Open a Giving Fund

What is a Sub Fund/Giving Fund? 
A Sub Fund (now known as a Giving Fund) is a charitable giving account within a Community Foundation that allows individuals, families or businesses to create an ongoing source of funding for causes they care about. It operates like a personal charitable foundation but without the administrative burden. Donors contribute to the Fund, and the capital is invested, with annual grants distributed to charities based on the donor’s interests. The principal remains invested, ensuring long-term, sustainable impact. 

What’s the difference between a Giving Fund and Private Ancillary Fund? 
A Private Ancillary Fund (PAF) is a standalone charitable trust requiring its own governance, financial reporting, and compliance with regulations. A Giving Fund is managed within a Community Foundation, meaning donors avoid administrative complexities while still directing grants to charities. PAFs suit those who want full control and have significant funds to manage, while Giving Funds offer a simpler, cost-effective alternative with professional investment management and oversight. 

What are the benefits of starting a Giving Fund? 
A Giving Fund with Sydney Community Foundation provides a flexible and cost-effective way to give back without the administrative burden of running a private foundation. Donors benefit from expert fund management, tax deductibility, and the ability to focus on their philanthropic goals while Sydney Community Foundation handles governance and compliance. Importantly, the fund’s investment ensures long-term sustainability, meaning donors can make a lasting impact on the community while supporting causes that align with their values. 

How do Giving Funds help donors support the causes they care about? 
Giving Funds allow donors to contribute to charities in a structured and strategic way. Donors can specify the causes or issue areas they want to support, and Sydney Community Foundation ensures grants go to high-impact programs. Because the fund is invested, donations continue growing, allowing for ongoing support rather than one-off giving. This model ensures sustained funding for charities, making a bigger and more lasting difference over time. 

What’s the difference between a Giving Fund and a Bequest? 
A Giving Fund is an active giving vehicle where donors contribute during their lifetime and direct annual grants to charities. A bequest is a legacy gift left in a Will that activates after the donor’s passing. While a Giving Fund allows donors to see their impact in real-time, a bequest ensures their philanthropic vision continues beyond their lifetime. Many donors choose to do both, building their giving while alive and leaving a legacy for the future. 

What does DGR1 mean for Giving Fund holders in Community Foundations? 
Deductible Gift Recipient status Tier 1 (DGR1) allows Community Foundations to direct grants to a wider range of charitable activities, including grassroots and community-led initiatives. For Fund holders, this means greater flexibility in where they can direct their giving, expanding beyond large charities to include smaller, high-impact organisations that may not have DGR1 status. This change increases opportunities for donors to support local, community-driven solutions. 

How does Sydney Community Foundation manage & distribute funds? 
We pool and invest funds from Giving Funds to ensure sustainable growth and long-term impact. Annual distributions are made from investment returns, ensuring funds continue to support the community indefinitely. We work closely with donors to understand their giving priorities, then partner with trusted charities delivering effective programs. With deep local knowledge and expertise, we ensure funds are directed where they are most needed, creating meaningful and measurable change. For more information, see our Annual Reports.

What are some of the reasons people start a Giving Fund? 
People start Giving Funds for many reasons, but a common motivation is to create a lasting legacy for a loved one. An In Memoriam Fund allows family and friends to honour someone’s life by supporting causes that were important to them. Others start Funds as a way to involve their family in philanthropy, passing on values of generosity across generations. Some donors use a Fund to give strategically during their lifetime, knowing their contributions will continue to support the community long into the future. Whether celebrating a life, building a family tradition of giving, or creating lasting change, a Giving Fund offers a meaningful and enduring way to make an impact. 

Why should you start a Giving Fund or leave a Bequest with Sydney Community Foundation? 
If you’re passionate about making a difference, a Giving Fund or bequest is a powerful way to create lasting impact. A Fund lets you see the change you’re making during your lifetime, while a bequest ensures your legacy lives on. Sydney Community Foundation takes care of all administration, allowing you to focus on your giving. Whether you want to support a specific cause or leave a legacy, we make philanthropy simple, meaningful, affordable, and effective.