We talk to Citi Private Bank and Barclays Private Bank about how they approach advising wealthy individuals and families about the causes they care about, making the most effective impact, and learning how to work with others. The article touches on the US, the UK, and Asia-Pacific.

Philanthropy is an important collaboration engine for clients of private banks, and firms can use their networks and expertise to help HNW and ultra-HNW individuals put charity to best possible use. 

In the “Giving Season,” thoughts turn to how private banks and wealth managers work with clients on philanthropy. (See a related feature here.) Transferring resources to various causes isn’t as simple as it might seem. Advisors play an important role in helping to frame clients’ philanthropic visions realistically, as well as guiding them on costs, reputational effects, and structures (foundations, trusts etc). 

Climate change and ethical concerns appear to be important philanthropy drivers in different countries, such as the UK and US, private banks say. And there are trends in Asia, for example, that deserve note.

“There is a growing understanding that society’s problems are complex and interconnected. As such, we’re seeing a real shift in how ambitious donors are approaching giving as they examine the root causes of what they are trying to address. They are thinking beyond thematic silos, to consider, for example, how climate issues affects youth mental health or many other areas of concern,” Juliet Agnew (pictured below), head of philanthropy at Barclays Private Bank, told this news service in a recent interview. 


Juliet Agnew

“To that end, we are also seeing a move towards much more collaboration between donors, nonprofits, governments, and businesses. The goal is to tackle large-scale issues through coordinated efforts, where resources are pooled and shared knowledge is leveraged for greater impact. Donors are becoming more strategic, moving away from one-off donations to long-term commitments that focus on sustainable, systemic change,” Agnew said. 

“When it comes to causes, addressing climate change will continue to be a popular theme for giving (and impact investing) – particularly amongst younger donors,” she continued. “Within this, there’s an increased focus on both mitigating its effects and supporting sustainable solutions. Local knowledge, indigenous solutions, and the voices of marginalised communities most affected by climate issues have historically been under-represented but we expect to see more efforts – particularly by leading edge donors – to centre such perspectives.”

Giving a more US flavour, Karen Kardos (pictured below), head of philanthropic advisory at Citi Private Bank, explained the broad trends that she is seeing and which are likely to continue into 2025 and beyond.


Karen Kardos

“To give some perspective on the global landscape, we estimate about $770 billion of annual monetary donations by individuals. Of these donations, $417 billion (around 54 per cent) is driven by the US and about $18 billion is driven by the UK – the two highest countries in terms of absolute dollars given. Individual monetary donations to human services (foodbanks, homeless shelters, etc.) reached about $70 billion globally and education came in at $65 billion globally,” she said. 

“Religion is the top focus area for giving by US donors and it has been this way for many years, however it has been on the decline for the last several years. In terms of giving strategies, we also saw an uptick in trust-based giving practices in the US during the pandemic, but that seems to have waned a bit,” Kardos said. 

Philanthropy is moving up clients’ lists of priorities. According to Ocorian, a provider of services to high net worth individuals and family offices, financial institutions, asset managers and corporates, philanthropic giving by family offices is set to grow strongly over the next two years. Ocorian polled family office managers from around the world. While that survey of family offices will mainly cover ultra-high net worth individuals and their families, the trend appears clear.

“Philanthropy is increasingly becoming a higher priority for wealthy individuals and their families, driven by a growing awareness of the role they can play in shaping a more equitable future. In the face of global challenges such as the climate crisis and social inequality, many recognise the vital role they can play in channelling their resources. This includes leveraging their skills, voice, and connections – as well as their wealth – for social good, viewing their wealth as a tool to address pressing issues,” said Barclays Private Bank’s Agnew. 

“This shift reflects a deeper commitment to strategic philanthropy, where donors are not only motivated by personal values but also by the desire to create lasting impact through thoughtful contributions. The ongoing wealth transfer also plays a role here, with individuals increasingly thinking about the legacy they are inheriting and that which will be left behind. As such, philanthropy is seen less as an act of charity and more as a meaningful pathway to contribute to broader societal change,” she said. 

DAFs
The increasing use in the US and UK of donor-advised funds (DAFs), for example, is making the business of giving easier (and in the case of DAFs, clients retain anonymity), which may also help philanthropy’s profile overall. Agnew said more clients are asking about and using DAFs as "streamlined alternatives to a private foundation.” 

“More donors are giving through pooled vehicles and funds which may be offered by a DAF, a community foundation, or another established foundation with professional expertise and processes that can be leveraged,” Agnew said. 

Citi Private Bank’s Kardos said the DAF trend in the US, the UK and other places, such as Hong Kong and Asia, is clearly upward. 

