Philanthropy can be a new subject for many clients, even those who regularly give to charitable causes. With this in mind, Equity Trustees has developed a range of tools that you can use to easily and respectfully introduce the idea, and the benefits, of philanthropy to your clients.
When to bring up the subject
Though our many years of experience assisting philanthropists, we have noticed there are key events and periods in people’s lives where they may be open to a discussion regarding philanthropy. Clients can start giving for as little as $20,000.
Have a significant windfall
Clients who receive a large sum of money either through astute business dealings, inheritance or chance may wish to share their good fortune with others. They may not be aware of the benefits to them, both personally and financially, in engaging in a philanthropic project.
Death of a partner, child, friend or relative
The untimely death of someone close may leave a client with the desire to leave a lasting memory. Philanthropic funds and foundations may be the perfect way for your client to celebrate the life of the lost loved one and mourn their passing.
Have a major tax liability
Clients may be unaware of the significant tax benefits available with the establishment of a philanthropic fund. For a client who has a major tax liability, philanthropic project may be the most cost-effective solution.
Over 55 years of age, single with no children, or is in a position to significantly give to charities during their lifetime
Clients who have decided not to marry and start families, and are approaching the latter years of their life may wish to use their wealth to benefit others. Through philanthropy with Equity Trustees, this can be achieved either during their lifetime, or after their passing.
Have more than $500,000 in investable assets (outside super)
Clients with large investable assets may not have considered the possibility of structured charitable giving. In addition to the personal benefits, clients may not be aware of the tax benefits associated with the establishment of a philanthropic trust.
Regularly claim tax deductions for gifts to charity and therefore already have a good commitment of charitable giving
Clients with a strong commitment to charitable giving may not be aware that establishing a philanthropic trust is achievable for most people. This may be a perfect way for them to optimise the funds they have available for charitable gifts in order to make a greater impact.
Have a passion for something in particular, for example the arts or the environment
Clients with a passion for a particular area, such as animals or the environment may be open to the idea of philanthropy. When discussing their area of interest with your client, it may be the perfect time to mention the personal and financial benefits of philanthropy.
Already have a provision in his/her will to make direct gifts to charities
Clients who intend to gift part of their wealth directly to charities after their passing may be unaware of the benefits of a testamentary trust. A single donation may be spent straight away, whereas a testamentary trust managed by Equity Trustees will continue to grow into the future, giving them the ability to donate many times more than the value of the original gift.
Concerns clients may have regarding philanthropy
Many clients may wish to begin their philanthropic journey, however, they may have some concerns regarding the ongoing obligations it may bring. For them to embark on this journey, the need to be assured that key areas of their financial lives must be fulfilled.
To be able to provide for their own needs
Clients wish to be assured that they will have enough to meet their current living standards before beginning their philanthropic work. Sound financial planning and a great client relationship are at the heart of this issue.
Be able to retire comfortably
Your client has worked hard their whole life with the dream of being able to retire comfortably and enjoy the fruits of their labour. Before they engage in any philanthropic activity, they will wish to be assured that their philanthropic goals will enhance their enjoyment of retirement, rather than subtract from it.
To leave a legacy to their own children
If your client has children or grandchildren, the may wish to leave a financial legacy for future generations to build on. They will not wish their generous nature to in any way compromise their family legacy.
Equity Trustees can work with you to plan for your clients’ needs, and give them the confidence to be able to realise their philanthropic goals. As always, we respect your relationship with the client, and will act in a specialist capacity only.
Join a community of like-minded philanthropists
Through our many years of experience working with philanthropists, we have found they seek community and like-minded company. Their current peer group may be unable to fully appreciate the issues they deal with and it may be difficult for the philanthropist to confide in them.
At Equity Trustees, we enable our philanthropists to engage with one another, to discuss philanthropic issues and to collaborate on philanthropic projects. Some of the greatest philanthropic work has been a result of these collaborations.