Starting a Fund or Foundation
Getting started with structured giving
At Australian Communities Foundation, we help people and organisations make a difference through structured giving, also known as philanthropy.
There are two key ways to structure your giving with us. You can either set up a Named Fund (also known as a donor-advised fund) or establish your own Private Foundation (private ancillary fund).
What is structured giving?
How it works: Give, grow, grant
Structured giving refers to a strategic approach to charitable giving that allows individuals, families and organisations to provide support in a planned, impactful and tax-effective way.
1. Give
Structure your giving through contributions to your own Fund or Foundation
2. Grow
Your contributions can be invested for the long term and grow over time
3. Grant
Your funds become a source of support for your causes and communities
Key benefits of structured giving
A donation can make a difference, but when you structure your giving, real change becomes possible.
✓ Simple and strategic
Simplify your giving by starting a Fund or Foundation with just one donation that can then support your favourite causes. Contribute over time and develop a long-term plan aligned with your values and goals.
✓ Flexible and tax-effective
When you give through a tax-deductible Fund or Foundation, you receive the tax deduction now and the flexibility to distribute to your causes when you’re ready. You can plan when to distribute based on your goals and the needs of communities and not-for-profit organisations.
✓ Growth and sustainability
Your contributions can be invested for the long term and grow over time. This tax-free growth means the pool of funds available for charitable purposes can increase, enabling your Fund or Foundation to become an ongoing source of support for communities.
✓ Legacy
Through a long-term approach to your Fund or Foundation’s investment, you can support the causes you care about beyond your lifetime. Establishing a Fund or Foundation can also be a great way to establish a meaningful legacy that can be passed down, or to honour a loved one.
✓ Engaging others
Opening a Fund or Foundation can also be a great way to engage your family or team in giving.
When you structure your giving with us, you can enjoy:
+ Philanthropic expertise
With over 27 years of experience, we’re experts in all the work that comes with giving: administration, compliance, grantmaking and more. We’re here to help you achieve your giving goals through expert support. We also offer additional tailored support through ACF Advisory.
+ 100% responsible investing
When you open a Fund with us, your donations are responsibly invested, meaning your money can both grow and do good while you take the time to find the right opportunities for granting. For those with private foundations, we can connect you to responsible investment advisors.
+ Australia’s largest community of everyday philanthropists
When you give with us, you join Australia’s largest community of everyday philanthropists. Our giving community enjoys access to a range of perks that inspire smarter giving, including events, co-funding opportunities, and regular updates and giving inspiration.
Fund vs Foundation
Understanding the difference:
Named Funds and Private Foundations
In Australia, there are two main options for people who want to give in a structured way:
- Named Funds – also known as donor-advised funds (DAFs), sub-funds or funds
- Private Foundations – also known as private ancillary funds (PAFs) or foundations.
Both options enable you to make tax-deductible donations while building a lasting revenue stream for causes you care about, but there are some important differences between the two.
Funds vs Foundations at Australian Communities Foundation: Choose the right option for you
| Named Funds | Private Foundations | |
| Tax-deductible donations | ✓* | ✓ |
| Public donations | ✓ | ✗ |
| Time to set up | 24 – 48 hours | 6 – 12 weeks |
| Minimum initial donation | $10,000 | Ideally more than $1 million |
| Granting | Charities with DGR1 status ** Note: Extension Funds can give to any charitable purposes. | Charities with DGR1 status |
| Trustee | Australian Communities Foundation Limited | You and the Directors you appoint |
| Minimum distribution requirements | None *** | 5% of the opening value each financial year |
| Investment management | 100% responsible investing managed by our advisors | You nominate an investment advisor or manage yourself |
| Income tax exempt | ✓ | ✓ |
| Refunded franking credits | ✓ | ✓ |
| Anonymity | ✓ | ✗ |
| Access to our online Fund Portal for making and receiving donations, requesting grants and reviewing activity | ✓ | ✗ |
| Benefits for our community • Giving ideas and inspiration • Events and Learning Circles • Co-funding opportunities | ✓ | Available through Private Foundation Packages |
| Establishment fees | No establishment fee | $5,000 + disbursements |
| Administration fees | View fees | View fees |
| Suitable for | Families and individuals, businesses, collective giving groups, scholarship providers, and not-for-profits building an endowment | Families and individuals, businesses, scholarship providers |
* Unless you establish your Fund within our Extension Fund to give to non-DGR1 organisations.
** A deductible gift recipient (DGR) is an organisation that can receive tax-deductible donations.
*** No minimum distribution requirements for individual Funds. As a public ancillary fund, ACF must distribute 4% of the opening value of its corpus each year. This is calculated at the consolidated trust fund level, giving you flexibility as needed.
| Named Funds | Private Foundations | |
| Tax-deductible donations | ✓ | ✓ |
| Public donations | ✓ | ✗ |
| Time to set up | 24 – 48 hours | 6 – 12 weeks |
| Minimum initial donation | $10,000 | Ideally more than $1 million |
| Granting | Charities with DGR1 status Note: Extension Funds can give to any charitable purposes. | Charities with DGR1 status |
| Trustee | Australian Communities Foundation Limited | You and the Directors you appoint |
| Minimum distribution requirements | None | 5% of the opening value each financial year |
| Investment management | 100% responsible investing managed by our advisors | You nominate an investment advisor or manage yourself |
| Income tax exempt | ✓ | ✓ |
| Refunded franking credits | ✓ | ✓ |
| Anonymity | ✓ | ✗ |
| Access to our online Fund Portal for making and receiving donations, requesting grants and reviewing activity | ✓ | ✗ |
| Benefits for our community • Giving ideas and inspiration • Events and Learning Circles • Co-funding opportunities | ✓ | Available through Private Foundation Packages |
| Establishment fees | No establishment fee | $5,000 + disbursements |
| Administration fees | View fees | View fees |
| Suitable for | Families and individuals, businesses, collective giving groups, scholarship providers, and not-for-profits building an endowment | Families and individuals, businesses, scholarship providers |
Get started
Contact us for a conversation
Give us a call on 03 9412 0412 or register below to book in your free consult and start a conversation about your giving journey.
Supporting all types of giving
Family & Individual Giving
Get started with specialised support for your giving journey and discover how you can make a lasting impact through philanthropy.
Workplace Giving
Establish or extend your workplace giving program with a Corporate Fund and tailored support for organisations.
Not-for-Profits
Learn how we support not-for-profits, including details on funding, grant processes and NFP Future Funds.
Collective Giving
Harness the power of giving together. Pool your donations and maximise your impact with a Collective Giving Fund.
Scholarships
Access specialised support for providing educational payments, prizes and bursaries to students across Australia.
Getting started
Learn more about getting started with helpful resources and stories from our giving community.
Introduction to Smarter Giving
Download our ‘Smarter Giving. Greater Impact.’ brochure for an introduction to structured giving and the benefits of joining our community.
Fund or Foundation?
Not sure which option is right for you? Contact us for a conversation.