Philanthropic services: added value for External Asset Managers

Article published in SPHERE, November, 2018

Interest in philanthropy is growing rapidly among wealthy individuals around the globe, and there are many factors driving this trend. Take, for example, the special report published by the Intergovernmental Panel on Climate Change (IPCC) on the impacts of global warming of 1.5°C¹. Their predictions make for grim reading, raising major concerns about environmental and social changes worldwide if we fail to halt the global rise in temperatures. Some feel that current institutions are unable to respond to the growing needs of society, while others are more concerned about passing on their family values to the next generation. Today, getting involved in projects can be faster, more efficient and more flexible, with philanthropists enjoying greater support in planning and structuring their activities.

Before every leap, there is fear. Thankfully, donors can rely on the expertise of our financial advisors. With a wealth of experience in asset management and philanthropy, Lombard Odier has developed a comprehensive range of services tailored to the needs of investors who wish to set up or optimise their own charitable vehicle. We share this expertise with our partners – external asset managers. Thanks to our focus on detail, their clients have the tools they need to complete each step of their philanthropic endeavours.
 

Our approach involves assessing what the client is passionate about before determining which strategies can make a difference. Once we have defined the client’s objectives, we develop a suitable process, which may involve setting up a vehicle, providing asset management services or creating a foundation, as well as selecting and mobilising beneficiaries.

The Fondation Philanthropia was founded in 2008 to help clients and donors meet their philanthropic goals. The umbrella foundation is similar to a donor-advised fund in the US, which is a giving vehicle that uses its charitable status to manage donations on behalf of organisations, families or individuals in a modular way. Philanthropia offers donors administrative support and professional philanthropic advice geared towards their interests and needs.
 

Philanthropic investors can choose between directly supporting a cause they care about via a personal fund or donating money to support the foundation’s general objectives. The foundation has five thematic funds to enable donors to pool resources. The Foundation Board awards grants to projects after a rigorous selection process. Donors can recommend specific projects or social issues and are kept informed about the impact of their donation. Since its creation, the Fondation Philanthropia has given over CHF 60 million to 120 projects. Philanthropy has become a priority for wealthy individuals looking to make a difference. Financial advisors are favoured partners that help clients with their projects. Donors need flexible and efficient infrastructure as well as expert advice to fulfil their philanthropic goals.

¹ IPCC, 2018, “Special Report on Global Warming of 1.5°C”