Advisers key to address falling philanthropy

Yasmine Raso

Senior Journalist, Financial Newswire

24 October 2022

Calls have mounted for advisers to better understand the philanthropy sector after new research revealed the rate of Australian philanthropic giving has dropped off in the last two years by over two per cent.

Perpetual has led the charge in highlighting the importance of industry professionals, including advisers, accountants and lawyers among others, to initiate conversations with their clients to support philanthropic causes.

This comes after academics and figures from the Stanford Center on Philanthropy and Civil Society (Stanford PACS), with whom Perpetual is a partner and co-developer of the Perpetual/Stanford Philanthropy Toolkit, visited Australia to deliver workshops on how to improve Australia’s philanthropic contributions.

“There’s no doubt people want to give, whether that be financially, or through volunteering their time or their own expertise, but there’s still a common misconception that philanthropic giving is something that only the wealthy can participate in,” Caitriona Fay, Perpetual Managing Partner for Community, Social and ESG Investment, said.

“While we may read, see and hear about the philanthropic endeavours of the ultra-wealthy, strategic and effective philanthropy is something that many more Australian’s could consider if it was a conversation that was better understood – and led – by industry professionals including financial advisers, accountants and legal experts.

“By better equipping these people with the right tools, resources and basic knowledge about philanthropy, I have no doubt they will be able engage in more meaningful conversations with their clients, which would ultimately help the philanthropy industry significantly here in Australia.”

The seminars will discuss trends and compare data from the United States and Australia, after research also showed the amount Americans gave increased by four per cent from 2020 to hit USD$484 billion in 2021. Australians gave approximately AUD$3.85 billion in 2020.

“We are delighted to have Heather and Sawako visit Australia and talk to advisers, not-for-profit board members and executives about the latest themes and trends shaping philanthropy,” Fay said.

“Perpetual has been working with philanthropists and charities since we were founded in 1886. Philanthropy is not new in Australia – we just need to be more proactive and better equipped to give people the opportunity to explore it in more detail.”