Recent years have seen an explosion in family giving that cannot be explained by tax interests alone. Indeed, many families seek to apply their wealth in fulfilling a keen desire to give.
Still, many advisors to wealthy families are reluctant to bring up philanthropy in their conversations with clients. Advisors may feel that philanthropy is outside of their expertise, or that philanthropy is too personal a subject. If they fail to raise it, clients must go elsewhere to seek this information. Some advisors who discuss giving may limit the conversation to the tax implications of a giving vehicle—and miss out on engaging the family in a way that results in a satisfying giving experience.
Today’s philanthropic families expect more of their advisors, and firms of all kinds are competing to meet the demand. Keep the following lessons from donors in mind as you begin discussing the giving journey with your own clients. Relate Philanthropy to the Client’s and Your Own Experience
People don’t always describe their giving in the terms of the philanthropy field. It might be “charity” or “giving back” or “making a difference.” It may present itself in volunteer work as opposed to gifts of money. Begin with what the client wants for his or her family and community, and don’t be afraid to discuss your own volunteer work, pro bono professional work, or support for charitable causes. Many donors say they value an advisor who is personally philanthropic. While it's important to refrain from promoting your own giving agenda, philanthropy can be a commitment you share with your clients.
Advisors Need Not Be Experts On All Aspects of Giving and Family Dynamics
Donors recognize and respect an advisor who knows when to ask for assistance. Learn the advantages and disadvantages of different charitable vehicles. Familiarize yourself with the larger field of family philanthropy to connect your clients with important resources and opportunities. Be there to answer clients’ questions, but be willing to refer clients to peers, information, and organizations that might be able to help.
Involve Family Early
Clients should consider the role of family in their philanthropy. Involving spouses, children, and others in the planning of a new philanthropic endeavor helps the family as a whole appreciate and understand the donor’s vision for the family and the causes and institutions which he or she hopes to support. Philanthropy can offer a family a wonderful way to do good together. Encourage clients to get started early.
Ask Questions and Listen
Donors report wishing they’d thought about things differently or discussed all the options as their philanthropic journey began. Encourage your clients to talk things through with you, and listen to their answers. Craft a charitable solution that engages their motives for giving while addressing the likely challenges.
When it comes time to address questions of giving vehicle, its administration [link to management and operations topic area], grantmaking, family involvement, and the larger nonprofit world, you’ll be ready with information and inspiration.