Greer says: “Having this understanding could also give financial advisers a competitive edge when it comes to securing younger clients where the demand is greatest."
With the transfer of wealth, the next generation are expected to be the most significant donors in history, suggesting the £7.76bn currently estimated to be donated by high net worth individuals in the UK will only increase.
Philanthropy needs to be normalised
Philanthropist James Chen agrees that advisers can play a key part in increasing philanthropic giving.
He is chairman of the Chen Yet-Sen Family Foundation, and said he is passionate about giving back to society, inspired by his own grandfather. Chen is an advocate of ‘moonshot philanthropy’, the approach of people giving large amounts at scale to accelerate ambitious plans.
He says: “In recent years different models of giving, beyond charitable donations and patronage, such as trust philanthropy, effective altruism and moonshot philanthropy have emerged to address the needs of a changing demographic who may want to start or scale up their giving but are unsure of the best route.”
When it comes to the role advisers and wealth managers can play in increasing philanthropy, he thinks in-depth conversations and creating a strategy outlining giving intentions is key.
Chen adds: “The level of detail will depend on the funds available, the timeline, the family’s needs and preferences, and where they are on their philanthropic journey.
“Some plans simply state how much the family will give and for which causes. Others are complex strategies that include governance and staffing arrangements or plans for developing new philanthropic initiatives and succession.
“Even having the ability to raise the subject of philanthropy when speaking with clients new or old normalises the subject and empowers them to ask for help or clarification if or when it is needed.”
Tara O'Connor is an investment writer for FT Adviser
