Research from Rathbones Investment Management has found that the UK’s High Net Worth Individuals (HNWIs) and business owners in the South East have continued to support charitable organisations, despite economic uncertainty.
Charities have been feeling the squeeze as the cost of living has continued to challenge finances, seeing a 4% reduction in charitable donations. These organisations need support more than ever as circumstances become increasingly difficult for those in need.
Concerns about supporting charities and those in need are being felt broadly. 44% of HNWs and business owners in the South East are concerned about their charitable donations over the next 12 months, with 20% admitting being very concerned.
Despite this, 28% have plans in place to pass wealth on to charities, either by continuing to make regular donations or by establishing a legacy or foundation. In comparison, nationally, a third (31%) have plans in place to pass wealth to charities.
HNWs and business owners in Aberdeen and Aberdeenshire were the most likely to continue making financial gifts to charity, with 42% saying they will do so in the future.
In the North East of England, 34% of HNWs have plans to do the same, with 32% of those in the North West, South West and Greater London also hoping to make future donations.
Although the cost-of-living crisis has increased financial pressures on many people, over a quarter (28%) of HNWs and business owners have been supporting charitable organisations with regular financial donations over the last six months.
A further 38% in the South East have offered one-off cash payments to charitable organisations during this challenging time.
Ed Boswell, financial planner at Rathbones Group plc, said: “Despite the difficult economic climate and uncertainty about future financial stability, HNWs and business owners have remained focused on philanthropic giving.
“The cost of living 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.
“For anyone considering the future of their financial commitments, whether through charitable donations or by establishing a legacy or foundation, it’s important to ensure you have the funds you need to achieve your goals.
“Speaking to a financial adviser or planner will help you manage your wealth journey, whether it includes a one-off charitable donation or a longer-term philanthropic plan.”