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Charitable Giving

Philanthropy and social impact gifts are an increasingly important driver for many high net worth clients, when managing their personal wealth. Clients of Affinity often make charitable donations themselves or via structures, such as trusts or companies, they have established.

Research undertaken by Scorpio Partners reveals that circa one third of wealthy individuals say they would like their advisor to support their charitable activities more effectively. A survey by the Charities Aid Foundation found over two thirds of the 1,000 wealthy donors they questioned felt professional advisers could and should give them philanthropy advice.

These findings are consistent with the activity and requests we are receiving from our clients. To respond to their needs, we are investing in our staff to better equip them to recognise and meet the growing demand for philanthropic and social investment advice. By being empathetic to our clients’ social impact requirements, the Affinity team are able to guide them in their giving and investment decisions.

Specifically, we provided relevant training in our business, so we may lead or support clients, in assessing what makes a good charity. As trustees, we are able to carefully evaluate the organisations our clients are considering. This approach helps determine whether the charity is likely to meet our clients’ chosen impact and/or how well it is run, with the aim of avoiding poor giving outcomes.

Much of this work begins with understanding the impact the client wishes to make. This may involve considering the differing views of a number of family members and trying to formulate common aims the family can broadly support. Clients often come with charitable ideas and the impact assessment enables them to determine the appropriateness of each. Then, as trustee, we can assist in the due diligence to support the decision and put in place agreements with the charity on how to measure and monitor this impact. Future donations, to the same beneficiary, are dependent on a positive assessment.

We are increasingly playing a key role in many of our clients’ charitable giving and have found that, by adding structure to the process, we ensure our clients become more effective donors.