New global research from Ocorian shows philanthropic giving by family offices is set to grow strongly over the next two years but family offices want to see some return.
It found seven out of 10 (70 per cent) of family office professionals including those working for multi-family offices estimate philanthropic giving will rise by 15 per cent or more over the next two years. Around a quarter (25 per cent) believe spending on philanthropy will rise by 20 per cent or more over that period.
Ocorian’s international study among more than 300 family office professionals collectively responsible for around USD155 billion assets under management found the key area for philanthropy is likely to be healthcare and medical research. Around two-thirds (67 per cent) said their family office’s philanthropy is linked to that sector while more than half (51 per cent) 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 per cent) expect to see some form of return on 25 per cent or more of their philanthropic giving with around one in six (16 per cent) expecting to see a return on 50 per cent or more of their donations.
Lynda O’Mahoney, Global Head of Business Development – Private Client at Ocorian says: “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.”
And, Ocorian writes that it would seem that the more families who choose to set up charitable trusts, the more who ultimately want to. Tracey Neuman, Private Client Executive, at Ocorian says: “Charitable trusts are the new superyachts. You simply have to have one if you are an Ultra High Net Worth individual.”
