A private charity is a tax effective structure that family members can be actively involved with the investment activities of the investment fund in conjunction with identifying and managing through various community based non profit ourtcomes. The selection of both the investments and charitable activities can be a mechanism for clarity around family values, understanding and education of family members in management and investment activities. This can play an important role in legacy transition across generations.
FINH can help by:
- Assisting to establish a Private Ancillary Fund (PAF) which, managed by the family trustee, can receive tax deductible contributions. One of the main requirements of receiving this tax incentive is that 5% of the funds within the structure must be paid out to another registered charitable activitiies DGR each year.