Philanthropy and Private Banking Part.III

The theme of philanthropy touches on sincerely seized beliefs of the client. It allows staff to initiate a conversation on an emotional dimension as well as financial. This dialogue can add to the development of an association of trust between a client who is not simply a portfolio of assets, and a banker who does most of the costume vendor products with high margins. This dialogue allows the bank to intensify its knowledge of clientele, and loyalty by contributing a long term relationship on sustainable projects.

Another line of work to dig for private banks: the networking of donors. Philanthropists, especially beginners, express the need to meet other people having launched in the adventure to help and share their experiences. From the perspective of the bank, linking its customer’s philanthropists represents an opportunity to expand its network of prospects. In Europe Wealth Management team understands this challenge.

For the client, a private bank that support its philanthropic investment it would provide a single window for management of its assets, both financial and philanthropic. Several studies have identified the reasons why wealthy people to contact their banks to invest in private philanthropic topics:
1. Tax benefits,
2. Need advice on clearing the jungle of philanthropic organizations,
3. Want to measure and control effectively grants.
Structuring, in the engineering heritage, a philanthropic offer to optimize tax and guide the client through the maze of legal philanthropy takes on its meaning.

Today, private banks gaining momentum on the subject of philanthropy, sensing the potential of loyalty and competitive differentiation behind. But they will fail to fully play this role once they are deemed competent on the subject by their customers. This involves the guidance of management consultants to private customer approach in its personal dimension and not just financial, and reorganizing the supply of products and philanthropic services taking into account the tax aspects, legal and emotional donation.

Philanthropy and Private Banking Part.II

For older donors, donating was good in itself, while for the new, the gift must be effective. The typical modern philanthropist made his fortune quickly, has an entrepreneurial mindset and will firstly give back to society part of what he has won and the other involved in the projects it supports. His archetype is Bill Gates, who created the foundation "Bill and Melinda Gates before his fortieth birthday and whose endowment now stands at over 35 billion dollars. There is currently strong demand from high net worth individuals to invest in philanthropy, both in Anglo-Saxon (which is an old trend) than in European countries (which is newer).

The increasing needs of the poor at local level in developed countries and at global level in some countries remained on the margins of globalization, also explains the renewed media attention to philanthropy.

Philanthropy is a segment whose financing requirements are increasing and in which many actors are willing to commit themselves, wealthy individuals as firms. The challenge in this sector lies in its ability to structure itself to meet the demand (need help finance the public interest) and supply (philanthropists want to give).

This need for structure has been highlighted by a study of Scorpio Partnership in 2007 showing that 90% of European philanthropists expressed the need to be advised on their philanthropic investments. They are looking for sound advice enabling them to make appropriate choices. The study also reveals that most of these philanthropists are willing to pay to dispose of such boards, and opens a huge market for private banks.

By their knowledge of financial products they have, and they affect the public, private banks can take part in the expansion of philanthropy by offering:

* Product socially responsible investment.
* Investments in philanthropic or charitable funds.
* Advice to clients wishing to establish a foundation.

Cont.

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.

Cont.