Good morning,

High earners and business owners in London continue to support charitable organisations despite economic uncertainty, according to new research from Rathbones.

32% have been supporting charitable organisations with regular financial donations over the past six months and a further 22% have made one-off cash payments during this period. 32% also have plans in place to pass on their wealth to charities, by continuing to make regular donations or establishing a legacy or foundation.

Please see the below for the full release. Feel free to get in touch if you have any questions or would like to speak with someone at Rathbones.

Many thanks,

Olivia

High earners and business owners in London continue to prioritise charitable giving despite economic uncertainty

32% of high earners and business owners in Greater London have already put plans in place to pass wealth on to charities
A further 32% have been regularly supporting charitable organisations throughout the cost-of-living crisis

The ongoing challenging economic climate has seen belt-tightening across the board, yet, the UK’s High Net Worth Individuals (HNWs)* and business owners in Greater London have continued to support charitable organisations, despite economic uncertainty, finds research from Rathbones Investment Management.

Charities have been feeling the squeeze as the cost of living has continued to challenge finances, seeing a 4% reduction in charitable donations. Charitable organisations need support more than ever, as circumstances become increasingly difficult for those in need.

Concerns about supporting charities and those in need are being felt broadly: 50% of HNWs and business owners in Greater London are concerned about their charitable donations over the next 12 months, with 12% admitting being very concerned. Despite this, 32% have plans in place to pass wealth on to charities, either by continuing to make regular donations or by establishing a legacy or foundation. In comparison, nationally a third (31%) have plans in place to pass wealth to charities.

HNWs and business owners in Aberdeen and Aberdeenshire were the most likely to continue making financial gifts to charity, with 42% saying they will do so in the future. In the North East of England, 34% of HNWs have plans to do the same, with 32% of those in the North West, and South West also hoping to make future donations.

Although the cost-of-living crisis has increased financial pressures on many people, one-third (32%) of HNWs and business owners have been supporting charitable organisations with regular financial donations over the last six months. A further 22% in Greater London have offered one-off cash payments to charitable organisations during this challenging time.

Emma Watson, Head of Financial Planning at Rathbones Group plc, comments: “Despite the difficult economic climate and uncertainty about future financial stability, HNWs and business owners have remained focused on philanthropic giving. The cost of living has tightened purse strings across the board, but it is encouraging to see a continued commitment to charitable giving, particularly at a time when charities need financial support more than ever.

“For anyone considering the future of their financial commitments, whether through charitable donations or by establishing a legacy or foundation, it’s important to ensure you have the funds you need to achieve your goals. Speaking to a financial adviser or planner will help you manage your wealth journey, whether it includes a one-off charitable donation, or a longer-term philanthropic plan.”