Philanthropy
Philanthropy And Next Gen Attitudes Probed By HSBC
A higher percentage of Next Gen members in second- and third-generation businesses were more active in philanthropy than for the first-generation cohort.
Almost a quarter (23 per cent) of families of HSBC
Global Private Banking trustee clients said that Next Gen
members were actively involved in philanthropy, while 44 per cent
are involved in strategy and 36 per cent in finance, showing how
charity is an important way to prepare this age cohort to take
over businesses and assets.
The study also found that in the Next Gen of second and
third-generation businesses, 29 per cent had a higher rate of
philanthropy involvement than those from the first generation (21
per cent).
Such findings, coming at a time of a multi-trillion wealth
transfer around the world, show why wealth advisors, lawyers and
other professionals make a point of including philanthropic
strategy advice as part of their value proposition.
(Editor’s note: it is also worth pointing out that a majority of
respondent’s Next Gen members were not involved in philanthropy
for some reason.)
In other details, the study found that for families with
endowments or foundations, education was the main
philanthropic target, with 32 per cent of respondents saying
that they would focus on the area in the coming 12
months.
The HSBC Trustee Client Survey is a study involving a
selection of HSBC Global Private Banking’s true clients around
the world. All respondents were interviewed online between May
and July 2022, the bank said.
When broken down by region, ASEAN-based respondents said
that humanitarian relief or emergency response was their most
pressing philanthropic priority. In Greater China, support for
the elderly was the second most cited area.
Globally, 85 per cent of families are preparing the Next Gen to
take over their businesses. In Greater China and the ASEAN
countries, preparation rates were 90 per cent and 86 per cent,
respectively.
More than half of all respondents across the world are training heirs in business and finance. Some 55 per cent of ASEAN families and 40 per cent of those in Greater China are sending the Next Gen to outside training, education, and employment. In other regions, just under a third of respondents are using these approaches.
(ASEAN countries are Brunei; Cambodia; Indonesia; Laos; Malaysia; Myanmar; Philippines, and Singapore.)
