Philanthropy and Leaving a Legacy

Doing something different with your wealth.

The older you get, the more likely it is that you’ve wondered, perhaps more than once, what your legacy will be. If you’ve been fortunate enough to have built a successful business or other significant assets, your mind might wander to philanthropy and what that could look like.

In this article, I look at how giving can fit into a considered financial strategy for your money.

Philanthropy isn't just for the ultra-wealthy

There's a common assumption that structured giving is something that happens at a different level of wealth. In practice, people with meaningful assets, not just the exceptionally wealthy, are increasingly thinking about how their financial position can create impact beyond their own family.

This might look like supporting a cause that is personally significant. It might be funding something local and tangible. It might be the desire to leave something behind that reflects who you were and what you valued.

Whatever the motivation, the structure through which you give is important for the impact it creates and the tax position it produces.

Structures for giving

Charitable giving during your lifetime

Donations to deductible gift recipients (DGRs) are tax-deductible in Australia. For someone with a significant taxable event in a given year, for example, a property sale, a business distribution, or a large capital gain, a well-timed donation can meaningfully reduce the tax position for that year. The timing and size of the gift relative to your overall income position should be worked through with your accountant before you give.

Private ancillary funds

A private ancillary fund (PAF) is a type of charitable trust that allows you to make a large contribution in one year. You claim the tax deduction at that point, and then distribute to eligible charities over time. This suits people who want to give strategically and at scale, without rushing the decision about where the money ultimately goes. The current minimum distribution requirements and eligibility rules change, so verify these with your accountant ahead of time.

Testamentary giving

Leaving a gift to charity through your will is one of the most straightforward ways to build philanthropy into your legacy. It doesn't affect your financial position during your lifetime, and it can be structured to complement what you're leaving to your family. How this interacts with your estate plan, particularly if you have a testamentary trust, should be carefully discussed with both your accountant and solicitor.

Legacy is broader than giving

Philanthropy is one expression of legacy. But for many people, the question of what they leave behind is also about family. How wealth transfers, what values accompany it, and whether the next generation is prepared for what they'll receive.

Intergenerational wealth planning is a separate conversation, but it sits alongside how you think about philanthropy. Families who know what they're giving away and what they're passing on navigate this more easily than those who don’t discuss it beforehand.

How we help

The decisions involved in structured giving, such as which vehicle to use, when to give, and how it interacts with your tax position and estate plan, aren’t ones to make in isolation. As we've written elsewhere, the most consequential financial decisions tend to look simple on the surface, but they aren't.

At Accounting Heart, we work with clients who are thinking carefully about what their wealth is for and how to structure it to reflect their values. If this is a conversation you've been meaning to have, we invite you to book a time to talk with us. Book a discovery call.

Disclaimer: This is general information only and is not advice of any sort. No warranty or representation is provided by Accounting Heart Pty Ltd as to the accuracy, currency or completeness of the information contained in this blog. Readers of this blog should not act or refrain from acting in reliance upon any information contained herein and must always obtain appropriate taxation and/or other advice as may be appropriate having regard to their particular circumstances. This article refers to the proposed minimum tax on discretionary trusts announced in the 2026–27 Federal Budget, which is not yet law and may change before or if it is enacted.