Investec is the clear winner of Africa’s best for philanthropic advisory award. The South Africa-based financial institution describes its purpose as an enduring drive to create value for clients, staff, stakeholders and the community at large. A successful philanthropic strategy is, it says, “crucial” to its overall wealth management and estate planning journey, particularly as high- and ultra-high-net-worth individuals and families seek to forge a socially meaningful legacy.
Today, Investec manages R18.5 billion ($1 billion) in philanthropy and charitable foundation investments. Income generated from its philanthropic investments is channelled into carefully selected non-profit organisations in four key sectors: education, healthcare, social justice, and humanitarian and welfare charities.
Strategic philanthropy is, the firm says, a “personal family journey” guided by the client’s vision, values and passions. “We take the client’s individual needs, circumstances and objectives into consideration to design a unique long-term plan for the benefit of future generations.” It helps wealthy clients to create private charitable foundations and donor-advised funds, and oversees and manages clients’ charitable giving.
The best private banks around the world see philanthropy not as a side dish but as a core part of the wealth management offering. Investec says it strives to help clients achieve their altruistic aims and endeavours. “We assist you in creating the difference you wish to make by connecting you to our partner beneficiary organisations,” it adds.
In its latest Strategic Philanthropy report, published last year, Investec said that R63.2 million was distributed in 2023 to charities on behalf of its clients. The funds, distributed by Investec Charitable Trusts, were allocated to various sectors, with education enjoying the lion’s share (46%) of charitable giving, followed by welfare and humanitarian aid (24%), social justice (15%), healthcare (11%), and food security (3%).
Investec works with clients to ensure their charitable endeavours achieve sustainable long-term capital growth without being subject to onerous taxation
Investec takes a holistic approach to helping clients build their philanthropic offering. It works with individuals and families to develop their vision and ambitions, and figure out how they want the family to be involved. It then turns to its tax and fiduciary teams to create the right structure for each client.
A donor-advised fund is simpler, easier and more cost-efficient to run. A private foundation, while complex and more costly, provides an effective way of formalising one’s philanthropic plan, tuning it to a wider vision, and creating a more targeted and meaningful legacy.
Investec works with clients to ensure their charitable endeavours achieve sustainable long-term capital growth without being subject to onerous taxation. Sustained giving for most clients means they are exempt from donations, security services or capital gains taxes, or stamp duty. The intangible benefits of being committed to philanthropy means creating a legacy and having an outsized impact on society.
Jacquie Howard and Maxine Gray head up Investec Wealth and Investment’s strategic philanthropy team.
