Private banks slow to respond to philanthropic families

A clear acceleration in philanthropic activity, particularly prevalent among millionaire clients, is becoming a key focus for private bankers.

Individuals reaching the £1m to £2m ($2.6m) investor tier often hit a key inflection point in their giving journey, with 26 per cent starting to make sizeable gifts at this level of wealth. Across UK millionaires more broadly, annual donations now average £12,000 — more than double the 2019 figure, according to a new report on philanthropic activity from Barclays Private Bank, a leading UK wealth manager.

This trend marks a “psychological turning point”, according to Juliet Agnew, head of client philanthropy at the bank.

“It’s a psychological sense of financial confidence,” she says. “Liquidity events, business sales, inheritance — those moments give people the feeling they can think more freely about their values. It becomes: how much do we really need as a family? What legacy do we want to have?”

Although many individuals donate before achieving seven-figure wealth, Barclays’ data suggests a notable jump in both the scale and structure of giving once that threshold is crossed. This moment, believes Ms Agnew, provides the freedom to consider questions that had previously been abstract: what to give, when and in service of which values.

Mind the giving gap

Crucially for the wealth industry, the report highlights an imbalance between donor expectations and adviser behaviour. While it finds that philanthropy ranks just 12th of 20 priorities among advisers, it also notes that many donors rely heavily on wealth planners for philanthropic guidance, revealing what Ms Agnew describes as “a real advice gap”.

“Advisers often make assumptions,” she says. “They think their clients aren’t interested because they haven’t raised the subject, or they assume existing charitable giving means no further support is needed. Charities feel complex to clients, and often to advisers as well. A bit more confidence and upskilling could make a significant difference.”

Despite this lag, many donors have started to behave more strategically. The report shows a growing interest in structured approaches to giving, with donors using vehicles such as long-term budgets, investment-linked strategies and formalised structures to ensure their contributions deliver maximum impact.

The bank says younger generations are accelerating this shift towards intentional giving. They tend to demand clearer impact measurement, transparent reporting and, in many cases, professional advice, a pattern the report reinforces, noting that younger donors are often “more clear-eyed” about the outcomes they wish to achieve and the role philanthropy plays in society.

This creates new pressures for charities. “It’s easier to count parcels distributed than poverty reduced,” Ms Agnew notes. “The charity sector has been grappling with these questions for years. But younger donors expect more detailed impact data.”

Shifting landscape

The result is a philanthropic landscape that is increasingly analytical, values-driven and data-conscious. The report also finds that donors’ priorities have become more fluid and less predictable in recent years, reflecting the broader economic and social turbulence in which giving now takes place.

While the Barclays study highlights high levels of engagement among wealthy individuals, it also points to uneven advisory provision. Philanthropy is still too often treated as peripheral to the wealth strategy, argues Ali James, an independent charity consultant and philanthropy affiliate at Acorn Capital Advisers, which provides advice to wealthy families.

“Charitable giving is not always offered as part of a wealth management strategy,” she says. “And when it is, there is a lack of knowledge beyond how to set up the financial mechanisms for giving.”

Too often, she adds, there is insufficient expertise on the charity sector itself or guidance on which organisations best align with a client’s values. Philanthropy then becomes either a “bolt-on” or something the client feels they must manage independently.

The challenge is compounded by the complexity of the charitable landscape, believes Ms James. The sheer volume of organisations, both in the UK and globally, and the diversity of causes they support, can overwhelm even those with clear philanthropic intentions. Time-poor donors, she notes, may end up supporting the first organisation that aligns vaguely with their values, rather than integrating philanthropy into their broader wealth strategy.

Great expectations

Many charities have further to go in adapting to the expectations of modern philanthropists, says Ms James. “Many non-profits need to modernise. They must focus on transparency, produce better impact reporting and offer philanthropic packages that genuinely resonate with wealthy donors, many of whom are successful business leaders or entrepreneurs.”

She points to organisations such as The Fore, a venture philanthropy fund, and several universities, including Imperial College, as institutions pursuing more contemporary, data-driven approaches. But she believes the sector as a whole remains uneven.

Nonetheless, philanthropy is becoming more deeply embedded in wealth planning, particularly as donor families move away from one-off gifts and towards long-term engagement. “People’s reasons for giving back are more varied and nuanced,” says Ms James. “Many donors now want their philanthropy to be a long-term investment with tangible outcomes and impact. Their charitable donations should receive the same attention as the other elements of their wealth strategy.”

The generational handover of wealth is expected to accelerate this transition. The younger cohort, she says, is more transactional in its expectations, more driven by measurable impact and more willing to support a diverse range of causes. As income from low-level donations declines and major gifts rise, she argues that charities must adopt a more strategic, impact-led approach and advisers must ensure that well-rounded charitable expertise is embedded within future wealth planning.

“It is imperative that charities and advisers prepare accordingly,” states Ms James. These opportunities will be “transformational — but only if they are managed well.”