A recent study by Fidelity offered this interesting insight: while a majority of advisors believed that their clients are interested in receiving charitable advice, only slightly more than half (52%) proactively offered such advice.
For those offering such advice, they offered 4 big reasons for doing so:
1. Charitable planning advice improves client relationships. When an advisor moves into the charitable area of a client’s life, they are inevitably tapping into the passion of an individual’s heart. By touching the core, relationships deepen.
2. It improves the advisors stature. An advisor who offers charitable advice shows themselves as a broader financial expert. They are not just tied to the markets but more interesting and unique strategies.
3. It helps the advisor economically. In the past, the charitable area might be exported to an advisor with skill in that area. But by tapping into the charitable area, there is no separation. Likewise, if an advisor is able to offer the option of giving closely held assets, they will often be able to manage assets that they could not otherwise oversee. See www.servantchristian.com for more information on giving closely held assets.
4. It leads to multigenerational relationships. By offering charitable advice, an advisor will almost always end up meeting the children and getting involved in the giving, management and estate planning. Charitable decisions involve each of those.
For the advisor seeking to differentiate themselves from other advisors, there is no question that offering charitable advice is the smart way to go.
William F. High is the President/General Counsel of the Servant Christian Community Foundation www.servantchristian.com. Servant’s mission is to inspire, teach and facilitate revolutionary biblical generosity. He may be reached at firstname.lastname@example.org.