What modern philanthropy tells us – and why it matters here in Sussex

The latest research from The Beacon Collaborative and Barclays Private Bank makes for really interesting reading – shining some light (and some hard data!) on how people with significant resources are choosing to give, what motivates them, and what kind of support they need to maximise the impact of their giving.

Giving is growing - but donors want clarity and confidence

The research backs up what those of us in the philanthropy sector already know – there is a huge amount of generosity in our country, with 93% of the UK’s wealthiest individuals already giving to charity and contributing an estimated £11.4 billion in 2024. Yet the research also shows that many of these donors lack access to trusted, knowledgeable advice on how to give effectively and efficiently. For us at Sussex Community Foundation, this reinforces something we hear often: people want to help, but they don’t always know where their support will make the biggest difference.

Supporting philanthropy in Sussex

Here in Sussex, we’re proud to play a role as a local philanthropic partner. We help donors give with confidence that their resources are reaching grassroots organisations that are doing vital work – whether they are local food banks, mentoring for disadvantaged young people, singing groups which combat loneliness for older people, or providing vital support for disabled adults. We are in constant dialogue with people running local community groups, gathering insights to share with donors, so their giving is purposeful, not just well-intentioned. And we use the latest data, like our Sussex Uncovered reports, to highlight where the need is greatest.  

The role of professional advisors

Recent research from CAF, The Philanthropy Advantage, also shows that up to two-thirds of high-net-worth (HNW) giving happens without financial advice, and only around a third of HNW donors have talked about the tax efficiency of their giving in the past two years. This suggests that a significant portion of charitable giving could be even more effective with the right guidance.

Advisors play a crucial role. 81% of wealthy donors believe professional advisors should proactively raise philanthropy as part of wider financial planning. It’s encouraging to see this recognised, because values-led giving isn’t separate from the decisions people make about their wealth – it’s often central to them.

That’s why the Foundation invests so much time in working with financial planners, solicitors and accountants across Sussex. We help advisors introduce their clients to meaningful, place-based giving opportunities, whether that’s through a legacy, a Donor Advised Fund, or long-term endowment giving. Over the last few years, we’ve seen this network grow significantly. Advisors tell us they value having a trusted, local partner they can turn to, and donors tell us they value the opportunity to invest in the place they call home.

A hopeful future for giving

The most hopeful message in the research is this: people want their giving to be more thoughtful, more strategic and more connected to their values. And they are looking for guidance. That presents a huge opportunity, not just for donors and advisors, but for communities across Sussex.

Connecting people and place

At the Foundation, we’ll continue to bring inspirational people together to create the change Sussex needs. If you’re an advisor who’d like to understand more about how we can support your conversations with clients, we’d love to speak with you. The more we connect people who want to help with the organisations delivering real change, the stronger our county becomes.

Gifting with Purpose: strategic wealth transfers with local impact

As economic pressures continue to shape financial decisions across generations, many clients are revisiting how and when they pass on wealth. Whether driven by a desire to support loved ones, reduce inheritance tax (IHT) exposure, or leave a philanthropic legacy, gifting remains one of the most powerful tools in estate planning.

Increasingly, these conversations go beyond tax efficiency. They’re about values, timing, and impact. For clients who want their generosity to make a tangible difference close to home, Sussex Community Foundation provides a trusted way to support small, local charities through lifetime and legacy giving.

Charitable Gifting in Lifetime and Through Wills

Gifting can take place during a person’s lifetime or through their Will. Both approaches offer opportunities to reduce IHT while supporting family members or charitable causes.

Legacy gifts, whether made during lifetime or via a Will, are particularly effective. Gifts to registered charities are exempt from IHT, and if 10% or more of an estate is left to charity, the IHT rate on the remainder of the estate is reduced from 40% to 36%.

Smaller, local charities often rely heavily on legacy income to fund vital grassroots work in areas such as education, wellbeing, and poverty relief. Through the Foundation, donors can ensure these gifts create a lasting legacy that benefits communities for generations.

Why Now?

The current IHT nil-rate band remains frozen at £325,000, and with the residence nil-rate band also capped at £175,000, more estates are falling into taxable territory. For those with surplus wealth, gifting offers a proactive way to reduce future liabilities while supporting the next generation – or causes close to their heart.

Gifting into Trusts

One increasingly popular route is gifting into a trust. Trusts created for charitable purposes are not subject to an IHT charge. For non-charitable trusts, a gift of up to £325,000 into a discretionary trust is treated as a Chargeable Lifetime Transfer (CLT) and falls within the nil-rate band, meaning no immediate IHT is payable. This threshold refreshes every seven years, allowing for strategic planning over time.

