Ventures, innovation and investment – exploring the philanthropy spectrum

An ever more connected world continues to drive engagement through philanthropy and giving. Since we began detailed research into how families give and support charities in 2008, we’ve witnessed certain themes come clearly to the fore, alongside whole new philanthropic methods and dynamics. Between 2008 and 2017, our Million Pound Donors research saw nearly £15 billion given by individuals, foundations or corporations via donations of £1 million or above.

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Over time that has continued to rise, as high-networth individuals in the UK donated £7.96 billion in 2023 alone[i]. In step with this is the UK’s prominence as an economy well suited to supporting charities and dynamic philanthropic ventures. Research shows the sophistication of the landscape with 93% of a recent wealth survey praising the availability of philanthropic guidance; 87% highly rating the UK for financial services supporting charitable activities; and 89% highlighting the UK’s ‘strength in its structure of family offices who support enterprising families with a comprehensive suite of services’[ii]. This is underscored by the finding that 27% of high networth philanthropy is now conducted via family offices[iii].

In terms of recipients, we are seeing children and young people continue to be a well-supported demographic, especially through domestic UK charities. However, over the last few years, there has also been a sharper focus on social justice, addressing domestic violence and abuse, alongside a rise in support for trans gender rights. The arts and support for cultural projects has likewise been top of many agendas and, understandably, climate change and sustainability have come to dominate many of our conversations.

Excitingly, routes to philanthropy have continued to evolve, creating a dynamic universe of options for families to more closely align their giving missions and purpose with the causes that matter most to them.

The traditional charitable trust model does remain the most common way for client families to give, well supported by tax incentives within the UK and elsewhere, with 71% of surveyed families citing it as core motivator for one off gifting[iv]. However, the advancement of responsible investing and the increased opportunity for returns – both financial and philanthropic – through private equity or partnerships, has reorientated many families’ thinking around how their wealth is applied for impact. We know environmental, societal and governance (ESG) issues inform many asset portfolios and this is now no less true when it comes to philanthropy.

A spectrum has developed, from profit first investing calibrated to support transitions within sectors such as energy, through to straight social philanthropy. Within this we’ve seen nuances giving families the agility to meaningfully support very specific ventures and causes. This could range from microfinancing agricultural projects in developing economies, to providing seed capital for a new immunisation technology initiative.

This has led to more innovative conversations at the outset to look beyond straight donations. Families, often driven by their own entrepreneurial experience, now have an eye for finding methods that support the longer term, organic growth that can lead to self-sustaining impact projects and reinvestable profits, sitting alongside their philanthropic giving.

As well as providing a creative scope, these conversations are also bringing families together within their foundations, endowing each member with the responsibility to find solutions within the parameters of an agreed cause.

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This has been extremely valuable in educating the next generation. Today we see less individually named philanthropists and more foundations which involve the whole family. In serving families we are often privileged to be involved in the advent of their philanthropy and how that informs the more personal purpose they want their wealth to achieve. By involving the next generation in this, parents are able to land the value of the money that will be at their childrens’ discretion later in life. For example, involving your children early on with a charity can acutely demonstrate the real change £10,000 can make when applied with consideration.

The process of giving, shared across generations, can be such an important learning curve. Families beginning their philanthropic journey will often have moved from an illiquid situation such as business ownership, to a sudden windfall that brings myriad opportunities. Defining a purpose for that wealth and those opportunities can be critical in guiding how that wealth is used and how it transitions through the family over time. Having that clarity can be as beneficial for the causes a family supports, as it is for the family.

Daunting though such purpose decisions can be, they reward an open mind. Some of our most beneficial work with clients has revolved around the enthusiasm and the engagement children have with their family’s philanthropy. Parents are understandably cautious that a wall of wealth may disincentivise or overwhelm their children but involving them as agents of change through giving can empower them with a shared and very conscious family responsibility, placing them in good stead for the future. 

Building on this responsibility, agreed family frameworks can help guide giving through generations. Where there is individual diversion, discretionary pots for each family member to pursue their own philanthropic ventures can prevent any potential ruptures. This agency can also bring innovative synergy – neuro diversity and animal welfare may seem disconnected, but we have seen examples of where a single donation has been able to support both causes by providing animal experiences for those experiencing depression.

Social, geopolitical and environmental issues now feel more prevalent than ever before. In a more informed and more connected world we have noticed that younger generations – millennials and generation Z – are experiencing a more present social discourse, both personally and professionally. Parallel to this is their willingness to employ the technological revolution to serve and assess their impact. Research asserts that among philanthropic high networths, 60% want to know more about how AI can support their charities solutions, while 51% are looking at AI for impact measurement. Among those respondents under 40, that rises significantly to 75% and 64% respectively[v].

We continue to see growing diversity in how families choose to give. By seeing themselves as custodians, rather than beneficiaries, family members are well placed to maintain and growth their wealth alongside their philanthropy. Though focus may range from giving most of a windfall away through declarations such as the Founders Pledge or the Giving Pledge, to passing an entire fortune to the next generation; we estimate, on average, families will typically give away 5 to 20% of their wealth in a lifetime. This is reflective of all the unique variables within each respective family. 

However, sadly, outside of our organisation, we can see that only 5% of advisers consider themselves as ‘confident’ when discussing philanthropy with their clients [vi]. By contrast 25% of wealthy people would seek an adviser qualified to discuss this – this rises significantly in under 35s to 57%[vii].

We believe Coutts remains uniquely placed here to support families, whatever their giving goals. For over 300 years we have built a philanthropic heritage, embodied by the work of Angela Burdett-Coutts, one of the 19th century’s most notable philanthropists. Angela continues to be an inspiration today through the social work being done today by the Coutts Foundation.

Our team continue to work closely with every generation of our clients to find the right routes to support their goals and build meaningful change for the causes that matter most. We have been fortunate to a part of that process for many families over the last twenty years and look forward to enabling and guiding their giving journeys for even better change for years to come.

To discuss your philanthropic vision or to learn more about how we could support your giving journey, please reach out to your private banker.

This article is taken from Your family and their future our guidance for wealthy families marking 20 years of Coutts family office services.

[i] The Charities Aid Foundation High Value Giving Report 2025

[ii] NPT UK’s High Networth Giving Index 2025

[iii] NPT UK’s High Networth Giving Index 2025

[iv] NPT UK’s High Networth Giving Index 2025

[v] NPT UK’s High Networth Giving Index 2025

[vi] The Charities Aid Foundation High Value Giving Report 2025

[vii] The Charities Aid Foundation High Value Giving Report 2025 (Savanta data)