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IOOF division launches philanthropy services for advisers

Australian Executor Trustees (AET), a division of IOOF, has rolled out new philanthropy services to help advisers benefit their clients and grow their businesses.

In a statement, AET said the new services were developed to meet the needs of advisers and are part of a wider initiative to increase the level of philanthropy in Australia.

They include enhanced private ancillary fund (PAF) services, which offer clients "personalised and everlasting giving programs, a donor-advised AET Foundation and a customised, transparent and efficient reporting solution for charities and not-for-profit organisations", the statement said.

AET's head of philanthropy, Ben Clark, said fewer than one per cent of Australian high-net-worth individuals have established philanthropy structures, which can sometimes come with tax incentives.

He added that a key differentiator of AET's approach to philanthropy support is that the financial advisers maintain control of client relationships as well as the funds under management.

"Our business model means that we partner and collaborate with professional advisers to integrate philanthropy into their practices. We support advisers and help them counsel their clients on the appropriate giving structure. The adviser then invests and manages the assets," Mr Clark said.

"We focus on providing world-class fiduciary services and trust administration – rather than investment management. And because philanthropy often engages relatives and friends of a client it can lead to the adviser building relationships – especially with the next generation."


AET currently manages more than 110 charitable trusts and distributes millions of dollars to a range of charities each year, according to the statement. The company's role is to act as a steward and assist donors to be more effective in their philanthropy.

IOOF's general manager of trustee services, Gary Riordan, said: "Despite an encouraging trend in the growth of structured philanthropy, a recent QUT study that compared Australian giving habits against other Western nations indicated we are well behind our US, UK and even NZ peers.

"Too few advisers are aware that because philanthropy often involves family giving it can actually lead to an increase in funds under management, as well as increased client satisfaction.

"Building the knowledge of financial advisers, lawyers and accountants, who are the gate-keepers to many Australians who have the capacity to make significant gifts, is critical to growing awareness and adoption of philanthropy," Mr Riordan said.