Women are now such powerful players in the world of philanthropy that the Women’s Philanthropy Institute at the Lilly Family School of Philanthropy compiles an annual report on gender differences in the field.
How Can Advisors Be More Effective?
Since philanthropy is one of the priorities of these emerging demographic groups, I thought it would be helpful to outline 10 things for you to consider. You may already be familiar with some of these steps or have pursued them in your practice, but the ideas bear repeating, since they can both deepen relationships with existing clients and help you build a practice that appeals to, and therefore will attract, a younger client base and more women.
1. Consider re-evaluating how you listen and talk to clients and ask the right questions. Philanthropy should be an integrated part of your work with clients. You should ensure that questions about charitable giving are included on intake or on-boarding questionnaires. You stand to build a deeper personal and professional relationship with clients if you inquire about their values, and how those values influence their financial decisions. Here are a few questions to ask right out of the gate:
• Do you have philanthropic goals?
• Are you currently involved with any charities?
• What would you hope to accomplish with your charitable giving?
• Do you hope to instill the value of giving in your children?
• How would you like to be remembered?
2. In larger percentages than boomers do, Generations X and Y consider themselves knowledgeable about investing. But they aren’t sure which are the best investment strategies or asset allocations to pursue if they are charitably inclined. An advisor should be sure to review the assets they have and those they will have available for charity and also look over which assets, including non-cash assets, they can use to fund their charitable contributions.