The business of philanthropy: Why philanthropy is becoming part of mainstream private banking

Date: 15 Jul 2026

Karen Jones

Philanthropy is no longer viewed as a standalone charitable activity. Increasingly, it sits alongside succession planning, family governance, cross-border structuring and intergenerational wealth transfer as a core part of wealth advice. As private banks and family offices respond to changing client expectations, advisers are being asked to help families define not only how they preserve wealth, but also the values and purpose that shape its long-term impact.

Drawing on insights from the recent Citywealth Forum and leading voices from across private banking, philanthropy, law and family governance, this feature explores why philanthropy is moving into the mainstream of wealth management, and what that means for advisers serving internationally mobile families.

Picture in style of Modigliani

The shift reflects changing client expectations. Families are seeking advice that brings together succession planning, governance, investment, philanthropy and long-term purpose. As discussions at the recent Citywealth Forum highlighted, advisers are increasingly expected to facilitate conversations that help families define their legacy, navigate complex cross-border structures and deliver measurable impact through giving.

The industry’s response is already becoming visible. This week, Schroders Wealth Management announced the launch of a dedicated Global Wealth Advisory service, bringing together wealth planning, cross-border structuring, intergenerational wealth transfer and philanthropy under a single advisory offering. The move reflects growing demand from ultra high net worth clients for advice that extends beyond investment management to encompass the broader challenges of preserving, transferring and deploying wealth across generations.

Yet as philanthropy becomes more firmly embedded within wealth management, questions remain over whether advisers have the skills, structures and partnerships needed to meet those expectations.

Values are driving a new advisory conversation

Research suggests that wealthy clients increasingly want advisers to understand what matters to them beyond financial performance. That means conversations about philanthropy and family purpose are moving into the mainstream of wealth management. Increasingly, advisers are being asked not only how wealth should be managed, but how it can create lasting impact alongside financial returns.

John Pepin, Chief Executive of philanthropy impact, believes this represents a significant change in the adviser-client relationship.

“Values based discussions, including philanthropy and impact investing, sit at the sharp end of a much broader shift in what private clients now expect from their advisers. Barclays Private Bank research found that 81% of UK high net worth individuals believe it is important for advisers to raise philanthropic conversations proactively, yet only 33% say a financial adviser has ever initiated one. The opportunity for advisers is clear, not simply to respond when clients ask, but to lead the conversation.”

“For internationally mobile clients, that gap is compounded. They are not simply asking, ‘How should I give?’, but ‘How should I give across three jurisdictions, two generations and a life that no longer sits in one place?’ Tax regimes, regulatory requirements and governance structures differ across markets, but the underlying question remains the same: does our wealth reflect what we actually believe in? Advisers who can navigate those conversations consistently, wherever the assets or family members are based, are the ones most likely to build relationships that survive generational transition. Earlier research from Schroders found that around 65% of inheritors did not intend to retain their parents’ financial adviser, underlining the importance of building trust with the next generation rather than assuming it will transfer automatically.”

“The evidence on structured giving is equally compelling. The latest Study of the Philanthropic Conversation by The Philanthropic Initiative found that 78% of the high net worth clients surveyed now use at least one structured giving vehicle, whether a donor advised fund, charitable trust or private foundation, compared with 43% in 2018. In the UK, donor advised funds distributed £787.7 million to charities during 2024, an increase of more than 22% on the previous year, demonstrating the growing role these vehicles play in modern philanthropy.”

“Each of these structures carries its own governance, tax and reporting requirements, which become more complex as clients, assets and beneficiaries move across borders. At the same time, the distinction between philanthropy and investment is becoming less clear. UBS research suggests that the next generation increasingly views all forms of capital through the lens of impact, considering financial return alongside social and environmental outcomes. For advisers, that means philanthropic and investment conversations can no longer be treated as separate disciplines.”

“This is why values based discussion cannot be regarded as a soft addition to financial advice. It is the mechanism through which advisers discover what success actually looks like for each client, rather than assuming that financial return alone defines a good outcome.”

“That same discovery process also supports better client outcomes from a regulatory perspective. The FCA’s Consumer Duty requires firms to understand and act on their clients’ objectives, not simply their attitude to risk or investment returns. A properly documented values based conversation can therefore strengthen the evidence that advice has been tailored to a client’s individual needs and priorities.”

“The wider policy environment is moving in the same direction. The UK Government’s Office for the Impact Economy has been established to encourage greater collaboration between philanthropy, private capital and public policy, recognising the contribution that private wealth can make to addressing wider social challenges.”

