The Wire: Winter 2019 – Helping to build positive impact, charity and philanthropy into our lives

Helping to build positive impact, charity and philanthropy into our lives

Since its inception, the Veloce charity track day has been one of the ways that we work with our community and support our charitable endeavours. 

If you’re not familiar with Veloce, it is the brainchild of enthusiast and collector Peter Neumark and has been underwritten from inception by HFMC Wealth. The idea of the event, described by Octane magazine as ‘the greatest charity track day on Earth’, is that the owners of some of the world’s most valuable and iconic, rare classic cars allow guests to accompany champion drivers on the track at Goodwood, the home of classic car racing. In just three short years, Veloce has grown from an idea into an event raising nearly a quarter of a million pounds for charity. 

While Veloce is one of the ways we raise funds directly for some excellent causes we are also helping our clients make a difference, either directly through planning or indirectly through their investment choices and the introduction of Positive Impact portfolios. Read on if you would like to know more. 

Helping you to set up legacies and charitable foundations 

Our planners can also help you to support your chosen charities, whether through a legacy or by establishing a charitable foundation. 

Charitable legacies left in Wills are hugely important to good causes, with more than £3 billion left to charities in 2018 alone. Your gifts can be: 

  • A cash sum 
  • Specific property or assets 
  • A share of your net estate (what is left over after specified gifts, costs and tax) 

As well as supporting the work of these organisations, a legacy can also have an individual benefit. Leaving 10% or more of your net estate to charity has the effect of reducing the rate of Inheritance Tax from 40% to 36%, and so a legacy not only supports your chosen cause but also offers tax benefits. 

If you want to become involved in philanthropy during your lifetime, a charitable foundation could be the answer. Although philanthropists can give in many ways, independent charitable foundations – at their best – provide an efficient, transparent and intentional way of irrevocably transforming private wealth into public benefit. 

A charitable foundation could have one or more goals: 

  • Preventing or relieving poverty 
  • Advancing education or religion 
  • Advancing health or saving lives 

Foundations are an excellent way of offering long-term support and backing causes that may otherwise struggle to gain attention. Charitable foundations can also respond creatively to immediate needs as well as taking a long-term approach. 

Helping you to make an impact with the investment choices you make 

Whilst we have supported clients for many years with the creation of bespoke ethical portfolios where this was their priority, 2019 saw us launch our range of Positive Impact Portfolios. 

As more measurement methodologies emerge, and more non- financial data becomes available, investors have ever-greater ability to align financial resources with socially-minded worldviews. 

Impact investing takes a variety of forms. This can be viewed within a spectrum that has classic investing, which emphasises profit maximisation without regard to the problems such profits may help create on one end, and by philanthropy, which focuses exclusively on positive impact creation without regard for financial performance on the other. Between these two lies the world of impact investing. 

  • Responsible investing removes businesses or industries altogether, essentially avoiding negative impact. 
  • Sustainable investing integrates Environmental, Social or Governance (ESG) considerations into investment decisions and can increasingly reflect specific E, S or G areas of concern to investors. This is where our HFMC Wealth Positive Impact portfolios have their focus. 
  • Thematic investing focuses on goods or services that explicitly address a social or environmental need, such as resource scarcity, water or climate change. 
  • Impact first investing prioritises impact creation over financial performance. 

Impact investing can include any combination of these investment approaches and is applicable across all asset classes. We strongly believe that sustainability-minded investment need not require financial compromise.

If you would like to know more about either the Positive Impact Portfolios and impact investing or to discuss how you may make a positive impact through legacies, charitable giving or other solutions please contact your adviser or send us a message via hfmcwealth.com or call us on 020 7400 4700.

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