Conferences, The Third Sector as Civil Society in Australasia: Identity, Role and Influence in the New Century

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Adviserers’ perspectives on charitable giving from private estates in Australia
Christopher BAKER

Last modified: 2010-06-01

Abstract


Large charitable bequests from private estates provide a significant funding fillip to many charitable organisations albeit in an unplanned way. US research has fuelled expectations amongst fundraisers and policy-makers that charitable bequests will grow exponentially over coming decades (Havens & Schervish 1999, 2003). This paper provides qualitative insights into the potential for a bequest bonanza in Australia, drawing on five in-depth, semi-structured interviews with professional advisers assisting individuals and families with estate planning and transmission. Advisers were specifically chosen for their rare expertise in philanthropic giving (Madden 2004; Madden & Newton 2006) and their extensive experience. As the need for estate planning increases with wealth (James 2009) advisers provide informed insight into contemporary practice of relatively wealthy individuals. This paper also addresses advisers’ views on future trends. The advisers believe that relatively few wealthy Australians are inclined to include charitable giving in their estate considerations. Significantly for the sector, in the absence of taxation advantages to bequest giving, clients intending to gift a portion of their estates are likely to be advised to do so before their death. Those considering larger gifts are likely to be advised to do so by way of establishing a Private Ancillary Fund with the consequence that third sector organisations will share in PAF income streams rather than receive lump sum bequests.