Philanthropy is the driving force behind many of Britain’s economic and social innovations.

But the philanthropic sector remains reliant on a handful of highly generous high-net-worth donors who have consistently pledged their wealth, time and networks to charitable causes. The majority of donations from the wealthiest 1% of households come from less than 5% of that group. [1] Broadening participation beyond this wealthy “civic core” is therefore a central challenge, and normalising philanthropy among providers of wealth and financial advice – who affluent individuals already seek out – is one of the most promising ways to grow the UK’s philanthropic base.

Although philanthropy in the United States is shaped by higher overall wealth levels, different tax incentives and distinct cultural norms, it also benefits from routine conversations between advisers and their clients about philanthropy. Two-thirds of HNW individuals report having discussed philanthropy with their adviser in the US, [2] while in the UK only a third say their adviser has raised philanthropy with them, [3] meaning many wealthy clients here never receive structured guidance on how to organise their finances and give effectively.

At the same time, the UK wealth and financial advice industry faces pressures that make it particularly ripe for a stronger focus on philanthropy advice. A number of major UK asset managers have been reporting net outflows of funds as investor preferences shift towards cheaper and more global passive investment vehicles, leaving wealth advisers in the position where they need to replace asset-based fees with value-added advisory fees. [4]

Investment managers are finding it harder to differentiate themselves based on returns alone, pushing them to look for broader ways to help their clients. Meanwhile, financial planners face strict new rules to prove their fees offer ‘fair value,’ meaning they must show they provide more than just a standard investment portfolio. Advice firms are also bracing for a large intergenerational wealth transfer, and advisers who fail to build relationships with heirs risk losing a substantial share of assets when wealth changes hands. [5]

With pressure on assets under management and fees and looming generational change, helping clients think intentionally about their legacy and philanthropy is a key way advisers can demonstrate the value-add of the personalised support they offer.

Key findings

Public First carried out economic modelling commissioned by the Charities Aid Foundation to explore the impact that better advice on philanthropy could have on donations for the charitable sector and on advice firms themselves. We found that:

• If previous interventions to increase charitable bequests were similarly applied to all forms of charitable giving, this could unlock £820 million from high-net-worth (HNW) donors annually. Over a decade, this would amount to over £8 billion in donations from high-net-worth donors from improved advice alone, taking the total donations from HNW donors to nearly £30 billion by 2035.
• If advice firms provided comprehensive philanthropic advice, they could increase their client lifetime value by nearly 25%.

You can read the full report here.

References

1. ‘Giving Back Better: Unlocking philanthropy in the UK.’ Onward, January 2024.
2. ‘The US Trust Study of the Philanthropic Conversation, Understanding adviser approaches & client expectations.’ Bank of America Private Wealth Management and The Philanthropic Initiative, 2018.
3. ‘The Modern Philanthropist.’ Barclays Private Bank, October 2025.
4. ‘The UK retail market.’ The Investment Association, 2024.
5. ‘Navigating the great wealth transfer.’ Vanguard, June 2025.