HOW SMART PHILANTHROPY BENEFITS CLIENTS AND ADVISORS Excellence
HOW SMART PHILANTHROPY BENEFITS CLIENTS AND ADVISORS Excellence in Giving Insights from philanthropic advisors to the wealthy
Why talk about clients’ giving?
WHY TALK ABOUT CLIENT GIVING? #1 Be a broad financial expert 57% of Fidelity clients said: “If advisors can discuss charitable strategies, they are viewed as broad financial experts” * Fidelity Charitable survey
WHY TALK ABOUT CLIENT GIVING? #2 Manage next gen assets 37% of Fidelity clients said: charitable discussions led to kids’ assets staying with parents’ advisor because they became a family advisor * Fidelity Charitable survey
WHY TALK ABOUT CLIENT GIVING? #3 Deepen relationships 75% of advisors said: Discussing philanthropy deepens client relationships * U. S. Trust survey
WHY TALK ABOUT CLIENT GIVING? #4 Achieve client goals 71% of advisers bring up philanthropy to avoid taxes BUT clients have equal interest in BOTH tax benefits AND charitable goals * U. S. Trust survey
WHY TALK ABOUT CLIENT GIVING? #5 Get new clients 31% of HNW clients said: “I would be more likely to hire an advisor if he or she is knowledgeable about philanthropy. ” * U. S. Trust survey
What giving problems can you solve for clients?
NATIONAL GIVING TRENDS Respond to Needs Inspired by Solutions Good Intentions Measured Results Donating Investing Donor-dependence Self-sustainability Donor Distance Real-time Results
TO PHILANTHROPIC BUYING & INVESTING THE QUESTION: WHAT DID MY GIFT DO? THE SHIFT FROM CHARITABLE DONATIONS
FROM NEEDS TO SOLUTIONS Is that little girl still starving?
“CHARITY IS INJURIOUS UNLESS IT HELPS THE RECIPIENT BECOME INDEPENDENT OF IT. ” John D. Rockefelle r
FROM NEEDS TO SOLUTIONS Eastlake Foundation IMPACT: 10 x growth in math proficiency 95% drop in violent crime 4 x growth in average income 5 x growth in employment rate
WHY THE WEALTHY GIVE SMALL 48% of advisors believe: “HNW clients hesitate to give because of the desire to preserve wealth” #1 reason HNW clients say: “My gift won’t be used wisely” * U. S. Trust survey
WHY THE WEALTHY GIVE SMALL Waste. "my gift won't be used wisely" Impact. "is it really effective? " Cause. "nothing I’m passionate about"
PROBLEM #1 "MY GIFT WON'T BE USED WISELY" How do you evaluate the fiscal responsibility of a nonprofit?
PROBLEM #1 "MY GIFT WON'T BE USED WISELY" Financial Management. Does a nonprofit do independent audits and control debt?
PROBLEM #1 "MY GIFT WON'T BE USED WISELY" Leverage. Is the # of “Clients Served” growing faster than staff and income?
PROBLEM #1 "MY GIFT WON'T BE USED WISELY" Self-sustainability. What % of annual income is Earned Revenue?
PROBLEM #2 "IS IT REALLY EFFECTIVE? " HOW to EVALUATE organizational effectiveness: Strategy: Clear goals with milestones Leadership: Staff turnover rate?
PROBLEM #2 "IS IT REALLY EFFECTIVE? " HOW to EVALUATE organizational effectiveness: Strategy: Clear goals with milestones Leadership: Staff turnover rate? Finances: Donor concentration risk? Impact: What are the lasting results?
PROBLEM #2 "IS IT REALLY EFFECTIVE? " HOW to MEASURE lasting results: Measuring Outcomes. What are the lasting results from program activities? Benchmarking. How do people served exceed the averages?
How to start and sustain the giving conversation?
INITIAL GIVING QUESTIONS 1. Estate Plan: How much do you want to go to family, taxes, or charity? 2. Inheritance: How much wealth is too much to hurt your kids? 3. Family Foundation: Can your kids work together to give?
ANNUAL GIVING QUESTIONS 1. Do you enjoy your charitable giving? 2. Do you know the impact of your giving?
PROBLEM #3 "NOT PASSIONATE ABOUT A CAUSE" What to ask your clients? Discovery Question: What problems keep you up at night?
HOW SMART PHILANTHROPY BENEFITS CLIENTS AND ADVISORS Excellence in Giving Insights from philanthropic advisors to the wealthy
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