How generosity can be part of your financial plan

It’s the season for gifts, sharing meals and spreading cheer. But what if your festive generosity could do more? What if it could ripple through generations, perhaps shaping futures and maybe reduce your tax bill?

Giving isn’t just an act of kindness; it can also be a smart financial move. From helping loved ones today to creating a legacy for future generations, strategic gifting can align with your broader financial goals.

“True wealth isn’t just about what you accumulate, it’s about what you contribute. Structured giving allows you to align your generosity with your goals, ensuring your support makes a meaningful and lasting difference.”
— Alistair Mettam, Partner & Senior Financial Adviser, Navwealth

After all, Australians are generous. We consistently rank among the most charitable in the world, with a study showing that, in the past year, 56 per cent of Australians have donated money and 31 per cent have donated their time.ⁱ

Australia, as a wealthy but ageing nation, is well-placed to grow charitable bequests, but the reality is less encouraging. The number of people leaving bequests to charities is low, and the size of the bequests also “falls far short of international peers”, according to The Bequest Report by JBWere.ⁱⁱ

By weaving philanthropy into your overall financial strategy, you can give with greater confidence, knowing your approach is tax-effective, sustainable, and aligned with your long-term objectives. It’s about creating a plan that reflects what matters most to you, your family, your community, and the legacy you want to leave behind.

Why planned giving matters

Often, giving is reactive rather than planned. We might respond to a donation drive, an emotional TV ad, a friend’s fundraiser or gift property or shares to a family member.

But giving can also be intentional. Some people choose to set aside a portion of their annual income, commit to monthly donations or include charities in their wills. Others join workplace giving programs or support causes that reflect their values. In this way, generosity becomes less about impulse and more of a conscious decision.

There may be advantages in taking a more strategic approach. It can amplify your impact, build your reputation, open doors to new networks and potentially deliver tax benefits. Donations to organisations with deductible gift recipient (DGR) status can help to manage your tax position by reducing taxable income. If you give more than $2 to an organisation with DGR status, you can claim a 100 per cent tax deduction for your donation.ⁱⁱⁱ

Planned giving can help to create a lasting impact, building a legacy for family and community. It integrates generosity into financial planning, ensuring investments reflect personal or family values. In this way, it becomes a tool for involving younger generations in financial governance, teaching responsibility and shared purpose.

Strategic gifting can include early inheritance, education funding or contributions to a family trust. These approaches can reduce future taxes on your estate.

Structured giving options for lasting impact

For those looking to make a lasting impact on their communities, structured giving vehicles offer flexibility and control.

It can create long-term financial stability to favourite causes, providing predictable funding for charities. It can potentially reduce complexity in estate planning and ensure your wishes are carried out, and donating assets may offset capital gains tax liabilities.

Unlike mass market or other forms of giving, such as direct donations to charities, crowdfunding and volunteering, structured giving involves using a vehicle designed to enable giving, such as:

• Private Ancillary Funds – often used by families and individuals able to make a minimum initial contribution of $500,000 with a plan to grow the fund beyond $1 million.
• Public Ancillary Funds – suitable for those with a lower entry point of $20,000
• Community foundations or giving circles – enable donors to pool resources for local impact. Entry levels can be as low as $2,000.
• Donor Advised Funds or sub-funds – a simpler, more flexible structure allowing donors to distribute funds over time. They can be established relatively quickly with some recommending an initial donation of a minimum $20,000.

Structured giving can also occur without using a dedicated vehicle, for example, through corporate cash donations or larger-scale, planned contributions from individuals and families.

Giving isn’t just about generosity; it’s about creating a lasting impact.

At Navwealth, we help clients design financial plans that balance growth, security, and generosity. Whether you’re starting small or looking to formalise your giving strategy, our team can help you make your impact intentional and enduring.

Reach out to the Navwealth team today to explore how you can incorporate your values and generosity into a plan that works for you and your financial future.

i World Giving Index | CAF

ii Bequest Report | JBWere

iii Inquiry Report – Future Foundations for giving | Productivity Commission