Business
Philanthropy support to ‘generous generation’ could unlock money for society
PRO BONO Economics research estimates that there are around 230,000 people under 35 in the UK with net financial assets exceeding £100,000
Nearly all wealthy young people surveyed express a strong desire to have a positive societal impact with their money, with 88% already donating to charity
However, around 110,000 wealthy people under 35 may not have a relationship with a financial or wealth adviser at present.
New research reveals that, while a significant percentage of young people in the UK are keen to contribute to good causes, many are not receiving advice on how best to invest their money.
The research, by Pro Bono Economics (PBE)1, found that while there are around 230,000 people under 35 with net assets exceeding £100,000, roughly 110,000 of those may not be in contact with a financial or wealth adviser.2
As well as unlocking large charitable donations, providing philanthropy support for young wealthy clients would be a significant growth opportunity for financial advisers given their ability to understand and cater to the philanthropic inclinations of what PBE has coined the ’generous generation’ and build long-term relationships with the high-net-worth individuals of the future.
To address this issue PBE brought together the Financial Conduct Authority, the Treasury, and the Department of Culture Media and Sport, as well as an alliance of accredited bodies, government entities, and philanthropy experts, to enhance philanthropy training for advisers.3
An estimated £5.5 trillion is expected to be passed down to younger generations over the next 20 to 30 years – the so-called ‘Great Wealth Transfer’. Financial advisers and firms seeking to attract the business of the 230,000 under-35s who already possess net financial assets exceeding £100,000 will need to adapt.
Encouragingly, 88 per cent of wealthy young people already donate to charity and PBE found that 90 per cent of those surveyed expressed a strong desire to have a positive societal impact with their money. With this generation giving more to charity – and in greater numbers – than ever before, financial advisers will need to tap into their philanthropic instincts.4 Last year 38% donated more than £2,000 to charity last year, compared to 5% of over-55s. This makes them eight times more likely to have made a substantial gift to charity or charities. Despite straitened times, 63% of those surveyed said they would consider increasing their charitable donations, compared to 13% of over-55s.
While this generation is also more likely to seek financial advice – 78% compared to 61% of those over 55 – more than half of wealthy under-35s also indicated they would be more likely to choose a financial adviser who offers philanthropy advice.
One compelling route to engaging with younger clients and potential clients on their giving is through Donor Advised Funds, a convenient charitable giving vehicles which can be funded through cash, shares or third-party entities. Encouragingly, 65% of under 35s5 said they would be interested in investing in a DAF in the future.
Sisters Lauren Gupta and Becky Holmes founded the Helvellyn Foundation, which provides philanthropic grants to individuals and organisations involved in biodiversity and the education of young people. When they first started they found almost no philanthropic advice from financial advisers.
Becky said:
“I found that most advisers focused on just growing your money, with philanthropy always being a secondary consideration. That immediately lost me because that’s not the go-to motivation for everyone. It’s a big deal to push against the status quo – it’s very difficult to get out of that box. A lot of wealth advisers will also not talk about the impact of how money is invested for fear of offending clients, such as whether it will be to the detriment of a habitat or a community.
“My advice to people wanting to give philanthropically is to speak to foundations in the UK and other people who have had that experience before speaking to advisers.”
Lauren said:
“We all live in a society affected by global issues, and advisors need to talk about how wealth management can impact, positively or negatively, these issues. But they don’t seem to offer that, it’s presumed that you are looking to preserve and grow the wealth regardless of the impact – there’s such a protective mindset on it.
“I have also been speaking to advisers about how they engage the next generation of wealth holders, because we were not engaged by the advisers around our family. My caveat is that advice should be more holistic and impact-focused; we are probably more progressive because we didn’t get that engagement and ended up seeking more forward-thinking advice elsewhere! One thing that helped us early on was a wealth coach who talked us through the emotional as well as the planning side of wealth, which we had not seen anywhere else. To anyone thinking about giving money away, you don’t have to start big. Initially a large sum seemed scary, but now we feel more secure and are braver in what we are doing.”
