Private Clients » Services » Private Ancillary Funds & Charitable Trusts
Many Ord Minnett clients are philanthropic – concerned not only with building wealth for themselves and their families but also for those in need and for their communities. Accordingly, we provide authoritative and comprehensive Philanthropic Services – in collaboration with our partner firm Australian Executor Trustees (AET).
AET, like Ord Minnett, is a member of the IOOF Group and has been helping Australians give back to their communities for over 120 years. AET specialists have been integrated into the Ord Minnett business,working in partnership with benefactors and Ord Minnett Advisers to develop and manage Private Ancillary Funds and Charitable Trusts as part of an overall wealth management and wealth transfer strategy.
Your Philanthropic Options
AET specialists are available to meet with you on an obligation-free basis to gain a clear understanding of your wishes in this regard and explain the various options before going ahead and providing definitive advice on how best to proceed.
We can then help you establish and administer either a PPF or a Charitable Trust. We can act as a trustee for you and oversee the investment of funds held in trust. If you do not have a specific recipient in mind, we can also assist you in selecting an appropriate charity to help make your wishes a reality.
- Donate directly to charities (either as a lump sum or a series of regular donations)
- Donate through a Private Ancillary Fund (PAF) structure established while you are still alive
- Donate through a Charitable Trust structure established within your Will.
(If you would like to know more about AET, click here)
Direct donations are simple enough to implement but may not achieve the lasting benefits you are seeking for your philanthropy
In contrast, Prescribed Private Funds and Charitable Trusts give you the ability to create a long-term giving strategy for your nominated charities, rather than one-off donations.The trust structure will carry on in your name forever through the generation of a perpetual income stream that will support the causes dearest to you.
A Prescribed Private Fund (PPF) allows you to create your own personalised charitable giving program during your lifetime which continues after your death.
A PPF is a fund to which you can make tax-deductible donations for the purpose of supporting charitable organisations. These donations help to build an investment portfolio of carefully selected assets. The income generated by the investments is then allocated to your nominated charities on an annual basis. Ord Minnett and AET simplifies the process of creating and managing your PPF, making your philanthropy easy and straightforward.
Ord Minnett and AET simplifies the process of creating and managing your PPF, making your philanthropy easy and straightforward.
A Charitable Trust is established within your Will and commences upon your death to benefit your selected charitable purposes, forever. AET can manage the assets within your Charitable Trust, whilst distributing the income in line with the instructions in your Will.
We simplify the process of creating and managing your Charitable Trust, making your philanthropy easy and straightforward.
Perpetual Structure
Both PPFs and Charitable Trusts give you the ability to create a long-term giving strategy for your nominated charities, rather than one-off donations.The trust structure will carry on in your name forever through the generation of a perpetual income stream that will support the causes dearest to you.
Tax Advantages
The tax advantages of a PPF are twofold. Not only are your donations tax deductible but also the income and capital gains earned on your PPF are exempt from income tax. The PPF may also attract other tax and duty concessions, such as a refund of franking credits attached to dividends received.Charitable Trusts also receive favourable tax treatment on the monies held in trust. With the earnings being tax-free there will be additional funds to allocate to charitable purposes
How AET Can Help
Via Ord Minnett, AET can help you establish and administer either a PPF or a Charitable Trust.
The Australian Taxation Office has issued guidelines that must be adhered to when establishing a PPF or a Charitable Trust. Using AET ensures that your preferred structure is established correctly, and involves little effort on your part or on the part of your estate towards its ongoing operation.
Ord Minnett and AET can act as a trustee for you and oversee the investment of funds held in trust. We can also ensure that the funds are allocated in line with your wishes. If you do not have a specific recipient in mind, we can also assist you in selecting an appropriate charity to help make your wishes a reality.
