… and quite literally in the case of our amazing client (and obsessed Richmond supporter) Deborah Holmes, who runs Avalon Centre out of her home in East Malvern.
Deb founded the Avalon Centre in 1987 to assist those in society with unmet needs. This includes the homeless, people with mental health and physical disabilities, the elderly, refugees and the disenfranchised.
Avalon receives no government funding so relies on donations from companies and individuals and a committed group of volunteers. It offers a drop-in service, organises day trips and provides much need bedding and clothing to the homeless. We’re proud to support Avalon and were only too pleased to recently offer a lending hand. We were amazed at the number of volunteers willing to give their time and the positive energy they created.
In a busy world, not everyone can find time to volunteer and may instead wish to contribute financially and with 30 June approaching, remember you can receive a tax deduction for eligible donations. For those wanting to leave a lasting legacy you should think about your philanthropic goals and whether you prefer lifetime giving or via your wills. Broadly, there are four major options available:
1. Specific charity donations
The easiest option is where you simply choose to donate to your charity of choice. To be tax deductible, your donation must be made to a deductible gift recipient (DGR) and be at least $2.00.
2. Public Ancillary Fund (PuAF)
Individuals or families can establish an individual sub-fund under the umbrella of a PuAF, sometimes referred to as community foundations or endowment funds. Donors do not have to be involved in any administration responsibilities or investment management decisions. Instead, the capital is invested in a managed fund and the minimum donor distribution requirements are managed by the Fund. You’ll generally be looking at a minimum donation of $20,000.
3. Private Ancillary Fund (PAF)
This is your own private trust with a corporate trustee. The individual who establishes the PAF can maintain a high level of control in charity choices and the investment of the funds. PAFs are generally exempt from income and capital gains tax and they can be listed as a beneficiary of a will. They do however have greater requirements which include ensuring minimum distributions are made to DGRs, preparation and audit of financial statements and lodgement of an annual return with the ATO. For this reason, PAFs, like self-managed superannuation funds (SMSFs), are generally established with balances of at least $300,000.
4. A bequest or foundation establishment (testamentary charitable trust) through your will
Many people prefer to leave instructions in their will to make a gift to a charity or set up a foundation in their memory. This will often relate to a cause or institution they were fond of or supported during their lifetime. Trusts are generally intended to leave a lasting legacy and like PAFs, are generally suited to an amount of at least $300,000.
If you’d like more information or wish to discuss your philanthropic goals, please contact us.
Lone Ride for the homeless https://lonerideforthehomeless.com.au/
Tim Taylor is a volunteer at Avalon who, after seeing the suffering and hearing the stories of loneliness amongst the homeless, committed to do something meaningful to help. A keen cyclist, Tim has set off on a mammoth 11,0000 km through Australia. He hopes to raise awareness, funds and inspire people to push through and ‘keep on riding’ even if they feel discouraged when life is hard, because there is always a better day to come, and there will be people willing to lend a helping hand if you ask.
If you’d like to support Avalon, please click here
If you’d like to support Tim, please click here
Brendan Fahy is a Director at Keep Wealth Partners.
Keep Wealth Partners Pty Ltd (AFSL 494858). This information is of a general nature only and may not be relevant to your particular circumstances. The circumstances of each investor are different and you should seek advice from a financial planner who can consider if the strategies and products are right for you.