Where there’s a will, there’s a smarter way to give
The role of professional advisers in ensuring communities benefit from what is being called “the greatest intergenerational transfer of wealth in human history” has come under the spotlight, following the publication of a revealing new study on Kiwi philanthropy.
According to a recent white paper published by Denton Swan and Community Foundations of New Zealand, an unprecedented transfer of wealth is underway from a generation of baby boomers worth an estimated $150 billion across the New Zealand over the next 20 years.
If channeled into communities through strategic giving models such as community foundations, study attorney Henry Brandts-Giesen believes sustainable funding streams will follow.
“Professional advisors have a key role to play in the philanthropic advice they give, and should not underestimate how crucial their role really is. of compliance and administration faced by funders and philanthropists in the New Zealand not-for-profit sector A well-designed donor-advised fund or special interest fund eliminates the need for legal architecture and governance of an endowment fund or bequest.This can ease the burden of governance, compliance and administration and allow funds to grow and grants to flow efficiently to third-party project providers.
Sarah Beckett, partner at Hawke’s Bay Willis Legal, agrees that the effectiveness of community foundations is what many of her clients find appealing and why it’s being touted as “the fastest growing form of philanthropy in the world today.” “.
“Giving to a community foundation ensures that you can support many different charities within your community, even with a small bequest in your will or a gift. Through economies of scale, a community foundation offers efficiencies that will help ensure that the gift will ultimately make a difference to our community. »
According to a recent study by the Fundraising Institute of New Zealand (FINZ), around 5% of the public have already planned a gift in their charitable will and a further 21% are likely to or are planning to do so.
Sarah Beckett says that, like many others, her clients are becoming more strategic with their charitable donations and looking for more sustainable structures to deliver them.
“Customers’ charitable donations are usually driven by personal experience. They increasingly want to ensure that their gift to their desired area of interest can be long-lasting, without placing an administrative burden on their remaining family. Community foundations are a useful vehicle for achieving these goals.
The Hawke’s Bay Foundation is one of 17 community foundations in New Zealand and more than 1,800 community foundations around the world, connecting generous locals like Rachael Knight to causes close to home and close to their hearts.
“There are significant benefits to be gained from the charitable sector which is gradually moving towards a more collaborative model, such as that offered by local community foundations,” says Rachael.
“I chose the Hawke’s Bay Foundation to manage my charitable giving because there’s no bureaucracy, it’s local and it gets to the people who need it. There is integrity and I like that.
Rachael’s suggestion to others considering giving back to their community:
“Don’t delay too long. I’ve had a great life and thought I might as well start giving back early so I’m always there to enjoy the joy of giving and be involved with its recipients, n’ is this not ?” isn’t that what it’s all about?
It is estimated that community foundations across New Zealand have over $200 million in funds under management and another $400 million in an ever-growing bequest pipeline as Kiwis learn about this form of giving and its benefits. .
As a lawyer advising clients for over forty years on their wills and a trustee of the Hawke’s Bay Foundation, Kevin Callinicos has been impressed by people’s willingness to give back, whether a little or a lot.
“Many New Zealand families have enjoyed unprecedented inflation-fueled growth in their net worth to the point where their resulting wealth sees excess funds available for philanthropic purposes. But as is clear, many in our community have not benefited from this inflation fueled growth. So, in the Kiwi way of giving everyone a fair chance, community foundations are a great way for DIY Kiwis to contribute – give to your local community foundation, grow the fund in perpetuity, and leave the proceeds generated from supporting the ever-growing fund for those in need in our community.
When asked the question “to give or not to give,” Henry Brandts-Giesen thinks there has never been a more critical time for professional counselors to counsel well.
“Professional advisors should be encouraged to have these conversations with their clients now. If some of this immense wealth currently held by baby boomers can be invested to benefit the charitable sector, then there will be tangible and measurable benefits for neo-society. Zealand will inevitably follow.”
If you, or someone you know, would like more information about visiting the Hawke’s Bay Foundation:www.hawkesbayfoundation.org.nz
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