How philanthropy can be “good for your soul”

The importance of having conversations with clients about the impact of philanthropy, shared values and succession planning. 

You can also read this interview on Investors' Chronicle. 

It was an epiphany one Sunday morning that made Steven Appleton realise that philanthropic giving was the most positive way his clients could make an impact.  

“I ran a marathon for a couple of charities that were important to me and raised the princely sum of £1,200. And then I thought well, if I have to keep doing this to raise money, my poor knees aren't going to last very long,” Appleton, head of Brabners’ Manchester private client team, told us.  

“I thought, what if I started having conversations with my clients, and they decided that charitable giving or philanthropy was the right thing for them?” 

It’s something to which he’s dedicated plenty of time and effort, working alongside Cancer Research UK to provide his clients with opportunities to make a long-term impact on cancer survival through philanthropic giving. 

There’s never been a more important time to invest in cancer research. While cancer cases are forecast to increase - with around half a million new cases a year expected by 2040¹ - scientists are on the brink of discoveries that will transform how we prevent, diagnose and treat the disease. 

That’s why, a year ago, Cancer Research UK launched its More Research, Less Cancer philanthropy campaign. The largest ever philanthropic campaign by a UK charity, it’s already over halfway to reaching its £400 million target, funding research that will change the outlook for this generation and the next. 

Philanthropy as a passion 

I read recently² that professional advisers raising the topic of philanthropy with their clients has been proven to accelerate giving. I asked Appleton if he had found this to be the case. 

“Even if we just start with charitable giving, many have never really considered engaging in any degree of philanthropy, so there's also a cohort that’s interested but doesn't know where to start” he said. 

“Without raising this with them, I'm not convinced they would ever have got off the starting blocks, so by opening the door to that conversation, they have started that journey.” 

Appleton stressed the differences between ‘charity’ – a short-term, emotional response such as a single donation – and ‘philanthropy’ – a longer-term, strategic focus on enabling a charity's strategy." 

He cites “eudaimonic happiness” as a definition of how clients begin to realise the wider positive aspects of philanthropy – the ‘why should I do this?’ angle.  

“Essentially, ‘eudaimonic’ is an enduring form of happiness that’s often expressed as: doing good that makes you feel good in a way that is lasting and fulfilling,” he said, contrasting it with ‘hedonic happiness’ that results from quick-win joy that very quickly wanes.  

Authenticity is key, too. The desire to have a lasting impact goes far beyond naming a hospital wing. There are many opportunities where strategic investment can have a much broader impact. For example, some types of cancer have few treatments available, and a relatively small amount of research into long-term innovations could have a massive impact in the field. 

“If a client is willing to be a bit more strategic, that could be a massive benefit to the aims and objectives of Cancer Research UK. A client may have started from the perspective of ‘I want my name on that building’, but by us helping them to see the very real impact their investment could make, they begin to feel personally fulfilled and value and appreciate the wider benefits of philanthropy,” Appleton said. 

Good for advisers, too

According to Appleton, clients are 40% more likely³ to choose an adviser who is knowledgeable about charitable giving.  

For professional advisers there are clear benefits of engaging with their clients about philanthropy. After all, there is a ‘future generation’ of clients who are probably more sensitive to philanthropic issues, and securing their loyalty with tailored advice can only be a good thing.  

“Fidelity Charitable⁴ research in 2019 found that the average annual donation by millennials was double that of previous generations. It’s a dramatic difference, and demonstrates the personal values of that generation,” he added. 

“For baby boomers, their focus is on family, which is something I see among my clients. For Generation X, it is empathy and for millennials, it is generosity.” 

Perhaps this provides insight into how advisers can engage with different generations of the same family, and help clients understand philanthropy, the act of giving and doing so strategically.  

But is there enough training on charitable giving for the professional advice sector? “Categorically not,” said Appleton. “For this reason, Cancer Research UK has a network of professional advisers with whom they engage, putting on regular education programmes with the aim of adding value to their client relationships." 

Wealth succession planning 

Wealth, succession planning and philanthropy are intrinsically tied together, not just from a tax perspective, but also from a values one. 

Appleton says: "It’s about shifting the conversation from being solely about gifting once you’re gone, to ‘Why don't we start to do something now?’”  

Of course, there are tax benefits to giving. Advisers can explain all about tax reliefs, Gift Aid and income tax relief on charitable donations, and how if 10% or more of your estate is left to charity, your inheritance tax rate may also be reduced – which Appleton told us is “a good conversation starter” to begin engagement over other philanthropic ideas. 

“I've come across clients who’ve had a significant investment portfolio, which they’ve concluded they don't need, and have donated the portfolio to charity. The charity can then redeem this without having to pay the capital gains tax,” he added. 

Meanwhile, from a financial perspective, giving to charitable causes – and engaging in pro-social behaviour and fundraising – can result in greater wealth retention⁵ across generations.  

Part of it is about engaging the next generation on philanthropy by passing on values. 

“I've seen families talking with children and grandchildren about how money works and being empathetic to the needs of others,” Appleton said. “It’s particularly important in families where the ‘wealth creator’ worked hard to come up from nothing but their children have grown up in comparative luxury.” 

Philanthropy can benefit clients, advisers, and cancer research 

The benefits of encouraging philanthropy are widespread. For wealth advisers it's about building deeper relationships, improving their offering and aligning clients’ investment strategies with philanthropic goals. Clients can understand the best investment to make a lasting impact balanced with succession, inheritance and wealth transfer targets. And for Cancer Research UK, it's about seizing the opportunity presented by rapid technological advancements, which are enabling groundbreaking discoveries that will change our understanding of cancer. 

With philanthropic support, Cancer Research UK can accelerate progress, enabling research that will make transformative steps in how we prevent, diagnose and treat the disease. But more investment is needed. Philanthropic support will power science to go further, faster, and give benefactors the chance to see the real-world outcomes of their generosity.  

More research today will mean less cancer tomorrow.  

To find out more, visit cruk.org/moreresearch25   

ENDS 

Cancer Research UK is a registered charity in England and Wales (1089464), Scotland (SC041666), the Isle of Man (1103) and Jersey (247).