Donors to charity are often high-net-worth individuals and families who have worked hard to accumulate their wealth and have used financial, tax and legal advisors to grow and protect their assets. Nearly all of these advisors’ clients have at least some charitable intent and want to support their favorite causes during their lives or after.

Studies, including one by U.S. Trust in 2013, have shown that advisors often do not initiate the philanthropy discussion, even though clients would appreciate the input. Some clients may not be aware of how their advisors can provide important advice that will help them in their giving efforts.

But there are many benefits to advisors who engage in the conversation. They may bring in additional AUM from current clients, deepen relationships or differentiate themselves from other advisors.

And when advisors realize that nearly all of their clients, at many levels of wealth, can benefit from the discussion, they are more likely to initiate it. These are just some of the following things they can bring up:

  1. Many donors give cash or make donations by credit card, even though both of these methods are the least tax-efficient ways to donate. Yet many clients are unaware of other options.
  2. Advisors can help clients identify their appreciated publicly traded securities. When these are donated, donors can avoid capital gains taxes on them if they have been held for longer than a year. (Assets with difficult-to-find cost bases are ideal.) If these assets are donated and the advisor and client want to acquire them again, they can be repurchased at the current value.
  3. Advisors can identify other assets such as real estate, insurance, art or collectibles that clients (or heirs) may no longer want or need. These can be donated at their fair market value in many instances.
  4. Advisors can help clients who want to sell a business donate some or all of the privately held company stock before the sale and avoid or minimize capital gains and other taxes.
  5. Advisors often can manage the charitable investments so clients can receive consistent investment advice and performance.
  6. Advisors can help clients set aside money for charitable giving during their high-income years so they can continue to give during retirement.
  7. Advisors can help clients donate the appropriate amounts, sometimes helping them give more than they thought they could, or reducing the amount if the clients cannot afford it.
  8. Advisors can help donors receive a stream of income during retirement while still providing support for a favorite charity.
  9. Advisors can help clients involve their heirs in charitable giving.
  10. Many advisors can help clients think about the who, what, why, when, where, how and how much questions about charitable giving, or they will have access to resources that can help the clients.
  11. Advisors may be able to reduce some frustrations that clients experience when they donate, perhaps helping them simplify their efforts by suggesting methods like donor-advised funds or services to manage their private foundations.
  12. Advisors can be an objective resource for clients, especially when a client is contemplating a large donation or the creation of a charitable vehicle. They can help clients determine which donor-advised fund sponsor would be most appropriate, whether the client should create or close a private foundation or discuss other options.

If advisors do not initiate occasional conversations about charitable giving, the client may assume that the advisor cannot be helpful, is not interested or has no reason to be involved in the decision. Instead, the clients may rely on friends, family members or a charity for help.

For clients to receive the best overall tax, investment and legal advice, it is important for them to discuss their giving plans with their advisors. While there may or may not be some initial costs for this advice, in the end the clients, their advisors and their favorite causes and charities will all benefit substantially.

Ken Nopar is the principal of Nopar Consulting, a firm that advises wealth management and other professional firms on how to have charitable giving conversations with clients. The firm also helps charities work with advisors and donors. The firm's website is www.noparconsulting.com.