Glossary

Explanations of key terms that you will encounter as you discover the possibilities of giving and philanthropy.

Ancillary Trust Fund

Please see the entries below for private ancillary fund (PAF) and public ancillary fund (PuAF).

Bequest

Something that an individual person bequeaths in their will to an organisation or another individual. A bequest may consist of either a specified sum of money, financial assets such as shares, goods or property, or a combination of any these.

Charity

A trust fund or institution, established under an instrument of trust or a will, for a purpose that the law regards as charitable.

Deductible Gift Recipient (DGR)

A term used in taxation law to describe a fund or organisation that can receive tax deductible gifts. Gifts are only tax deductible if made to an organisation that has DGR status.

Donation

A voluntary transfer of funds from either an individual or organisation to another individual or organisation, excluding purchases of goods and raffle tickets, and transactions where any benefit is received in return.

Giving

A general term for the voluntary donation, by an individual or organisation, of money, goods or time.

Philanthropy

A specific type of giving. In practice, it generally refers to the planned, substantial and continuing financial support of an organisation or cause.

Here are two definitions of Philanthropy.

“The planned and structured giving of money, time, information, goods and services, voice and influence to improve the wellbeing of humanity and the community.”
Source - Philanthropy Australia

“Philanthropy means ‘the love of humanity’, in the sense of ‘what it is to be human’, the essence of our humanity. In modern terms, it is ‘private initiatives for public good, focusing on quality of life’”
Source - Wikipedia

Private Ancillary Fund (PAF)

A type of trust fund. Its purpose is to encourage businesses, families and other groups with the flexibility to start their own trust funds for philanthropic purposes. Private ancillary funds were called prescribed private funds (PPF) until October 2009.

Read more about private ancillary funds.

Professional adviser

An appropriately qualified person who provides advice about financial affairs to an individual or family, usually in return for a fee. Examples are accountants, financial planners, private bankers, and tax or estate lawyers.

Public Ancillary Fund (PuAF)

A legal structure for creating a philanthropic foundation that raises money from the public.

Read more about public ancillary funds.