Since 2001, the Australian government has enabled donors to create a simple form of private foundation now called the Private Ancillary Fund (previously, a private prescribed fund). These funds are “ancillary” because they exist only to support charities like NeuRA. Put simply, they are family-style trusts. They only distribute their income to deductible gift recipient charities, and they must distribute a minimum amount every year (usually, at least 5% of the value of the fund). The people who donate the funds receive a tax deduction, but can never withdraw the funds or direct them to their own or private use. Continue reading →