Prescribed Private Funds (PPFs), a new category of private charitable trust, were successfully recommended to the Federal Government by the Taxation Committee of the Prime Minister's Business and Community Partnership. The first guidelines and model trust deed were released in April 2001. As of November 2003, 81 Prescribed Private Funds have been approved.
One of those new funds is the Matana Foundation for Young People, established by Sydney businesswoman, Karen Loblay.
"I've been involved in philanthropy as an individual for a long time, but I wanted some way of ensuring that, should I be run over by the proverbial bus, my plans for how my money should be spent are respected," she said.
For many years Ms Loblay has supported community groups working with disadvantaged young people. One form of contribution was through her family's property business, which made property available for organisations helping homeless youth.
About ten years ago Ms Loblay first began looking for a way to establish her philanthropic work beyond private giving.
"I could have established a public foundation, but the downside was the prospect of losing control of its main direction. It's always possible that external trustees won't stay true to your wishes." she said.
"About a year ago I read a tiny article in the newspaper about the new Prescribed Private Funds. I asked my accountant, and he knew nothing about it. I asked other people - nobody knew anything. My accountant, a wonderful, generous man, spent time finding out everything he could."
"I also contacted Philanthropy Australia, attended a couple of their seminars, and came down to see John Emerson at Freehills in Melbourne. It's all gone from there."
The name 'Matana Foundation for Young People' was chosen deliberately instead of a family name. "The foundation is not for the sake of recognition of the family, it's for a charitable purpose," Ms Loblay explained.
"I chose the name with my son, who is 22, because the money is part of his inheritance and I wanted him to be involved. He is committed to philanthropy in his own way, so I knew it would interest him. He studies Hebrew, so we chose the name 'Matana', which is the Hebrew word for gift."
The foundation has five trustees - Ms Loblay, her husband, her father, her son, and as required by law, a 'responsible person', her accountant.
"What I like is that I and those who I've invited to be trustees will decide what happens to the funds. Part of my money comes from inheritance, so I think that there's a moral obligation for my father to know what I want to do, and for my son too, because it would otherwise be his."
Having recently registered the trust deed, Ms Loblay and her fellow trustees now have the task of refining the foundation's goals and giving program.
"The aim of the foundation is to help disadvantaged young people in particular, but beyond that I haven't yet developed anything. I've been reading extensively," Ms Loblay said.
"I want to produce a brochure about the foundation, to describe its work and its intentions for the benefit of potential donors and grant seekers. I believe that the clearer you make the intention, the less conflict there is, and the less likely that grantseekers will apply to you for things you don't intend to fund."
"I've also begun drafting some guidelines for the trustees, but I'm always open to debate because I think that's healthy. I think the words 'disadvantaged young people' are pretty broad."
Ms Loblay intends to set up a website for the Matana Foundation for Young People, which will make it accessible to grantseekers anywhere in Australia. She expects, however, that most applications will come from locally based groups.
While Prescribed Private Funds are not required to seek public donations, Ms Loblay will be seeking and welcoming contributions from friends and other interested people. She has already enlisted the voluntary services of a number of relatives and friends in designing a logo, brochure and website for the fund.
While decisions about how public the foundation will be are yet to be reached by the trustees, Ms Loblay is more than happy to share information.
"I think money that attracts a tax deduction is public money and as such we should be accountable for how we spend it. I have no problem in making information about the fund and its grantmaking public" she said.