Uploaded January 2019 | Updated September 2026, 5 minutes ago
Future of Private Banking is Philanthropy advice – reasons for boom in Philanthropic advisory services for wealthy clients. Impact on wealth advisors, Family Offices and Fund Management - comment by Futurist keynote Speaker Patrick Dixon.
50% of global wealth is owned by 1% and within 30 years that is likely to rise to 65% or more. The number of dollar billionaires is growing rapidly every year. So what is going to happen to all this wealth? The answer is that a huge propotion will be given away. Why?
I have been advising many of the largest Private Banks in the world and large Investment Funds for over 20 years. I have also worked with many of the world’s wealthiest entrepreneurs and Family Offices.
For 20 years now I have been saying that Philanthropic advisory services will be at the heart of Private Banking and wealth management, for the next few decades. The reasons are simple:
1. Huge wealth cannot be spent by an individual on themselves in their own lifetime - most spending generates more wealth – whether buying property or companies or art or other assets.
2. Huge wealth is often toxic to the wellbeing of the children of those that own it – according to many ultra-high net worth individuals I have worked with.
3. Huge wealth can also be very damaging in the same way to grandchildren.
4. Huge wealth also distorts friendships and relationships with wider family – creating questions about the true motivation of those who want to spend time with you.
5. Since such wealth cannot be spent on oneself or family, and cannot be enjoyed after death, the strong logic is to give most of it away – to make a real difference and created a lasting legacy, for a better future world.
6. And once the individual decides that most of the wealth will one day be given away, the question is why give all the fun of that to trustees of some foundation set up after death. Why not start now, and enjoy the fulfillment of it.
7. And once that happens, once employees realize that much or most or all of the profits they make are being given away to Charity, it builds morale, pride, sense of purpose, loyalty, commitment and creative energy. All of this helps generate more profits.
8. Creating a family trust is also protective for the character and maturity of children growing up in very wealthy families. Children can be deeply involved from the start in decisions about what causes to support and then begin to see the purpose of all that wealth is primarily to make a difference to those in real need, rather than to provide an extravagant lifestyle for themselves.
9. Philanthropy also diverts criticism or even hostility from owners of great wealth, and opens doors to great influence in governments and society.
10. And it’s all tax free – in other words, every time a very wealthy person makes a donation to a cause they are really passionate about, it forces their own government to contribute all the tax money to the same cause that they would otherwise be due.
So Philanthropy makes absolute sense – for the sake of the family, and for the wellbeing of the wider world.
Philanthropic Advisory Services
Advice to Family Offices on philanthropy can range from:
1. Advice on ways to donate tax efficiently
2. Advice on setting up and running a family foundation
3. Introductions to other UNHWs who have gone down a similar path
4. Introductions to outstanding charity founders
5. Wealth management of assets of the family foundation
Future of Private Banking is Philanthropy advice – reasons for boom in Philanthropic advisory services for wealthy clients. Impact on wealth advisors, Family Offices and Fund Management - comment by Futurist keynote Speaker Patrick Dixon.
50% of global wealth is owned by 1% and within 30 years that is likely to rise to 65% or more. The number of dollar billionaires is growing rapidly every year. So what is going to happen to all this wealth? The answer is that a huge propotion will be given away. Why?
I have been advising many of the largest Private Banks in the world and large Investment Funds for over 20 years. I have also worked with many of the world’s wealthiest entrepreneurs and Family Offices.
For 20 years now I have been saying that Philanthropic advisory services will be at the heart of Private Banking and wealth management, for the next few decades. The reasons are simple:
1. Huge wealth cannot be spent by an individual on themselves in their own lifetime - most spending generates more wealth – whether buying property or companies or art or other assets.
2. Huge wealth is often toxic to the wellbeing of the children of those that own it – according to many ultra-high net worth individuals I have worked with.
3. Huge wealth can also be very damaging in the same way to grandchildren.
4. Huge wealth also distorts friendships and relationships with wider family – creating questions about the true motivation of those who want to spend time with you.
5. Since such wealth cannot be spent on oneself or family, and cannot be enjoyed after death, the strong logic is to give most of it away – to make a real difference and created a lasting legacy, for a better future world.
6. And once the individual decides that most of the wealth will one day be given away, the question is why give all the fun of that to trustees of some foundation set up after death. Why not start now, and enjoy the fulfillment of it.
7. And once that happens, once employees realize that much or most or all of the profits they make are being given away to Charity, it builds morale, pride, sense of purpose, loyalty, commitment and creative energy. All of this helps generate more profits.
8. Creating a family trust is also protective for the character and maturity of children growing up in very wealthy families. Children can be deeply involved from the start in decisions about what causes to support and then begin to see the purpose of all that wealth is primarily to make a difference to those in real need, rather than to provide an extravagant lifestyle for themselves.
9. Philanthropy also diverts criticism or even hostility from owners of great wealth, and opens doors to great influence in governments and society.
10. And it’s all tax free – in other words, every time a very wealthy person makes a donation to a cause they are really passionate about, it forces their own government to contribute all the tax money to the same cause that they would otherwise be due.
So Philanthropy makes absolute sense – for the sake of the family, and for the wellbeing of the wider world.
Philanthropic Advisory Services
Advice to Family Offices on philanthropy can range from:
1. Advice on ways to donate tax efficiently
2. Advice on setting up and running a family foundation
3. Introductions to other UNHWs who have gone down a similar path
4. Introductions to outstanding charity founders
5. Wealth management of assets of the family foundation
