Prescribed Private Funds On the Rise
Saturday, 23rd February 2008 at 12:21 pm
The number of Privately Prescribed Funds (or PPFs) is on the rise with over $1billion dollars estimated in accumulated funds according to QUTs Australian Centre for Philanthropy and Nonprofit Studies (CPNS).
PPFs are described as tax effective vehicles for individuals, families and corporations to establish a foundation and were set up under the Howard Government in 2001.Their aim is to provide money, property or benefits to organisations with Deductible Gift Recipient status (DGR).
In 2001, 22 PPFs were approved and by 2008 that number has risen to 610
Between 2002 and 2006 a total of $183.7m has been distributed to eligible DGRs with the majority going to organisations under the welfare category which have received grants totalling $67.7m.
This was followed by education with $33.2m, cultural organisations with $13.7m, and health with $10.4m.
CPNS says in 2006 while the welfare category remained stable and the education category fell slightly, it was the cultural and health categories which experienced substantial growth in 2006.
The category experienced a 226% increase to $5.22m and health with a 233% increase to $5.70m. For the first time in 2006 there were distributions in the DGR sport and recreation category and the family category.
It says several sub categories also benefited from PPF grants between 2002 and 2006.
Since 2002 the top five DGR sub categories were Public Benevolent Institutions ($63.24m), school building funds ($20.36m), environmental organisations ($9.48m), public universities ($8.69m) and approved research institutes ($4.64m).
For the first time in 2006 disbursements were made to an overseas aid relief fund totalling $4.76m.
The CPNS assessment of PPFs is carried out using figures provided by the Australian Tax office.
To view the PPF Current Issues Sheet in full go to: http://www.bus.qut.edu.au/research/cpns/documents/2008_1_PPFs.pdf