8. Reduces year-end stress upon advisors and associates by encouraging clients to make donations throughout the year rather than just in December.
9. Minimizes work of advisor’s staff by recommending that clients donate stock to one donor-advised fund sponsor rather than many charities, or donating assets to avoid having to research cost basis.
10. Develops relationships with clients’ accountants and attorneys and increases likelihood that advisor will be included in any discussion with mutual clients about charitable planning.
11. Eliminates the likelihood that clients will set up a DAF account on their own or make charitable decisions that will prevent advisor from managing significant assets.
12. Creates the opportunity to help clients achieve an impact greater than they could have done on their own or in consultation with their brother-in-law.
Many clients don’t know where to turn for help, or even that they could use help in supporting causes and charities that are very important to them. The benefits to them to include their advisor are just as significant, as they can learn to donate more tax-efficient assets, reduce their taxes, give more to charity or keep more themselves, reduce their frustration and record-keeping, involve their children, and help people and organizations to more of an extent than they thought possible.
Advisors increasingly realize that nearly all of their HNW clients are already donating to charity, and that if they do not discuss charitable planning with clients, another advisor will. These deeper conversations help many advisors retain clients even when investment returns are subpar. And perhaps most importantly, understanding clients’ charitable plans and how these fit into their overall goals will enable advisors to provide clients with the most appropriate financial plan.
Ken Nopar is the senior philanthropic advisor for the American Endowment Foundation, the country’s leading independent donor-advised fund. AEF works with donors and their financial, legal and tax advisors in all 50 states.