And, lastly, relatively few members of either generation have worked with outside experts like philanthropic advisors or private client attorneys to help formulate and execute their charitable agenda. This last point demonstrates that there is still room to enhance and possibly institutionalize the structure and process of their philanthropic activities (Exhibit 4).

Being charitable is an important consideration for many wealth creators and inheritors, but in many family offices, the support mechanisms for philanthropy are no longer part of the core operating infrastructure. And, as younger family members assume more prominent roles setting the direction for the family’s wealth management, there is wider acknowledgment that they need professional guidance and a peer network to synchronize the overarching priorities of the family and its charitable activities and ensure that philanthropic assets are deployed in ways that will deliver maximum impact.

Opportunities For Advisors
Our findings translate into several opportunities for advisors to better support their charitably inclined clients:

• Expand the client discovery process to include a discussion of charitable goals, which can help uncover unspoken aspirations and interests.

• Address philanthropy as part of the financial plan (and investment policy, as appropriate), which can lead to multi-dimensional relationships and new pools of assets.

• Help clients evaluate charitable vehicles based on their giving style and long-term objectives

• Create client connections within your practice, and more broadly within your community, that will bring like-minded people together to learn and collaborate.

• Source technical expertise that will help your clients advance their philanthropic missions and provide a complementary perspective to yours, delivering a more complete service experience.

Check in periodically with clients to diversify your conversations, evolve your relationship, and demonstrate the link between their financial plans and the realization of personal passions.

Hannah Shaw Grove is chief marketing officer at Foundation Source. Russ Alan Prince is president of R.A. Prince & Associates.

First « 1 2 » Next