The Developing Philanthropic Trend

Published by: Datamonitor

Published: Mar. 17, 2006 - 42 Pages

Table of Contents

CHAPTER 1 EXECUTIVE SUMMARY

Introduction

Philanthropy - the way forward

Philanthropic services will be key for the wealth management model going forward

There will be a large market for philanthropic services

Philanthropy is a value-added service for clients and advisors

Philanthropy can be a valuable revenue generating service for wealth managers

CHAPTER 2 INTRODUCTION

What is philanthropy?

Charitable giving

Philanthropic trusts

CHAPTER 3 PHILANTHROPY - THE WAY FORWARD

Philanthropic services will be key for the wealth management model going forward

There will be a large market for philanthropic services

Retail wealth in Asia is large

There are almost 24,000 potential philanthropic clients across Asia

The values of household income and taxation are also large

The value of assets to be passed on by the first generation of wealthy individuals amounts to over USD300bn

Philanthropy is a already growing trend in Australia and across the region

Philanthropy is a value-added service for clients and advisors

Philanthropy enables individuals to effectively decide where tax payments go

Clients feel like they are contributing to worthy causes

It is a good way for a relationship manager to find out more about a client

And to build ties with subsequent generations

Philanthropy can be a valuable revenue generating service for wealth managers

Set-up of a philanthropic trust is complex

Ongoing administration requires specific knowledge and considerable time-spend

Asset allocation strategy and management of assets require expertise

Help with selecting and managing causes is needed

CHAPTER 4 APPENDIX

Data

Definitions

Dedcutible gift recipient (DGR)

Onshore liquid assets

Philanthropic services

Philanthropic trust

Philanthropy

Research methodology

Bespoke Wealth Market Sizing

Further reading

Datamonitor Asia-Pacific Wealth Reports

Datamonitor Asia-Pacific Insight Reports

Datamonitor Global Wealth Service: Competitor Tracking

Datamonitor Financial Services Consulting

Asia-Pacific contacts

List of Tables

Table 1: An example of how an individual's taxable income can be reduced through philanthropic giving

Table 2: The tendency to claim tax deductible donations increases with wealth, with those earning over AUD1m claiming an average of 1.4% of their taxable income

Table 3: Total value of retail liquid onshore assets, 2004

Table 4: The number of individuals with more than USD10m in liquid assets, 2004

Table 5: Household income by country, 2003

Table 6: Donation of cash and other material gifts as a share of GDP over the 1995-2002 period

Table 7: Tax deductible donations claimed by individuals in Australia over the 1992-2003 period

Table 8: Wealth markets that have been modeled using the Global Wealth Model

List of Figures

Figure 1: Gifts of cash or other material property as a percentage of GDP are substantial in some Asian countries, but fall well behind the US, 1995-2002

Figure 2: There is a large amount of retail wealth in Asia-Pacific, primarily in the hands of a few countries

Figure 3: There are just fewer than 24,000 individuals with more than USD10m in liquid assets across the six countries

Figure 4: Household income in the six countries amounted to almost USD3,723bn in 2004, with taxation of USD270bn

Figure 5: Gifts of cash or other material property as a percentage of GDP are substantial in some Asian countries, but fall well behind the US, 1995-2002

Figure 6: In Australia tax-deductible donations have increased in value dramatically since the early 90's

Figure 7: A typical charitable trust structure as set up by MeesPierson Intertrust

Abstract

• This report looks at the increasing interest in philanthropy across the Asia-Pacific region
• This report examines the attractive aspects of philanthropic service provision and argues that it is beneficial to both client and provider
• This report covers the following countries - Australia, New Zealand, Hong Kong, Singapore, Japan and South Korea

• Find out how interest in philanthropy is growing and what is driving this growth
• Find out how big the potential philanthropic trust market could be in your country
• Find out what makes philanthropic service provision attractive to both the client and the provider

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