Donating to charities, or more widely being philanthropic, has become increasingly popular in recent years so it’s good to be aware of the different ways you can make your donation count.

1. Donate direct to a charity
2. Set up a sub-account under an existing public ancillary fund
3. Set up your own private ancillary fund or charitable trust

Each of these options has benefits and potential drawbacks.

Option 1 is great if you know where you want your gift to go and are happy to hand over the funds to that organisation (s) immediately.  Such an approach can be ad hoc or can be regular. Many charities have specific Christmas gifting options available.

If you are looking for a longer-term, more structured approach to your philanthropy, then perhaps options 2 or 3 may suit you better.  These options separate the putting of funds aside for philanthropy from the actual giving.

The establishment of your own fund or trust is usually more costly than setting up a sub-fund under an already existing fund.  There are many examples of such existing funds. Take the Australian Communities Foundation, for example, this Foundation has a wide range of options available for those wishing to set up a sub-fund.

Establishing your own fund can cost up to $8,000 initially and is often used by those who have experienced a significant liquidity event, such as the sale of a property or business, and wish to set aside some of the proceeds for gifting.  You can get a tax deduction upfront for putting the money aside and can decide later where the money will be gifted.

At Hewison Private Wealth we are proactive in gifting and donating our time to help those who need it the most. No more so than via The Hewison Foundation, a public ancillary fund that has for many years supported Sacred Heart Mission and in particular, their Women’s House which provides a safe and supportive engagement hub tailored to the needs of all women experiencing homelessness or who are at risk of becoming homeless.

This year we at Hewison Private Wealth joined together as a team to build 50 solar lamps to assist children living in energy poverty and we provided a Christmas grant to the Melbourne Special Children’s Christmas Party to enable the delivery of Christmas gifts to children with special needs.  Normally they put on a huge Christmas party for the children and their families, but due to Covid, they are instead delivering presents. This was a huge undertaking and we were happy to be able to assist.

Through philanthropy we can all share the load and assist those who need a helping hand. For advice on a tailored approach to your philanthropy, please contact one of our experienced Advisers, who can help guide you in the right direction and assist.

Wishing you all a very Merry Christmas and a safe, healthy, and happy New Year.