Because nearly all high-net-worth clients are active donors, the conversation is very comfortable and natural and will often enable clients to have a greater impact on the causes and charities that are most important to them. Though the tax benefits are not the main reason they give, clients also want to learn how they can donate most efficiently so they can give more and pay fewer taxes.
Many advisors have learned that talking about charitable planning can be a differentiator from other advisors, and if they do not talk about it, another advisor will. Clients are glad to talk since they are often passionate about their giving and involvement with non-profit organizations, and especially when they understand that the conversation will enable their advisors to provide them with the best possible legal, investment and tax advice.
Since the world changes rapidly and clients’ interests also change, this discussion should take place on a regular basis. Though the temptation may be to talk during the peak giving season of November and December, that is often too late in the year to make meaningful changes. Earlier conversations will lead to greater client satisfaction and accomplishment, and the charities the clients support will also greatly appreciate donations earlier in the year.
Ken Nopar is the senior philanthropic advisor for the American Endowment Foundation, the country’s leading independent donor-advised fund since 1993 with over $6 billion in assets. AEF works with donors and their wealth, legal and tax advisors in all 50 states.