A report commissioned by the Community Foundation for Ireland shows wealthy people are increasingly interested in philanthropy.
The research,’Trends in Irish Philanthropy,’ found that one in four professional advisors report an increase in clients enquiring about philanthropy.
The research is the first ever comprehensive survey conducted on Irish professional advisors’ views on philanthropy. Taking part were wealth mangers, tax advisors, solicitors and accountants representing some 40,000 high-net worth individuals and private clients.
Key findings of the report include:
— 27% of professional advisors reported an increase in enquiries about philanthropy in the last 12 months
— When asked how a change in the current tax would affect philanthropy in Ireland 85% said a removal of the tax cap would increase giving
— When asked about their approach to the topic of philanthropy 58% of advisors had never discussed philanthropy with a client
— 43% of advisors believed that clients require assets in excess of €1m, excluding one’s principal residence, to start to think about philanthropy
— 56% believe the level of giving could double to €1 billion by 2013
While the results of the Community Foundation report identified a growing appetite and interest in the area of philanthropy among professional advisors and their clients, it also highlighted the need for further education about philanthropy. Almost eight in ten of respondents believed that philanthropy is not yet fully understood as a concept by the majority of their clients.
The report also shed some light on the drivers associated with clients becoming involved in philanthropy. The most cited reason was a desire to give something back to the community, followed closely by a belief in a specific cause. Another noteworthy reason was the respect for particular people involved in a charity, highlighting the importance of a figurehead in such organisations and in public profiling of the good work carried out.
The landmark report gauged the views of 75 professional advisors including wealth managers, stockbrokers, accountants, tax advisors, insurance brokers and solicitors from across the country representing thousands of wealthy clients, on their views of philanthropy in Ireland to date. The report was conducted in cooperation with the Irish Taxation Institute and The Society of Trust and Estate Practitioners (STEP) Ireland.