Professional advisers including wealth managers, financial advisers, tax specialists and private client lawyers often tell us that they find it difficult to talk to their clients about philanthropy.
However, there are real benefits for both advisers and their clients in having open conversations about charitable giving.
So why talk about philanthropy?
First, talking about philanthropy can strengthen and deepen the relationship between a client and their adviser.
Charitable giving can be an important part of a client's values.
In discussing philanthropy, advisers can learn more about a client's experiences, motivations and expectations for the future. This greater understanding can lead to more tailored and relevant advice, helping to foster a long-term relationship.
There are additional benefits for advisers, too.
Although some may worry about losing funds under management by suggesting that a client to gives money away, discussing philanthropy can help grow an adviser's business.
By understanding a client's full portfolio, including their philanthropic activities, advisers may be able to recommend additional or more relevant services and products.
Talking about philanthropy also helps advisers stand out from their competitors, offering a holistic approach that can differentiate them in the marketplace.
Despite these benefits, many professional advisers find it difficult to discuss philanthropy with their clients.
Some worry that the conversation might feel too personal or come across as an implied judgement of the client's charitable giving. Others feel uninformed about philanthropy or when to begin the conversation.
How to talk about philanthropy
One of the best times to discuss philanthropy is during the initial stages of the client-adviser relationship.
It can be brought up during introductory meetings or included in client fact find questionnaires. For existing clients, it is still worth raising the topic – annual reviews or other routine discussions provide a good opportunity.
So how do you raise the topic? It can be useful to have a form of words ready to begin the conversation. Asking a question such as, 'Do you have any charitable giving that I should be aware of?' allows clients to share their giving without feeling it is too intrusive.
Financial planners need to know a client’s typical monthly or annual expenditure. Enquiring about surplus income or hobbies can often naturally lead to discussions about which organisations a client would like to support with spare income.
Increasingly, clients are asking about aligning their investments with their personal values, particularly through sustainable or responsible investing. This opens the door for discussing charitable giving, as you are already exploring what matters most to your client beyond their financial wealth.
Everyone has personal values, whether that is to look after their family, local community or more global causes; and it is worthwhile an adviser taking the opportunity to explore these with their clients.