Trusts offer control, protection, and flexibility, which can be particularly useful when beneficiaries are young or vulnerable. However, they do come with complexity: periodic charges, exit charges, compliance reporting requirements and other tax implications. Professional advice is essential to ensure the trust structure aligns with both tax and family objectives.

Lifetime Gifting

In addition to charitable giving, several lifetime exemptions are often overlooked:

These exemptions can be combined with trust planning to create a robust and tax-efficient gifting strategy. Keeping clear records of all gifts (including recipient, value, and date) is essential.

How Sussex Community Foundation Can Help

For clients who want their giving to stay local and make a real difference, Sussex Community Foundation offers a simple, effective way to support Sussex charities. Whether through a Donor Advised Fund, lifetime gifts, or legacy giving, the Foundation ensures donations reach the grassroots organisations that need them most.

As advisors, we can help you explore these options alongside your tax and estate planning goals. Whether it’s a first-time gift into a trust, a conversation about legacy giving, or a review of existing plans, we can guide you through the process.

To learn more about how Sussex Community Foundation can help you give with purpose, visit here.

Jenn Trussler (TEP), Solicitor

Lily Parisi, Solicitor

Kreston Reeves Private Client LLP
Springfield House, Springfield Road, Horsham,

West Sussex, RH12 2RG

www.krestonreeves.com

Our New Approach to grant-making

Hannah Clay, Head of Grants & Impact, shares more information about the upcoming changes to the Foundation’s grant making approach.

After months of collaborative work with colleagues, partners and stakeholders to redesign our grant-making from the ground up, we're delighted to be reopening our programmes later this month with a refreshed approach.

Pausing applications over the summer wasn’t an easy decision. We know how vital funding is for community groups and charities across Sussex, especially during such challenging times. But after nearly two decades of local grant making, we recognised it was time to step back and ask: how can we make our processes better for the people who use them?

In recent years, demand for funding across the charity sector has grown rapidly. Success rates have fallen, our application process wasn't working for many, and charities told us that it wasn't always clear what was needed for a successful application. Our systems and processes struggled to keep up with the demand.

We wanted to do better – for the charities at the heart of Sussex communities, and for the donors and fundholders who make our work possible. So, we’ve taken this time to refresh our grant making, making it simpler, more strategic, and more in line with our values as an open and trusting funder.

A simpler, two-step process

One of the biggest changes is the introduction of an Expression of Interest (EOI) stage. Instead of starting with a long application form, which takes up valuable time and energy from community groups, we will now ask applicants to submit a short summary of their work and funding request.

What this means for charities

Our goal is to reduce time and stress for charities, so they can focus on what matters most: their communities. 

Above all, we’re committed to listening and learning – making sure charities feel heard, and that their insights shape our ongoing improvements.

What this means for donors

For our Fundholders and other donors, the changes mean more choice, flexibility, and a closer connection with local work.

What this means for Sussex Community Foundation

For the Foundation, these changes will allow grant making to be more strategic, more streamlined, and more focused on building meaningful relationships.

Our team is evolving in line with these changes. Our three new Grants & Relationship Managers will work directly with both charities and donors, supported by two part-time Grants Administrators and myself as Head of Grants & Impact. Together, we’ll focus on building strong relationships and using our local insight to guide funding where it can make the greatest difference.

Looking ahead

This is just the start. Change always takes time to implement, and we know there will be more learning to do. We’ll keep reviewing and improving – and we’ll keep listening.

But we believe this new approach marks an important step forward for Sussex Community Foundation. It will allow us to respond more flexibly, to connect donors closely with inspiring local work, and to create a grant making process that is fairer, clearer, and better aligned with today’s challenges.

We’re confident that these changes will help us support Sussex communities in the best way possible - now and into the future.

Putting communities at the heart of Sussex’s future

Wilton Park is an extraordinary Sussex institution with a remarkable history. Founded after the Second World War by Heinz Koeppler, a German-Jewish migrant, it began by educating German prisoners of war to become leaders in a new open, democratic society. 

Today, as an Executive Agency of the Foreign, Commonwealth & Development Office, Wilton Park convenes UK and global governments, businesses, NGO's and academic leaders, to tackle some of the world's most pressing issues and to build diplomatic alliances for peaceful collaboration and policy development. Over the years, it has hosted pivotal moments in history - from early discussions on ending apartheid to Balkan peace talks and negotiations on the Nuclear Non-Proliferation Treaty. 

All this happens discretely in the heart of the Sussex countryside; Wiston House, Steyning. 

