Recyclable charitable capital
A structural redesign of how philanthropic capital moves. Traditional philanthropy is bilateral — donor gives, charity spends, the money is gone. Recyclable capital is networked: pool → recipient → pay-forward → pool → next recipient. The same dollar funds many projects over time, generating 10–50× system value over decades vs one-and-done donations.
How recyclable capital works
Beneficiaries pay forward when they're able — typically 80–95% recovery (the R Factor). Capital returns to the same pool, ready to fund the next cohort. No new fundraising required.
Three instruments do the heavy lifting:
- CADA — Charitable Asset Deployment Agreement (asset finance, voluntary contribution recovery)
- CWCA — Charitable Working Capital Agreement (bridge facility, milestone-based recovery)
- Recoverable grants — under the Public Ancillary Fund Guidelines 2022 cl 19 (note: PuAFs are being renamed Public Giving Funds under the Feb 2026 announcement)
At 85% recovery, every $1 generates $5.67 of cumulative impact across cycles. At 95%, $20×. This is the donor argument: your $100 isn't $100 of impact — it's $567+.
What recovery compounds to
Two paths for recyclable deployment
The capital architecture splits cleanly between traditional DGR routing and the new Community Charity Trust pathway. Both recycle.
A Public Giving Fund (formerly Public Ancillary Fund, or PuAF) makes a recoverable grant to a DGR Item 1 recipient (hospital, PBI). Recipient owns asset day 1 or runs the program; principal returns to the corpus on the agreed recovery schedule. Counts toward the fund's 4% minimum distribution on first deployment (moving to 6% under the 26 Feb 2026 announcement, pending guideline amendments).
Use when: established Item 1 DGR, no operator overlay needed.
Community Charity Trust funds an Asset Deployment Vehicle which procures, leases, and transfers assets to a non-DGR delivery partner under a Charitable Asset Deployment Agreement. Asset transfers GST-free under s 38-250. Principal + admin recycle to the CCT for next deployment.
Use when: non-DGR community partner (Indigenous orgs, grassroots), pooled procurement, multi-partner program design.
Working documents — under NDA
Working documents produced with ABL (legal), Australian Communities Foundation, and Bendigo CEF cover the full Path A / Path B capital architecture: ACF Asset Finance & Working Capital Structure, TR 2005/13 material-benefit analysis, CWCA + CADA templates, Recyclable Capital institutional brief, NABU deal memo, and portfolio construction.
These contain pre-publication legal architecture + partner commercial terms, so they're shared under NDA on request rather than posted publicly.
Want to deploy recyclable capital?
Whether you're a foundation operating a giving fund or CCT, a donor giving recoverably, or an NFP wanting a recoverable grant — tell us about it and we'll come back within 48 hours.
Tell us about your project
Roshan reads every submission. We respond within 48 hours.
Companion content: research papers from IRSA Institute on Circulatory Economics, governance debt, and the methodology behind recyclable capital instruments.