Nearly 70 per cent of high earners and business owners have no plans to pass on their wealth to charities, new research reveals.
This research, which was commissioned by investment management company Rathbones, surveyed a sample of 1,035 high-net-worth individuals, defined as people with more than £250,000 in investable assets, and business owners.
When asked what plans they had in place to pass on wealth, only 32 per cent responded that they would “make/continue to make financial gift(s) to charity or establish a legacy or foundation”.
In comparison, 36 per cent said they would “make/continue making financial gifts to loved ones” and 32 per cent said their funds would go into a trust for their loved ones.
The research also found that “one-third have been regularly supporting charitable organisations throughout the cost-of-living crisis”.
Despite the survey showing that only about one-third of high-net-worth individuals would continue to make charitable donations, Emma Watson, head of financial planning at Rathbones Group, said: “The cost-of-living crisis has tightened purse strings across the board, but it is encouraging to see a continued commitment to charitable giving, particularly at a time when charities need financial support more than ever.”
The cost-of-living crisis has had a severe impact on charity funding, with research from the Benefact Group finding it dropped by £5bn in 2022.
The cost-of-living crisis has resulted in half of all respondents saying they had concerns about their charitable donations over the next 12 months, with 16 per cent admitting to being very concerned, the Rathbones study found.
Despite this, the survey, carried out between February and May, found that 30 per cent of respondents have offered one-off cash payments to charitable organisations throughout the crisis.
The Rathbones Group is part of Rathbones Group Plc and manages £45.4bn of funds for individuals, charities and trustees.