Helping clients give money away isn’t just good service, a new survey from Foundation Source finds that it can actually be good for one’s advisory practice, too.
Foundation Source on Thursday released the results of a survey that shows how an advisor’s philanthropic knowledge and guidance around charitable vehicles might impact their practices.
The survey included responses from 106 wealth managers across the country working with small, midsize and large financial institutions, as well as registered independent advisors, family offices and philanthropic consultants.
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According to the survey, recommending a charitable vehicle can result in managing those assets.
The survey found a correlation between providing guidance around charitable giving vehicles and potential for managing those assets. According to the survey, 57% of advisors who originated the idea of a private foundation also manage those assets. In addition, 29% of advisors who originated the idea of starting a donor-advised fund also manage those assets.
The survey also found that regular conversations around philanthropy strengthen client relationships and build new ones.
“When the advisor originates the idea of a [charitable vehicle], the client sees them differently,” Joseph Fuschillo, Foundation Source’s chief distribution officer, told ThinkAdvisor. “They become a trusted advisor and they become the steward of the assets.”
The survey finds that nearly all of the respondents (99%) said that at least some portion of their clients are charitable and half said that the majority of their clients are actively engaged in giving.
According to Page Snow, chief philanthropic officer at Foundation Source, high net worth individuals “expect their advisors to provide that kind of information.”
The trouble is that most clients don’t ask for information about charitable vehicles. And, not all advisors are bringing up these conversations consistently with their clients.