An altruistic generation - How the private wealth is adapting to the trend for philanthropy in wealth management
Expert opinion
Philanthropy is an integral and rapidly evolving element of wealth management for individuals and families. Whether it is something which has simply run through your family over the years and there is an element of expectation to follow suit, or a new generation has decided to shake things up a bit, philanthropy is becoming a key consideration for wealthy individuals.
It’s an exciting time to be developing this strand of a portfolio, with many considerations including how sparsely to spread your wealth or whether to focus more heavily in one or two areas, what technology should be used to help carry out and measure the impact of your giving, and which structures are most suitable.
Of course, the reason behind this demand sits at the meeting point between a more aware generation of philanthropists, and the fact that there are simply many more calls to action on a variety of different platforms about where the capital is desperately needed – it can appear to be a real tug of war as to where one should allocate their assets.
Professionals with your priorities at heart
The private wealth industry is very much aware of how fast these changes are taking place and wealth management experts are constantly expanding their toolbox to accommodate these demands. Clients, quite literally, have the world and their finances at their fingertips. It is clear that with such exciting developments comes the opportunity for jurisdictions such as Jersey to step up to the plate and make private investment more fluid, intelligent and bespoke to suit these needs.
At Jersey Finance’s Annual Private Wealth Conference 2019, Building Better Futures, on 26th September, this broadened scope of private wealth and its various elements of complexity will be explored. As well as looking at digital and cyber-safe developments, Socially Responsible Investing and Environmental, Social and Governance opportunities will also be discussed.
In particular, family offices, a key source of philanthropic giving and investing, are going through a period of rebirth and are embracing all of these aforementioned opportunities, whilst catering for the new definition of ‘family’ – which is increasingly diverse and often more complicated than ever before.
Experts within the private wealth industry are finely tuned to the expectations of clients wishing to direct their wealth towards certain philanthropic opportunities and are ready to help in the flexible and immediate manner which is now expected.
Options for a changing client demographic
In Jersey Finance & Bedell Cristin’s 2018 report ‘Flourishing Futures: Making Succession a Success’, it was highlighted that around $30 trillion of wealth will change hands in the next 30 to 40 years. In addition, families are much more tech-savvy today compared to 30 years ago. They expect to be able to access information 24/7 and demonstrate a preference for communicating digitally, transacting online, and managing their finances via apps.
Jersey’s positive reputation, wide range of structures and forward-thinking expertise sets it apart as an industry leader in philanthropy. Notably, Jersey’s trust law means that our industry experts can adapt a range of structures to focus on philanthropic objectives, all offering a unique degree of flexibility – the charitable trust is a particularly attractive option. For altruistic, but not directly charitable, objectives (including humanitarian, research and ecological causes), the non-charitable trusts are ideal structures too.
As an alternative in the philanthropic space, the Jersey foundation has become a popular choice, created for charitable or non-charitable purposes, or a mixture of both. A Foundation has a number of benefits – it is flexible and infinite in duration if necessary. They’re clearly and unambiguously registered with the Jersey Financial Services Commission, their council of members structures are flexible in terms of composition, and Foundations provide a ‘guardian’ safeguard, making certain that the council of members maintain a clear charitable focus. Jersey Foundations are now so popular that over 370 have been established since their launch in 2009, and around a third of these are set up for philanthropic purposes.
It seems to be the general direction that philanthropy is no longer an ‘add on’ to a wealth management strategy but is in fact a serious consideration from the outset, whereby ordinary investors can make a great difference in the world. As philanthropy evolves with digital innovation and the priorities of a new generation of investors, the private wealth industry is also adapting and this is what will be explored at Jersey Finance’s Annual London Private Wealth Conference 2019 this month, which Philanthropy Impact is a valued media partner for.
For more information and to book tickets, please visit: www.jerseyfinance.je/betterfutures
