No-one in the sector can have failed to notice that there has been an enormous growth in wealth at the top end of the spectrum across the globe. In Australia alone there were 146,000 millionaires in 2006 according to the Merrill Lynch Capgemini World Wealth Report, an increase of more than 24% on the previous two years.
With more people with more money to give, wealth management companies like Goldman Sachs JBWere (GSJBW), UBS, Macquarie Bank, BT and Perpetual, have experienced greater demand for advice on how to structure and direct philanthropy.
Rise of Philanthropy Advisors
The timely arrival in 2001 of prescribed private funds (PPF) as a mechanism for individual philanthropy made a tangible product around which this advice could be structured.
Christopher Thorn, head of GSJBW's Philanthropic Services Division, says his firm developed a specialist philanthropy unit in response to increasing requests from their individual clients for advice on giving.
But are the more structured ways of giving through vehicles like PPFs actually encouraging greater giving or just formalising…