Family Offices are boosting philanthropy but want to see a financial or social return
Around seven out of 10 family offices expect spending on philanthropy to increase by 15% or more over the next two years.
New global research* from Ocorian, the specialist global provider of services to high-net-worth individuals and family offices, financial institutions, asset managers and corporates, shows philanthropic giving by family offices is set to grow strongly over the next two years but family offices want to see some return.
Giving will rise by 15%
It found seven out of 10 (70%) of family office professionals including those working for multi-family offices estimate philanthropic giving will rise by 15% or more over the next two years. Around a quarter (25%) believe spending on philanthropy will rise by 20% or more over that period.
Family offices responsible for $155 billion AUM look to healthcare and medical research
Ocorian’s international study among more than 300 family office professionals collectively responsible for around $155 billion assets under management found the key area for philanthropy is likely to be healthcare and medical research. Around two-thirds (67%) said their family office’s philanthropy is linked to that sector while more than half (51%) pointed to diversity, equality and inclusion.
However the study shows that family offices want some form of investment return from at least some of their philanthropy – around two-thirds (67%) expect to see some form of financial or social return on 25% or more of their philanthropic giving with around one in six (16%) expecting to see a return on 50% or more of their donations.
Lynda O’Mahoney, Global Head of Business Development – Private Client at Ocorian commented: “The level of philanthropy from family offices and ultra-high-net-worth families is increasing and they’re less interested in their money going into a vacuum—they are enjoying increasing involvement and want to see tangible outcomes from their donations.
“Flexibility is also important given philanthropic plans are often long-term. We’re noticing an increase in Middle East families setting up Jersey-based charitable structures that allow flexibility to allocate their donations to a UK, European, African or Middle Eastern charity, as they choose, without cumbersome controls.
“This trend aligns with the broader desire for increasing control over investments—people want to maintain a say in what happens to their money. Overall, we see families carefully planning and seeking advice on how to structure their donations so that they can see the impact they seek.”
Charitable trusts are the new superyachts
And it would seem that the more families who choose to set up charitable trusts, the more who ultimately want to, as Tracey Neuman, Private Client Executive, at Ocorian added: “Charitable trusts are the new superyachts. You simply have to have one if you are an Ultra High Net Worth individual.”
Ocorian’s award winning dedicated family office team provides a seamless and holistic approach to the challenges and opportunities families face. Its service is built on long-term personal relationships that are founded on a deep understanding of what matters to family office clients. Its global presence means Ocorian can provide bespoke structures and services for international families no matter where they live.
*In July 2024 Ocorian commissioned independent research company PureProfile to interview 309 family office investment managers working for family offices which use third-party private client services providers to support in the preservation and protection of their clients’ wealth. The investment managers interviewed are collectively responsible for assets under management of around $155 billion and include 201 working for multi-family offices. The global study interviewed family offices in Bahrain, Bermuda, Canada, France, Hong Kong, Nigeria, Saudi Arabia, Singapore, South Africa, United Arab Emirates, the UK, US, Cayman Islands, Egypt, Ethiopia, Germany, Ireland, Italy, Kenya, Spain, Sweden, Switzerland, Tunisia, Jersey and Guernsey.
Subscribe to the Citywealth Weekly Newsletter to learn more about Private Wealth Management.
The UK’s biggest match funding campaign
Big Give’s Christmas Challenge, the UK’s largest-ever match funding campaign. Running from 3rd to 10th December 2024, coinciding with Giving Tuesday, this week-long initiative aims to raise tens of millions of pounds for 1,250 charities by doubling public donations through match funding from Big Give’s Champion partners.
Guy’s & St Thomas Foundation and CCLA to drive investor action on air pollution
Guy’s & St Thomas’ Foundation and CCLA Investment Management launch a public consultation to tackle corporate air pollution through investor action.