Giving

Though many financial planners in the Schwab survey said they don’t feel comfortable bringing up the topic of philanthropy, Clay says he raises the subject at every new client meeting. He views this discussion about clients’ philanthropic goals and his role in creating action plans as an important part of his practice.

In many cases Clay doesn’t do this work alone. He often brings in a client’s financial investment advisor and/or accountant into the discussion about charitable giving. It’s important that all of one client’s financial advisors communicate with each other so that everyone is working toward the same goals, he says. 

This is especially critical when wealthy clients are reluctant to donate as much as they could for fear that they will give away needed money. “As a team, we can show them that they have plenty of money and they can afford to give.

It’s difficult to overcome the fear that they don’t have enough money to sustain themselves or their families,” Clay notes. “I help educate clients on their financial needs during their life and show them that they can give without risk.”

In the long run, financial advisors’ work with clients on their philanthropy can help people leave a legacy and a lasting imprint on their family and community.
 

A Delicate Conversation

The Penton Research/Schwab Charitable survey, conducted in the summer of 2007, polled financial and investment advisors around the country to gauge their role in charitable planning and decision making. Some advisors, the survey reveals, feel that initiating charitable giving discussions is “inappropriate” and feel awkward doing so.

Other points revealed:

• Nearly half (47 percent) of the advisors stated they would increase charitable-giving discussions with their clients if they received more education and/or training on charitable giving and related tax issues.

• Charitable giving discussions are most commonly initiated by both advisors and their clients during the financial planning process (including estate and tax planning).

• “Triggering” events that provoke discussion of charitable planning and giving include a stock transfer to a charity, mentioning nonprofit work, or an invitation to a charity event.

• The majority of advisors have assisted clients with gifts to charity, including donor-advised funds and charitable trusts.

• Clients expect financial advisors to play an increasingly important role in their charitable planning and giving.

• Overall, advisors and their firms are charitably minded and perceive an increase in client interest in charitable giving as well.