Silent Wealth Advisers Costing Charities Billions Annually, New Report Exposes
A groundbreaking report from the Minderoo Foundation has revealed that Australia's charities are missing out on billions of dollars each year due to financial advisers' hesitancy to discuss philanthropic giving with wealthy clients. The study, commissioned by the Perth-based philanthropic office of billionaires Andrew and Nicola Forrest, in collaboration with The Edward Alexander Foundation, estimates that between $7 billion and $12 billion could be unlocked for charitable causes over the next four years if this barrier is addressed.
Advisers' Reluctance to Discuss Donations
Research indicates that more than 60 percent of financial advisers, accountants, and lawyers rarely or never raise the topic of charitable giving with their clients. This silence persists despite nearly 30 percent of Australians expressing a desire to leave behind a charitable bequest. Alarmingly, only 20 percent of individuals using a lawyer were asked about such intentions, according to the report's findings.
The primary reasons for this reticence include fears of appearing biased or the risk of reducing potential revenue streams. Advisers often avoid these conversations to maintain neutrality and protect their financial interests, inadvertently stifling philanthropic efforts.
Call for Regulatory Changes
In response to these findings, the Minderoo Foundation is advocating for the Australian Securities and Investments Commission (ASIC) to update its guidance. The foundation argues that clarifying that advising on donations aligns with regulatory obligations could empower advisers to broach the subject more freely.
"Australians are at the start of an historically unprecedented transfer of wealth, with over $6 trillion set to be inherited over the next two decades. But the Unlocking Generosity report has found we are leaving billions on the table because we don't ask," said Minderoo chief executive John Hartman.
Australia's Philanthropic Lag
The report highlights that Australia trails behind other developed nations, including the United Kingdom, Canada, New Zealand, and the United States, in total giving as a share of gross domestic product. This gap underscores the urgent need for systemic changes to foster a more generous philanthropic culture.
Founded by Andrew and Nicola Forrest in 2001, the Minderoo Foundation continues to champion initiatives that address global challenges through strategic philanthropy. This latest report emphasizes the critical role that financial professionals play in unlocking charitable potential during a period of significant wealth transfer.
