How Generosity Can Be Part of Your Financial Plan

It’s the season for gifts, sharing meals and spreading cheer. But what if your festive generosity could do more? What if it could ripple through generations, perhaps shaping futures and maybe reduce your tax bill?

Giving isn’t just an act of kindness; it can also be a smart financial move. From helping loved ones today to creating a legacy for future generations, strategic gifting can align with your broader financial goals.

After all, Australians are generous. We consistently rank among the most charitable in the world with a study showing that, in the past year, 56% of Australians have donated money, and 31% have donated their time.ⁱ

Australia, as a wealthy but ageing nation, is well-placed to grow charitable bequests, but the reality is less encouraging. The number of people leaving bequests to charities is low, and the size of the bequests also “falls far short of international peers”, according to The Bequest Report by JBWere.ⁱⁱ

Why planned giving matters:

Often, giving is reactive rather than planned. We might respond to a donation drive, an emotional TV ad, a friend’s fundraiser or gift property or shares to a family member.

But giving can also be intentional. Some people choose to set aside a portion of their annual income, commit to monthly donations or include charities in their wills. Others join workplace giving programs or support causes that reflect their values. In this way, generosity becomes less about impulse and more of a conscious decision.

There may be advantages in taking a more strategic approach. It can amplify your impact, build your reputation, open doors to new networks and potentially deliver tax benefits. Donations to organisations with deductible gift recipient (DGR) status can help to manage your tax position by reducing taxable income. If you give more than $2 to an organisation with DGR status, you can claim a 100% tax deduction for your donation.ⁱⁱⁱ

Planned giving can help to create a lasting impact, building a legacy for family and community. It integrates generosity into financial planning, ensuring investments reflect personal or family values. In this way, it becomes a tool for involving younger generations in financial governance, teaching responsibility and shared purpose.

Strategic gifting can include early inheritance, education funding or contributions to a family trust. These approaches can reduce future taxes on your estate.

Structured giving options for lasting impact:

For those looking to make a lasting impact on their communities, structured giving vehicles offer flexibility and control.

It can create long-term financial stability to favourite causes, providing predictable funding for charities. It can potentially reduce complexity in estate planning, and ensure your wishes are carried out; and donating assets may offset capital gains tax liabilities.

Unlike mass market or other forms of giving, such as direct donations to charities, crowd funding and volunteering, structured giving involves using a vehicle designed to enable giving such as:

• Private Ancillary Funds – often used by families and individuals able to make a minimum initial contribution of $500,000 with a plan to grow the fund beyond $1 million.
• Public Ancillary Funds – suitable for those with a lower entry point of $20,000.
• Community foundations or giving circles – enable donors to pool resources for local impact. Entry levels can be as low as $2,000.
• Donor Advised Funds or sub funds – a simpler, more flexible structure allowing donors to distribute funds over time. They can be established relatively quickly with some recommending an initial donation of a minimum $20,000.

Structured giving can also occur without using a dedicated vehicle through, for example, corporate cash donations or larger scale and planned contributions from individuals and families. However, giving isn’t just about generosity.

Purpose-driven advice, backed by real-world impact:

At Clear Sky Financial, we believe generosity deserves the same care and intention as every other part of your financial life. Giving isn’t something to be bolted on at the end; it can be thoughtfully woven into your broader strategy, reflecting your values while creating meaningful, lasting impact for family, community, and future generations.

This philosophy shapes how we advise our clients and how we operate as a business. Through our values-led culture, and our #ClearSkyCares Workplace Charity initiatives, we see firsthand how intentional giving, when done with purpose, can strengthen connections, create opportunity and build brighter futures. It’s an approach that has recently been recognised through multiple independent honours, including the Bravehearts Community Impact Award, the Volunteering Gold Coast 2025 Corporate Social Impact Award, the Gold Coast Business Excellence Professions & Services Award (May 2025), Inaugural Ian Cousins Citizenship and Community Award 2025 Finalist, and being named among The AustralianBest Places to Work 2025.

If you’re thinking about how generosity could form part of your financial plan, we’re here to help. Together, we can explore ways to give with intention, structure your giving effectively, and ensure your financial decisions support the causes and people that matter most to you – today and for years to come.

i World Giving Index | CAF

ii Bequest Report | JBWere iii Inquiry Report – Future Foundations for giving | Productivity Commission

Important Information:

Clear Sky Financial Pty Ltd (ABN 36 634 263 148) is a Corporate Authorised Representative No.1299668 of InterPrac Financial Planning Pty Ltd (Australian Financial Services Licence Number 246638).

Clear Sky Finance Pty Ltd (ACN 679 620 716) is authorised under Australian Finance Group Ltd ACN 066 385 822, Australian Credit Licence 389087.

The information in this document is true and correct at the time of publication. It is general in nature and does not take into account your objectives, financial situation or needs. Before acting on this information, consider whether it is appropriate to you, and seek personalised advice where required.