Smart ways to give
21 Aug 2019
By Shadforth Financial Group
Choosing to give money to charity or charitable causes that you care passionately about can be straightforward but there are several different ways you can give. Some considerations include:
- When do you want to give? When you are alive, after you have died, or both?
- How much do you want to give?
- How much control do you want over how the funds are managed and granted?
- Are tax benefits something you need to consider?
- Do you want to leave a lasting legacy, which involves your spouse, children and grandchildren?
The options range from simple and quick, such as a one-off direct donation to complex and long-lasting, such as setting up a private ancillary fund. Let’s take a more detailed look at the options:
Donations can be as small as $2 and are fully tax-deductible.
A charitable trust is effective if you want to maximise the impact of your initial gift over the long term All earnings on the funds held in trust are tax-free This option is most suitable if you have over $250,000 to give.
Private ancillary funds
Any donations you make to a PAF are tax-deductible and all income and capital gains generated within the PAF are tax-exempt. This option is suitable if you have over $500,000 to give.
Public ancillary funds
An account can be established with an amount of $50,000.
If you need help to decide on your smartest way to give, talk to your financial adviser.