Over the past two decades, research conducted with family offices and wealthy families has revealed some meaningful trends. The historical context paints an interesting backdrop, but what does it mean for advisors today? How can you better serve and engage with your most valuable clients? Read on to find out.
#1 Bridge the generation gap
Wealthy donors are expected to pass $18 trillion to their beneficiaries by 2030—and each generation has their own interests and causes they care about. Here are some suggestions to help your clients make the most of these preferences.
- Encourage dialogue between two or more generations to identify common areas of interest and potential conflict.
- Determine if there’s a mission or approach that will allow all generations to pursue their priorities simultaneously.
- Give a younger family member a seat at the proverbial table when making giving decisions.
- Allocate charitable budgets by cause and give different family members responsibility for discrete funding pools.
#2 Align with thoughtful financial plans
It’s important to integrate philanthropy under the wealth management umbrella. These tips can help create alignment—and ensure you’re not working in a silo.
- Make sure the professional team—investment, tax and legal advisors, along with other key specialists—understand and consider the family’s charitable goals, aspirations and interests as part of their planning efforts.
- Explore impact investing approaches as a way to align taxable and tax-exempt assets with family values.
- Address philanthropy as part of a broad financial plan to ensure synergy and tax efficiency across all parts of the family’s portfolio.
#3 Deepen philanthropic commitment
Most HNW families already give to charity on a regular basis. Thoughtfully engaging with your clients on their giving can help deepen your understanding of their goals and interests and help them get more out of their philanthropy. Here are a few ways to help them take it to the next level.
- Define the family’s preferred giving style and long-term objectives.
- Learn about different charitable vehicles and approaches.
- Connect with other philanthropic families to learn and collaborate with like-minded people.
- Source technical expertise from philanthropic advisors, estate planning specialists and private client attorneys to fill knowledge gaps and help advance the family’s philanthropic mission.
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