Financial advisers are the linchpin to Australia doubling philanthropic giving in Australia by 2030, but education is lacking in the area.
APS Foundation senior manager of adviser engagement Kate Bowditch tells Professional Planner structured giving is a win for advisers, clients, and causes.
“I get to see the win-win-win every single day,” she says. “I see how it strengthens the relationship that advisers have with their clients and – most importantly – with future generations. The intergenerational wealth transfer is happening.”
Bowditch believes that philanthropic giving can be incredibly powerful and bring families together in a positive way.
“They get to celebrate the joy of giving in the impact that they’re making in the community,” she says.
Bowditch believes there needs to be more education about structured giving in Australia, however.
“More people need to have more conversations to understand what options are available to them,” she says.
“There’s still a lot of people that don’t know about structured giving, and we want them to understand. I’m currently doing a lot of work with financial advisers on trying to close that gap in education.”
Philanthropic offering makes sense
Bowditch was a financial planner when she was introduced to philanthropy and structured giving and found her conversations with clients about the two areas professionally rewarding.
After following APS for several years, Bowditch was offered the chance to work there. “I was so keen to be part of that story,” she says.
“As an adviser, you’re involved in so much of clients’ worlds and you really get to know them on a really deep level on a number of different areas of their life. It just makes sense to have a philanthropic offering. That very much ties into why I genuinely believe that financial advisers is such a linchpin in ensuring that we continue to grow structured giving in Australia.”
Bowditch says there is still a misconception that people need to have a substantial amount of money to invest.
“There are structures like the APS Foundation that offer an entry point that’s far more reachable by many more clients,” she says. “It’s important to highlight that there are still options.”
She added this is a busy time of year, with the end of the financial year just around the corner. There has been an increase in inquiries regarding the APS Foundation.
“Most of our clients aren’t motivated necessarily by tax, but it certainly affects the timing of when they might seek to set up a structure.”