For Estate Planning Professionals

Why Faith-Based Giving?

Philanthropic clients make better clients.

People who give to charity typically are more generous than average. And that generous spirit often extends to the way they relate to other people in their lives, including advisors.

There's less competition.

Donors wish their advisors were more knowledgeable about charitable planning. In fact, participants at donor focus groups sometimes contend that advisors are the "weak link" in the chain toward helping wealthy individuals achieve their philanthropic potential. They would like their advisors to take a more "holistic" approach to their giving, rather than focusing on tax deductions and specific giving mechanisms. Donors say they want to be equipped to create cohesive giving programs, evaluate the impact of their gifts, and know whether they have made a difference.

Because not many advisors are sophisticated about charitable giving, a large number of high-net-worth clients don't have easy access to good information about philanthropic alternatives. There is an opportunity for advisors who really understand that philanthropy is more than good business, it's just plain good. It also gives you an opportunity to do what you do best -- identify creative solutions that will help your clients solve problems and meet objectives.

Philanthropy is a rapidly growing field.

A large and growing number of individuals and families are looking to be effective philanthropic donors with the wealth they have accumulated. Many Americans have the financial resources, but not yet the inspiration, inclination, or opportunity to become philanthropic. This flow of assets into foundations represents the greatest boon to philanthropic causes in history. It will also create billions of dollars in fees for the advisory industry.

It opens doors.

Taking an active approach to philanthropy can help you build deeper, richer client relationships and enhance client loyalty. Clients can look upon your philanthropic knowledge as better service. And earning a reputation in the community as the attorney, CPA, financial advisor, trust officer or broker who cares about philanthropic planning is well worth the doing.

Sources

• Sterling Foundation Management, LLC (www.sterlingfoundations.com/advice)
• Association of Baltimore Area Grantmakers (www.abagmd.org)
• The Donor Advisor: The Critical Role of the Advisor in Family Philanthropy
• Advancing Philanthropy: Tapping the Potential of Legal and Financial Advisors