Like most people, I hate talking about death, but I don’t mind discussing my legacy and how I want to be remembered when I exit stage right.
Because of this it’s not entirely surprising for me to learn that the number of female philanthropists is reportedly on the rise.
Emma Sakellaris, executive general manager of Australian Unity Trustees says by having conversations with women on philanthropy and helping them take action, can ultimately enhance financial wellbeing.
“Raising the idea of philanthropy with clients regardless of their circumstances, as a matter of course, can result in stronger client relationships and provide a deeper understanding of client objectives – with the added bonus of providing better outcomes for the charities to which they wish to grant funds.”
Why are women interested in philanthropy?
Anecdotally women are becoming more interested in the sustainable contribution they can make to communities locally and globally.
Women are considered to be more generous in their giving towards a greater breadth of causes. But the size of their grants are smaller compared to male philanthropists.
Research shows that whilst women may not be as aware of the associated tax benefits when compared to men, they tend to be more emotionally connected to projects and initiatives, and also focused on other forms of charitable giving, such as volunteering and non-financial gifting.
Globally, more women are graduating from universities than men; they tend to live longer; and philanthropic women are increasing in wealth and number — partly because they’re expected to inherit a growing share of the nation’s wealth, but also because they’re earning more than previous generations.
What types of philanthropy are women into?
Women tend to support a significant range of causes, projects and organisations, including refugees, mental health, accessible education and domestic violence, with a key focus on children.
Women also tend to be interested in environmental issues and animal welfare. However this is by no means an exhaustive list.
Tips for supporting the rise of female philanthropists
Financial planners have an opportunity to help women understand how they can make a positive difference, now and into the future, through a gifting vehicle that is most suited to their financial circumstances.
“This can be incorporated within their wealth and estate planning strategies, to further protect asset transfer and create an even greater sense of empowerment,” says Emma.
“Women are often keen to understand more innovative ways of driving positive change and they also tend to be interested in more collaborative philanthropy. For example working with family members, ‘giving circles’ and like-minded individuals,” says Emma.
If you want to put the wheels in motion on this, here are three actions to consider.
- Have the conversation
Philanthropy has a place in estate planning and asset protection discussions, but also in investment decisions.
“It’s ultimately about how people want to be remembered and the social and humanitarian impact they wish to leave,” says Emma, who suggests asking questions like: what do you want your legacy to be and where do you want your wealth to be now and transferred to when you die?”
- Talk about strategy and structure
Once you’ve identified a client’s philanthropic pursuits, the next step is about identifying the right vehicle to get the show on the road.
It’s important here to become familiar with all the various strategies and philanthropic structures that can make those pursuits happen.
- Keep contact to keep the momentum going
Once you’ve identified the philanthropic pursuit, the strategy and put the structure in place, there is an opportunity for financial planners to provide ongoing support and goal tracking to help keep the philanthropic momentum going.
Bianca Hartge-Hazelman writes on women’s money matters and is the founding author of The Financy Women’s Index and publisher of financy.com.au.
The opinions expressed in this content are those of the author shown, and do not necessarily represent those of No More Practice Education Pty Ltd or its related entities. All content is intended for a professional financial adviser audience only and does not constitute financial advice. To view our full terms and conditions, click here.
