As the number of charities continues to increase, how to differentiate between so many well-meaning causes has also become a challenge for many wealthy donors. Strategic planning, leading to an actionable mission statement and defined assessment criteria, has become key to achieving lasting results.

“Philanthropy is evolving fast,” says David Lang, Director of Philanthropy for HSBC Private Bank's Bermuda Trust Company. “A new kind of donor is emerging, with a new approach to giving. Through increased client involvement philanthropy is becoming more effective, moving donors beyond simply writing a cheque. Benefactors are examining their underlying motives and developing long-term plans, all to ensure their donations have maximum impact.”

The need for structured giving
Such "planned giving" is a growing part of modern philanthropy, making it easier, and possibly more tax efficient, to make gifts by offering user-friendly structures. Through the careful structuring of a philanthropic investment, continuous participation by family members can be assured for generations to come. The processes behind establishing charitable trusts and foundations, however, remain complicated and require detailed knowledge of different structures, such as trusts, companies limited by guarantee, fiscal issues, charity regulation and reporting, among others.

Mary Duke, Head of Wealth Advisory Services for HSBC Private Bank in the Americas, comments: “Today’s wealthy families are well aware of the need to put their philanthropy on a proper legal and financial basis and are more exacting in wanting to achieve objective results. With the advent of ‘planned giving’ the global flow of philanthropic funds is likely to increase further. And the more donations that cross borders, the more cross-border tax issues are raised. Incorporating philanthropy into an overall financial strategy can help increase the amount a client is able to donate, while also maximising family giving for income, tax or other financial benefits.”

Our strength in philanthropic services
As a global business-line within HSBC Private Bank, Global Wealth Solutions provides wealth planning solutions for high net worth individuals, entrepreneurs and their families through 22 locations worldwide.

“We provide practical advice to help guide clients through the complexities of the non-profit sector,” says Cynthia D’Anjou Brown, Philanthropy Adviser for HSBC Private Bank in Asia. “And with access to the expertise within the HSBC Group, we have long-standing relationships with organisations throughout the community. This enables us to identify projects that may not necessarily be well-known to the public but may be of interest to our clients.”

Importantly, we provide an opportunity for lawyers, accountants and other private client advisers to discuss their clients’ wealth management concerns with our specialists, initially on a no-name basis, if required. No matter where in the world a family’s philanthropic interests take them, we can help them plan and manage their giving process to achieve their philanthropic vision.

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