Significant life events – such as receiving an inheritance, selling a business, or realising a major capital gain – can create opportunities to give to causes you are passionate about in a meaningful way. Your Pilot advisor can help you explore charitable‑giving structures that suit your goals, how hands‑on you want to be, and your long‑term intentions. Often, contributing money to a philanthropic structure can reduce your tax too.
The table below outlines the key differences between a number of the available philanthropic structures, including Private Ancillary Funds, Public Ancillary sub‑funds, and Charitable Companies. Each option requires different involvement, from minimal administration through to full strategic control. Each of the structures may also require support from other professionals including legal and financial advisors.
This table is designed to help you understand which approach may best align with your goals and the level of ongoing involvement that you’d like to contribute.
| Private Ancillary Fund | Public Ancillary Fund – Sub-fund | Charitable Company – Passive | Charitable Company – Active | |
| When recommended | Often used why you wish to have a high level of control and responsibility over the fund and its assets and donations. | A cost effective method where you do not wish to be involved with fund administration or investment decisions but would still like to determine who benefits from the charitable donations. | Often used when you are making your contribution by way of distribution from a discretionary trust. Also used when you wish to have a high level of control and responsibility over the fund and its assets and donations. | Used when you wish to directly provide services to people in need.
This is the most expensive to run. It is similar to running a business, however, it is a not for profit organisation. |
| Contributions | Tax deductible for the donor. | Tax deductible for the donor. | To be tax effective, the contributions must come by way of trust distribution into the fund. Contributions by an individual will not be tax deductible. | |
| Annual distribution requirements | Generally 5% of the net assets as at 30 June of the prior year.
Distributions must be to an approved deductible gift recipient. |
Generally 4% of the market value of the fund’s net assets as at 30 June of the prior year.
Distributions must be to an approved deductible gift recipient. |
No minimum requirement of amount.
Distributions can be made to ACNC registered entities (which include both approved deductible gift recipients and other not for profit entities such as many religious or sporting organisations). |
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| Controller requirements | The fund must have a responsible person who is an individual with a degree of responsibility to the Australian community (such as a judge, solicitor, accountant, Justice of the Peace, medical professional or religious practitioner). This person may charge for holding this role.
You will also require at least two additional people to sit on the board (these may be family members). |
You will have a low level of control in relation to how the money is invested. The funds will be pooled with other sub-fund holders and you can make recommendations for donations. | The fund must have 3 directors, at least one must ordinarily live in Australia. | |
| Ongoing compliance and costs | The fund will be required to prepare financial statements in accordance with Accounting Standards and submit them to a qualified auditor. there is also an ACNC Submission.
The accounting compliance costs are likely to be $10,000 – $15,000 + GST per annum. |
Approximately 1-2.5% of the value of the account. | The annual cost will depend on the annual income of the fund (including contributions and investment earnings).
The accounting compliance costs are likely to be $10,000 – $15,000 + GST per annum in years where the fund revenue exceeds $500,000. In years where the revenue is less than $500,000, the compliance costs are likely to be approximately half ($5,000 – $7,500 + GST). |
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| Setup Costs | The establishment of the fund including out of pocket legal fees and registration with the ACNC and ATO is approximately $7,500 + GST. | Generally minimal, although you may need a minimum initial contribution of around $20,000. | The establishment of the fund including out of pocket legal fees and registration with the ACNC and ATO is approximately $7,500 + GST. |
DISCLAIMER: This publication contains general information only and is not intended to constitute financial advice. Any information provided or conclusions made, whether expressed or implied, do not take into account individual circumstances. It should not be relied upon as a substitute for professional advice. Information correct at 16 February 2026.
Contact Pilot
If you’d like assistance with your charitable‑giving approach or want to ensure you’re using the structure that best suits your situation, contact Josh Meggs or speak with your Pilot advisor on (07) 3023 1300.