Selfless older Aussies ‘more giving’

Latest figures from the Australian Taxation Office reveal people aged 75 years and over give four times the average charitable donation.

Seniors in this age group reportedly gave more than $260 million for the year to June 2010, with annual donations averaging $648.49 – more than four times the average donation amount.

Experts claimed the tax office data appeared to “line up” with the growing number of private ancillary funds (PAFs) established by older Australians.

PAFs offer additional tax advantages provided the funds distributed at least 5% of the market value of the PAF assets every year (or more than $11,000) by way of gifts.

PAFs are particularly relevant for older people who want to sustain their giving into perpetuity.

“It fits that older Australians are more generous because they grew up during a time when offering a helping hand was the right thing to do and a sense of duty came with being healthy and able,” one expert in the field claimed.

“While people may become more challenged in age to donate their time and energy, many want to stay connected to the community and have conviction about what they want to see improved and progressed.”

The PAF is tax effective and reportedly gives control of how much a person puts in and to whom it distributes. PAFs can also be structured to exist in perpetuity or for a finite period. Donations are deductible and can be spread over a number of years reflecting the donor’s wishes.

There are now reportedly more than 1,000 PAFs managing in excess of $2.3 billion in Australia.