The role of the adviser
A financial planner can help clients assess how much they can afford to give and advise on the most effective mechanisms for doing so.
However, planners do not need to be experts in charitable gifting. Often, advisers can collaborate with accountants to assess the most efficient way for a client to fund their giving.
Additionally, working alongside philanthropy specialists can help clients identify where their donations will have the most impact.
By collaborating with philanthropy advisers, financial planners can gain a deeper understanding of what a client is doing with their money, and why they are making these gifting decisions as well as the impact it is having.
This also allows them to be kept informed as to the likely size and timing of future gifts – all which strengthen the client-adviser relationship.
Intergenerational planning
Families are complex, and it is not always easy for them to talk about money.
However, sharing gifting decisions can be a great way to engage wider family members in talking about money and what to do with it.
By communicating the values of the donors, other family members may be encouraged to develop their own ideas and influence donation decisions.
It can bond a family by helping them to have constructive money discussions and can hopefully influence other financial family matters in a positive way.
For the adviser, it can be beneficial to meet younger generations to develop a relationship in which they are more likely to become clients in their own right.
Remember that charitable giving is an ongoing process and for many donors one that continues throughout their life, and even beyond via charitable bequests.
That means that you should continue to include philanthropy in your discussions with clients throughout your relationship with them.
Next steps
Once you have a greater understanding about your client's philanthropy you may need to undertake further research.
There are numerous online resources available that offer insights into various types of charitable giving and the best approaches for clients.
Keeping up to date with trends in philanthropy can also help advisers better serve their clients.
If more tailored advice is needed, advisers may want to connect with a philanthropy specialist who can offer support and guidance on charitable giving.
Olivia Bowen is a partner and financial adviser at Castlefield and Rachel Tomlins is head of philanthropy at The Charity Service
