Australian children are increasingly driving the philanthropic decisions of their families, the latest JBWere report into giving has found.

With the value of Private Ancillary Funds (PAFs) reaching almost $4billion, children from a young age are learning the social, moral, ethical and compliance obligations associated with charitable donations.

John McLeod, of JBWere's Philanthropic Services Team, said: "Giving children an opportunity to be part of the philanthropic process provides them with financial experience in a controlled and audited environment.

"For extended and multi-generational families, often it is their philanthropy that provides the formal glue that holds them together over time."

The report also found that the changing nature of philanthropy has meant a move toward providing support beyond traditional monetary donations.

"Although welfare still dominates as the most popular cause for donations, we are seeing an increasing number of funds make donations that are different to your traditional monetary offer.

"One example of this is by providing the use of property at a low - or no rent - cost," Mr McLeod said.

The new philanthropic approach comes at a time of record growth in the PAF sector.

Distributions from PAFs are estimated to exceed a cumulative $1.7billion in 2014, with the figure expected to grow to $15billion over the next 20 years.

"We expect to see substantial growth in the PAF sector over the next two decades. That is why it is important for the children of today, who will ultimately be the donors of tomorrow, to be involved from a young age," Mr McLeod said.

The JBWere Private Ancillary Funds Report outlines the history and growth of PAFs, and more importantly, the contribution they are making to Australia's charitable sector.

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