The difference between existing and thriving in the wealth management industry? Offer more than money management. Nowadays, things like cash flow planning and security selection aren’t scoring you any points with clients—especially not with the next generation of clients, and especially not during vulnerable times like these.

Today, it’s about understanding the intent of the client’s wealth just as much as it is about growing it. It’s about having a high “emotional IQ” to better understand the client’s motivations and values. It’s about showing empathy and delivering peace of mind during meaningful life events. Advisors taking this more personal approach to their client relationships can offer truly holistic financial plans and see increased client loyalty as a result.

As clients look for guidance in these uncertain times, advisors are in a unique position to rise to the occasion and deliver tremendous value. But how do you begin? One proven way is through charitable planning and consultation. Below are five topics that advisors can broach to deepen existing client relationships and attract new ones.

1. Giving While Living; Giving While Growing
Do not wait to have the charitable conversation with clients. There is no perfect persona, no age, portfolio minimum or life event that marks a client “ready.” In fact, advisors waiting for a significant wealth creation event (like the selling of a business) are likely missing opportune everyday moments to provide their clients with smart advice. The best approach is to regularly have charitable conversations while clients are building their wealth.

This strategy is reinforced when we look at the trend of “giving while living.” More and more people are intentionally giving their proverbial “time, treasure and talent”—that is their hard-earned wealth and skills—during their lifetimes. It allows them to make a difference sooner rather than later and to witness the impact of their generosity firsthand.

Just look at philanthropists’ swift and generous response to COVID-19 relief. In a recent Fidelity Charitable study, a quarter of donors said they plan to increase their donations in response to COVID-19, while 54% plan to maintain their giving levels.

This shift from the traditional approach, of leaving a legacy after passing, takes the onus off estate planners who typically manage bequests and places it squarely on wealth managers to strategically integrate giving into financial and life planning.

2. Involving Younger Family Members
For those who choose giving while living, philanthropy is an integral part of their lives and involving family members is key. Thankfully, the next generation is ready and eager to join the conversation! Over just five years, the percentage of new Fidelity Charitable Giving Accounts opened by millennials more than doubled, from 6% in 2014 to 13% last year. 

The millennial generation, often referred to as the “impact generation,” is diverse, tech-savvy and optimistic about the potential of philanthropy to bring about positive change in the world. Successful advisors are those who support this changing generational attitude toward wealth and position themselves as a facilitator of social good. To do this, advisors must ask a lot of questions and proactively approach clients’ issues of interest. This is how the best advisors are growing with their clients, to avoid clients outgrowing them.

3. Investing With A Social Conscience
It’s no surprise that another trend fueled by young investors is impact investing. Whether you know it as “impact,” “sustainable,” “socially responsible” or “ESG” investing, there are trillions of dollars estimated to be at play with this strategy in America.

In a 2019 study by Fidelity Charitable, more than three quarters of millennials reported they had made at least one impact investment. Despite this, just 41% of financial advisors have discussed the topic with their clients, and only about half of advisors feel that they understand it well.

The popularity of impact investing is showing no signs of slowing down. Last year, investments in impact investing funds at Fidelity Charitable passed $1 billion, with an 18% increase in charitable dollars allocated to impact investments and a 15% increase in the number of grants to impact investment nonprofits.

As this movement grows, advisors face both a mounting responsibility and opportunity to educate themselves and their clients about how and why the strategy can work for them. When it comes to initiating this values-based conversation with clients, charitable giving serves as a perfect connection point.

4. Demanding Transparency
The philanthropic sector is a powerful reflection of American society. So it makes sense that as the next generation is demanding transparency from employers and brands, they’re also demanding it from the charities they support. When it comes to COVID-19 relief, donors are especially confused. Many feel like they don’t have the information they need to effectively, and confidently, support efforts to combat the pandemic.

Consequently, clients are turning to advisors for information on not only how much to give but where to give and how to measure impact. Rest assured, advisors don’t have to become charitable experts to answer these questions! Simply bookmark some trustworthy resources to share with clients:

• GuideStar—Database of over 1.8 million nonprofit organizations that summarizes each one’s mission, programs and financials.
• Charity Navigator—An independent evaluator that provides easy-to-understand ratings of charities based on their financial health, accountability and transparency.
• Boost Your Giving—A guide to help make donors’ giving more satisfying and effective.
• COVID-19 Giving Guidance—“How to help” landing page with list of organizations actively working to provide aid in the face of the pandemic.  

By doing this, advisors can equip themselves for the charitable conversation and deliver meaningful insights and peace of mind to their clients.

5. Local Giving From Unexpected Sources
In most cases, donors prefer supporting causes close to home. It’s important that advisors become familiar with local organizations and the causes that matter most to their client. This is one of those areas where having a high emotional IQ sets advisors apart.

For those who aren’t familiar with local charities, community foundations are a great place to start. As is the case with many disasters, community foundations know the needs on the ground and are working to appropriately deploy resources to community-based organizations. Advisors can locate local foundations on this interactive map by the National Center for Family Philanthropy and Giving Compass.

As clients consider local giving, advisors should also think about the client’s portfolio and the smartest giving strategy. Even with recent market volatility, clients may have stocks that have generated substantial gains over the past decade. Rather than selling stocks and donating the net cash to charity, they can donate shares directly to charity and minimize the capital gains tax. (More on that here.)

Since local charities may have difficulty accepting non-cash donations, consider other potential giving vehicles. For example, clients can donate an asset like stock directly to a donor-advised fund sponsored by a public charity—all while minimizing their tax burden and maximizing the charitable impact.

Karla Valas is head of fundraising at Fidelity Charitable.