Family offices are boosting philanthropy but want to see a return

• Around seven out of 10 family office professionals expect spending on philanthropy to increase by 15% or more over the next two years

• But all questioned say their family offices expect to see some form of investment return on what they give

New global research* from Ocorian, the specialist global provider of services to high-net-worth individuals and family offices, financial institutions, asset managers and corporates, shows philanthropic giving by family offices is set to grow strongly over the next two years but family offices want to see some return.

It found seven out of 10 (70%) of family office professionals including those working for multi-family offices estimate philanthropic giving will rise by 15% or more over the next two years. Around a quarter (25%) believe spending on philanthropy will rise by 20% or more over that period.

Ocorian’s international study among more than 300 family office professionals collectively responsible for around $155 billion assets under management found the key area for philanthropy is likely to be healthcare and medical research. Around two-thirds (67%) said their family office’s philanthropy is linked to that sector while more than half (51%) pointed to diversity, equality and inclusion.

However the study shows that family offices want some form of investment return from at least some of their philanthropy – around two-thirds (67%) expect to see some form of return on 25% or more of their philanthropic giving with around one in six (16%) expecting to see a return on 50% or more of their donations.

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Lynda O’Mahoney, Global Head of Business Development – Private Client at Ocorian commented: “The level of philanthropy from family offices and ultra-high-net-worth families is increasing and they’re less interested in their money going into a vacuum—they are enjoying increasing involvement and want to see tangible outcomes from their donations. 

“Flexibility is also important given philanthropic plans are often long-term. We’re noticing an increase in Middle East families setting up Jersey-based charitable structures that allow flexibility to allocate their donations to a UK, European, African or Middle Eastern charity, as they choose, without cumbersome controls. 

“This trend aligns with the broader desire for increasing control over investments—people want to maintain a say in what happens to their money. Overall, we see families carefully planning and seeking advice on how to structure their donations so that they can see the impact they seek.”

And it would seem that the more families who choose to set up charitable trusts, the more who ultimately want to, as Tracey Neuman, Private Client Executive, at Ocorian added: “Charitable trusts are the new superyachts. You simply have to have one if you are an Ultra High Net Worth individual.”

Ocorian’s award winning dedicated family office team provides a seamless and holistic approach to the challenges and opportunities families face. Its service is built on long-term personal relationships that are founded on a deep understanding of what matters to family office clients. Its global presence means Ocorian can provide bespoke structures and services for international families no matter where they live.