Thirty-nine per cent of respondents cite a lack of knowledge about non-profit options, while over a quarter admit they are unsure where to begin. 

High net worth individuals face various bureaucratic hurdles when giving to charity in the UK, including tax considerations, correctly structuring donations and foundations, ensuring governance and compliance adheres to charity law as well as balancing philanthropic goals with family inheritance and legacy planning. These factors could be thwarting strong philanthropic intentions, according to the study. 

The findings illustrate the kind of challenges that HNW individuals thinking about philanthropy face, and the importance that advisors who are experts about the topic can bring to wealth management conversations. This publication has mused about the importance of the role of the philanthropy advisor.

Rathbones commissioned independent research agency PureProfile to interview 100 high net worth individuals with estates valued at more than £1 million ($1.35 million) during July 2025. The average value of estates owned by respondents was £3.075 million.

"The charity sector is facing a perfect storm: rising demand for services, economic uncertainty, and intense competition for donations,” Gemma Gooch, head of charities distribution at Rathbones, said. “Legacy giving is a vital lifeline for charities, yet our study shows many high net worth individuals are held back by complexity and a lack of guidance. By making it easier for donors to integrate philanthropy into their estate planning, we can help secure long-term funding for the causes that sustain our communities."

Despite this, 53 per cent of those surveyed have increased charitable donations in the past two years, with 66 per cent expecting to give more in the next two, the survey shows. Sixty-two per cent of respondents have included a charitable gift in their will – averaging £233,000 – and 83 per cent of those without a will intend to write one within three years including a charitable gift.

This can also be tax-efficient. If at least 10 per cent of a net estate is donated to charity, the inheritance tax (IHT) rate on the rest falls from 40 per cent to 36 per cent. Yet a fifth of wealthy families surveyed were unaware that charitable donations could be used in estate planning to reduce IHT. Once aware, 84 per cent would consider leaving 10 per cent of their estate to charity.

“We’re seeing more families recognising that with the right advice, they can reduce their tax exposure, protect their loved ones, and make a meaningful difference to the causes they care about,” Rebecca Williams, financial planner at Rathbones said. “The challenge is that too many still feel uncertain about how to start. Professional guidance is essential, to turn good intentions into effective, lasting legacies."

Seven in 10 wealthy families studied said they expect to speak to their financial advisor about charitable giving in the next five years, compared with 51 per cent who have already done so. Similar trends are seen with lawyers – 48 per cent plan to in the next five years versus 22 per cent who have already done so – and accountants (21 per cent versus 14 per cent).

Wealthy individuals are also planning to leave non-cash assets to charity – such as property, investments or valuable personal items – which are exempt from IHT and excluded from the estate valuation. Ten per cent have already planned such gifts, with a further 82 per likely to do so.

To facilitate charitable giving, Rathbones is launching its Donor Advised Funds (DAF), a flexible, tax-efficient solution which enables clients to donate and support causes they care about.  Donations to the DAF are eligible for immediate tax relief and can be invested to grow tax-free. Family members can also be nominated as successor advisors to continue the donor’s legacy. 

Rathbones offers its donor advised funds in partnership with National Philanthropic Trust UK (NPT UK), a registered charity.