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Below is Chapter 1 of our ‘Private Ancillary Funds’ booklet. To read the other chapters of our booklet, click the links below:
- Chapter 2 – Brief history
- Chapter 3 – An overview of ancillary funds
- Chapter 4 – What is a PAF?
- Chapter 5 – Who can be a trustee of the PAF?
- Chapter 6 – How are PAFs regulated?
- Chapter 7 – What are the reporting requirements for a PAF?
- Chapter 8 – Governance
- Chapter 9 – Winding up a PAF
- Chapter 10 – Common questions about PAFs
- Chapter 11 – Are they a good option for you?
- Chapter 12 – Overview of a PAF
Introduction
Charitable giving can take many forms. Most of us do it on an ad hoc basis but there are many advantages to formalising your approach to strategic long-term giving. This booklet is for people who may be:
- Starting their philanthropic journey;
- Rethinking their approach to charitable giving;
- Hoping to build a relationship with one or more charitable organisations;
- Looking to make a bigger impact; or
- Seeking to give their family a larger role in their giving.
One way to achieve these goals is to establish a Private Ancillary Fund (a PAF) – your own charitable foundation that provides a link between you and the charitable organisations that you wish to support.
This booklet has been developed to assist you to understand
- What a PAF is;
- How it works; and
- Whether it is the best charitable strategy for you.
Giving back to the community
To date, your charitable giving has taken the form of volunteering, making a gift to an existing charity from your own pocket or leaving a gift to a specific charity in your Will. However, you have reached a turning point in your life where you wish to use your resources to make a more significant impact on the community without going so far as to establish your own charity.
Perhaps you have received an inheritance, sold a business, undergone a major health event or become more aware of an issue that you care about, either locally or globally. For those of you who have a focus on family, you may be looking for a mechanism for inter-generational giving which allows the whole family to become involved in philanthropy from an early age and contribute towards creating a family legacy.
A PAF is an effective way to use cash, property and investments to support charitable causes without providing services or undertaking charitable work yourself. A PAF requires you to consciously allocate a portion of your assets to philanthropy and, along with the benefits referred to above, you will be able to access the tax advantages offered by PAFs.
The information contained in this post is current at the date of editing – 1 April 2026.
