The Association of Financial Advisers (AIFA) is embarking on a 'big push' to increase IFA awareness ...
The Association of Financial Advisers (AIFA) is embarking on a 'big push' to increase IFA awareness on tax efficient ways of giving money to charity.
Speaking at the Charities Aid Foundation meeting this week, Paul Smee, Director General of AIFA, urged IFAs to overcome the "hurdle of personal reticence", alluding to a "reluctance to talk about charities and raise the issue of giving with clients".
Despite this perceived reluctance, research conducted by AIFA, based on a questionnaire sent to its 17,000 members, shows that three quarters of IFAs think advice on tax-efficient ways of giving to charity should be an important part of their service.
Even so, 57% of IFAs have never or have hardly ever told their clients about the new tax efficient methods of giving to charity.
Smee comments: "This survey indicates a low level of awareness about the potential for giving but a willingness to learn. This could be a legacy of the past because of such things as the obscurity of the covenant form and the high levels of personal taxation. It could also be because the new rules have not been sufficiently explained.
"IFAs believe that being able to provide this advice would be a way of enhancing their long-term relationship with clients. What is stopping them from doing this is a lack of information and training on how to go about it. We need a big push on improving knowledge and awareness and this is not easy with as disparate a sector as IFAs."
Smee concludes: "IFAs now need access to the information which would enable them to provide this advice and AIFA will be working vigorously with the Giving Campaign to help this come about."
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