Victorian woman who claimed mammoth $60M Powerball prize reveals plan to help favourite causes with new fortune
Victorian woman who claimed mammoth $60M Powerball prize reveals plan to
help favourite causes with new fortune
A Victorian woman has taken home the entire $60m Powerball winnings and revealed the surprising thing she plans to do with her new-found riches.
Incredibly, she hand-picked each of the unique winning numbers in this week’s draw including numbers 11, 19, 4, 22, 3, 8, 14 and the Powerball number of 5.
The woman – who resides in Daylesford, told the Lott she would be donating a significant chunk of the money to charities that support children.
As financial advisers, the statement by the $60m Powerball winner grabbed our attention.
The sole winner wishes to help her favourite causes by donating a significant chunk of the money to charities that support children.
However there are a myriad of ways to ‘give’.
You can donate to charities on an ad-hoc basis, you can sign up for regular payments, or you can get strategic and take a considered approach to how your structure your donation, enabling it to grow into perpetuity.
Structured giving is the concept of planning both your donations and your investing to better fund the organisations you support.
When you first start your giving journey the array of options can be intimidating, and unfortunately for some it can be paralysing. There are so many worthy causes, you need to separate the good operators from the bad, and you need to find the projects that are best aligned with your values.
This is where good advice is invaluable, and it’s where the right structure can save you a lot of time and confusion.
Whilst you may consider gifting a sum of money to a registered charity to make a more permanent and enduring contribution, it may be more effective to establish a structure to support you in achieving this.
Gifting in a more structured manner, can ensure that your gifting will continue in perpetuity and you can specify the causes that you wish to benefit.
In some circumstances, it may be appropriate to make an outright bequest to your preferred charity or several charities you wish. However, by making an outright bequest you are giving the charity complete discretion as to the application of that money. Alternatively, you may wish to make a more substantial contribution in the form of distributions from a structure with precise conditions and guidelines over how those funds are to be used by the charity. This allows you to ensure that you are making a lasting and valuable contribution which will continue to generate a continuous stream of income and benefit to your chosen causes into perpetuity.
For example if the $60m Powerball lotto winner, was to donate $10m into a “structure” they could donate between $500-800,000 from their underlying investment returns each year to their charities and causes of choice. This would surpass a lump sum $10m donation after 12-20 years, during which time this structure can operate to honour the Powerball winner, which then can be shared with their family members and descendants, which will support in establishing a tradition of social responsibility for future generations to come. Creating this type of legacy is appealing for some, but not for everyone.
Strategic philanthropy means you can have a more significant impact with your giving. Ensure that every single dollar you donate – now, next year, even after you’re gone – helps support the people, causes and communities you care about.
How do you do that?
By knowing the organisations you support not only align with your values but are effectively governed and exceptionally led.
That the charitable structure you use reflects the size, timing, purpose, and origin (individual, family, company) of your giving.
That your relationship with the organisations you support works for them and for you – through involvement, communication, tax-effectiveness and more.
Whether you are considering your options, exploring a charitable trust or another structure to support you and your family gift to causes and charities that you care about, speak with our expert Newcastle Financial Planners, who will be able to work in partnership with you and your legal team. We support clients Australia- wide, including in Daylesford, Victoria.
Source: https://www.news.com.au/finance/money/the-winning-numbers-for-the-60m-powerball-jackpot-have-been-drawn/news-story/140c28344ef4ad687049956b69fb6d68