Understanding Philanthropy

Philanthropy is a meaningful way for wealthy families to make a positive impact on the world while preserving their values and creating a lasting legacy. It goes beyond simple charitable giving—philanthropy is a strategic and often long-term approach to supporting causes that matter deeply to you and your family.

At Everlake, we understand that legacy planning isn’t just about protecting wealth. It’s about aligning your resources with your values. In this article, we’ll explore what philanthropy is, how it works, and how professional advice can help you make a difference while achieving your financial and legacy goals.

What is Philanthropy?

Philanthropy is the act of giving time, talent, or money to advance a cause, promote social good, or solve societal challenges. It often involves structured giving, where contributions are planned, tax-efficient, and aligned with your overall estate and wealth management strategy.

For families, philanthropy can serve multiple purposes:

• Passing on Values – teaching younger generations the importance of giving back.
• Creating Impact – supporting causes that align with your personal or family values.
• Tax Efficiency – making charitable contributions in a way that reduces estate and inheritance taxes.

How Does Philanthropy Work?

Philanthropy can take many forms, depending on your financial situation and the causes you wish to support. Here are a few common methods:

• Direct Donations
A simple way to give is by donating money or assets directly to a registered charity. In Ireland, you can claim tax relief on donations over €250 made to eligible charities.

• Alternative investments
Personal investments with a focus on sustainable values.

• Donor-Advised Funds (DAFs)
These are like charitable investment accounts. You can contribute funds, receive an immediate tax benefit, and recommend grants to charities over time. DAFs offer flexibility and privacy.

• Establishing a Private Foundation
Families who want greater control and visibility over their giving may choose to set up a foundation. This involves more administrative work but allows for a long-term, strategic approach to philanthropy.

• Leaving a Charitable Bequest
Including a gift to a charity in your will is a simple yet powerful way to leave a lasting impact. Bequests can also reduce the taxable value of your estate, benefiting your heirs.

• Corporate Giving
If you own a family business, incorporating philanthropy into your company’s culture through corporate giving programs can amplify your impact.

The Role of a Financial Adviser in Philanthropy

Philanthropy is deeply personal, but it also requires careful planning to ensure it aligns with your overall financial strategy.

Here’s how a financial adviser can assist:

• Clarifying Goals & Values
We’ll work with you to identify the causes and initiatives that resonate with your family’s values, ensuring your giving aligns with your legacy.

• Structuring Your Giving
Advisers can recommend the most tax-efficient ways to donate, such as using shares, property, or cash gifts. We also assist in setting up donor-advised funds or foundations.

• Estate Planning Integration
Philanthropy often intersects with estate planning. We help you balance charitable giving with providing for your heirs and minimizing taxes.

• Monitoring Impact
If you establish a foundation or DAF, we can help you track the impact of your giving, ensuring your contributions are making a real difference.

• Navigating Complex Regulations
Charitable giving involves navigating tax laws and regulatory requirements. A professional adviser ensures compliance while optimising the benefits for both you and the causes you support.

A Family Legacy

For many families, philanthropy is as much about legacy as it is about generosity. It provides an opportunity to unite family members around shared values and teach the next generation about the responsibilities of wealth.

At Everlake, we’ve guided countless families through the complexities of estate planning, wealth management, and philanthropy. If you’re ready to explore how giving back can become a meaningful part of your legacy, we’d be delighted to help.