6 FEBRUARY 2026
- Philanthropy advice can increase client lifetime value by 25%
- Improved advice would mean over £8 billion in funding for charity sector
New research commissioned by the Charities Aid Foundation (CAF) has found that engaging clients on philanthropy would bring significant economic benefits to wealth management and advisory firms as well as charities.
Economic modelling by Public First finds that offering advice on philanthropy could increase client lifetime value - the revenue a firm expects to earn over the course of their relationship with a client - by nearly 25% by 2035.
Providing advice on philanthropy also helps wealth managers grow their assets under management. Over ten years, firms providing philanthropic advice could see their assets under management grow by 15% more than those not offering this service. This is the first time the benefit of philanthropy conversations to UK advice firms has been quantified.
In a market where wealth management businesses face challenges over client attrition and net outflows, philanthropy can help firms retain clients and their investments. Against the backdrop of ‘the Great Wealth Transfer’, there is also the potential to attract new clients who want their investments to have a positive impact.
The findings follow a recent CAF report which showed that many financial advisers are not meeting their clients’ needs. Just 36% of advisers believe it is important to discuss philanthropy with clients, contrasting with 60% of HNW individuals who believe it important to discuss the topic with their adviser.
At a time when charities incomes are squeezed and demand for their services is increasing, the research reveals that improved advice could increase donations from HNW individuals by £820 million on average each year. Over a decade, this could mean an additional £8 billion in donations for the charity sector.
Mark Greer, Managing Director for the Charities Aid Foundation, said: “Philanthropy in the UK has considerable untapped potential for wealth management firms, charities and wider society. An increasing number of wealthy individuals are interested in impact capital, and while leading wealth managers and advisers appreciate the value of raising philanthropy with clients, some are behind the curve.
“There has been some reluctance among advisers to talk to clients about giving away money out of a fear they will reduce funds under management - This modelling shows that the opposite is true, and a philanthropy offer increases the value of client portfolios.”
CAF is calling on the FCA to develop a strategy for training financial advisers on philanthropy, including adding it to advisers’ continuing professional development, and embedding impact capital options into regulated financial planning conversations, as recommended by the Treasury appointed Social Impact Investment Advisory Group to boost the impact economy.
Shivani H Menon, Economist at Public First said: “For advisers squeezed by regulation and market shifts, philanthropy is not the asset-drain they fear. Rather, it offers a convenient path to secure client loyalty and drive financial growth. This research shows that there is a clear business case for wealth managers to raise philanthropy with clients.”
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