People get very attached to their money. When you talk with a client or prospect about investing, they might feel they want to hold onto their cash. They have lots of reasons, many we do not know. Your suggestion might be a great fit for their portfolio, yet they have an inkling one of their children might be getting a marriage proposal very soon. They want the cash liquid for potential wedding expenses. What about different pots of money that are under their control?

Many Americans give to charity. Define Financial showed some interesting statistics. About 60% of Americans give to charity. We give about 2.1% of our disposable income to charity. Traditionally we write checks when we make donations. You may have helped clients donate appreciated stock with long-term capital gains.

Foundations have gained popularity along with donor advised funds. According to issuelab there were 107,889 independent foundations in the U.S. There are over a million donor advised funds (DAFs) in the U.S. One of the attractive features of having your own charitable vehicle is the ability to put money in as a charitable contribution but have a degree of control over how much is given away immediately and how much stays in the account for use later on.

Five Ways Foundations Can Fit Into Your Business Strategy
As a successful advisor, you might consider setting up a donor advised fund of your own. Your income might be cyclical, meaning some years are better than others. This allows you earmark more money for charity in good years, funds that might be dispersed in the future.

1. Research local foundations. You are likely familiar with the website Guidestar. It helps potential donors research charities. It also has a searchable database. You might search geographically for family foundations. Some free searching is allowed, but they would like you to subscribe.

2. Review annual reports. Nonprofit organizations produce annual reports, similar to public companies. These are often found on their website. The level of detail is often different from a private, for-profit company because they focus on recognizing donors. These reports are often called a “record of philanthropy” or “report to the community.” They often list the fundraising campaigns they ran, listing donors by category. In addition to seeing the names of families, individuals and businesses listed as donors, you often see plenty of foundations too. Once you know the name, they should be easy to research.

3. Walk around museums and hospitals. Fundraising is a major element of their operation. Many donors like recognition. You will find plenty of plaques, usually in the lobby. They do not usually list dollar categories. They have tiered categories instead. These plaques are usually permanent. You should find private foundations listed, especially at the higher donor categories.

4. Watch for display ads in the local newspaper. Because not every nonprofit has a lobby, some choose to run large ads in the local weekly newspaper thanking their donors. They are big, but you can miss them if you aren’t paging through the paper each week. Look for foundations on the list.

5. Work backwards. Make up a list of nonprofits in your area. Do an internet search on each name. Find their website. Look for the annual report or other form of donor recognition. You should be able to build a comprehensive list of foundations in your local area.

Once you know the name of each private or family foundation, you should be able to back into the address, contact people and even the level of assets in the foundation. Guidestar has some of this information.

At this point you have learned these foundations are controlled by prominent people in your community. If they have substantial assets, a large amount might be invested for the long term. Now you are in a position to contact the foundation directly and ask for a meeting to learn more about their objectives, when they review the relationships with their current money managers and how you can compete for some of the business.

Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book Captivating the Wealthy Investor is available on Amazon.