The interpretation of philanthropy is different for everyone, but to be truly effective, it requires a clear vision. For some, their philanthropic aims are clear at the outset.
For others, the roadmap is less linear. We conducted an in-depth conversation with our clients to understand:
- What their wealth is for
- The purpose they want to serve
- The difference they want to make
The great wealth transfer
If you’ve worked with us before, you’ve probably heard our tagline: “Achieve more. Together.”
Many families are choosing to embrace the same principle with philanthropy by involving the next generation in their philanthropic aims and empowering them for the future. This has the added benefit of introducing them to financial responsibility, decision making and building the foundations of the family vision together.
Branded the great wealth transfer, Kings Court Trust reported that £5.5 trillion is set to pass between generations within the next thirty years in the UK. What could this mean for philanthropy?
Fresh priorities
The donors of the future undoubtedly have new perspectives, which can be extremely valuable as we enter a new era of giving.
There are several trends that have been reported in relation to next-gen philanthropists:
- They respond to real world needs – a survey found that donors aged 25 to 34 were the most generous age group during the Covid 19 pandemic, with 75% making donations compared to the populations overall 64%.
- They view the world differently – we’re also seeing shifting demographics, and it’s estimated that 65% of the UK’s wealth will be in the hands of women by 2025. Research suggests their decision making is more value based.
- They do things differently – in a recent survey, a 76% majority agreed that they wanted to pursue a philanthropic path independent of their predecessors, with young women more likely than their male counterparts to agree – 88% of women compared to 69% of men. Perhaps this is because they haven’t been involved in the philanthropic conversation with their predecessors.
- There’s one theme that rings loud and clear – they’re passionate about matters that are important to them and are keen to get involved.
Why should you be interested?
Developing a plan to strategically tackle some of the issues that are important to you has several benefits:
- Contributing to social value, giving you a sense of purpose and achievement.
- It gives you the opportunity to build relationships with recipient charities - if that’s something that’s important to you. You can discuss your plan for giving with them, perhaps give on the understanding that funds will be used for a particular purpose, be involved in the process and be part of the project.
- It helps to make sure that your wishes are followed when you’re gone.
Options
If you decide to use some of your wealth for the greater good, we can help you find the right strategy.
Depending on what you want to achieve, the approach may include lifetime giving, giving on death (through effective will planning), or a combination of both.
It could mean supporting existing charities, donating to a donor advised fund, social investment or even setting up your own charity. If setting up your own charity is the right option for you, we can advise on an appropriate legal structure, prepare the governing documents and deal with Charity Commission registration to get it off the ground. We work collaboratively to achieve your goals and ultimately ensure that your gift (whatever that looks like) has a meaningful impact.
If we’ve sparked your interest and you have any questions, get in touch.
Read the latest edition of Private Affairs for updates in private wealth law.
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