A recent study by Fidelity offered this interesting insight:  While a majority of advisors believed that their clients were interested in receiving charitable advice, only slightly more than half (52%) proactively offered such advice.

                  Those offering such advice gave 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, he or she is inevitably tapping into the passion of an individual’s heart.  By touching the core, relationships deepen.

2.     It improves the advisor’s stature.  Advisors who offers charitable advice show themselves as broader financial experts.  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, he or she will often be able to manage assets that would not be under his management otherwise.  (Call 913-310-0279 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 advisors seeking to differentiate themselves from other advisors, there is no question that offering charitable advice is the smart way to go.

Bill High

Bill is CEO & Founder of Vyne Legacy. He works with families to equip them with tools to build multigenerational legacies, and he teaches givers and financial advisers on transformational biblical generosity. He is the co-author with David Green of Giving It All Away and Getting It All Back Again: The Way of Living Generously.

Published November 3, 2010

Topics: Giving Strategies

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