“The use of DAFs has increased tremendously in the US and, although the UK DAF market is relatively small, we have seen growth in that region as well. The DAF landscape in South Asia is nascent but growing quickly, with a handful of DAFs in Singapore and Hong Kong. Many clients use more than one giving vehicle to facilitate their philanthropy. While tax considerations are a driver when it comes to giving, they are not the driver, and clients also use an LLC to support overall philanthropic giving,” she said. “For foundations organised by a trust, the trust document will dictate the governance. The charitable purpose can be narrowly defined to ensure that there will be no changes made once the settlor passes. This can impact the trust’s ability to update its charitable goals and pivot to existing circumstances. A corporate structure is run by a board and with board approval this form of governance may allow it to be nimbler to changing circumstances than a trust structure.”

Expectations
Agnew was asked about how the bank helps philanthropists set their goals and make them aware of risks to reputations and privacy. 

“There is no doubt that clients live more public lives than ever before, and that there is simultaneously more scrutiny of wealth and of philanthropy in general. On the one hand, philanthropy is designed to take risks and to innovate and we want to encourage that, but on the other, donors need to be well informed about the implications and trade-offs of public versus private giving,” she said. 

“Truly effective philanthropy begins with self-reflection and a realistic understanding of what donors can achieve. Philanthropists often hold more power than those they are seeking to support, and responsible use of resources is key to ensuring the greatest societal benefit. It’s also important for donors to recognise that the skills that made them successful in business may not be the skills they need to be successful in giving effectively. They are rarely going to be the change-maker themselves – but are more likely to be supporting change-makers on the frontline and so a shift in mindset and understanding is often required,” Agnew said. 

Kardos explained Citi Private Bank’s approach.

“For clients that are at the beginning phases of their philanthropy, it always starts with their goals and objects. This can help to frame and inform decisions about their mission and legacy, focus areas they want to support/vehicles they may choose to facilitate their giving, how they can implement programmatic strategies and work with their nonprofit partners, and how they think about monitoring and evaluating the nonprofit partners they work with. For some families, privacy and anonymity is a primary goal,” she said. “That can help to inform the use of a DAF to facilitate their giving, rather than a private foundation. I have developed some tools that we use to have discussions with clients at that initial phase. We can also connect them with other clients that can share their experiences, lessons learned, insights and advice.”

“For clients that are much further along in their philanthropic journey, it’s more about collaboration and connecting them with like-minded funders whether they exist within the private bank, Citibank or in my own network,” Kardos said.

From a reputational point of view, Kardos said she has not met with a client whose goal is to “wash” their public profile. 

“Philanthropists work towards solving societal problems from many different angles. As the saying goes, 'No good deed goes unpunished,' and many times philanthropists are openly criticised for their approach or their stance on a specific issues,” she said. 

Agnew said that advisors can help philanthropists deal with how, for example, the area can be quite intimidating if one undertakes the role without support. 

“Philanthropy can be an isolating experience – and time consuming – when attempting to work on your own. There is no need for this nowadays. One of the most heartening aspects of the current philanthropic landscape is how many communities exist for donors. We do our part in this space through events and curated introductions to ensure our clients are well plugged in to meaningful, high quality connections – this is possibly the most valuable contribution we can make as a wealth manager,” she said. 

Wall of money
A multi-trillion wealth transfer around the world is fuelling part of the philanthropy story. 

“The ongoing wealth transfer between generations is having a profound effect on the philanthropic landscape. As significant wealth is passed from older generations to their heirs, there is both a growing emphasis on preparing the next generation to take on the mantle of responsible philanthropy, as well as a divergence in views, perspectives, and approaches as the next gen take the reins,” Agnew said. “This process involves much more than simply inheriting assets, it requires stewardship education to ensure that younger individuals are equipped with the knowledge, values, and mindset necessary to manage wealth in ways that contribute to meaningful, lasting change.” 

Asia-Pacific
When this news service asked Kardos about the Asia-Pacific story, she discussed a recent Citi GPS report on the issue.

“The Citi GPS report defines two ways to measure individual monetary donations. One is in absolute dollars and the other is relative to their economic size. We see that relative to their economic size, New Zealand, India, and Singapore are among the top 10 countries giving as a share of their GDP,” Kardos said. “I don’t see distinctive approaches from those countries per se, but rather growth in overall giving. For younger generations, philanthropy is not just seen as time, treasure and talent, it’s also lifestyle choices.”

“I would say that anecdotally, all our high net worth and ultra-high net worth clients are practising philanthropy in one form or another. For example, they may give to one or two disparate organisations, sit on a nonprofit board, give in-kind donations, such as food or clothing, volunteer their time, run a family foundation, or support various initiatives at multi-million-dollar levels,” Kardos said.