David Clarke set up a project called Wealth Shared which saw 12 people decide how to spend his £100,000 inheritance.
David said:
“My mum died in 2014 and I inherited this amount of money and I had this feeling of not being comfortable with inherited wealth – I don’t think it’s how the world should work so I decided to give it away.
“I went through a thought process of wondering what to do with it, and sent out 600 letters in my local area. The task was they could do anything with the money – and they had to give it away rather than having any lasting relationship with that money – but it could go to any individual or organisation in the world. In the end the money went to organisations in the L8 postcode – an area where there’s a lot of deprivation.
“A lot more people are in a position like me and the amount of wealth inherited is going to massively increase over the coming decades. We’re also in a time where people are more socially aware. “If you’re ever in a position about what to do with the money there’s power in democratising that decision and dispersing the pressure so it’s not all on the individual.”
Nicole Sykes, Director of Policy and Communications at Pro Bono Economics and co-author of the report, said:
“This is an opportune moment for financial advisers with the Great Wealth Transfer, and the time to act is now. By championing philanthropy, advisers can ensure they remain relevant and tap into the significant good will of the generous generation.
“Firms and advisers that do not currently offer philanthropy services or limit their philanthropy offerings to the ultra-wealthy risk being left behind by demographics, demand, and by governmental action. But by evolving and embracing this challenge they can attract the next generation of clients in a competitive market and contribute to a more giving, socially-conscious society.”
Business
Certificate of lawfulness allowing year-round use of caravan site refused.
A CALL to allow a south Pembrokeshire caravan site to move to having caravans all-year-round, which led to fears of a precedent that other parks would be able to operate without seasonal restrictions, has been refused.
In an application to Pembrokeshire Coast National Park, Amroth Castle Holidays Ltd, through agent Laister Planning Limited, sought a Certificate of Lawfulness for the use of land for the siting of static caravans for all year occupancy (including as a sole or main place of residence) at Amroth Castle Holiday Park, Amroth.
Local community council Amroth had objected to the call, saying a 12-month use license “would open the park to residential occupation rather than tourism and this was to be resisted”.
It also raised concerns including the application opening “an opportunity to change the caravans to chalets/lodges which are larger in size and will take up more room, potentially extending the area of the park and increasing density”.
It added: “No other caravan/lodge or chalet holiday parks in the Amroth community area of the National Park are allowed to offer 12 months residency on site and so approving this application would set up a precedent for other holiday parks to follow and operate without restriction.”
A supporting statement cited previous permissions at the site in 1967, 1970 and 1985; saying a condition in the latter approval which said the authority “does not authorise” the occupancy of caravans from January 10-Februrary 28 “does not impose a requirement or limitation on the occupancy but instead simply clarifies what the permission authorises”.
“Therefore, going beyond this occupancy would not be a breach of condition and any attempt to enforce it as a prohibition would struggle to identify a breach of planning control. Therefore, it is the applicant’s position that the seven week out-of-season period is not enforced by a planning condition and would be possible to extend such occupancy, provided that it does not amount to a material change use.”
An officer report recommending the certificate be refused, said: “The use of the land as a caravan site was established in the previous planning consents, as mentioned above.
“It was further established through these permissions that the caravans would be limited in number and locations within the site and would be occupied only as temporary accommodation, and not for any period between January 10 and February 28 in any year.”
Dealing with the point raised in the supporting statement, the report said: “Seasonal occupancy conditions are a long-established tool used by planning authorities to distinguish between holiday use and permanent residential occupation. The underlying principle is that a mandatory period of non-occupation breaks the continuity required for a property to be considered a permanent residence. This approach has historically been favoured by many local authorities because it is perceived as readily enforceable through simple site inspections during the specified closed period.”
It said all-year-round caravans at the site “would go above and beyond existing authorisations as established by the 1965, 1967, 1970 and 1985 planning consents,” adding it would “result in a definable character change to the site of a magnitude that would be sufficient to amount to a material change of use requiring planning permission”.
