Engaging clients in discussions about philanthropy can dramatically increase an advisor’s business, according to Amy Pirozzolo, head of donor engagement at Fidelity Charitable.

At the same time that clients are doing good in society, advisors can do right by their clients and by their business, Pirozzolo said in an interview.

Advisors who talk with clients about philanthropy and the clients’ goals for giving have six times the average median assets as those who do not work with clients on their charitable interests, according to Fidelity data. In addition, those same advisors have three times the organic growth and 1.3 times median new money per investor than those who do not have the conversation about charitable giving.

There is a correlation, not necessarily a causation, between having the charitable conversation and increased business, she said.

“Charity is not only good for the clients and the world, but it also seems to be good for the advisors’ businesses,” she said. “Advisors who do not have a conversation about charitable giving are missing an opportunity.

“Advisors play a really important part in clients’ giving,” she added. “Eighty-two percent of clients say charitable giving is important to them but only half have talked with their advisors about it.”

For the first half of 2024, grants given through Fidelity Charitable, a sponsor of donor-advised funds, were up more than 30% from the same period last year. All categories of giving increased by double digits, with some of the greatest increases going to human services and arts and culture, according to data gathered by Fidelity Charitable.

In the first half of 2024, nearly $6.4 billion in grants were recommended by Fidelity Charitable donors, benefiting more than 143,000 charities.

One trend in recent years is that donors are increasing their support of nonprofits supporting projects directly affecting their own communities, such as supporting social enterprises, microfinancing and community development. Nearly $86 million was granted to those organizations in the first half of 2024, which is a 32% increase over the same period in 2023.

More donations also are going to human services causes. “Interest in human services organizations grew during Covid and has remained front and center for donors,” Pirozzolo said.

“A strong market drives people’s confidence, which creates a desire to give,” she added.

The money that is put into donor-advised funds is not stagnant. Three-fourths of the funds are given out in grants within five years.

“People are getting savvier about their giving. A donor advised fund lets the donor take advantage of tax savings and increases the amount available for gifting,” Pirozzolo said.