Castlefield launches Individual Philanthropy Account (IPA)

The beginning of September 2022 marks the launch of our new Philanthropy service, to help our clients give money to charity in an easier and more meaningful way.  Castlefield partner Olivia Bowen introduces the Castlefield Individual Philanthropy Account (IPA) and explains why we have developed it for clients.

“We have been helping clients with their charitable giving increasingly over recent years.  It has become clear that few financial advisers discuss this with their clients, and that there are few services for clients wanting to give more in an easy and efficient way.  So, we sought to develop a solution for clients who want to give spare capital to charity. We have partnered with The Charity Service to offer a specific donor-advised fund.

"Many of us give from our income, direct to charities, and this service isn’t to replace that sort of giving, but we see it as the natural next step for clients with surplus assets who may want to give in a simple and tax-efficient way."

"For example, maybe our client has downsized their home, or received a pension lump sum or inheritance, and we provide advice on what would be a tax-efficient and affordable gift."

This is then donated to our Castlefield Individual Philanthropy Account (IPA) where it will be invested ethically. Whilst the funds are transferred out of the donor’s estate and become the responsibility of The Charity Service, the donor is allowed to advise on how these funds are granted to charity.

Each year, typically 15% of the amount donated can be distributed to charities of the donor’s choice. We hope that by investing the money, it will last longer than if the sum were simply retained in cash on deposit (although this is not guaranteed!).

This sort of arrangement is called a Donor-Advised Fund, and the usual minimum contribution is £250,000 – but by pooling our clients’ resources in the Castlefield IPA, we are providing access to this structure for sums of £20,000 and above.

In addition, clients will receive a bi-annual newsletter from The Charity Service, with tips and reviews to highlight interesting charities, and will be able to give anonymously to the causes they care about most. 

Olivia continues: "We have had really encouraging interest from our existing clients, with many lined up to use the service already. The hope is that clients enjoy being part of our Castlefield philanthropic community and find the simplicity of the service enhances their experience of charitable giving.”

The Charity Service has been managing charity funds for over 20 years and is a trusted expert in charitable giving. Chris Mills, Head of Philanthropy Services at The Charity Service said: “We are delighted to be working with Castlefield to launch the IPA. This new service will allow more donors to benefit from the advantages of our Donor Advised Funds. From our experience, donors enjoy charitable giving more and achieve greater impact when they have access to expert advice and support. We look forward to welcoming new donors to the Castlefield IPA service.”

Find out more about the Castlefield IPA in the IPA brochure.