Cazenove Capital launches new donor advised fund to meet growing client demand for charitable giving
London, Wednesday 30 November 2021
Cazenove Capital, one of the UK’s leading wealth management businesses and part of the Schroders Group, today announces the launch of the Cazenove Capital Donor Advised Fund, administered by National Philanthropic Trust UK (NPT UK).
The Cazenove Capital Donor Advised Fund builds on Cazenove Capital’s strong heritage supporting clients to invest their money in line with their – and in many cases their family’s values – as part of a holistic wealth management plan.
Cazenove Capital currently manages £200 million in third-party donor-advised funds (DAFs) on behalf of UK clients including family offices, business owners and entrepreneurs and private individuals. As philanthropy and impact investing move higher up clients’ agendas in the wake of the global pandemic, this new DAF will build on this expertise to meet the growing need for products that offer strategic, yet flexible support for philanthropic giving.
A donor-advised fund account is a philanthropic fund established under a charity, that administers the fund to benefit specific causes on behalf of a donor. DAFs are becoming a popular alternative to establishing a grant-making charitable trust or foundation, largely due to their simplicity, speed and ease of set-up, and the lower administrative costs and resourcing they require.
According to the NPT UK 2020 Annual Report, charitable assets in donor-advised funds totalled £1.7 billion in the UK in 2019 – an increase of 11 per cent over the previous year. A new research report from Cazenove Capital of 70 family office members or their representatives also reveals only a third (35%) have created a charitable trust or foundation through which to give, with other forms of giving structures - such as DAFs - widely used.*
Lyn Tomlinson, Head of Impact & Philanthropy at Cazenove Capital said: “In the past two decades we have seen philanthropic advice move from ‘a nice to have’ to a ‘must have’ for the majority of clients. Charitable giving is an effective way to engage the next generation in the responsibility of wealth, and in many cases to align families to shared causes and interests. There are multiple approaches to philanthropy and impact investing, with each client requiring a bespoke assessment of their priorities before deciding which route is best for them.
Depending on a client’s needs and the causes they care about, DAFs can be a compelling alternative to establishing a charitable vehicle and are becoming increasingly attractive due to growing regulatory burdens associated with administering your own charitable entity. Clients want to be up and running quickly and solely focus on giving to areas that they care about. This is possible through our new DAF structure, in partnership with NPT UK, who focus on the administration, legal and regulatory requirements of giving, freeing individuals up to focus on what matters most to them.
The Cazenove Capital Donor Advised Fund will provide flexibility for donors to give quickly and easily to charities, with a minimum initial donation of £100,000, whilst receiving the same tax reliefs they would on any charitable gift. Clients can recommend grants from the fund at any time, in support of international and UK charities. Donations can be made using cash, shares, business interests or other assets including property and art. Clients can also choose to invest into Cazenove Capital’s market leading sustainability fund range, or to create a bespoke impact investment portfolio to maximise the impact of their charitable giving.
Mary-Anne Daly, CEO of Cazenove Capital, said: “We had already witnessed an increased interest from our clients and their families in giving back to society, and the global pandemic has only served to accelerate that trend. We recognise that clients will have personal preferences on the various causes they wish to support and the Cazenove Capital DAF is another example of how we continually adapt and tailor our services to suit their individual needs.”
Peter Hall, Global Head of Wealth Management at Schroders, said: “As the leading manager of Charitable assets in the UK, and a business still largely owned by the family who founded it over 200 years ago, we are uniquely placed to help clients with their philanthropic needs. As impact investing and philanthropy has become a top priority for our own business and our clients, we are committed to developing the right structures and investments to benefit people and planet.”
Cazenove Capital provides a range of services to enable clients to give efficiently and with impact. Wealth planners and investment managers work with clients to assess their individual and family needs, whether the DAF route is right for them and how to implement the right investment mandate to further their giving. The team works alongside third-party advisers to deliver a complete philanthropy service – from strategy and planning, charity selection and grant management to impact measurement.
Notes for editors
* The data in this report was drawn from a survey of 70 respondents. These were family members or representatives of families where invested assets were valued at GBP10 million or more. The survey was conducted between November 2019 and October 2020.
Respondents’ ages varied, with 35% falling into the age group 51 to 65. Over-65s made up 17% of the respondent base. Respondents aged 30 or under were limited to 26.
Three quarters of respondents were male. Half of the female respondents were aged 30 or under.
Where respondents were asked to rank responses out of a longer list, we applied a process of weighting to reflect higher or lower priorities. This produced an overall score taking all responses – and their ranking – into account.