Posted on 28th August 2008
More than one in four professional advisors to high-net-worth individuals in Ireland have reported an increased interest in philanthropy, according to a new report from Community Foundation for Ireland.
Trends in Irish Philanthropy: the views of those who advise the rich also stated that over 50% of surveyed advisors thought that philanthropy could double, to €1 bn, in the next five years, but also that over half said that they had never discussed philanthropy with a client. At present philanthropy in Ireland is around 0.35% of GDP, which is roughly half that of the UK and around 16% of US levels.
Tina Roche, chief executive of Community Foundation for Ireland, said, “This report’s findings also reveal how significant a change in the tax legislation would be for the development of a philanthropic culture in Ireland. We are already well behind the USA and probably a decade behind the UK in fostering philanthropy in this country. We need to act now to remove the current restrictive climate.”
Philanthropy UK’s report, Wealth and Philanthropy: the views of those who advise the rich (September 2007), highlighted an increase in giving in the UK. The report also showed that more UK donors are giving during their lifetime, rather than leaving a legacy in their will, and that they are often seeking professional philanthropy advisory services to help them to give effectively.
In the Irish survey, 85% of advisors thought the removal of the cap to tax relief on giving would increase philanthropy, while 43% thought that clients required at least €1m (£800,000), excluding a principal residence, to consider philanthropy at present.
This is the first study of Irish professional advisors’ views on philanthropy. Wealth managers, tax advisors, solicitors and accountants were among the 75 advisors representing around 40,000 private clients.
The report was conducted in cooperation with the Irish Taxation Institute and The Society of Trust and Estate Practitioners (STEP) Ireland.
