Giving to charitable causes goes far beyond writing a cheque.
For many, philanthropy is about more than giving wealth away. It often involves committing to a purpose and supporting causes that create a positive impact on society.
Philanthropy has traditionally encompassed private initiatives for the public good. Recently, this definition has started to evolve. “Rather than the term philanthropy, we like to use the term ‘social capital’ because it encompasses a broader vision of what philanthropy is and what it could be in the future,” explains Dr. Paula Murphy Ives, managing director, Social Capital and Impact, Enterprise Strategic Client Group at RBC Wealth Management in Canada.
Murphy Ives says social capital can go beyond writing a cheque. “It’s about thinking long-term and being more strategic about how individuals – or families and communities – consider their impact and the kind of world they want to build.” She explains this could look like working within a new family foundation or social enterprise to benefit society. She also stresses the importance of having a lasting vision and centering it on the legacy one might want to create to make the world a better place.
The rise of the next generation of high-net-worth individuals has played a part in contributing to the recent surge in philanthropic activity.
“The second generation of high-net-worth individuals in Asia are increasingly engaged in different formats of giving,” adds Vivian Kiang, managing director and head of Wealth Planning and Fiduciary Services at RBC Wealth Management in Asia. Part of this group also belongs to the broad network of Asia’s global families. They may have crossed borders to study, for employment opportunities or for property acquisition. As most of this generation is educated abroad, they’re more exposed to western values and increasingly aware of global issues. “They have that knowledge and they do not want to blindly donate,” Kiang explains. They are now approaching investment with a new perspective, seeing it as a purposeful way to get involved and create a lasting, positive impact.
Networking also plays an important role in Asia’s philanthropy landscape. “For the second generation, they have the social circle, they have their friends and they have the network,” says Kiang. “They are very outspoken about donations and if they keep talking about it, they will impact other people to make a difference. And I think we are starting to see that kind of ripple effect in Asia.”
Murphy Ives notes there are several strategies individuals can deploy to give back to the community. These can range from supporting a charitable cause, whether monetarily or by volunteering, to setting up a long-term fund with the potential to grow many decades into the future. “An established fund can be used to invigorate the next generation,” she adds, “and spur them to take up the baton to run a social enterprise that can help to further those causes that were identified.”
Murphy Ives invites families or groups to sit down together and think about their individual and collective passions for social change, what’s missing and what steps can be taken to take further action.
Kiang thinks having a common purpose can bring a family closer together. “Every family is structured in a different way but adding a donation-giving project to manage will pull everyone together for one good cause.”
The material herein is for informational purposes only and is not directed at, nor intended for distribution to or use by, any person or entity in any country where such distribution or use would be contrary to law or regulation or which would subject Royal Bank of Canada or its subsidiaries or constituent business units (including RBC Wealth Management) to any licensing or registration requirement within such country.
This is not intended to be either a specific offer by any Royal Bank of Canada entity to sell or provide, or a specific invitation to apply for, any particular financial account, product or service. Royal Bank of Canada does not offer accounts, products or services in jurisdictions where it is not permitted to do so, and therefore the RBC Wealth Management business is not available in all countries or markets.
The information contained herein is general in nature and is not intended, and should not be construed, as professional advice or opinion provided to the user, nor as a recommendation of any particular approach. Nothing in this material constitutes legal, accounting or tax advice and you are advised to seek independent legal, tax and accounting advice prior to acting upon anything contained in this material. Interest rates, market conditions, tax and legal rules and other important factors which will be pertinent to your circumstances are subject to change. This material does not purport to be a complete statement of the approaches or steps that may be appropriate for the user, does not take into account the user’s specific investment objectives or risk tolerance and is not intended to be an invitation to effect a securities transaction or to otherwise participate in any investment service.
To the full extent permitted by law neither RBC Wealth Management nor any of its affiliates, nor any other person, accepts any liability whatsoever for any direct or consequential loss arising from any use of this document or the information contained herein. No matter contained in this material may be reproduced or copied by any means without the prior consent of RBC Wealth Management. RBC Wealth Management is the global brand name to describe the wealth management business of the Royal Bank of Canada and its affiliates and branches, including, RBC Investment Services (Asia) Limited, Royal Bank of Canada, Hong Kong Branch, and the Royal Bank of Canada, Singapore Branch. Additional information available upon request.
Royal Bank of Canada is duly established under the Bank Act (Canada), which provides limited liability for shareholders.
® Registered trademark of Royal Bank of Canada. Used under license. RBC Wealth Management is a registered trademark of Royal Bank of Canada. Used under license. Copyright © Royal Bank of Canada 2024. All rights reserved.
We want to talk about your financial future.