Sussex Growth Forum

In July, Wilton Park hosted the Sussex Growth Forum, bringing together leaders from politics, business, education and the voluntary sector to discuss how to promote economic growth in our county.

We heard from the leaders of East Sussex, West Sussex and Brighton & Hove about proposals for a Sussex Mayor and the potential reorganisation of local government. There was broad agreement that a combined Sussex authority could foster collaboration across political and geographical divides, helping to solve long-standing county-wide challenges. The details of local government reform, however, were left for another day - I suspect there would be less agreement on that topic!

Business leaders also spoke on tourism and the identity of Sussex. Mardi Roberts, of Ridgeview Vineyard and Chair of the Local Visitor Economic Partnership, shared ambitious plans to boost tourism income by £2.5 billion over the next decade.

The significance of the voluntary sector in Sussex

I was invited to speak on the role of the voluntary and community sector (VCSE) in our local economy. Across Sussex, we estimate there are 10,000 to 12,000 VCSE organisations, contributing at least £400 million annually and employing 24,000 people - that’s 3% of all jobs, and 6% in Brighton & Hove. Around half of the sector’s income comes from outside Sussex, bringing fresh resources into the county.

Perhaps most striking is that half our population volunteers each year, giving time worth at least £250 million - the equivalent of another 10,000 jobs. Beyond these figures, charities deliver life-changing support: from birth to end-of-life care, from debt advice to arts and culture. They help people stay economically active and share prosperity more fairly. They also help people develop skills through volunteering, which for many is more accessible than mainstream education. Most importantly, they create strong, diverse, resilient communities that unite people around what they share, rather than what divides them.

What type of growth do we want?

As we talk about economic growth, we must ask: growth for what purpose, and at what cost? Growth that harms our planet or increases inequality is no victory. The New Economics Foundation, in its recent 40th anniversary report, warns of rising inequality and diminishing public faith in political institutions. Their call is to empower citizens, give people more ownership of the economy, and help communities thrive.

Economic growth is meaningless if people feel hopeless about their future. Real hope lies in the thousands of people and charities already working to make a difference. This community action is the bedrock of a healthy democracy – if we lose it, it may never return.

The future of Sussex

That is why Sussex Community Foundation exists: to ensure communities have a voice and the resources they need. As local government reform and possible devolution unfold, we must guard against creating large, remote authorities disconnected from local realities.

The voluntary sector is essential to keeping communities together. Sussex Community Foundation can help maintain consistent support for vital organisations through the transition, ensuring they remain at the heart of future plans.

Together, we have an opportunity to create a new culture and a new history for Sussex - one that builds a resilient society ready for the challenges ahead. If we truly want growth, it must be in communities as well as in wealth. Only then will we enrich lives, strengthen connections, and create a Sussex where prosperity is shared by all.

How financial planning and charitable gifting can go hand in hand

For more than 25 years, Herbert Scott has helped people achieve their life’s goals through meaningful financial planning and that often includes charitable gifting.

Our focus is often on clients coming up to, or in the early phases of, retirement. Understandably, as clients age, the early question of “have I got enough to live the life I want in retirement?” evolves into “what can I do to mitigate my Inheritance Tax bill?”.

Charitable gifting

Not all clients have wider family to pass their funds on to, and even those that do still often wish to undertake an element of charitable gifting. This can either be during their lifetime, when the value of the gifted funds could potentially be outside of their estate immediately, or in their Wills when the rate of IHT applied can be reduced from 40% to 36% where 10% or more of their taxable estate is left to charity.

Working with Sussex Community Foundation

It is at times like this that we often turn to the expertise of Sussex Community Foundation to better the philanthropic conversations we have with our clients. From our viewpoint, involving the Foundation in these discussions provides us with confidence about the charitable gifting our clients undertake, safe in the knowledge that the charities have undergone the scrutiny of the Foundation’s due diligence. It also broadens our clients’ awareness of charities which are of particular interest to them and gives them the opportunity to have as much (or as little) involvement with the charities as they feel comfortable with.

Case study

We recently introduced an elderly client to the Foundation, after using our cashflow planning software to establish she had more than sufficient wealth to meet any eventualities she was likely to encounter during her remaining lifetime, including the potential funding of care fees. She wanted to see what other options there were to reduce the Inheritance Tax bill on her estate and, while she was not averse to paying some Inheritance Tax, the idea of having some control over where her surplus money was spent appealed, rather than leaving this decision to the Government on her death.

