Philanthropic Sector Expands Sharply

The latest Private Ancillary Fund statistics from the Australian Tax Office show strong growth in donations and assets in the philanthropic sector.

The statistics for the 2007-08 financial year show donations to Private Ancillary Funds (PAFs) increased by $178 million, with full-year donations increasing from $533 million in 2006-07 to $728 million in 2007-08. The ATO data also showed PAF assets increased from $1.48 to $1.89 billion over the same period.

The number of registered PAFs increased by 28% during 2007-08, bringing the total number of PAFs to 769.

The largest recipient of fund distributions in 2007-08 was the welfare sector, making up 31 percent of total distributions. Educational, environmental and cultural organisations also received a large proportion of donations.

Highlighting the statistics, The Assistant Treasurer, Senator Nick Sherry says support for the welfare sector is the core business sector of philanthropic funds and it makes a real difference to the lives of many disadvantaged members of the community.

Senator Sherry says publicly available statistics are important for accountability – they improve both the transparency of these funds and boost confidence in the charitable sector more generally.

PAFs are philanthropic trust funds that can be set up as a vehicle for private giving. Donations to PAFs are tax-deductible and must be distributed to organisations with DGR status.

The full statistics are available on the ATO website at www.ato.gov.au