“Compliance should no longer be seen simply as a constraint. Done well, values based advice strengthens governance, deepens client relationships and provides a clearer evidence base for good decision making.”

“The opportunity for private banks, wealth management firms and advisers is therefore to stop treating values based conversations as a specialist service for a small group of clients and instead recognise them as a core part of modern wealth advice.”

Philanthropy becomes part of family governance

While values may start the conversation, advisers increasingly find that philanthropy raises wider questions about family governance, succession and decision making. As families become more international, charitable giving is often shaped by different legal systems, tax regimes and cultural expectations, requiring advisers to help families reach consensus as well as provide technical advice.

Patricia Annino, Partner at Rimon Private Client, believes philanthropy is increasingly becoming part of the wider family enterprise.

“As ultra high net worth families seek advice that extends beyond investment performance to include charitable giving, family governance and cross border structuring. As families become more international, advisers are navigating differing tax regimes, regulatory requirements and governance challenges while helping clients create lasting social impact.”

“The conversation is shifting from how to give to why, who decides, and how philanthropic values are transmitted across generations. Families are also asking advisers to help integrate philanthropy with their broader family enterprise strategy, preparing rising generations for stewardship while balancing differing cultural perspectives, legal systems and expectations across jurisdictions.”

“This requires advisers to move beyond technical expertise and become skilled facilitators of family dialogue, governance and long term continuity.”

“Philanthropy is also evolving from a stand alone activity to a strategic tool for preserving family identity, purpose and legitimacy across generations. As younger family members increasingly seek measurable impact, transparency and alignment with family values, advisers are being asked not only to structure gifts efficiently but also to help families design governance systems capable of sustaining philanthropic vision over decades.”

“This raises new questions about adviser roles, ethics, family decision making and the intersection of wealth, purpose and long term stewardship. There will undoubtedly present challenges and opportunities for globally mobile families.”

Philanthropy moves to the heart of private banking

For many advisers, that shift also reflects changing expectations of what private banking should provide. Philanthropy is no longer viewed as a specialist service but as a core element of holistic wealth advice. Natalie Pinon, CEO of National Philanthropic Trust UK, says this is changing the role advisers play with wealthy families.

“For many wealthy individuals, philanthropy is becoming central to how they think about purpose, family, and the legacy they want to leave. Specialist expertise can no longer sit at the margins of private banking.”

“Clients want support navigating cross-border giving, family governance, and the right structures, from donor-advised funds to trusts and foundations. Philanthropy conversations also reveal what a family actually cares about and often unlock assets the bank did not know existed.”

“Done well, philanthropy is also one of the most practical ways to involve the next generation, building the stewardship skills that will shape the family’s future wealth and impact for years to come.”

Cross border philanthropy requires joined up advice

As philanthropic ambitions become more international, advisers are increasingly required to coordinate legal, tax and governance considerations across multiple jurisdictions. For many families, charitable giving now sits alongside succession planning, family governance and international wealth structuring, requiring a more integrated advisory approach.

Matthew Briggs, Partner at Boyes Turner, says philanthropy is becoming an increasingly important part of wider wealth planning for internationally mobile families.

“Philanthropy has become an important component of broader wealth, succession and family governance planning for internationally mobile families. For many clients, charitable giving is no longer simply about making donations; it is about establishing a long-term legacy, engaging future generations and embedding shared values within wealth structures.”

“From a private client law perspective, cross-border philanthropy can be particularly complex. Families often have connections to multiple jurisdictions, each with different tax regimes, regulatory requirements and approaches to charitable structures. While philanthropic ambitions may be international, the legal, regulatory and tax frameworks governing charitable giving largely remain jurisdiction-specific. Achieving a family’s objectives therefore requires careful structuring and close coordination between legal, tax and wealth managers across borders.”

“There is also growing interest from younger generations, who increasingly wish to play an active role in philanthropic decision making and are often focused on measurable impact and sustainability. As a result, governance has become a key consideration, with many families seeking formal frameworks to manage charitable activities, decision making and succession within philanthropic structures.”

“The opportunity for private banks and wealth managers is to provide genuinely holistic advice that integrates philanthropy with estate planning, family governance and international wealth structuring. When approached in this way, philanthropy can play a valuable role not only in creating social impact but also in strengthening family cohesion and preserving values across generations.”

Stronger partnerships to accelerate impact

As philanthropic structures become more international, advisers increasingly need to coordinate expertise across multiple disciplines. Rather than sitting within a single advisory relationship, philanthropy often requires lawyers, tax advisers, wealth managers and specialist charitable organisations to work together to achieve the client’s objectives.

