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Public ancillary funds

TAKE AWAY: A public ancillary fund is a vehicle for public philanthropy. It is simple and quick to set up, and it offers tax deductions to donors and tax exemptions for income earned by the fund – as long as they meet a few requirements.

Ancillary funds are special funds that provide a link between people who want to give and organisations that can receive tax-deductible donations (these organisations are known as deductible gift recipients, or DGRs). They may be public or private, and they provide money, property or benefits to DGRs.

What is a public ancillary fund?

A public ancillary fund, or public AF, is a communal philanthropic structure established by a will or trust deed for the purpose of making distributions to DGRs that are not ancillary funds. A public ancillary fund is itself a DGR and is therefore eligible for income tax exemptions.

Benefits of public ancillary funds

A public ancillary fund can be used as a vehicle for public philanthropy, to provide opportunities for donors to obtain tax deductions, and to obtain income tax exemptions on income earned by the fund – including capital gains.


The trustee of a public ancillary fund must be a corporation, not individuals.

The majority of directors of the corporation must be “responsible persons”; that is, individuals who have a degree of responsibility to the general community (e.g. church authorities, school principals, solicitors, doctors, members of parliament).

Other features of public ancillary funds

Public ancillary funds have the following additional features and requirements:

Getting help

If you’d like to explore the establishment of a public ancillary fund, please contact the Moores not-for-profit team on (03) 9843 2158 or

They would be happy to provide more detailed advice tailored to your circumstances and objectives, and assist with the establishment of a public ancillary fund.

Disclaimer: This help sheet has been prepared by Moores, not-for-profit legal advisers. It provides a general guide and should not be relied on as (or in substitution for) legal advice.