The Top 10 Reasons for Discussing Philanthropy
Many professional advisors will arrive here searching for tools and resources to rely on when talking about charitable giving with clients. But why should you discuss philanthropy with your clients?
In 2014 a study was jointly commissioned by the Canadian Association of Gift Planners, Giv3 Foundation, the Philanthropic Foundations of Canada and BMO. It was called “The Philanthropic Conversation” a story of understanding financial advisors’ approaches and high net worth individuals’ perspectives. Conducted by IPSOS, the study found a number of important reasons to integrate philanthropy into your practise.
Ten Reasons to Talk About Philanthropy With Clients
- Proper tax and estate planning helps clients reduce taxes and protect their wealth
- Clients feel advisors who incorporate philanthropy in planning have a more holistic strategic approach
- Discussing giving priorities and tax needs leads to a better understanding and relationship with clients
- Being known as an advisor who understands philanthropy increases your credibility and reputation
- Advisors who ask about giving priorities and goals are seen as having deeper connection with clients, especially creating and maintaining a relationship with a surviving spouse
- As `fundraising` becomes more common in all charities and clients feel more pressure to give, advisors are seen as neutral partners and create a safe space for clients to discuss and consider gifts of assets and as part of an estate.
- In a client world obsessed with fees and cost, an advisor who includes the philanthropic conversation is seen as less about cost and more about client benefit and impact.
- Advisors who talk about philanthropy as well as give and volunteer themselves are a much more attractive choice to prospective clients. Clients are more willing to refer an advisor who is seen as a public leader and charitable individual.
- Many complex donations of capital or estate involved breaking down assets with other financial institutions and while some of the capital is donated, advisors who incorporate philanthropy in their practise have clients bring more assets into their book of business as a result.
- As charities raise their level of sophistication in fundraising they require licensed, expert advisors to help their donors complete gifts of capital and estates. Advisors who are seen as philanthropic partners are more likely to be referred to high net worth donors.
Community Foundations across Canada are now compiling `local advisor referral lists` and hosting information events around tax, planning and charitable giving. Find and connect with your local Community Foundation.
For more information on `The Philanthropic Conversation` please visit the Canadian Association of Gift Planners website.
The Canadian Association of Gift Planners is an association that is a partnership of both charitable gift planners and professional advisors. They often collaborate with local Community Foundations to host information days on tax and giving. Find your local chapter.