State-based Philanthropy

From PhilanthropyWiki

Philanthropy in Australia is often spoken of as Victoria-centric.

The commonly held belief that the majority of Australian foundations are located in Victoria has some historical basis, but its extent tends to be exaggerated. The reason behind the Victorian bias is simple: the state of Victoria had extra tax incentives under the Administration and Probate Act 1915. This Act built on an earlier 1907 Act, and established that people leaving money to establish a charitable foundation received a reduction in death duties payable on their estate. The situation was further clarified by the Administration and Probate (Estates) Act (Vic) 1951, which allowed gifts for charitable purposes to be deducted from the final balance that would be subject to duty.

In practical terms, while this did not benefit donors who wished to give during their lifetime, it gave an incentive for them to leave funds in their will to establish a foundation in order to lessen the burden of death duties upon their heirs. Similar provisions did not exist in other states. The extra incentives lasted until 1976 when Victoria abolished death duties. This explains the fact that for much of the twentieth century, Victoria had more testamentary foundations (established by bequest) than other states.

This concentration of foundations in Victoria means that many of the oldest, largest and most established foundations are physically located there. However, it doesn't mean that they will necessarily only fund within Victoria; many of them can, and do, fund Australia-wide. Additionally, the creation of many new foundations under the Prescribed Private Fund (PPF) legislation, the development of geographically based community foundations, and the expansion of organised corporate philanthropy in Australia, are all homogenising the spread of foundations. The very first PPF was established in New South Wales; there are currently more PPFs in New South Wales than in Victoria, and their numbers Australia-wide are growing.

The first charitable trust in Australia, as far as we are aware, was established in 1886 in South Australia – this was the Wyatt Benevolent Institution. The second oldest is the Queen's Fund, established in Victoria in 1887.