Yet advisors have yet to take full advantage of philanthropic planning, Sutton said, citing UBS research that shows that 80 percent of high-net-worth clients are not satisfied with the impact of their giving.
“The were worried that their money is not being used wisely,” he said. “In surveys of advisors, advisors believed that their clients wouldn’t be interested in giving because they’re worried about wealth preservation. Clients actually want to give, but they’re not sure if their organization of choice is a good one, and they’re not sure if they’re giving in the right way. About 60 percent of your clients really want you to bring it up in the first, second or third meeting about their plan. This is in your wheelhouse—and it’s a nice way to differentiate yourself from the competition.”
Sutton urged advisors to work with their clients on a concrete philanthropic plan, citing UBS research that showed approximately 50 percent of clients increasing in satisfaction when engaged in a philanthropic plan.
Foundations, charitable trusts and donor-advised funds provide opportunity for families to work together and help make sure that values are transferred and wealth is successfully transitioned in the future, he said.