Despite a downturn in regular tax-deductible and workplace giving, Koda Capital’s key finding is that Private Ancillary Funds (PAFs) are continuing to perform strongly. At this challenging time for fundraising, charities need to be working on opportunities to approach PAFs.
The total pool of PAF funding continues to grow and the distributions (legislated at 5% per annum) made by PAFs are rising every year. In 2016, PAFs distributed $457 million to Australian DGR 1 organisations and there is no indication that this source of funding will do anything but increase.
APPROACHING A PAF
The Koda Capital echoes what AskRIGHT has known for some time:
Charities should understand that the PAF market is not really a market at all. PAFs are about people.
Koda Capital Snapshot
Each PAF director should be regarded as a prospect who can be approached in accordance with existing major gift best practice to inquire about any interest their PAF might have in supporting your good cause.
IDENTIFYING A PAF
The report also expresses a common view about the difficulty of accessing useful information about each PAF, including directors. The AskRIGHT PafGUIDE® offers this kind of information in a convenient, searchable database. Our Guide reduces some of the challenges for doing the research into who directs PAFs and what beneficiaries those PAFs are on a mission to support.
PAF HIDDEN WEALTH
AskRIGHT noted with interest that World Vision was reported to be Australia’s top fundraising organisation at $347 million per annum and the Salvation Army Eastern Territory second at $114 million. Both of these major non-profits are subscribers to the AskRIGHT PAF Guide and heavily invest in executing their PAF engagement strategies.
With traditional giving experiencing some challenging times, it is more important than ever that nonprofit organisations make the effort to engage with PAFs.