How NPT UK Helps Global Families Manage Their Giving
According to the recent Credit Suisse Global Wealth Report, aggregate global wealth grew by almost 13% in 2021, leading to an increase in high-net-worth individuals and families around the world.
In today’s ultra-connected society, many of these wealthy families and their business or financial interests transcend international borders. And as families, businesses and communities become more globalised, so does their giving. Global families span not only multiple generations, but their philanthropy increasingly spans many jurisdictions and communities.
Understanding how to navigate international structures and complexities is increasingly important. NPT UK not only understands our global families’ needs, but also understands global giving. Through our donor-advised funds (DAFs) we have sent millions to charities in more than 30 countries on six continents. We work with donors who support a wide range of causes in all corners of the world, from locally led organisations, to multinational charitable agencies.
For your global family clients, here are some of the advantages of having a DAF as part of their global wealth structures:
Regardless of where your client’s family is based, the flexibility of a DAF makes it easy to involve children and other family members in giving decisions, allowing them to learn about social impact through philanthropy. Often more global than previous generations in their outlook, younger family members may also be interested in tackling wide-reaching social and environmental issues, such as climate change, global health, or education, which often require innovative forms of financing.
Contributing assets globally
Your global family clients hold and manage assets in different jurisdictions. Many of these assets can be used for charitable contributions. An NPT UK DAF accepts a wide range of contributions from cash and publicly traded securities to privately-held stock, alternative investments, property, art and bequests. NPT UK can also accept contributions offshore. Your clients can use offshore trusts and other fiduciary structures to make contributions to their DAFs.
Global giving opportunities
Your clients can give to charities located almost anywhere in the world with an NPT UK DAF, benefiting from similar levels of flexibility as if they were to give domestically. When giving internationally, DAF providers like NPT UK take care of all the additional due diligence and regulatory administration to determine the eligibility of the grant and the charity.
Complementing other philanthropic structures
Your global clients may already have a charitable foundation in their home country. They may use a DAF to complement existing structures or to manage their giving in other parts of the world. They may also use their U.K.-based DAF to build a philanthropic endowment or involve other family members in different areas of their giving.
Compliance and peace of mind
Easy to use, cost effective and tax efficient, a DAF can be set up in just a couple of days. NPT UK takes care of any additional administrative work and assumes all regulatory and reporting responsibilities so your global family clients can focus on supporting charities straightaway. For these reasons, many global families are increasingly using DAFs as an alternative to setting up their own trust or foundation.
For more information about how NPT UK can help your global family clients, contact us.
NPT UK does not provide legal or tax advice. This blog post is for informational purposes only and is not intended to be, and shall not be relied upon as, legal or tax advice. The applicability of information contained here may vary depending on individual circumstances.
NPT UK is not affiliated with any of the organizations described herein, and the inclusion of any organization in this material should not be considered an endorsement by NPT UK of such organization, or its services or products.