THE ongoing challenging economic climate has seen belt-tightening across the board, yet, the UK’s High Net Worth Individuals (HNWs) and business owners in Aberdeenshire have continued to support charitable organisations, despite economic uncertainty, finds research from Rathbones Investment Management.
Charities have been feeling the squeeze as the cost-of-living has continued to challenge finances, seeing a 4% reduction in charitable donations. Charitable organisations need support more than ever, as circumstances become increasingly difficult for those in need.
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Concerns about supporting charities and those in need are being felt broadly: Two thirds (66%) of HNWs and business owners in Aberdeenshire are concerned about their charitable donations over the next 12 months, with a quarter (24%) admitting being very concerned. Despite this, 42% have plans in place to pass their wealth on to charities, either by continuing to make regular donations or by establishing a legacy or foundation. In comparison, in Scotland, 34% have plans in place to pass their wealth to charities.
HNWs and business owners in Aberdeen and Aberdeenshire were the most likely to continue making financial gifts to charity. In Tayside, Central and Fife, 39% of HNWs have plans to do the same, with 34% of those in the Highlands and Islands also hoping to make future donations.
Although the cost-of-living crisis has increased financial pressures on many people, half of HNWs and business owners in Aberdeenshire have been supporting charitable organisations with regular financial donations over the last six months. A further 34% have offered one-off cash payments to charitable organisations during this challenging time.
Alanah Fleming, financial planner at Rathbones Group plc, commented: “Despite the difficult economic climate and uncertainty about future financial stability, HNWs and business owners have remained focused on philanthropic giving. The cost of living has tightened purse strings across the board, but it is encouraging to see a continued commitment to charitable giving, particularly at a time when charities need financial support more than ever.
“For anyone considering the future of their financial commitments, whether through charitable donations or by establishing a legacy or foundation, it’s important to ensure you have the funds you need to achieve your goals. Speaking to a financial adviser or planner will help you manage your wealth journey, whether it includes a one-off charitable donation, or a longer-term philanthropic plan.”