Women are more philanthropically inclined than men. While 62 percent of women donate to charities, just 52 percent of men do the same. Millennial respondents reported that they would be more likely to retain their family’s advisor if some recommendations on philanthropic planning were being offered.
According to State Street, adopting philanthropic planning might help advisors raise retention rates as they strengthen the bonds with their current clients and create opportunities to reach out to spouses, children and other potential heirs.
Advisors’ clients also see philanthropic planning as a way to engage younger generations. In State Street’s survey, 62 percent of investors believed that philanthropy was important as a way to educate the next generation on family values and legacy.
State Street says that philanthropic planning could serve as a useful value-add for wealth management firms interested in building multigenerational, sustainable practices.
For the study, State Street sponsored a June 2016 survey of 1,101 U.S. adults responsible for portfolios of $200,000 or more; an October 2016 online survey of 1,086 adults making $200,000 or more; a 2015 survey of 400 financial advisors and 560 individual investors; and qualitative interviews with philanthropic experts, investors and heirs during the same time periods.