People often tend to do some good in the world. Being kind and compassionate and providing for those who are less fortunate is what makes us human. Most people at some point in their life try to take some steps towards charity and philanthropy. But this is most common with wealthier people. And rightly so. They have the resources for such humanitarian acts, and they pursue it every chance they get. The only situation is finding the means for it. Mostly multi-family offices have the knowledge and experience required for this. But lately, a lot of single-family offices are also joining in on the process. As an independent family office advisor, we can assist you in various aspects and the difference between charity and philanthropy.
The Difference between Charity and Philanthropy
There may often be confusion regarding the terms charity and philanthropy. There is no clear definition of defining the difference between charity and philanthropy. But it can be concluded that charity is more of a unique gift or action intended to solve a single person or group of people’s immediate needs. Philanthropy, however, refers to the philosophy or approach designed to make the world a better place and improve the living circumstances of all the less privileged. Therefore, charity is the next thing while philanthropy aims and lasts for a more extended period.
Charity is not only easier to explain but also to implement. It mostly concerns how much money you want to donate to an organisation. It is a singular act of donation and is more inclined to short term goals. In this situation, not much support from a family office is required. However, if you wish to donate large amounts of money and keep track of where it goes and how it is used, a family office would be of tremendous help. A family office is also a great option in case you want to establish your grant-making foundation or trust and be personally involved in it.
A multi-family office usually assists you with philanthropy, and this could be quite a task for them as well. This is because generosity is more aimed towards the long term and bigger goals. Philanthropy requires a different set of expertise and experience since the multi-family office has to manage several private bank accounts at once.
They will have to deal with issues such as setting philanthropic objectives, formulating a giving strategy, technical advice, operational management and the presentation of strategic initiatives. Setting up, operating and monitoring a humanitarian project can be a big challenge. Thus the multi-family office needs to be competent at their job.
Not Every Family Office Supports You with Philanthropy in place of Charity
Very few multi-family offices have the knowledge and experience required to help you with philanthropic services. Even fewer of them maintain their charitable foundation that allows clients to participate. Another small group of these offices has close contact with outside experts. However, for an average multi-family office, it won’t be easy to assist you with philanthropy.
- Firstly, we conduct all the philanthropic plannings of the client.
- Secondly, we assist and guide in the establishment and administration of charitable foundations.
- By providing support in formulating the client’s donating strategy as well as technical advice on operational management of charities.
- We are establishing grant-making foundations and trusts.
- By preparing and presenting philanthropic initiatives.
- We are organising fundraisers.
- Lastly, we are assisting the clients in operating their charitable structures
Our Support for Charity and Philanthropy
If you wish to follow charitable and philanthropic endeavours, it is essential to carefully examine the advantages and disadvantages of the multi-family office you intend to hire. We offer all kinds of family office advisory services along with all the services mentioned above related to charity and philanthropy. We will provide you with our full support and help with your objectives and plans. Contact us to know and discuss it further.