Have You Considered How You Give Purpose to Your Wealth?

“Leave the children enough so that they can do anything, but not enough that they can do nothing.”

Have You Considered How You Give Purpose to Your Wealth?

“Leave the children enough so that they can do anything, but not enough that they can do nothing.”

One of the world’s wealthiest people, Warren Buffett, famously said, “Leave the children enough so that they can do anything, but not enough that they can do nothing.” That’s the perfect concept to reflect on as you read this article about giving purpose to the money you earn, save and invest, and how you can leave behind a legacy without being “rich”.

Australians are about to see an unprecedented transfer of wealth. $3.5 trillion is expected to be handed down between generations over the next two decades as baby boomers and the WWII generation leave their inheritances to Generation X and Millennial beneficiaries.

Many of these beneficiaries will earn good money and be confident investors, but they might not have thought more broadly about the purpose of their wealth in the context of philanthropy, family and community.

What Will You Do With Your Wealth?

While money is a necessity of life and many of us wish we had more of it, research backs up the importance of “enough”. We want the experiences, material things, free time, and autonomy that money can provide. But beyond a certain salary threshold, it’s been proven that we don’t gain further life satisfaction.

In fact, studies have found that the three main things that make people happy are close relationships, a fulfilling job or a pastime they love, and helping others.  

So, with this intergenerational transfer of wealth upon us, and research supporting the fact that most people don’t need an excessive amount of money to live a more fulfilling life, sharing our wealth, or giving back to those less fortunate than us, seems like an obvious consideration.  

Are Australians Philanthropic?

Australia is a generous nation, ranking fourth on the World Giving Index, which considers three measures of generosity: financial donations, giving time through volunteering, and acts of service like probono work. On another positive note, structured giving within Australia has increased in the past two decades and there are important initiatives in place to ensure it continues.  

Put simply, structured giving involves using a vehicle designed to enable giving, such as private or public ancillary funds, sub-funds and giving circles, testamentary or other legacy trusts. Structured giving can also occur without using a dedicated vehicle, through corporate cash donations, or larger scale and planned contributions from individuals and families.

Understanding Why People Give

There are many reasons for people to give and it’s not only the uber wealthy that partake. Some common reasons for philanthropy include:

  • Awareness of a need – donors give in response to knowing there is a need for support
  • Altruism – donors are motivated by the recipient organisation’s work
  • Values – donors are more likely to donate when they possess prosocial values
  • Efficacy – donors’ perceptions that their giving has a positive impact on the cause they are supporting
  • Solicitation – majority of donations occur in response to being asked to donate.

Above all, giving makes you feel good, is good for your health, fosters social connection and evokes gratitude.

How To Start Your Giving Journey

The Be BlueRock Foundation was created to bring a greater sense of purpose to wealth generation for our staff, clients and community. We believe that philanthropy should not only be reserved for the ultra-wealthy, but that it should be made accessible to everyone.

As a Public Ancillary Fund, our Be BlueRock Foundation helps our clients and employees to give purpose to their wealth through the establishment of Charitable Fund Accounts and by providing a bespoke philanthropic consultation service to help them, their families and their businesses to develop a structured giving strategy.  

A Charitable Fund Account is a great way to start your philanthropic journey and not only establishes a sustainable pattern of giving to causes and charities you are passionate about, but also helps foster a culture of giving back to create a lasting legacy.

Talk to us today about giving purpose to your wealth by working with us at the Be BlueRock Foundation.

Ready to make a difference?