Strategic philanthropy
Creating a lasting legacy beyond wealth
The strongest connection is a human one
A strategic philanthropy investment is about so much more than charitable giving. It’s about investing your wealth in a considered way so you can meaningfully give back to society. It’s about values, passion, intended legacy, and having maximum, enduring societal impact.
Your philanthropy strategy is a crucial part of your overall wealth management and estate planning journey. Often it is generational wealth or family wealth that is channelled towards philanthropic initiatives as high-net-worth and ultra-high-net-worth individuals seek to leave a socially-meaningful legacy.
At Investec, strategic philanthropy is done "for the love of humanity".
How does strategic philanthropy work?
Strategic philanthropy is typically achieved through a charitable foundation, which is set up as a public benefit organisation (PBO) with the South African Revenue Service (SARS). Donations into the foundation are exempt from capital gains tax, donations tax, securities transfer tax and estate duty. Should the foundation be Section 18A approved, Section 18A receipts may be issued for the donor to claim a tax deduction from SARS. Investments held within a charitable foundation are intended to grow over the long-term. Income generated by these investments is paid annually (or ad-hoc) to various chosen charitable organisations. The goal is to ensure the foundation is sustainable so that it can continue in perpetuity.
Where can I have maximum social impact?
In 2023, we managed and administered R1.26 billion in worth of philanthropy foundation investments. This enabled us to distribute approximately R60.5 million to charities on behalf of our clients.
The funds were allocated to the following sectors: 41% to education, 6% to food security, 22% to welfare & humanitarian, 17% to healthcare, 12% to social justice and 2% to animal welfare.
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Why Investec Wealth & Investment International?
As global citizens with humanitarian objectives, our clients’ needs are best served through our seamless, integrated access to Investec’s Banking and Wealth & Investment services, both locally and internationally, in One Place™. We have worked with donors, non-profit organisations (NPOs) and PBOs for many years and are recognised as one of the leading managers of assets for donor NPOs and PBOs in South Africa.
At Investec Wealth & Investment, we assign a dedicated team with expertise, experience and a proven track record to match your investment and altruistic needs with a holistic service offering. We take the time to understand your background, purpose and objectives to develop your customised and comprehensive philanthropy strategy with you.
Start your philanthropic journey with us
Internationally recognised
By the Financial Times of London as the Best in Africa for Philanthropy services for 2 consecutive years.
How can Investec help?
We can also facilitate direct charitable giving for clients without their own foundation. Part of this process could involve connecting you to one of our partner beneficiary organisations working across South Africa in one of four primary sectors: education, healthcare, welfare & humanitarian and social justice.
Investec offers a range of services that can be tailored to suit your specifications at any stage of your philanthropic journey. This includes philanthropy strategy development, structuring of a charitable foundation, investment management and the ongoing administration of your foundation, including a robust governance process.
What’s the difference between strategic philanthropy and impact investment?
Philanthropy has a distinct focus on achieving impact without having an objective to achieve a financial return. The capital used for philanthropic activities is often private capital which has been accrued and is often multi-generational wealth. Many individuals and families’ philanthropic activities are linked to a deep purpose, personal passion and a desire to help humanity and the planet.
Impact investing, in contrast has bi-focal objectives that include societal and/or environmental impact as well as a financial return. The financial return which is not a requirement within philanthropy is often below market related returns but is an important objective to impact investors. The impact criteria or desired outcomes of impact investments are defined up front and are measurable across a particular time frame of the initiative or project aligned to generating positive impact.
Watch the strategic philanthropy film series
The series showcases the impact our clients are having in society through Investec Wealth & Investment Strategic Philanthropy as an enabler. Given the unprecedented challenges of recent times, it has become more important than ever to celebrate the impact and possibilities that philanthropy brings, aligned to everything we do.
Awards
Ranked as the Best Private Bank and Wealth Manager in South Africa for 11 consecutive years by the Financial Times of London.
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