Preparing the next gen with philanthropy

Eva Moynihan of our Private Client team recently spoke to PAM Insight/eprivateclient for an article examining the attitudes of the next generation of HNW families to their philanthropy.

Discussions surrounding the next generation of clients do not appear to be slowing down anytime soon, and often philanthropy and generational differences take centre stage in these conversations.

A survey from HSBC Global Private Banking found that the next-in-line from second and third generation businesses are more likely to be involved in philanthropy compared with those in first generation businesses.

It also found that 23 percent of families said the next generation is actively involved in philanthropy, which was the third most common role behind strategy and planning (44 percent) and finance (36 percent) business functions, respectively…

…Many have also noted that, with the rise in social media and increase in influence of global news reporting, it is not surprising that the next generation are building upon the foundations set by the generation before them, and developing their sensitivity to philanthropy.

“Information is far more readily available and the next generation are increasingly aware of their influence when it comes to the philanthropic arena,” Eva Moynihan, a senior associate in Edwin Coe’s private client department, explained.

For example, The Sunday Times Giving List, which celebrates the work of philanthropists in Britain, may be making the relation between public image and philanthropy increasingly pressing.

For example, not using one’s public profile to promote social good has often been a point of contention for netizens.

For the next generation, promoting ESG is often applauded, making it important that individuals and entities are receiving the right advice.

Ms Moynihan cautioned: “With the increase in media attention, there is more room for scrutiny of philanthropic structures and it is paramount they are set up correctly and receive up to date advice on their operations and activities.”

With all these added complexities that only seem to be accelerating in the digital age, giving clients the right advice is paramount.

You can read the full article on eprivateclient’s site (Subscription required)