With the end of the financial year fast approaching, philanthropy or charitable giving is a hot topic. It’s not only highly tax effective, but when done well, aligns beautifully with a family’s values, the next generation’s purpose, and the legacy of a family business or individual.
In this article, we’ll explore the why and how of philanthropy, and outline the options available whether you're ready to start big, small, or want to build over time.
We know life’s busy, so we’ll keep it short and meaningful.
Why Do People Give?
One of the most common questions we get asked is: Why do people give to charity? While giving is deeply personal, we’ve observed a few consistent reasons across ages, genders, and backgrounds:
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They care about the cause
The top reason we hear. As one client said:“I can’t unsee things like people sleeping on the streets or children without food or education. Once I’ve seen it, I can’t just ignore it.” -
They want to make a difference
About a third of people say they give because they want to create tangible impact supporting others, fostering innovation, and helping shape a fairer world. -
Right place, right time
Many clients tell us they’ve been fortunate in life or business. They don’t feel obligated to give, but they want to share what they no longer need. -
Personal connection
When someone has experienced something similar to a cause, the motivation to give becomes stronger and more meaningful. -
Frustration with inaction
Change can be slow. Giving becomes a way to support organisations that are taking bold steps, challenging the status quo, and driving real results now. -
Tax effectiveness
Whether it’s after the sale of a business or simply a desire to reduce assessable income, philanthropy can offer significant tax benefits without compromising values or purpose.
So Why Don’t More People Give?
Despite Australia being a mostly abundant country with $2.6 trillion expected to pass between generations in the next 20 years data shows giving is not as common as it could be:
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Only 29% of Australians claim a tax deduction for charitable donations
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Average annual donation is just $107 per person
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Only 53% of Australians earning over $1 million give to charity (compared to 90% in the U.S.)
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65% of Australian charities have annual revenue under $250,000, and a third under $50,000
With over 60,000 not-for-profits in Australia, giving can feel overwhelming. Which cause should you support? Which charity will use your money well? How can you be sure it’ll make a difference?
Giving Better With Purpose and Joy
This is more than just a last-minute donation for tax purposes. Effective giving is deeply rewarding individually and collectively. It’s a powerful way to involve family, especially the next generation, in preparing for future responsibilities and cultivating a sense of purpose. We help clients understand and navigate the why, what, and how of giving shifting from being “generally charitable” to becoming truly impactful givers. This includes:
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Creating a bespoke Giving Strategy
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Matching you with innovative, high-impact organisations
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Conducting due diligence so donations create real impact not just cover admin
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Building trust-based partnerships with grantees
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Helping you understand the tangible outcomes of your generosity
Because giving when done with care and intent can change lives… including yours.
How to Give Effectively
There are many ways to structure your giving. The right approach depends on several factors including the size and frequency of donations, purpose, cost, and desired level of engagement.
Some of the most common structures include:
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Giving directly through existing entities or structures
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Setting up a Private Ancillary Fund (PAF)
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Creating a sub-fund within a Public Ancillary Fund
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Establishing a private foundation or testamentary charitable trust
Each option has its own nuances. Our role is to help you explore what’s right for you and guide you through the process.
Next Steps
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Private Ancillary Fund – Liaise with a philanthropic specialist to establish your own PAF. Estimated 8–12 week timeframe to establish, noting that entities need to be created and then approved by the ATO and ACNC.
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Public Ancillary Fund – A few options exist in the market, such as the Giving Simple Foundation. Setup and tax-deductible within 24 hours. Contact: kshipp@ewmgroup.com.au
Co-Authored by: Brad Scott and Sarah Metcalf
Brad – regular contributor on family business matters
Sarah – Philanthropic Adviser, EWM Group and Founder of Collective Manifesto, member of the EWM Group Network
www.collectivemanifesto.com.au
EWM Group was formed in 2005 and is Australia’s first independent multi-family office. Our clients are current or former family business owners, inheritors of wealth, single family offices, philanthropists, sporting and entertainment individuals, not-for-profit organisations and traditional owners. The extent of the firm’s services encompass: Family enterprise structuring, governance, & succession planning Investment and wealth management Corporate and business advisory Philanthropic advisory Compliance, reporting and administration Family member engagement and education.
