Blue Chip Issue 96

BLUECHIPFINANCIAL

BLUECHIPFINANCIAL PLANNING | Wealth managementCHIPPhilanthropy in South Africa:evolving trends and its rolein a wealth management planPhilanthropy is undergoing a significant transformation in South Africa.Once viewed primarily as a charitable obligation or alegacy-building tool for the ultra-wealthy, philanthropyis now being redefined by a new generation of donors,shifting societal needs and a growing emphasis on impactand inclusivity. As these changes unfold, philanthropy is becomingan increasingly strategic building block of comprehensive wealthmanagement plans.Emerging trends in South AfricaAfrican philanthropy as a distinct and culturally rooted practice isanother key trend. This includes financial donations but also thegiving of time, skills and social capital. Family and community-basedgiving, collective solidarity mechanisms and social investments aregaining traction, reflecting a broader understanding of philanthropyas a tool for social justice and empowerment. [1]Technology is also playing a transformative role. Digital platforms,crowdfunding and AI-driven donor engagement tools makephilanthropy more accessible and efficient, particularly for youngergenerations who value transparency and measurable impact andare more likely to support causes through online campaigns anddirect participation. [2]From charity to strategic impactThere is a growing focus in South Africa on long-term impact,sustainability and systemic change. This shift is driven by a deeperunderstanding of the root causes of inequality, poverty andenvironmental degradation, and a desire to address these issuesholistically. Corporate philanthropy is moving beyond traditionalcorporate social responsibility (CSR) models to embrace employeedrivengiving and shared value initiatives. Employees are beingempowered to direct charitable funds while businesses are aligningtheir philanthropic efforts with their core values and operations. [2]Philanthropy as part of a Family Office approachIncorporating philanthropy into a wealth management plan is nolonger just about tax efficiency or legacy planning, it’s about aligningwealth with personal values and societal impact. Grant Alexanderand the team at Private Client Holdings are finding that highnet-worthindividuals and families are increasingly working withwealth advisors to develop philanthropic strategies that reflect theirpassions and long-term goals. It is where a Family Office approach towealth management is most valuable.Some ideas to consider of how philanthropy fits into a modernwealth management plan include the following (please note thePrivate Client Holdings service pillars that focus on this area arehighlighted in italics):1. Legacy and estate planning. Philanthropy allows individualsto leave a legacy. Trusts, donor-advised funds and charitablefoundations can be structured to support causes across generations.(Private Client Trust – Fiduciary Services)2. Tax optimisation. Strategic giving can reduce estate and incometaxes. In South Africa, donations to registered Public BenefitOrganisations (PBOs) are tax-deductible, making philanthropy asmart financial move. (Private Client Financial – Tax Services)3. Family engagement. Philanthropy can be a powerful tool forengaging the next generation in family values and financial literacy.Many families use giving to teach responsibility, empathy andstewardship. (Private Client Wealth Management)4. Impact investing. Philanthropists are increasingly blendingtraditional giving with impact investing, allocating capital to venturesthat generate both financial returns and positive social outcomes.(Private Client Asset Management)5. Reputation and influence. For business leaders and public figures,philanthropy enhances reputation and opens doors to influentialnetworks and partnerships.Looking aheadAs South Africa continues to grapple with inequality, politics, lack ofeducation and rising unemployment, philanthropy will play a criticalrole in shaping a more inclusive and resilient society. The evolvinglandscape, marked by innovation, localisation and strategic intent,offers exciting opportunities for individuals and families to make ameaningful difference.In 2025, philanthropy is no longer just about giving, it’s aboutinvesting in the future. And when integrated thoughtfully into awealth management plan, it becomes a powerful expression ofpurpose, values and vision. Please contact one of our PCH wealth managers.www.privateclient.co.zaReferences[1] Philanthropy Ecosystem in Africa:Proposals to Strengthen Localisation[2] Philanthropy in 2025: Transformations,Challenges and OpportunitiesGrant Alexander, Director,Private Client Holdings66 www.bluechipdigital.co.za

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