Many high-net-worth individuals and families dedicate a significant amount of time and resources to philanthropy.

So much so, in fact, that there is an entire branch of the legal profession dedicated to administering philanthropic endeavours. You can learn more about what charity lawyers do by watching the embedded short video.

Attorney-at-law Dr Edgar Paltzer counts philanthropy among his preferred areas of practice, advising clients on areas such as estate management and the legal maintenance of trusts and foundations.

Whether looking to establish charitable funds during a lifetime or donate large portions of an estate to a charitable cause after death, legal advice is essential to ensure the money being donated can maximise tax efficiency and ensure optimum results.

Finding the Right Charities

Everyone who donates wants to support the cause that means the most to them. This may be for personal reasons or because a specific cause is currently in need of more support than any other, such as in the wake of a natural disaster or conflict.

Charity lawyers have the knowledge, experience and expertise to advise on which charities will support the goals of each philanthropist, including understanding the financial and legal implications of any charitable gift and structuring donations in the most tax efficient way.

The PDF attachment looks at the subtle differences between charity and philanthropy.

Tax Structuring

One of the primary reasons high-net-worth individuals donate to charities and trusts is to benefit causes they care about. However, there are also multiple tax benefits to be had from donating a portion of wealth to charity.

By seeking appropriate legal advice, philanthropists can minimise their tax obligations, leaving more funds available for their chosen charity. Lawyers can advise on how to structure lifetime donations to maximise tax efficiency for both the recipient and the donor.

Establishing New Charities

Many philanthropists choose to establish new charities or funds rather than donating to existing organisations, as this provides more freedom to determine exactly how monies can be used. There are advantages and disadvantages to establishing new charities.

Some of the benefits include being able to set up funding to suit a specific purpose, such as preserving a building of architectural significance or a piece of land. Other philanthropists prefer to donate to donor-managed funds.

The infographic attachment lists five of the world’s top philanthropists today.