High net worth clients want their advisors to engage with them about philanthropy. When they do, the resulting charitable engagements are more structured and strategic.
As Chief Philanthropy Officer at a wealth management firm, I have the privilege of helping our firm’s high net worth clients connect their charitable giving strategies to the causes and outcomes they care about most. In our experience, when advisors support philanthropy that is both purposeful (deliberate, thoughtful and tax-savvy) and purpose-filled (meaningful, impactful and joyful), they build deeper and long-lasting relationships with clients and their families.
Ways To Build Philanthropy In Your Practice
Advisors can foster these practices in several ways:
Aligning philanthropic acts with personal values: Help clients consider what matters most to them and their families through values exercises and conversations about legacy.
Understanding the beliefs and generational narratives that shape clients’ aspirations allows us to uniquely support their goals.
Engaging the next generation: Philanthropy often serves as the entry point for younger family members to participate in financial discussions, creating opportunities for advisors to build relationships that support long-term client retention and satisfaction. Fostering conversations with multigenerational families offers a robust, ongoing connection point. And helping families to see the Venn diagram of overlapping interests allows them to pursue collaborative initiatives.
Philanthropy often serves as the entry point for younger family members.
Finding impact and joy: Guide clients toward organizations and initiatives where their capital and expertise can create meaningful impact, making their giving experiences more intentional, rewarding and enjoyable. Many clients want to participate personally in causes they care about, and we encourage them to explore gifts of time, talent and treasure, moving what may often feel like transactional charitable gifting to more transformational experiences.
Introducing the “yes, and” mindset: Help clients understand and appreciate what I call the “magic of the ampersand,” encouraging them to approach their giving plans with an abundance mentality. Advisors can offer financial stewardship and wealth planning that is aligned with clients’ aspirations and help them to recognize there are enough resources to be generous to friends, family and the community.
Modeling best practices: Lead by example. Many RIAs have established charitable foundations or other grantmaking initiatives providing area nonprofits with resources, including money and volunteer time. Our foundation primarily focuses on supporting organizations that boost financial education and family asset-building in underserved regions.
When working with any community nonprofits, advisors should approach this work in a trust-based way, understanding that nonprofit leaders who are in proximity to the challenges are the most knowledgeable about potential solutions. Try to minimize hurdles, engage in ongoing dialogue and offer support beyond the check to ensure that strong organizations have what they need to succeed.
Expertise Matters
Most firms don’t have a chief philanthropy officer to help direct philanthropic traffic. So, how can financial advisors gain exposure to charitable strategies and sector best practices, in pursuit of better client service?
Look to your local community foundations and donor advised fund (DAF) sponsors who may host programming to help foster deeper understanding. These organizations are often place-based and offer geographically specific knowledge.
For example, the Philanthropic Institute for Professional Advisors, a collaboration between the St. Louis Community Foundation, the Jewish Federation of St. Louis and the Roman Catholic Foundation of Eastern Missouri, offers a certificate course to help professional advisors increase their confidence in communicating with clients about charitable giving. There may be similar programming offered in your region.
Consider continuing education:
The American College of Financial Services offers a Chartered Advisor in Philanthropy certification, an online graduate-level program for professionals who want to support client philanthropic goals.
Founded in 2002, 21/64 offers in-person and online training to help advisors guide multigenerational families in philanthropic effectiveness. The organization’s certified advisors help shape meaningful outcomes through conversations about wealth, legacy and identity.
Explore some of the many intermediary organizations that offer excellent sector resources, conferences and inspiration, like the National Center for Family Philanthropy and Exponent Philanthropy.
Building capabilities in philanthropy is a smart investment for you and your firm.
Building capabilities in philanthropy is a smart investment for you and your firm. Having confidence about your expertise in this space allows you to serve your clients and their families in more purposeful and purpose-filled ways. Your clients want it and your community needs it.
Deb Dubin is Chief Philanthropy Officer at Moneta.
