Banque de Luxembourg was one of the first banks in the Grand Duchy to offer philanthropy advice. For more than ten years, we have been supporting individuals who wish to structure a philanthropy project and secure its future. What can a bank offer in this area?
Doing good and doing it well
Not everyone who wants to support a public-interest initiative will need support from a philanthropy adviser. Sometimes a straightforward donation to an existing charity is enough to fulfil their wishes.
But if you want to commit a more substantial portion of your assets and take a more structured, long-term approach, you may well need advice.
Unlike the UK, mainland Europe does not offer an abundance of such advice. Often, people who wish to “do good and do it well” turn to their solicitor or notary, who can offer legal solutions. These are an important link when setting up a philanthropic project, but they are not the only one.
The private banking adviser: an essential link
“Someone who wants to get involved in philanthropy will naturally gravitate towards people they can trust, who know 80% of their personal and family history, rather than starting from scratch with a third-party adviser,” says Philippe Depoorter, a member of the Management Committee and Head of Philanthropy Services at Bank de Luxembourg.
“As a private bank, we are a depositary of our clients’ trust. Therefore, they naturally consider us a legitimate source of advice and assistance in their philanthropic projects.” In the last few years, many of Luxembourg’s charitable foundations and private funds have benefited from the Bank’s services.
Philanthropy is also (often) a financial matter
Dedicating some or even all of your assets (as in the case of people without successors) to a philanthropic project also raises wealth management issues.
“These relate to traditional private banking expertise. Philanthropy is part of an overall wealth management approach with financial, legal and fiscal aspects to consider.”
Once the structure has been set up, then it’s a matter of managing the endowment in the most effective way to achieve the aims of its founder or founders. The private banking adviser plays a vital role in this.