This refusal means that any proposal for year-round caravan occupancy at the site would need a formal planning application.
Business
Further works at Solva pub approved
FURTHER work at a Pembrokeshire seaside village pub have been given the go-ahead following a previous approved works scheme aimed at addressing “adverse comment from members of the community”.
In an application to Pembrokeshire Coast National Park approved late last year, Unicorn Fairs Pension Scheme, through agent Flora MacRae, sought permission for works, including replacement of existing veluxes with dormers to the rear roof and the installation of roof lanterns to the existing flat roof, at The Royal George, 13 High Street, Solva.
The Royal George is a public house, but has not been in use for several years now and is in need of renovations and modernising, the applicants said, with works having started last May.
A supporting statement accompanying the application said: “The Royal George is an hotel with associated bar and restaurant in the conservation area of Upper Solva, it is not listed. The owners leased the property on a full repairing lease for a period in excess of 10 years before the tenant unfortunately died.
“Subsequent to this event the owners spent most of 2023 and 2024 trying to sell the property without success.
“Following adverse comment from members of the community the owners decided that they would try to improve the external appearance of the building.”
After that approval, a further application by the same people was made to the Park, seeking amendments to the rear of the pub, including new sliding doors and large windows to the rear facade, extending the terrace area and the installation of a slatted timber screen.
An officer report recommending approval said: “The proposed works affect the rear of the premises which is not readily visible from the public realm.
“The ground floor of the building has been significantly extended with bar extensions, the proposed alterations to the glazing (including the insertion of bi-fold doors) having minimal impact on character.
“Similarly, the enlargement of the rear terrace and the proposed timber screen have little impact, the terrace taking in a section of the existing car park.”
It said one letter had objected to the scheme, raising an objection to the loss of parking spaces for the public house, but said the Royal George has no parking requirements.
The latest application was conditionally approved by Park planners.
Business
Call for expansion of recycling business
A CALL to allow the expansion of a Pembrokeshire waste recycling business of over 25 years standing has been submitted to county planners.
In an application to Pembrokeshire County Council, TBS Skips, through agent Harries Planning Design Management, seeks retrospective permission for the expansion of an existing recycling processing yard, waste storage and engineering works to form an earth bund at Waterston Industrial Estate, near Milford Haven.
A supporting statement accompanying the application says: “The applicants have run a successful skip hire and waste/recycling separation and recovery facility from the adjacent site for over 25 years.
“The business accepts waste from skips and scrap metal, separates the materials collected, stores the separated material until it is collected to be processed. As modern recycling processes have advanced the availability to separate and collect more materials for recycling has increased and this has led to the requirement to have additional space to store separated materials.”
It goes on to say: “This application seeks approval for the retrospective extension of the existing recycling processing yard, waste storage and the formation of an earth bund. This expansion includes the change of use of the unallocated land to the east.”
It says there is now a requirement for more space “to provide suitable separation and to encourage best practice”.
“The proposal involves the concreting of the portion of the yard, with concrete walling to contain both the yard and materials to prevent spillage into the adjacent land areas. Further to this, the proposal seeks an oil separator and silt trap to ensure no leaching of any liquids or oils from the site. Both will be built to the relevant specifications to ensure safe working.
“An earth bund has been formed along the eastern boundary to screen the existing and extended site from neighbouring views into the site. The proposal seeks to plant native species along this bunding to provide additional screening and encourage biodiversity enhancements. Additionally, significant native planting is proposed to the southern boundary to screen the proposal from the neighbouring business.”
It finishes: “The development will therefore underpin the continued operation of a successful enterprise in a sustainable manner, without harming the sensitive character of Waterston. It has been deemed that this business will not introduce a use incompatible with the area and has been designed to reduce visual harm. Overall, it will contribute to a diverse and resilient rural economy.”
The application will be considered by county planners at a later date.
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