As the festive season approaches, many of us start to think about giving to family, friends, or causes close to our hearts. For financially comfortable households, generosity can be more than an emotional gesture; it can be an intentional part of a well-structured financial plan.
Whether you want to help your children buy a first home, fund your grandchildren’s education, or make a lasting impact through philanthropy, thoughtful planning ensures your generosity benefits others without compromising your own long-term goals.
“Giving can be one of the most rewarding parts of a wealth plan,” says Lin Carey, Financial Adviser at Halpin Wealth.
“The key is to approach it strategically. When you understand the financial structures available, you can give in a way that is sustainable, tax-efficient, and aligned with your overall goals.”
Supporting family through structured gifting
Many Halpin clients reach a stage in life where helping family becomes a priority. For some, that might mean contributing to a child’s property deposit or helping fund their grandchildren’s schooling.
While the instinct to help is admirable, unplanned gifting can lead to unintended financial or tax consequences. This is where professional advice can make a real difference.
Lin explains that structuring gifts through vehicles such as family trusts, education funds, or even loan agreements can provide flexibility and protect both giver and recipient.
“A clear structure not only provides transparency but also safeguards the family relationship,” Lin says.
“It allows you to define expectations, maintain control over timing, and make sure the gift does not affect your eligibility for future entitlements such as the Age Pension.”
Philanthropy and charitable giving
Beyond family support, many people want to give back to their communities or make a broader social impact. Australia offers a range of ways to give strategically, from direct donations and bequests to Private Ancillary Funds (PAFs) or Public Ancillary Funds (PuAFs).
Private and Public Ancillary Funds are structured giving vehicles that allow you to claim an immediate tax deduction while distributing donations to charities over time. A Private Ancillary Fund is typically established and managed by an individual, family, or business to support chosen causes in a structured way, whereas a Public Ancillary Fund pools donations from multiple donors and distributes funds to eligible charities on their behalf. Both options make it easier to create a lasting legacy and ensure your generosity continues to make an impact well into the future.
“Philanthropy does not have to be large scale to be effective,” Lin notes.
“We work with clients who start small but build consistent annual giving into their plans. Over time, that commitment can have a real and measurable impact.”
A key advantage of establishing a structured giving fund is that it provides flexibility. It allows contributions in strong financial years and distributions to be made when they will have the greatest effect.
Balancing generosity and security
Even with careful planning, it is important to ensure that giving does not compromise your own financial security. For retirees, this may mean balancing gifts with future income needs or potential care costs.
An adviser can model different scenarios to determine how much you can comfortably give while maintaining your desired lifestyle and meeting any long-term commitments.
“We often remind clients that generosity is best when it is integrated into their overall financial plan,” Lin says.
“By planning ahead, you can have peace of mind because you know you are helping others without jeopardising your own security.”
Creating a legacy
The act of giving can also be part of a broader estate and legacy plan. From naming charitable beneficiaries in your will to setting up structured funds that continue supporting causes after you are gone, legacy planning ensures your values live on.
It can also open valuable conversations within families about what wealth means and how it can make a difference, not only across generations but within the community.
A season for thoughtful giving
As we head into the festive season, generosity is front of mind for many Australians. Whether your focus is family, community or causes close to your heart, structured giving can make your impact more enduring.
Contact us if you would like to explore how generosity could fit into your financial plan this festive season.
This information provided in this article is general advice only and has been prepared without taking into account your own objectives, financial situation or needs. Before making a financial decision based on this advice, you must consider whether it is appropriate in light of your own needs, objectives, and financial circumstances, and where relevant, obtain personal financial, taxation or legal advice. Where a financial product has been mentioned, you should obtain and read a copy of the Product Disclosure Statement (PDS) prior to making any decisions about whether to acquire a product.