You want to put your wealth to good use. By donating, through a named fund or perhaps by establishing a private foundation. How do you go about this? How do you find organisations you can trust? Lara Hadjistratis, Head of Wealth Solutions, talks about situations and experiences with her clients.
“First of all, make an overview of your gifts and the amounts you are already donating. People often don’t have a clear picture of this. Make sure you therefore have all your bank statements and donation receipts in order,” says Lara Hadjistratis, Head of Wealth Solutions.
Second, I always recommend drawing up a list of charities that are close to your heart. How do you want to contribute? Do you want to take action against the pollution of our planet, contribute to better healthcare, support initiatives towards women’s equality? Write down what you would like to see change in the next five years. Also consider the who, where and how. This gives you better insight into your wishes and allows us to offer you more specific advice.”
Which charity suits me?
Finding the right organisation
“Finding the right organisation is not always easy. For instance, there is no centralised overview of charities in Belgium, which does not facilitate the transition from donating reactively to proactively.
To avoid getting lost in the maze of organisations, we recommend always using your own wishes as a starting point. Lay out your objectives and check them against those of the organisations."
Whom do we help with Philanthropy?
How Philanthropy Advice helps
Our team generally helps four different “profiles” of people who want to donate, says Lara Hadjistratis, Head of Wealth Solutions.
People who get into philanthropy after a personal setback, a profound family tragedy, the death of a child… “For instance, we can help a family to establish a Named Fund under the Koning Boudewijnstichting or some other organisation that financially supports a handicapped child after the death of the parents. A Named Fund with an existing organisation has the additional advantage that they take on all the administration and follow-up, while you retain some control of the donated amount.”
Families who have been donating to charities for many years, but the children of which want to tackle something else than the parents. “Suppose you have more affinity with a social project, while your child would rather lobby for a more sustainable world. In that case, we can help you establish a shared mission by creating a private foundation that is specifically concerned with the environment.”
Entrepreneurs who want to put their years of experience to use for a good cause, such as building a small school in Senegal. “They want to know how to structure their philanthropy and how to choose the right charities.”
People asking for advice on including charities in their will. “When people have no direct heirs, we recommend using a dual legate. This method allows you to leave your estate (or part of it) to an organisation. Upon your death, this organisation pays out a specified tax-free inheritance sum to family members to whom you wish to gift. As the organisation also pays low inheritance taxes on the part intended for itself, the dual legate means a win-win for all involved.” Please note: the tax status of the dual legate in the Flemish Region will change.
A foundation of your own or a Named Fund?
How will you donate?
“Starting a foundation involves a bit of thought,” says Lara Hadjistratis, Head of Wealth Solutions. “Literally, because a policy plan is required to establish a foundation of your own. Furthermore, the foundation must be formally established by a notary. You then need to register the foundation with the Crossroads Bank for Enterprises and publish the foundation’s articles of association. The establishment of a foundation for public benefit (SON, “stichting van openbaar nut”), which offers interesting tax benefits, must follow the same procedure. The main advantage of having your own foundation is maintaining full control.
A simpler option, which allows less personal influence, is establishing a Named Fund. In this case, you donate to a larger organisation, such as the Koning Boudewijnstichting, with a specific objective. The main benefit of a Named Fund is that the larger organisation takes on all the administration and follow-up of your donation. At the same time, you can continue to play an active part after making the donation: you have a say in how the money is spent, whether you donate anonymously or publicly, and can stay in touch with any beneficiaries.”
A foundation of your own or a Named Fund?
Not sure whether to establish a foundation of your own or to donate to a Named Fund?
Then we will look at the pros and cons of both solutions together with our experts and determine which is the best match for your personal wishes.
Assets require attention. A good Private Bank understands this and knows that every customer has unique needs and wishes. At ABN AMRO Private Banking you will therefore have your own team of specialists with specific knowledge and experience. Our specialised Private Bankers are happy to take the time to work with you to develop an asset strategy that matches your personal objectives.
Are you not yet an ABN AMRO Private Banking client and would you like to know what our experts can do for you? Fill in the form and our New Business Manager, Julien Richelle, will call you back. Based on your wishes and financial questions, Julien will link you to a Private Banker.