Australia has a substantial and growing philanthropic sector. Private ancillary funds (PAFs), public ancillary funds (PuAFs), community foundations, corporate foundations, and direct individual giving collectively distribute billions of dollars annually to charitable causes. Understanding the Australian philanthropy landscape is essential for anyone working in or seeking funding from this sector.
Private Ancillary Funds (PAFs)
PAFs are private philanthropic vehicles — established by individuals, families, or businesses — that hold endowment capital and distribute grants. Key features:
- Minimum annual distribution: 5% of fund assets
- Tax-deductible contributions by Australian donors
- Significant investment discretion for the fund
- Reporting to the Australian Charities and Not-for-profits Commission (ACNC)
Australia has over 1,600 PAFs with combined assets exceeding $10 billion. PAFs are the primary vehicle for significant family philanthropy in Australia.
Public Ancillary Funds (PuAFs)
PuAFs are publicly structured philanthropic funds — they must accept donations from multiple donors and distribute to the general public interest. Community foundations operate as PuAFs. Minimum annual distribution: 4% of assets.
Testamentary trusts
Charitable bequests — gifts through wills — are a significant and growing source of philanthropic capital. The Giving Australia research estimates bequests at around $2.5 billion annually. Many charitable organisations have bequest programmes; the sector is growing its capacity to cultivate bequest relationships.
Community foundations
Community foundations — PuAFs that serve geographically defined communities — have grown significantly in Australia. The Community Foundations Australia network spans more than 50 foundations. Major community foundations include:
- Australian Communities Foundation (Melbourne)
- Sydney Community Foundation
- Perth Community Foundation
- Regional community foundations in many areas
Corporate foundations and corporate giving
Many Australian companies have established separate charitable foundations — the Westpac Foundation, BHP Foundation, Rio Tinto Foundation, Commonwealth Bank Foundation, ANZ Community Foundation, and many more. Corporate giving in Australia — including direct donations, matched giving, volunteer programmes, and in-kind contributions — represents a significant flow of resources to the sector.
Giving circles and collective philanthropy
Giving circles — groups of donors who pool resources and make collective grantmaking decisions — are growing in Australia. Social Ventures Australia, The Funding Network, and emerging giving circles are building collective giving infrastructure.
Minderoo Foundation: Established by Andrew and Nicola Forrest; one of Australia's largest private foundations; focuses on oceans, ending slavery, Indigenous development, cancer, and early childhood.
Paul Ramsay Foundation: Focus on disadvantage and children's welfare; significant endowment from the Paul Ramsay hospital network.
Helen Macpherson Smith Trust (VIC): Arts, community wellbeing, environment; long-established foundation.
Sidney Myer Fund / Myer Foundation: Arts, humanities, community welfare; long-established Melbourne family foundation.
Reichstein Foundation (VIC): Systemic change; progressive funding; justice and sustainability focus.
Ian Potter Foundation: Science, arts, community, environment; significant Melbourne foundation.
Lord Mayor's Charitable Foundation (Melbourne): Community wellbeing; arts; significant grants programme.
William Buckland Foundation: Victoria; arts and culture; science; heritage.
Perpetual Philanthropy: Manages philanthropic funds for multiple donors; significant aggregated grantmaking.
Philanthropy Australia member foundations: The peak body lists member foundations at various giving scales.
Philanthropy Australia is the peak body for Australian philanthropy — representing foundations, trusts, giving circles, and philanthropic advisers. Key functions:
- Advocacy for a more generous Australia, including tax policy for giving
- Professional development for philanthropy practitioners
- Research on Australian giving trends
- Facilitation of peer learning among member foundations
- International connection with global philanthropy networks
Philanthropy Australia publishes the Giving Australia research series and runs an annual conference.
Giving while living: Increasing numbers of wealthy Australians are giving substantially during their lifetimes rather than through bequests. Giving while living allows donors to see the impact of their giving and engage actively in philanthropy.
Strategic philanthropy: Australian foundations are increasingly articulating explicit theories of change, focusing on fewer priority areas, and measuring impact more rigorously. The shift from scattered reactive giving to strategic concentrated investment is a significant trend.
Systems change and advocacy: A growing minority of Australian foundations are explicitly funding systems change — policy advocacy, movement building, and structural reform — rather than only service delivery. This represents a significant philosophical shift.
Trust-based philanthropy: Interest in trust-based approaches — fewer reporting requirements, multi-year core funding, stronger funder-grantee relationships — is growing, influenced by international practice.
Climate philanthropy: Climate change has become a major focus of Australian philanthropy, though investment remains small relative to the scale of the problem.
Indigenous rights and equity: After the Voice referendum, some Australian foundations are increasing investment in Indigenous-led organisations and rights-based approaches.
For organisations seeking Australian philanthropic funding:
- Most foundation funding is not publicly listed; relationship-based approaches are often necessary
- Research through ACNC's charity register, Philanthropy Australia member directories, and foundation websites
- Align applications to each foundation's stated priorities
- Unsolicited applications to many foundations are not accepted; seek introduction through trusted intermediaries
- Reporting quality and relationship investment matter to long-term funding relationships
Tahua's grants management platform supports Australian foundations and philanthropic funds — with the grant management, financial reporting, and impact measurement tools that help foundations invest more effectively and demonstrate their impact.