Thursday, June 9, 2011

Philanthropy and Private Banking Part.I

The world of private banking wake of the financial crisis with a huge challenge: regaining the trust of customers. Meanwhile, global inequality and the needs of the poorest in our societies have never been as visible as the last two years.

Both post-crisis interpretations, seemingly dissimilar, carry within them the basics of the most important challenges of the private bank for the next decade: the development and structuring of philanthropic services.

Why Philanthropy, Is it more relevant today than yesterday? How philanthropy relates to private banks? Why these two sectors have now crossed the issues?

Philanthropy covers the entire process of giving the private sector (companies and individuals) in money, time, information, goods, services, and influences votes spent on the welfare of mankind and the community (general interest) .

To read the business press, philanthropy has never been so placed under the spotlight since the crisis, and for three reasons. The first is the increasing shift of funding the public interest between the public and the private sector. For last few years, various European nations, given the enormity of their deficits, have realized they no longer afford to fund only the national and international needs in the social and cultural rights. These states have therefore developed mechanisms favorable tax incentives for individuals and businesses to engage in philanthropy to finance topics of general interest. The subsequent cause for this rising importance in philanthropy is the change in donor behavior, firms and individuals.


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