Consilium offers philanthropic solution

New Zealanders will soon have the option of asking their financial advisers to help them manage money they want to donate to charity.

Sunday, September 3rd 2017, 6:00AM

Consilium has entered a partnership with The Gift Trust.

It will mean that money destined for charity can be grown, tax-free, and donated over time.

“Traditionally, a budding philanthropist would either give directly to a charity or set up a grant making foundation. Today, donors in other countries are flocking in large numbers to an alternative giving vehicle – Donor Advised Funds (DAF), a giving account held by a not- for-profit. This new partnership will offer this in New Zealand for the first time,” Consilium said.

A DAF is like a savings account for donations – the equivalent of a “personal foundation”, but without the administrative hassle. A donor places a donation into their giving account and can take an immediate tax credit deduction. The donor can then choose which charities they would like to make grants to, and when.

They can build up their funds over time, donate more into their account whenever they like and choose when to make donations to charities.

From next month, advisers using Consilium will be able to offer their clients this option, alongside their personal investment portfolios.

“In 2011 I moved to New Zealand, having worked for a very successful US financial firm. I was surprised to see no one was offering donor advised giving in New Zealand,” said Ben Brinkerhoff, head of partner firm services at Consilium.

“This new collaboration means financial advisers can offer an extra service to their philanthropically minded clients, helping them to reach their charitable giving goals. Through Consilium Platform, these clients will be able to track their personal investments, alongside their Gift Trust Gift Account funds” said Cheryl Spain, manager of The Gift Trust.

“Our advice and support helps donors to refine their giving in ways they might never have considered themselves – from creating a more proactive and planned approach to their giving, to considering alternative ways to make a gift for impact including matched funding, capacity building grants and more.”

Financial adviser Philip Stevenson of Bloomsbury Associates, who works with Consilium, welcomed the move.

“The Gift Trust offers an opportunity to streamline the gifting process, while adding increased confidence and transparency. It also provides robust due diligence of eligible charities and access to additional support services for clients with complex needs.”

A Gift Account managed by a Consilium adviser can be set up with a donation starting from $20,000. The Gift Trust also offers a Starter Account for donors who want to start with a contribution from $5,000, but these funds cannot be invested through a financial adviser.

Scott Alman, Consilium managing director, said there was a need for ways for advisers to help their clients achieve their philanthropic goals.

He said many high-net-worth clients wanted to give back, or to “self tax”. But he said many were concerned about the ways that charities used money and the amount of money that covered things such as administration costs. “This gives clients and advisers a more hands-on approach to philanthropy.”

He said it was a leap of faith for the company but he expected there to be strong demand.

Tags: Consilium financial advisers