National Philanthropy Day presents a welcome opportunity for financial advisors to engage their high-net-worth and ultra-high-net-worth clients in meaningful conversations about values, legacy and impact. With year-end approaching, Saturday's celebration — a strategic inflection point, really — couldn't be more timely.
According to Nonprofits Source, a marketing agency that specializes in search engine optimization, WordPress and Google Grants, nearly 30% of annual charitable giving occurs in December. The final three days of the year alone account for 10% of total donations.
Building on the momentum of the Great Wealth Transfer, this surge in giving can spur advisors to help clients align their wealth with purpose. By initiating thoughtful discussions around philanthropic goals, advisors deepen relationships and deliver value that goes beyond financial returns to, ideally, become a trusted partner in purpose.
And to provide truly effective guidance, advisors must stay informed on the trends, tools and data shaping modern philanthropy.
Recent findings highlight the significance of philanthropy among HNW and UHNW individuals, and the opportunity for advisors to guide it with intention:
⦁ Giving USA: Charitable giving reached a record $592.5 billion in 2024.
⦁ Altrata: UHNW individuals contributed $190 billion to philanthropic causes in 2022, accounting for 38% of global independent giving.
⦁ The Giving Institute: In 2024, 81% of affluent U.S. households donated, with an average contribution of $33,219 — 10 times the average contribution of the general population.
⦁ Cerulli Associates: $124 trillion is expected to transfer to the next generation through 2048, with $18 trillion earmarked for philanthropy.
⦁ Altrata: Top causes among UHNW donors include education (27%), arts and culture (19%), and social services (14%).
To effectively engage clients in philanthropic discussions, consider the following five strategies:
1. Ask the Important Questions First
Leverage National Philanthropy Day to spark values-based conversations with clients. Consider asking:
⦁ "What legacy do you hope to leave behind?" This opens the door to deeper dialogue, shifting the focus beyond preserving wealth to creating lasting impact.
⦁ "In what ways do your personal values shape your approach to wealth and giving?" This helps align financial strategies with what matters most to clients.
⦁ "How do you see your family contributing to your legacy and financial decisions?" This encourages multi-generational planning and shared purpose.
⦁ "Are there causes or communities you feel especially called to support more intentionally?" This can help uncover philanthropic passions and can guide more purposeful giving strategies.
2. Emphasize Strategic Giving Tools
National Philanthropy Day is an excellent opportunity to introduce tools for giving, including:
⦁ Donor-advised funds: Enable flexible, long-term giving; donors receive a tax deduction upon contributing funds but can direct gifts to charities over time.
⦁ Charitable remainder trusts: Provide income now, with remaining assets going to charity.
⦁ Charitable lead trusts: Donate over time, with remaining assets going to heirs.
⦁ Private foundations: Largely tax-exempt entities that fund charitable programs or grants.
⦁ Charitable LLCs: Flexible, but taxable, allow families to direct funds to both charitable and non-charitable organizations.
These tools can help strengthen client relationships by aligning with their values and inspiring family engagement.
3. Address Psychological Barriers
Research from the National Center for Family Philanthropy shows that some UHNW families face emotional and behavioral hurdles when it comes to giving, including too many choices, reporting requirements, compliance issues and a fear of drawing attention to themselves.
It’s up to advisors to offer clarity, structure and confidence to help overcome these barriers.
4. Engage the Next Generation
Millennials and Gen Z are doing their part to reshape the philanthropic landscape. Passionate about climate action, social justice, and digital transparency, they’re not just giving; they’re actively participating. According to Wealth Formula, 91% of millennials donated to charity in the past year, with many also volunteering or mentoring. For these generations, philanthropy is about more than money — it’s about meaningful impact.
They expect authenticity, measurable outcomes and alignment with their values. As the most significant intergenerational wealth transfer in history unfolds, advisors have a distinct opportunity to connect with these rising donors. Tailoring strategies to their priorities can unlock deeper engagement and long-term commitment.
5. Use Data to Demonstrate Impact
Philanthropy is evolving, and data is at the heart of that transformation. With advancements in artificial intelligence and analytics, HNW donors can make more informed, strategic decisions about where and how to give. From analyzing trends and past performance to forecasting social returns, data empowers philanthropists to align their giving with measurable outcomes.
AI tools can help assess the effectiveness of previous donations, uncover patterns in impact and refine future strategies to maximize results. This shift toward data-driven philanthropy enables donors to move beyond intention and into action, ensuring that their contributions create meaningful, lasting change.
Tara Popernik is executive vice president of wealth planning at LPL Financial, a wealth management firm for independent advisors.
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