We explored options such as increasing gifting to her family, investing in tax-lead Inheritance Tax planning schemes, and charitable gifting. At this point, we introduced our client to the Foundation so that they could help her gain a better understanding of the range of local charities and community groups that aligned with her philanthropic interests. Under their guidance she decided to set up a Donor Advised Fund.

On a personal note, I continue to be heartened by the number of clients who are interested in making charitable donations as part of their financial plan and having good conversations around this subject is a valuable part of the service we provide.

Tracey Payne BA(Hons), Chartered FCSI, DipPFS
Investment Director & Financial Planner

Herbert Scott Ltd
The Left Bank, 173 High Street, Lewes, East Sussex, BN7 1YE

enquiries@herbertscott.uk
www.herbertscott.co.uk

Herbert Scott is authorised and regulated by the Financial Conduct Authority.

This article is distributed for information and/or educational purposes and should not be considered investment advice or an offer of any product for sale.

Spotlight on... Brighton & Hove

Many areas in Sussex rank among the 20% of neighbourhoods in England with the highest levels of deprivation. Our Tackling Poverty report found the highest levels of deprivation are around the Sussex coast, with the eight most underprivileged towns situated in coastal communities, including Brighton & Hove.

Brighton beach with two deck chairs and the west pier

First thoughts about Brighton & Hove tend to focus on the local artistic talents showcased at the creative Brighton Fringe and Festival; historic landmarks such as the iconic Royal Pavilion and the famous Brighton Pier; Georgian buildings along the seafront and of seagulls, Pride flags and fish and chips. An inclusive, free-thinking city in the heart of Sussex.

However, what many people don’t know is that Brighton & Hove has the second highest number of highly deprived areas of any Local Authority in Sussex (15 Lower Super Output Areas in the most deprived 10% nationally in 2019) and contains the third most deprived ward in the county, East Brighton.

Our Tackling Poverty Report highlights three main challenges communities in Brighton & Hove are experiencing:

Table showing initial assessments of homelessness circumstances - showing Brighton has higher levels than the rest of Sussex.

Homelessness

Brighton & Hove has the highest rate of households assessed as homeless in the county (1.44%) and is nearly double the national rate (0.66%). The city also has 0.89% of households threatened with homelessness, meaning it is likely that they will become homeless within 56 days. Both figures are significantly higher than England as a whole.

The report also found Brighton & Hove had the highest number in Sussex of rough sleepers on a typical night, at 41 people.

Pensioner poverty

Brighton & Hove has higher levels of pensioner poverty (15.3%) than the national average and contains the ward with the highest level of pensioner poverty - Queen’s Park. It is also the town with the largest number of households affected by fuel poverty in Sussex.

Poor outcomes for LGBTQ+ people

Brighton & Hove has the largest proportion of people identifying as ‘not straight or heterosexual’ out of all Local Authorities in England and Wales at 11.7%. This section of the population in Brighton & Hove is more likely to experience unemployment than in any other Local Authority in Sussex. 7.1% of people identifying as LGBTQ in the city are unemployed – higher than across any other town in Sussex and notably above the national average unemployment rate which is 2.9%.

Brighton & Hove has the highest number of people experiencing income deprivation and employment deprivation of any Local Authority in Sussex.

What’s happening on the ground?

At the Foundation, we’re proud to support and want to share some of the groups working in Brighton on the challenges highlighted by our Tackling Poverty report.   

Homelessness support - Clock Tower Sanctuary Brighton  

The Clock Tower Sanctuary is a day centre in Brighton & Hove providing vital practical and emotional support to 16-25-year-olds who are homeless and insecurely housed. They recently received a grant from the Foundation towards the cost of their Centre Manager.

“I started to come to The Clock Tower Sanctuary last year, but it’s helped turn my life around already. With the help of my caseworker, I’ve gone from emergency accommodation into a more permanent, supported accommodation, and I am now waiting to move into independent social housing. It’s so much more than just a place to come and have food or a shower. I now see potential in my life and feel that I’m on way towards a much better place.”

Esther, young person supported by  Clock Tower Sanctuary

LGBTQ+ support - The Ledward Centre

The Ledward Centre is an LGBTQ+ Centre that works to reduce social isolation and improve wellbeing by creating a safe, sober, social space, and organising opportunities for members from across the diverse LGBTQ+ communities. The centre has proved to be an important sober space, allowing a growing number of people to socialise in a safe supportive atmosphere. The community group received a grant last year towards the salary costs of a part-time centre manager and facilitator.

Group of people who were on the LGBTQ+ comedy course

The centre recently ran a beginner’s comedy course for LGBTQ+ women and those who are non-binary for six weeks where participants learnt methods and techniques to create a stand-up comedy set.

