, we’re showing that capital set aside for good can also perform strongly, amplifying the long-term benefit for the community.”

To date, an estimated $7 billion has been gifted to charities through ancillary funds, which preserves long-term capital and encourages generosity in a structured context. Since its establishment 13 years ago, APS clients across APS Foundation and the private ancillary funds have given away more than $1.3 billion to charities and now have over $2.4 billion in funds irrevocably donated into ancillary funds for future charitable use.

“These results, both on the fund performance side and the client satisfaction side, prove what we already know about structured giving. It’s about values, vision, and legacy,” Ms Fiander said.

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Judith Fiander

Despite the talk of global uncertainty, the fact is that many Australians have record levels of wealth, and they are thinking of giving back to society in meaningful ways during their lifetimes.

This does not apply to everyone of course, but overall, Australians have never been wealthier and some have much more than they need on which to live. Household wealth hit a record high in the December quarter of 2024, with total wealth rising to a staggering $17.0 trillion, which was 6.6 per cent, or $1.0 trillion, higher than a year ago.^[1] Household wealth rose for the ninth quarter in a row as more Australians accumulate wealth on the back of rising property and share values and a record $4 trillion held in their superannuation investments.

With so many Australians having more than they need on which to live and retire, this understanding is feeding into the philanthropic space. More Australians and their advisers are recognising the financial and emotional benefits of structured giving. 

When Australian Philanthropic Services (APS) was founded in 2012, few advisers or their clients knew much about structured philanthropy. That has changed as wealthy Australians become more conscious about giving back to society. Giving also feels good. Our clients talk a lot about the joy and satisfaction they derive from their giving, and ample research backs this up.

The tax advantages of structured giving

For families seeking to leave a meaningful impact, structured giving is a practical and enduring option, with the bonus of significant tax advantages. With investment returns tax-free, structured giving enables individuals to give and grow funds for greater future charitable impact, from first gifts to strategic funding rounds.

Givers can choose between establishing their own Foundation (private ancillary fund or PAF) or a giving fund in the APS Foundation (public ancillary fund). Both have the same tax deductibility and ability to support charities that match the giver’s focus.

Private Ancillary Funds (PAFs) and giving funds in public ancillary funds can be an ideal choice for donors facing a significant liquidity or business event in their lifetime, such as the sale of a business or property resulting in a large tax bill.  Donors can commit capital to their fund, receive a full tax deduction for the amount contributed now or even spread the deduction over up to five years. Funds are then distributed to charities gradually over time. 

The funds are invested while in the structure and ancillary funds are income tax-exempt and can claim franking credits, enhancing their financial efficiency and building more funds for future charitable gifts. They really are designed to “give and grow”.

Advisers who suggest structured giving to clients can often save their client a large tax bill. If the structure is a PAF, they will still have the care and management of the funds, allowing their client the time to think about their giving and engage with the charities they choose to support. Importantly too, the charitable sector benefits from structured giving, growing as it does a pool of philanthropic capital for the future that can only be disbursed to charities. 

While giving during one’s lifetime offers the greatest tax benefits, charitable gifts made through an estate can also be tax-efficient. Appreciated assets bequeathed to Deductible Gift Recipients (DGRs), like ancillary funds, can be exempt from Capital Gains Tax (CGT). 

Structured giving is often misunderstood as a rarefied mechanism only suitable for the extremely wealthy or only thought of in the sphere of estate planning.  While PAFs require a starting donation of $1-1.5 million, sub funds in a public ancillary fund can be set up with far less (a giving fund in the APS Foundation can be established with a minimum balance of $40,000), providing a far more accessible entry point. Advisers and accountants play a crucial role in correcting the misconception that structured giving is “only for the uber rich” by educating clients about the far-reaching benefits of structured giving and highlighting its suitability for a wide range of financial situations.

This trend of structured “giving while living” highlights a new era of philanthropy, one characterised by active engagement, strategic investment, and a commitment to systemic change. High net worth families and other Australians with more wealth than they need become not only donors but also active partners in creating a more equitable and sustainable future. Advisers who embrace these innovative approaches, are maximising their impact and redefining the very nature of giving, creating lasting and positive change for themselves, their clients and their communities. 

By Judith Fiander, Chief Executive Officer

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Notes:
[1] https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-finance-and-wealth/dec-2024

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Rachael Rofe

Ahead of the new financial year, Australians who have more than they need may want to think about putting greater purpose into their financial plans through philanthropy, according to Rachael Rofe, head of the Australian Philanthropic Services (APS) Foundation.

Australia is in the midst of a $5.4 trillion intergenerational wealth transfer, the largest in its history. Fuelled by decades of rising property prices and investment gains, this unprecedented shift is prompting many Australians to rethink the sharing of their wealth. For those seeking to leave a meaningful impact, structured giving is a practical option, with the bonus of significant tax advantages, according to Rofe.

“With the end of the 2024-25 financial year nearing and tax considerations front-of-mind, we encourage those Australians who have more than they need to consider donating or sharing their wealth through gifts.  Unlike previous generations, Australian heirs are more likely to receive wealth at a time when they are less likely need it. The average recipient is in their 50s, typically at or near peak earning years, often already established in career and property ownership,” said Rofe. 

“With more wealth than they need, it is increasingly common to see such Australians undertake philanthropy and establish a giving fund, and use the fund as a long-term vehicle to deliver capital to charities, one that can continue well beyond their own lifetime.”

Givers can choose between establishing their own foundation (private ancillary fund or PAF) or a giving fund in the APS Foundation (a public ancillary fund). Both have the same tax deductibility and givers have the ability to select the eligible charities they wish to support.

“Such funds provide a tax-smart strategy for individuals seeking both an immediate tax deduction and the flexibility to give over time. Structured giving allows a person to pre-fund their giving, that is, to claim the tax deduction while they are still earning an income, then support the causes they care about,” Rofe said.

“Australians are generous – more than 80% give in some form – but what is changing is the structure, scale, and sophistication of that giving. There are now more than 3,000 ancillary funds in Australia, managing billions in capital committed to the community. Contributions to these vehicles in the last financial year (FY24) are anticipated to have reached a record high, building on the exponential growth in contributions over the past decade.”

Financial advisers who suggest structured giving to clients can often save them a large tax bill. If the structure is a PAF, they will still have the care and management of the funds, allowing their client the time to think about their giving and engage with the charities they choose to support. 

“Importantly too, the charitable sector benefits from structured giving because the funds in PAFs and giving funds are invested and earnings are tax-free, growing the amount committed to the community over time.”

While giving during one’s lifetime offers the greatest tax benefits, charitable gifts made through an estate can also be tax-efficient. Appreciated assets bequeathed to Deductible Gift Recipients (DGRs), like ancillary funds, are exempt from Capital Gains Tax (CGT), says Rofe. 

“Structured giving is a tax effective way to bring purpose and joy during a person’s lifetime. It also allows families to pass down not just wealth, but the profound joy of giving,” she said. 

According to data from the Australian Taxation Office (ATO), in the 2021-22 income year, individual Australian taxpayers claimed a total of $4.55 billion in tax-deductible donations. This is an increase from the $4.39 billion claimed in the 2020-21 income year.

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