Philanthropy discussion builds adviser trust

Talking about philanthropy when constructing or reviewing a financial plan for clients can help advisers build trust and aid them in the regulator-required ‘know your client' process, according to Equity Trustees.

General manager, philanthropy, Tabitha Lovett, said advisers who had detailed discussions with clients about their philanthropic goals had a greater understanding of "what makes their clients tick", hence fulfilling the ‘know your client' requirement.

Advising clients on how to give in structured, tax effective ways, and discussing philanthropy with estate planning clients saw an increase in the amount of money directed towards charitable organisations, Lovett said.

Related News: Fee-for-service not holy grail

"Our experience has been that one in five of all new wills written has contained a philanthropic intent, either a portion of an estate into an existing foundation or the creation of a new charitable trust or a charitable bequest," she said.

This was in line with research carried out in the UK, which showed that discussing philanthropy with estate planning clients increased giving by around 20 per cent.

There were three types of charity tools: private ancillary funds (PAFs), sub-funds with public ancillary funds (PUFs), which have lower start-up costs than a private one, or testamentary charitable trusts.

"Establishing a PUF provides all the benefits of a PAF but simplifies the administration and reduces costs as the expense of audits, tax reporting and administration are spread across the foundation as a whole, rather than by the individual sub-funds," Lovett said.




Related Content

Industry funds retain satisfaction lead

Industry superannuation funds have retained the lead in satisfaction over retail funds over the last 12 months, according to Roy Morgan Research.The r...more

Financial advisers commit to further education

Financial advisers have become more committed to longer-term education as proved by the growing number of advisers who see postgraduate education as a...more

Standard Life recruits Aberdeen’s Archie Struthers

Investment manager, Standard Life Investments has recruited senior Aberdeen Asset Management executive, Archie Struthers as its new Head of Investment...more

Author

Comments

Add new comment