A new report from Remember A Charity have launched explores the opportunity for wealth advisers to play a more active role in helping clients achieve their philanthropic goals through a charitable legacy.
Looking at the benefits of engaging clients in meaningful discussions around charitable bequests, the report also highlights the potential for working more closely with charities to co-create philanthropic journeys for clients.
Understanding the role of wealth advisers in growing legacy giving was developed in partnership with Boon Philanthropy Consulting and with support from Philanthropy Impact. It draws from research gathered from interviews and focus groups with around 40 advisers, including wealth managers, private bankers, tax consultants, philanthropy consultants, and solicitors, it also incorporates insights from fundraisers, featuring case studies of high value legacy gifts.
The report highlights the importance of the high value legacy giving market for charities across the UK, and the scope for growth. While fewer than 1% of charitable estates in recent years have included gifts of over £500,000, data from Smee & Ford indicates that these donations generate more than one quarter of the sector’s legacy income (26%). Based on the current UK legacy market value, this equates to around £1 billion annually, funding vital services for beneficiaries across the country. Commenting on the potential for growth, Lucinda Frostick, Director of Remember A Charity, said:
“Even a small increase in high value legacy gifts could significantly enhance UK charities’ long-term funding, while enabling high net worth individuals to achieve their philanthropic goals and vision. Wealth advisers are uniquely positioned to accelerate this growth. By working collaboratively, charities and wealth advisers could unlock invaluable philanthropic potential.”
Sianne Haldane, founder of Boon Philanthropy Consulting, said:
“The opportunities that exist around growing high value legacy giving are really exciting. They provide not only transformational possibilities for charities that receive them, but central to these gifts are enhanced relationships with the donors who leave these gifts. For advisers, talking about values and legacy with clients gives them a deeper understanding of their clients’ overall goals…it truly is a win win win for all.”
While private client solicitors are often well versed with charitable legacies, the report emphasises the opportunity for a broader range of wealth advisers to play a more active role. It highlights five key findings:
- The power of values-led conversations: Clients are increasingly seeking advice that aligns with their values and ethical considerations as well as their monetary goals. Wealth advisers can deepen relationships and trust by incorporating discussions about charitable intentions with their clients.
- Seeding the idea of charitable legacies: Advisers are well-placed to initiate conversations about legacy gifts during key life stages, offering clients the opportunity to align their estate plans with philanthropic aims while exploring potential fiscal benefits.
- An appetite for specialist knowledge: Advisers express a need for more knowledge and support in raising legacy conversations with their clients. They want to better understand how legacy gifts can be structured and how they can help clients realise their own charitable goals.
- Legacy giving can play a key role in the philanthropic journey: The decision to leave a charitable legacy can be a catalyst that inspires future giving. Advisers recognise that discussing the causes that matter most to clients can strengthen the adviser-client relationship, as well as help clients approach subsequent philanthropic and investment decisions.
- The need for a more holistic and collaborative approach: Impact is a key driver for high net worth individuals. They expect to have choice and agency, and be well stewarded – by advisers and charities alike. There is scope for charities to work more collaboratively with advisers, supporting them in co-creating philanthropic journeys and experiences.
One adviser commented:
“When a client feels passionately about giving something back, it is very humbling to be entrusted with the responsibility to ensure their legacy makes a positive difference to causes that are close to their hearts.”
John Pepin, CEO of Philanthropy Impact, said:
“At Philanthropy Impact, we believe that wealth advisers are at the forefront of a transformative movement in values-based impact investing and philanthropic giving, including in legacy giving. Their expert guidance can empower clients to make impactful decisions that resonate with their deepest values and aspirations.
By fostering a more informed and integrated approach, we can ensure that high value legacies contribute significantly to societal advancement and create lasting change.”
The report is available to download from Remember A Charity’s website. Additional web-based content and assets have been developed to inspire, educate and equip wealth advisers for discussing legacy giving with their clients.
Rachel Steeden, Head of Legal at Stewardship, commented:
“The report is packed with useful insights to encourage mutually beneficial conversations between advisers, clients and charities. It covers the wide range of legacy structures available, including the highly practical and flexible Donor Advised Fund model.”
