The UK has recently seen growth in the number of advisors in banks and law firms providing philanthropic advice due to client demand, yet donors do not rate this advice highly and the sector is still far behind the institutionalised approach to philanthropy that exists in the USA. A high proportion of probate professionals in the UK still do not prompt clients to consider gifts to charity in their will and recent independent research has revealed that there is a gulf between, on the one hand, the need for philanthropy advice and, on the other, the provision of such advice by the traditional professions. This can leave many clients struggling to find good advisers to work with on this important area of their affairs.
A clear majority of the UK's wealthy population want philanthropy advice as part of the services provided by professional advisers, and think their lawyers, accountants and wealth managers could do far more on this front, with particular demand for advice on tax benefits, selection of causes and monitoring the impact of giving.
Yet only a relatively small minority of these report having actually received such advice. And those who have, on average, rate that advice poorly. This is not an encouraging picture. As Andrew Carnegie famously said, "It is more difficult to give money away intelligently than to earn it in the first place".
Figuring out who should be providing the philanthropy and social investment advice (and what the triggers for seeking such advice are) can be confusing. For example, in the UK it might come up in discussions with your solicitor about leaving gifts to charities in your will, or perhaps setting up charitable organisations during your lifetime. It might come up with your accountant when discussing tax-efficient giving or tax-relievable social investments. Or, it might be raised with your financial adviser when discussing whether to hold ethically screened or social investments within your portfolio. Add into the mix the great work of community foundations and philanthropy advisers in the not-for-profit space and you're left with a confusing landscape.
In our view, with philanthropy advice - as with most areas of
professional advice - it normally works best when advisers across
various disciplines coordinate to provide a more comprehensive and
joined-up package. So, if you are seeking better advice on this
area in the UK, it can be a very good idea to link your advisers up
(if they aren't already)
to get the best outcome. By doing this
you have the best chance of making sure the whole structure works
in the optimum way, giving you the most bang for your buck - from
tax-efficiency to integration between areas like will planning and
investment strategy, to the impact on the underlying causes
At Bond Dickinson we aim to make things as easy as possible for current and would-be social investors and philanthropists. We provide a ready-made package of philanthropy-related services, with legal, tax and financial planning experts working in tandem.
So perhaps charitable giving is already part of your financial plan, but you want to look at ways of being more strategic. Maybe you are interested in doing more in this area but don't know where to start. Or maybe you are formally involved with a charity as a trustee and are unsure about whether more integration between your advisers could yield better results for your cause. In such situations, do get in touch to discuss how we can help.
Womble Carlyle Sandridge & Rice, LLP and Bond Dickinson LLP are separate entities.
Except for articles written by others, the information in this newsletter has been prepared by Womble Carlyle Sandridge & Rice, LLP for informational purposes only and is not legal or investment advice or a solicitation to provide legal services or investment advice. Although we attempt to ensure that the information on this site is complete, accurate, and up to date, we assume no responsibility for its completeness, accuracy, or timeliness. The information in this newsletter is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. Readers should not act upon this information without seeking professional legal counsel. Do not send us information until you speak with one of our lawyers and get authorization to send information to us. We do not owe any duty of confidentiality to any persons who send unsolicited email messages, mail, or facsimiles to our firm, lawyers, or other employees listed on this website without our advance and express authorization. Our receipt of unsolicited information will not preclude us from representing any actual or potential adverse party. - See more at: http://www.wcsr.com/Privacy-Policy
Bond Dickinson LLP is authorised and regulated by the Solicitors
Bond Dickinson Wealth Limited is authorised and regulated by the Financial Conduct Authority.
Bond Dickinson Wealth Limited is a wholly owned subsidiary of Bond Dickinson LLP.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.