Alfred Nobel, the inventor of dynamite, left most of his fortune to endow the Nobel Prizes. They are awarded each year on December 10th, the anniversary of Nobel’s death, in Stockholm, Sweden. Recipients are those deemed to have made the greatest impact on humankind in physics, chemistry, medicine, literature, economics and fellowship among nations.
Like Nobel, many high-net-worth individuals are interested in using their wealth to better the world. How can financial advisors help them achieve their philanthropic goals?
Understand why clients give
In 2017, 90% of high-net-worth households gave close to $30,000 to charitable causes. And, the mission of the charities they choose motivates donors (59%) more than the tax benefits (17%) they receive.1
People like to give because giving makes them feel good, and many like to do so as a family. According to the Cleveland Clinic, it really is better to give than to receive, because giving yields a host of health benefits including lowering blood pressure, reducing stress and depression. It can truly make you happier–and lead to a longer life.2
Take a holistic, long-term approach to philanthropy
Although the end of the year is the traditional giving season, your clients should plan ahead. Discuss their giving goals throughout the year. In planning meetings, find out about the organizations they currently support, whether they want to include their family in their giving and the types of assets they want to donate. This will help you identify charities and giving platforms that match their requirements.3
Be social, and lead by example
Let clients and prospects know you understand charitable giving through social media posts that include relevant hashtags, such as #philanthropy, #charity, #philanthropicgoals and #NobelPrizeDay. Spread the word that you can help your clients who want to make a difference in the world. Share information about the charitable organizations your firm supports. It can help when you lead by example and make more meaningful connections with your clients.
1 The 2019 U.S. Trust Study of High-Net-Worth Philanthropy, conducted in partnership with the Indiana University Lilly Family School of Philanthropy, https://www.privatebank.bankofamerica.com/articles/2018-us-trust-study-of-high-net-worth-philanthropy.html
2 Why Giving is Good for Your Health, Cleveland Clinic, October 28, 2020, https://health.clevelandclinic.org/why-giving-is-good-for-your-health/
3 Advice for Wealth Advisers: How to Talk with Your Clients About Philanthropy, Page Snow, The Chronicle of Philanthropy, July 31, 2019. https://www.philanthropy.com/article/advice-for-wealth-advisers-how-to-talk-with-your-clients-about-philanthropy/?cid=gen_sign_in