“These wonderful funny humans smashed their first gig in front of a live SOBER audience. Alongside performing stand-up, the participants have made a wonderful bond with each other, and the feedback has been amazing!”

Ali, comedy course creator and facilitator

Pensioner poverty - Food and Friendship

Food and Friendship brings people together through food. They exist to tackle loneliness in older, isolated people and adults with learning disabilities. They provide low-cost bi-weekly lunch clubs and evening cooking clubs facilitated by a large community volunteer team. The charity received a grant in March towards their core running costs.

People attending a Food and Friendship lunch around a table

“Too many older people live and eat alone in the city, having lost friends and loved ones. Our lunch clubs are like a large family for people who don't have one where they can enjoy a healthy home-cooked meal and come together to share friendship and laughter. They are a place to feel welcomed and valued, to learn something, to receive support and to help build the resilience to get through another week alone”.

Caroline, Founder

How you can help

Our Tackling Poverty report highlights the desperate need in parts of Sussex and tells the story of why more local giving is essential, to increase support for people in our county.

“The Cullum Family Trust fully recognises that the voluntary sector engages with the local community to help provide the essential, real support to fill the many gaps that are impacting the vulnerable and in particular the older members of our communities. These gaps are ever widening and are exacerbated by the lack of funds to deliver those vital support services that are so essential in what is often very challenging circumstances.”

Claire Cullum-Jay, Fundholder at the Foundation

Get in touch with the Philanthropy team to discuss how you can help make a difference in Brighton & Hove, or you can donate directly to our Tackling Poverty Fund here.

Are Sussex families paying too much in Inheritance Tax?

Martin Roberts looks into the latest data on Inheritance Tax (IHT)

Although only about 4% of UK deaths result in a liability to IHT, there were still around 27,000 estates paying IHT in 2020/21. These naturally tend to be concentrated in the wealthier parts of the country and especially those where average property values are higher.

According to the latest published statistics, the Taxman took £5.76bn in IHT in the UK in 2020/21, and estates in the South East were the second biggest contributor to that figure after those in the London area. In fact, the South East contributed a fifth of the UK total - 4,990 estates in the South East paid a just over £1bn in IHT.

In the Sussex area, 176 of those estates paying IHT were in Brighton & Hove; 127 were in the Chichester area, 105 in Arundel and the South Downs, 89 in Lewes and 67 in Mid Sussex. In these five Sussex areas alone, 564 families paid a total of £131m in IHT, an average of over £230,000 per estate.

IHT is currently charged at 40% on assets (in excess of the threshold levels) which are transferred on death, including gifts made within seven years of death and gifts made to and assets contained in certain types of trusts.

There are IHT exemptions for transfers of assets between spouses and civil partners and for transfers to qualifying charities. There are also reliefs for Agricultural and Business Properties and also for Residences transferred to direct descendants.

As a result, most estates (over 95%) pay nothing as they fall below the threshold levels at which IHT kicks in, after applying allowances and reliefs. In fact, 81% of IHT in 2020/21 came from net paying estates valued at £1m or more, and these estates actually amounted to only 4.3% of all estates requiring a grant of representation.

Of course, as the age of the taxpayer increases, less of their wealth tends to be tied up in property, which can attract exemptions or reliefs, and more is held in cash and securities. So, the vast majority of IHT (82%) is paid on estates where the deceased is over 75.

It’s worth remembering that charitable donations to qualifying charities are tax free during your lifetime, and that if charitable donations are left in the will, they are taken off the value of the estate before IHT is applied.

In addition, if 10% or more of the taxable estate is left to charity, a reduced IHT rate will apply to the rest of your taxable estate not passing to charity. Currently, the normal IHT rate of 40% rate is reduced to 36%, saving 4% on the whole of the rest of the taxable estate.

As a result, any negative effect on non-charity beneficiaries is likely to be significantly reduced and, depending on the figures, the effect of the reduced IHT rate can sometimes mean that more is received by the eventual non-charity beneficiaries than would have been the case before the donation.

We always recommend those looking at their estate planning take qualified professional advice. In this case, if the estate is one of the 4.3% facing a potential IHT liability, taking early advise on all the reliefs and exemptions to IHT, including charitable donations to qualifying organisations like Sussex Community Foundation, might well be worthwhile.

At Sussex Community Foundation we make grants to local charities, groups and organisations to address specific needs in the community. Our donors’ and fundholders’ philanthropic effort make an enormous difference in the lives of many in Sussex. Read more about the stories and groups we support here.

Martin Roberts, Trustee

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