The desire for a family to leave a legacy through charitable works is common. And the tax structuring of such works can significantly impact the total amount and how a generous gift is structured.
At Westcourt, we are committed to tax structuring for families in business and their succession plans. And the structuring of different types of philanthropic work can create different outcomes.
It is not ordinarily discussed, but many families’ most significant charitable contribution is their voluntary work for charities by lending their business acumen, reputation, and physical endeavours to a particular cause.
This type of work is also often the most tax-effective. The charitable work can be done to something other than a charity and does not impact the tax profile of the family contributing to the job.
And while this work is not necessarily “complex” advice, it is essential to note that advice does not have to be complex to be effective. Many advisors are focused on engaging directly into complex alternatives that generate the highest fees for themselves – and that is not the Westcourt approach to advice and tax strategy.
The use of pro bono work for a charity will often be a family’s natural desire for charitable giving – and it creates a good tax effective outcome.
If your estate is giving a charitable donation, you might well find that that you have missed out on the tax deduction for the donation is lost. The careful structuring and strategic planning of donations to charities over time – in and out of your estate – can potentially allow you to increase your overall donations made and reduce your ultimate tax burden incurred by your family.
The structuring of private charities has a range of benefits. This can range from a family charter with directives on how much should be given. The use of named funds within a charitable group (like the Fremantle Foundation or Tomorrow Today) or the full development of a Private Charitable Trust can all be part of the journey toward creating a charitable legacy for a family.
At Westcourt, we understand the tax strategies and family impacts. We have helped clients create private charities with significant mining royalties’ streams to the other end of the spectrum, where a family charter has a discretionary recommendation for the next generation to give a certain level of profits.
What is essential is that Westcourt is well placed to help you decide on the best pathway for your family to consider charitable giving. Our practice on families in business, treating each generation with respect, deep proven technical tax excellence, and our independent advice allows us to structure a tax-effective charitable legacy that best fits your family. So, call us today to see how we can help you structure your current and future philanthropy needs.