Getting ahead of the giving curve: How advisers can support purpose-led clients through sub-funds

Among them are younger high-net-worth individuals, women newly managing family finances, and families hoping to engage children and grandchildren in meaningful giving.

These purpose-led clients bring new expectations and ask different questions with philanthropy an increasingly important part of the conversation.

For advisers, this presents an opportunity to strengthen relationships and build multi-generational trust. But it also requires a new kind of fluency: the ability to help clients structure their giving in a way that’s smart, strategic, and deeply personal.

If this sounds overwhelming, there’s good news. Community foundations like ours are designed to help. With a donor-advised sub-fund, you can give your client a tax-effective, low-admin, and highly flexible alternative to setting up a Private Ancillary Fund (PAF) with an expert partner to walk beside them on their giving journey – so you don’t have to.

A new generation, a new approach

I’ve met countless generous Australians in my role who want to do good, often quietly, without turning their giving into a full-time job. Their intentions are clear: they want to have an impact, pass on their values, and simplify the process for themselves and their families.

This is especially true for busy adult children and grandchildren of high-net-worth families, and for older women stepping into decision-making roles around wealth. But too often, when they reach out to us, they’re overwhelmed.

They’re unsure which structure is right for them. They’re wondering if they’ve missed out on tax benefits. They want to leave a bequest but aren’t quite sure how. And they always want to make sure the money actually ends up where it can do the most good.

Why sub-funds are the future of strategic giving

At Sydney Community Foundation, we offer Donor-Advised Sub-Funds – a structure that gives clients all the benefits of a philanthropic fund, without the burden of running one.

Unlike PAFs, sub-funds require no trustee setup or ABN, no separate compliance regime, and no administrative set-up costs for the donor (our small regular fees are re-invested in building the proficiency and social change efforts of our team). Clients receive an immediate tax deduction upon contributing (claimable over up to five years) and can decide over time where to direct their funds.

With new DGR1 status for community foundations like ours, donors can also now support a wider range of causes with flexibility that opens up new possibilities for impact.

An EOFY tax tool that works – even at the last minute

We know timing is everything when it comes to tax planning. Setting up a PAF or charitable trust can take weeks, sometimes months. Sub-funds, on the other hand, can be activated with a single gift – even in the final hours of the financial year.

If your client calls at 5pm on 30 June, worried about a looming tax event, we can receive the funds up until 11:59pm that day, issue a tax-deductible receipt, and establish a sub-fund in their name.

From there, they can take their time. Granting decisions can happen months or even years later once they’ve had time to reflect or include their family in the process.

A simple legacy solution

Bequest planning is another area where timing and structure can make or break a donor’s intentions.

We often see situations where a donor has named a charity in their will, only to have the charity change name, merge, or dissolve before the gift is realised. According to Todd Bromwich, Special Counsel at Hall & Willcox, this is increasingly common.

“When that happens, the executor doesn’t know what to do – and the donor’s wishes may not be fulfilled,” Todd said.

By setting up a sub-fund now and naming it in their will, your client can future-proof their gift. Our Foundation can ensure it’s directed to the right places, even if the landscape shifts. We do this through deep, long-standing relationships with trusted charities and frontline organisations across Greater Sydney and beyond.

Tax-effective, always

The last thing any donor wants is for a well-intentioned gift to be reduced by tax. Unfortunately, that’s exactly what can happen if assets are left to a charity that lacks Deductible Gift Recipient (DGR) status.

Todd has seen it firsthand: “We’ve had estates lose substantial amounts in capital gains tax and stamp duty – simply because the giving wasn’t structured or timed properly.”

Sub-funds established within a donor’s lifetime with SCF can help avoid this risk. As a registered DGR charity, we can receive gifts of property or shares without triggering tax liabilities, and we work with advisers to ensure each client’s tax and giving strategy is aligned.

Deepening client relationships, across generations

Philanthropy isn’t just about impact – it’s about connection. For advisers, helping clients create a legacy can deepen loyalty, build trust, and strengthen multi-generational relationships.

We’ve seen clients bring children and grandchildren into the granting process – using their sub-fund to pass on family values in a meaningful, practical way. Others use it to honour a loved one or create something enduring in their family name.

Partnering with a community foundation allows you to offer that experience without needing to become a philanthropy expert yourself. We bring the knowledge, the networks, and the local insight to help your clients give well. You stay focused on what you do best: growing and protecting their wealth.

Final word

If your clients are asking about how to give – or if they’re not, but you suspect they’d like to – now is the time to explore sub-funds.

With low barriers to entry, flexibility across life and legacy, and immediate tax benefits, sub-funds offer a smart, scalable solution. And by partnering with a community foundation, you can offer your clients a trusted home for their generosity – today and into the future.

Loredana Fyffe is the chief executive of Sydney Community Foundation.