Case study: St James’s Palace

When the wealth management group St James’s Place was set up in 1992 as J Rothschild Assurance, a charitable trust was written into its business plan, along with an ambitious mission to drive payroll giving among its employees.

“We wanted to make £1 million for charities within ten years and have 70 per cent of our people to be giving on a monthly basis,” Mike Wilson, the chairman, said.

The company hit £1 million after eight years and already had an 80 per cent take-up of payroll giving among staff at its 20 offices in the UK. The amount given varies from £10 a month to a significant percentage of income, Mr Wilson said.

Payroll giving, together with regular fundraising events, has enabled it to raise £15 million and support 700 charities including the Teenage Cancer Trust and Hope and Homes for Children.

As well as employing a person to oversee the scheme full time, St James’s Place appoints a charity representative in each of its branches with a mandate to encourage others to sign up.

Giving to charity is part of the corporate culture, he said. “Whether someone joins in switchboard or as an adviser it will be included in their induction.”

Where some businesses go wrong is in not giving employees a say in which charity to support, he said. “Ownership has to be with people doing the giving. If the Royal Opera House is chosen by the directors as the designated charity, for example, it might not be everyone’s priority.”

St James’s Place also performs due diligence on the charities that it supports so that employees know their money is being used soundly.

While some may think that the aim of a financial management company to generate wealth for individuals is at odds with giving money away, Mr Wilson said that he regards giving as imperative.

“If you are fortunate enough to do quite well yourself financially, you should be giving back to those less fortunate than yourself.”

That his business should be focused on wealth management is incidental, he said. “Every business should be doing this, no matter what their sector.” (Emily Ford)

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