Living Foundations - You make the difference

Legenis establishes and maintains charitable foundations; providing the ongoing compliance and administration of charitable public and private foundations, enabling philanthropic giving to be more strategic, more effective and long-lasting.

What is a charitable foundation?

Foundations are tax effective vehicles for individuals, families, associations and corporations to establish charitable giving. Private Ancillary Funds (PAFs) are similar to family foundations in the U.S., while Ancillary Funds are foundations seeking the majority of their funds through public donations.

What is a Private Anvillary Fund?

Foundations in the form of PAFs are a relatively recent phenomenon in Australia with 22 new foundations established in 2001 growing to 824 foundations approved by the ATO today. Current PAF assets are estimated at over $1.5 billion, with almost $500million donated in the 2006/07 financial year alone; an increase of 73.8% over the previous year. In the same year $117 million was distributed to charities; an increase of 58% on the previous year. Even more dramatic increases will occur in the next 5 years as early foundations complete their funds accumulation phase.

The last decade has witnessed the most rapid growth in the number and size of foundations in our history. There are many reasons for this phenomenon:

What are the tax advantages for donors?

For those individuals and businesses donating cash to public foundations tax deductions of up to 48.6% may be available, with a five-year carry forward.

For example, a client with earnings of $200,000 p.a. who gives away $100,000 in cash may then be able to deduct close to the amount donated each year.

Why do wealthy individuals establish foundations?

Why do organisations establish foundations?

How and why do advisers incorporate advice on philanthropic giving?