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"The Strait & Narrow"
Despite ongoing geopolitical and economic uncertainty, global equity markets staged a strong rebound in April, an outcome that has surprised many investors.
JBWere NZ Head of Philanthropic Services John Morrow, was interviewed by Simon Shepherd for NBR’s Business podcast: The $1.6T wealth transfer: could it save New Zealand’s charities?
Listen to the interview here or read the follow-on piece to the interview here.
New Zealand is entering an historic intergenerational wealth transfer, with an estimated $1.6 trillion expected to pass from baby boomers to the next generation by 2050. Yet despite being among the world’s most generous donors during their lifetimes, New Zealanders rarely extend this generosity to their wills. Only 6% of Kiwi wills include a charitable bequest, compared with 13.7% in the UK and 10% in the US. As a result, 98–99% of estate value currently goes to family, leaving just a small fraction for charitable causes.
The unrealised potential is significant. If charitable bequests increased to just 3% of estate value, contributions could grow to $2.5 billion annually within two decades—an eightfold increase that would transform the sustainability and impact of Aotearoa’s for‑purpose sector.
Today, legacy gifts tend to favour long‑standing, trusted charities—particularly in health, religion, welfare, medical research, and animal welfare—mirroring global patterns. But major barriers persist: social reluctance to discuss wills, strong cultural prioritisation of family, the absence of estate tax incentives, and low public awareness of the impact that even a modest 3–5% bequest can make. Women, who will disproportionately control assets in later life, will play a pivotal role in shaping future giving.
Charities, advisors, and government all have a role in unlocking this opportunity. Professional advisors—particularly estate lawyers—are uniquely placed to influence outcomes by simply asking clients whether they would like to leave something to a cause they care about. Meanwhile, charities can normalise legacy conversations, demonstrate long‑term impact, and steward supporters and their families over generations.
Legacy giving represents a once‑in‑a‑generation chance to reshape the future of New Zealand’s philanthropic landscape. With strategic action and supportive policy, Aotearoa can unlock billions in sustainable funding for the causes that strengthen our communities.
Video
Despite ongoing geopolitical and economic uncertainty, global equity markets staged a strong rebound in April, an outcome that has surprised many investors.
As is happening across the world, Aotearoa New Zealand is also moving into an unprecedented intergenerational wealth transfer, and this is taking place at the same time as traditional fundraising…
For many founders, selling their business is supposed to be the finish line. The transaction completes, the funds clear and the congratulations roll in.
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