Regulation  

Call for FCA to make philanthropy advice training mandatory

Research suggests that firms which offer their clients charitable planning have three times the median organic growth of those that do not. It reported, 1.3 times the median new money per investor, and significantly higher customer satisfaction scores.

The stronger philanthropy offering in the US has also directly contributed to the dramatic rise in donor-advised funds, which more than tripled between 2015 and 2020, hitting the 1mn mark during the pandemic. 

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From assets of $159.8bn (£132.9bn) under management in these funds, $34.7bn (£28.8bn) was paid out in charitable grants in 2020, up from $14.2bn (£11.8bn) in 2015.

In addition to “lack of incentive”, “traditional mindsets and culture” and a “lack of regulatory clarity and leadership”, the report said the “organisational structure” of UK firms acts as a barrier.

It also said poor understanding of products available, limited reporting of impact, poor understanding of social impact and a poor understanding of and availability of tax incentives were all reasons for the lack of advice on philanthropy in the UK.

The FCA declined to comment. 

sonia.rach@ft.com

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