Advisors
Why you should talk to your clients about philanthropy
Philanthropy is currently missing across wealth advice services. Research carried out by the Charities Aid Foundation with 215 professional advisors found that almost three-quarters (72%) do not include philanthropy as part of their initial fact-find with clients.1 A report by Onward showed only one in five professional advice firms offer any kind of advice on philanthropy.2 Not talking about philanthropy is an enormous missed opportunity – there are huge potential financial and social benefits for both your clients and for charitable causes.
“By failing to offer philanthropy services, firms too are missing out on valuable opportunities to build relationships with their clients and their clients’ families, and so are failing to grasp the financial benefits which can follow. […] Meanwhile, the opportunity to raise potentially vast sums for good causes is being wasted too.”
Pro Bono Economics
Below we share some further resources about the provision of philanthropy advice in the UK, and the benefits of talking to your clients about philanthropy, including the next generation who have a strong desire to have a positive societal impact with their money (the “generous generation”):
- Mission Give by Pro Bono Economics – a summary and report that shows the potential of philanthropy advice to unlock significant levels of funding. For instance, they found ‘a prompt to consider charitable giving during a financial planning session can lead to clients giving 40% more to charity.’
- Ragged Patchwork: The need to overcome the philanthropy knowledge gulf by Pro Bono Economics – a summary and report that explains how financial services and advisors can overcome the knowledge gap on giving effectively.
- Giving Back Better: Unlocking philanthropy in the UK by Onward – a summary and report that sets out a series of practical steps to usher in a wave of philanthropic renewal including recommending the Financial Conduct Authority should make philanthropy a mandatory part of training for wealth advisors.
- Advisers not meeting the needs of younger clients due to lack of philanthropy knowledge by Charities Aid Foundation – a summary of research that flags more than half of 18-34 year old high-net-worth clients say an adviser could help with their philanthropy, yet only 5% of advisers are ‘very confident’ discussing philanthropy.
- Generous Generation: The business case for financial advisers supporting under-35s with philanthropy by Pro Bono Economics – a summary and report that details why the next generation of wealthy individuals are committed to charitable giving and how offering philanthropy services is beneficial to advisors and clients.