Planners must prepare themselves for increased interest in charitable giving fuelled by Australia's impending transfer of intergenerational wealth, a US expert has warned.
Silicon Valley Community Foundation former president and current senior financial adviser Peter deCourcy Hero was in Sydney to kick off a series of workshops on philanthropy for finance professionals.
During Hero's first 10 years of tenure the foundation grew from $10 million in assets to more than $600 million. Following a merger the community foundation, today it has more than $1.6 billion in assets.
"There's this huge transfer of intergenerational wealth going on, I'm assuming Australia's the same. In America it's been estimated to be USD41 trillion. That money can only go one of three places; it can go to the next generation; it goes to what I call the 'involuntary charity' in Washington which is where our tax dollars go, or it can go to charity. That's it," Hero said.
"These advisers are going to be asked more and more about this subject and so we were showing how a community foundation can be an ally and assistance in answering some of those questions."
Centric Wealth senior adviser Bruce Christie said the financial planning community was keen to embrace philanthropy. About a dozen planners attend his monthly meetings to discuss charitable giving.
Sydney Community Foundation is a charitable organisation that manages and distributes funds on behalf of individuals, families, companies and other organisations.
