Jo Bateson, Tax Partner, Private Client Advisory, discusses the changing approach to philanthropy and deciding on a strategy that suits.
“There’s been a real change from one-off cash gifts and donations to a move towards ESG and social impact investing.”
With a change in wealth there is also a change in attitudes. There's a focus now on how wealth is made and also how it’s given away. Motivations for giving away proportions of wealth can vary, an philanthropy in itself being approached differently.
There's been a move away from one-off cash gifts to a more considered Environmental, Social and Governance (ESG), and social impact investments which will see both social and economic return.
There's no one-size-fits-all when it comes to philanthropy and there's lots of options out there to weigh up.
One of the key things is working out what’s important and where the focus is for philanthropy strategy. Giving is dependant on individual goals and which causes align with the personal philanthropic ethos which helps with deciding the proportion split to each cause.
It’s also important to explore how you should organise your philanthropy. From considering one-off cash donations working with large charities or alternatively to set up a foundation, where a donor-advised fund could be used.
When to give can also vary, it could be in reaction to world impact or disaster relief for instance or it could be from leaving an amount in a will.
A strategy should be thoroughly researched and the alignment of the right people to collaborate with will often inspire the outcome.
We work with our clients to develop their core strategy for philanthropy but also help them with the implementation. We can facilitate the plugging into our network of experts but also some like-minded individuals to create a platform for sharing knowledge as a community of fellow philanthropists.
For further information please contact Jo Bateson or your usual KPMG contact.
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