With the rise of holistic wealth management – the notion that a client’s financial wellness is closely interwoven with their physical, emotional and social wellbeing – advisors are extending their offerings beyond traditional investment expertise to get to know their clients on a more personal level. If you’re aiming to offer holistic advice, look no further than philanthropy.
Philanthropic planning is a natural extension for wealth management. In discussing clients’ charitable goals, you’re likely to uncover the priorities, passions and values that are most important to them and their families. And if you discuss these goals through both a rational lens (e.g., quantifiable financial and tax benefits) as well as an emotional one (e.g., qualitative benefits such as family engagement and personal satisfaction), you’ll gain a more well-rounded understanding of their needs so that you can provide more targeted, effective and fulfilling guidance.
Here are three key points to help you support your clients by integrating the rational and emotional aspects of philanthropy.
#1 Philanthropy’s rational side = valuable financial benefits.
Wealth management plans tend to be heavily weighted toward financial and tax benefits. Charitable giving should be an integral part of these discussions as clients can take advantage of attractive tax deductions, tax-free asset growth and the ability to transfer wealth to future generations.
- Tax savings are available with most types of charitable giving such as direct donations to nonprofits, and planned gifts as well as when done through charitable trusts and other giving vehicles.
- Most formal charitable vehicles (e.g., donor-advised funds, private foundations) also offer current year income tax deductions, tax-advantaged asset growth and can assist with wealth transfer and sustainability.
- Get practical tips and specialized insights on how to guide these conversations with our Client Meeting Kit.
#2 Philanthropy’s emotional side = the “feel good” benefits of giving.
Largely untapped by financial advisors, philanthropy’s emotional aspects offer abundant opportunity to connect with clients on a deeper level.
- Working with clients to define their charitable vision, interests, values and priorities will help you understand them more personally and ultimately determine the best giving strategies for them.
- Encouraging clients to involve their families in their philanthropy can help them strengthen ties and build multigenerational connections. It also can lead to further engagement and referrals for you.
- Take your clients through our family philanthropy checklist, which includes creative strategies and practical approaches to support meaningful and intentional involvement across generations.
#3 Impactful giving requires expert insight and guidance.
Advisors who understand and appreciate both the rational and emotional aspects of philanthropy are equipped to have meaningful and productive conversations with their clients.
- Gauge clients’ rational priorities for giving (e.g., tax savings, asset growth).
- Gauge clients’ emotional priorities for giving (e.g., charitable vision, personal interests, legacy, family engagement).
- Carve out time to learn from (and partner with) philanthropic experts. Join a webinar on your lunch break, subscribe to our Advisor Series on our blog and look for continuous opportunities to keep your finger on the pulse of philanthropy.
Want to learn more?
Check out our full “rational vs. emotional” discussion of philanthropy.
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Schedule a call or reach us at 800-839-0054 to learn how we can best support your clients who are passionate about philanthropy. Together, let’s #begiving.
