BJM PCS creates A-Z charitable giving package
Charitable giving by the super-rich is becoming a world trend … and it’s all set for a kick-start in South Africa, courtesy of BJM Private Client Services, a wealth manager with dedicated focus on high net worth individuals.
The nationally represented adviser and portfolio manager recently announced the launch a charitable giving facilitation service that packages all the elements necessary for tax-efficient and accurately targeted giving, both during the lifetime of donors and after death.
Tony Barrett, head of wealth management at BJM PCS, commented: “Internationally, the mega-donations of Bill Gates and Warren Buffet make headlines, but the wave of the new philanthropist giving extends much further. Many successful figures from the Baby Boomer generation are creating living legacies to assist numerous causes.
“They turn charitable giving into a hands-on process during one’s life. It continues after death as provisions are made to sustain the donor’s vision into the future.
“Our A-Z package aggregates asset management, consultancy and trust-formation services to facilitate this type of living legacy here in South Africa.”
Barrett said the service responded to the need of successful, can-do South Africans who hope to make a personal difference to the challenges of upliftment and poverty eradication.
He added: “Many successful business leaders and entrepreneurs are passionate about specific areas of need. They are looking for an effective way of channeling that passion and achieving tangible results.
“We enable them to make effective interventions through a properly structured trust vehicle with the ‘wheels’ to perform effectively today and tomorrow.”
“Most folk are unaware of the significant tax breaks that are legally available through the setting up of a personal charitable foundation or trust structure.”
In a previous era of passive bequests, the drawing up of a will was often the only requirement and a law firm sufficed. Alternatively, a bank might provide an add-on service to supplement its mainstream services to a major client.
The BJM PCS package is more personal and extensive, said Barrett, yet could be conveniently accessed through a single point of contact – “because the most prized asset among high net worth individuals is their time”.
The charitable giving service consists of:
- Consultancy to develop insight into motivation and intentions while suggesting solutions
- Advice on trust structures and provisions that respect the requirements of the tax and other authorities
- Advice on the number and selection of trustees (present and future)
- Advice on tax efficiency within the trust while securing the donor’s own tax position
- Review of beneficiaries to ensure they enjoy SARS-approved status and are designated public benefit organisations
- Integration of the charitable giving strategy with an individual’s wealth and estate planning
- Trust registration, testing the model with a minimal commitment before ‘loading’ the vehicle with substantial resources
- Continual monitoring of the trust, trustees and trust beneficiaries
- Proactive intervention in the event of future legislative change, ‘future-proofing’ trust structures for optimum effect
- Asset management expertise, ensuring sustained giving during the donor’s lifetime and into the future.
“Numerous complementary skill-sets are necessary,” said Barrett. “Income tax law, donations tax, estate duty and a welter of additional regulations and tax rulings have to be respected.
“Our package creates an end-to-end solution that can be effectively rolled out in a relatively short time. When societal needs are so great, nothing should stand in the way of those trying to create a meaningful legacy. This new service cuts the complexity and clears the way for those with the resources to make a difference.”
