VICDOC Winter 2022 - Magazine - Page 81
THE INSPIRATION
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The inspiration to give in the first place may vary, but often stems from
several common sources, although they can overlap:
LIQUIDITY EVENTS
LIFE EVENTS
The release of substantial funds by virtue of selling a
business or assets; or, from receiving an inheritance
or an unexpected windfall.
The birth of a child, coming of age, marriage
or divorce, retirement.
DETERMINATION
TO ADDRESS
A SOCIAL ISSUE
Often spurred by an illness impacting a family member
or someone within your social circle; or, heightened
awareness of a social issue.
CREATING OR
UPDATING A WILL
Prompts many to consider how they might continue
their support after they are gone.
A DESIRE TO
CREATE A LEGACY
Many Australians who've been closely associated with
a cause often want to continuing supporting it long
into the future.
STRUCTURED GIVING
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To achieve this, donors are incorporating philanthropic activities into their tax,
wealth and family succession planning. Whilst there are many pathways, more and
more Australians are looking to structure their giving through (Public or Private)
Ancillary Funds. This allows donors to create a long-term, structured giving program
that can endure way beyond any one person's lifetime to potentially provide an in
perpetuity positive impact on the community. Some of the common benefits
of structuring your giving in this manner include:
TAX
EFFECTIVENESS
Initial and ongoing gifts are tax-deductible. Deductions
may also be spread over five years. This allows donors
to separate the timing of their deductions from their
grants to charity. The assets held operate in a tax-free
environment and benefit from franking-credit refunds,
allowing for greater appreciation of the corpus and
more income generation over time.
FAMILY
Philanthropy is increasingly being used as a pathway
for future generations to engage in a family’s wealth.
ENHANCED IMPACT
It allows you to plan your giving and maximise your
impact more effectively.
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