Advisors must better understand philanthropy: Perpetual

Investment fund says a better understanding of philanthropy in the financial services sector could improve the effectiveness of giving.

Financial advisors can help philanthropy to prosper by promoting it to their clients — but they need a better understanding of the practice first, according to investment fund Perpetual.

The fund giant says misconceptions about philanthropy — specifically, that only the wealthy can participating in philanthropic giving — abound.

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“While we may read, see and hear about the philanthropic endeavours of the ultra-wealthy, strategic and effective philanthropy is something that many more Australians could consider if it was a conversation that was better understood — and led — by industry professionals including financial advisers, accountants and legal experts,” said Perpetual managing partner of community, social and ESG investment Caitriona Fay.

With a better understanding of philanthropy, financial advisors, accountants, lawyers and other industry professionals could help the sector flourish.

The establishment of an effective, strategic philanthropic plan can allow people to shape industries or causes, the organisation said.

But financial advisors, lawyers, accountants and other such professionals need to better understand the sector themselves in order to initiate those conversations with their clients.

“By better equipping these people with the right tools, resources and basic knowledge about philanthropy, I have no doubt they will be able engage in more meaningful conversations with their clients, which would ultimately help the philanthropy industry significantly here in Australia,” Fay said.

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In 2016, Perpetual partnered with the Stanford Center on Philanthropy and Civil Society (Stanford PACS) to develop a how-to guide to philanthropy, the Perpetual / Stanford Philanthropy Toolkit.

Perpetual recently hosted Stanford senior fellow at the Effective Philanthropy Learning Initiative, Heather Lord, and Stanford PACS director of partnerships and external relations, Sawako Sonoyama Clarin, for a number of workshops across the country that aimed to improve effective philanthropy.

Fay said their words would “be invaluable as we really try and shine a spotlight on the industry in Australia”.