Want happy clients? Talk about charitable giving.
Is it true that the happiest clients seem to be those who’ve incorporated charitable giving into their estate and financial plans? It’s hard to dispute that philanthropy offers both emotional and rational upsides to your clients. Advisors who can lean into these benefits are viewed by their clients as effective, impactful, and delivering well-rounded services to improve clients’ lives and give them peace of mind.
Despite these advantages, many advisors lack confidence in discussing philanthropy with clients. A recent survey found that only 5% of advisors felt “very confident” in this area, with 72% not including philanthropy during their onboarding of high net-worth clients. This gap represents a significant opportunity for advisors to enhance their services and strengthen client relationships through philanthropic discussions.
Do you have questions on philanthropy as part of your fact-find when onboarding new HNWI clients? 72% said no.
Keeping clients loyal and engaged with your services is just one of many reasons to talk with clients about charitable giving. The Wall Street Journal recently shed light on two major ways charitable giving can have effects on both mental and physical health:
- Donating to charity can lead to positive feelings that result in an improved mood, lower blood pressure, and potentially a longer life.
- The act of giving may trigger a release of serotonin and dopamine, hormones associated with happiness, while reducing cortisol levels.
Engaging in charitable activities could be a way to enhance overall well-being, suggesting that generosity might have tangible benefits beyond just helping others.
A client’s giving is above all primarily motivated by their desire to help others rather than solely for personal benefit. Still, it’s critical for advisors to be aware of the unique role charitable giving can play in a client’s life. GCF can help navigate both the tax planning complexities as well as the emotional side of giving to ensure that your clients achieve their financial goals and make a difference.
Interested in sharpening your skills around charitable giving discussions with clients? Consider becoming a Chartered Advisor in Philanthropy® through The American College of Financial Services. GCF facilitates a study group annually for advisors interested in learning together as they earn this designation. The next application deadline for the GCF CAP Study Group is Monday, March 3, 2025. For more information, click the button below.