Joe Crome, Head of Business Development and CAF American Donor Fund, CAF (Charities Aid Foundations) said.

“Rising geopolitical uncertainty is prompting donors to establish philanthropic structures across multiple jurisdictions so they can support global causes safely and effectively. As philanthropy becomes more complex, expert guidance on regulations and giving structures is increasingly important and is something clients expect.

Whether a client is working with a private bank, wealth management firm or family office, effective cross border giving requires multiple specialisms around the table to co-ordinate conversations across tax, legal, investment, succession and governance issues.  Rather than competing with other advisory services, philanthropy demonstrates the value of bringing diverse expertise together, and involving donor advised funds and philanthropy advisors is key to supporting the holistic needs of ultra high net worth families.”

That collaborative approach extends beyond individual private banks and wealth management firms. As charitable giving becomes more international, partnerships between financial institutions, philanthropy specialists and charities themselves are becoming increasingly important.

Helping families achieve their charitable goals

As philanthropy becomes more integrated into wealth planning, collaboration between private banks, family offices, charities and specialist advisers is becoming increasingly important. Families with international interests often require coordinated advice across legal, tax and cultural boundaries to ensure charitable ambitions translate into effective giving. Paul Maher, Director of Strategic Relationships and Philanthropy at RNIB, believes stronger partnerships across the philanthropy ecosystem will be essential as demand continues to grow.

“Private banks, advisers and family offices play a vital role in helping families achieve their charitable goals. With families becoming more internationally mobile, collaboration across the philanthropy ecosystem is essential to navigate different legal, tax and cultural frameworks. Greater understanding and stronger partnerships will help unlock more effective giving and accelerate impact.”

The advisory model still has further to evolve

While many private banks are expanding their philanthropic offering, some believe the profession still has further to go. Juliet Valdinger, Certified Impact Philanthropy Advisor, argues that too much attention remains focused on technical structures and too little on the conversations that help families define purpose, values and legacy. She also believes advisers should be more willing to work alongside external specialists rather than assuming every answer can be delivered in-house.

“I welcome financial institutions that recognise the growing demand from clients for advice that extends beyond financial performance. However, I think the two biggest problems are that they still view philanthropy, whether local, national or cross-border, primarily as a technical challenge, and that most want to keep these services in-house.”

“The technical issues matter, but they are rarely where conversations about philanthropy begin. They begin with questions of purpose, values, identity and legacy. As far as I know, starting, managing and curating those conversations is not something taught in wealth management. Many firms are still not clear about the business case for providing philanthropy advice.”

“Even when they recognise the opportunity, some simply hire a philanthropy specialist rather than addressing the underlying issue by having deeper conversations that help them understand clients beyond their financial status. I think we still have a long way to go before firms proactively acknowledge that they cannot provide every answer themselves. There is still too little appreciation of the value of connecting clients with external specialist expertise, peer communities and people with lived experience. In the long term, that approach is far more likely to build client loyalty, retention and referrals.”

Donor advised funds move into the mainstream

Donor advised funds have become well established in the United States and are now gaining momentum in the UK, offering families a practical way to organise giving while maintaining appropriate governance and administrative support.

Anna Josse, CEO and Founder of Prism the Gift Fund, believes these vehicles will become increasingly important as private banks expand their philanthropic offering.

“As private banks navigate and incorporate philanthropy, Donor Advised Funds will play an increasingly important role in the UK, as they already do in the US. Those Donor Advised Funds that know how to navigate and service HNW individuals and bring expertise around compliance and governance as Prism does, will be able to service those banks in the most efficient and swift manner.”

Conclusion

The role of philanthropy within private wealth management continues to evolve. Rather than sitting alongside investment advice, it is increasingly becoming part of broader conversations around governance, succession planning, family purpose and long-term stewardship.

As highlighted by discussions at the Citywealth Forum, advisers are now expected to help families navigate not only technical and regulatory challenges but also the values that shape how wealth is used across generations. But as several contributors argue, that requires more than technical expertise alone. It demands advisers who can facilitate conversations about purpose, work collaboratively with specialist partners and engage the next generation in meaningful stewardship.

For private banks, wealth managers and family offices, the opportunity is no longer simply to facilitate charitable giving. It is to integrate philanthropy into the wider advisory relationship in a way that strengthens client trust, supports long-term family governance and creates lasting social impact. Those that embrace that broader role are likely to be best placed to retain clients across generations.

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