Philanthropy is an essential tool for financial planners who strive to provide a holistic advice approach, according to charitable giving experts.
The demand for philanthropy advice is escalating. Interest is fuelled by soaring wealth, babyboomers who want to leave a lasting legacy and changes in attitude inspired by community investing by successful figures like Bill Gates.
“Increasingly financial planners recognise that they need philanthropy as part of a holistic advice offering. The real issue for planners is to determine how to best offer it to clients. If they do a bit of homework around it and speak to specialists like Trust,” Trust executive general manager Assyat David said.
Planners should approach charitable giving the same way they do other areas of advice, David said. Advisers should identify where there’s a need for philanthropy, look at objectives, which may include tax benefits, having an active distribution of funds and a time frame and get advice from specialists.
Trust has over $350 million in charitable funds under administration and it is the trustee for several awards including The Miles Franklin Literary Award.
Perpetual has called on Australian advisers to recommend charitable giving as part of a core component of financial planning.
“Many clients of financial advisers have charitable goals but aren’t sure how to implement them. In the process, their money can go further and be more effective in meeting community needs,” Perpetual Private Clients head Scott Riedel.
Riedel made the comment came at the announcement of West Australian author Deborah Robertson as winner of the 2007 Nita B Kibble Literary Award for Women Writers for her novel Careless. Perpetual is co-trustee of the Award.
Perpetual acts as a trustee or co-trustee of almost 400 charitable trusts valued at over $1 billion.
