Is there a process I can work through to help my client develop a giving strategy?Advisors should encourage the development of family strategies for philanthropy by:
- Raising the question of charitable giving with their clients
- Ensuring that that they have the information, training and materials they need to give to their clients, explaining their options for tax-efficient giving, and also the benefits of developing a strategy for philanthropy
- Helping clients to understand their actual level of wealth, the amount they desire and need to allocate for themselves and heirs, and the amount remaining that they could give to charity
Start by becoming familiar with the process to take your clients through. The key aspects will be building your client’s trust, understanding what they are really seeking to achieve with their giving and researching the various options for achieving your client’s giving aims. The research will involve helping them to understand who to give to, what their options are and how they can best structure their giving.
The Bill and Melinda Gates Foundation follows a simple formula in investing its wealth to make the most of its founders’ determination to reduce inequity: identify problems; find solutions; measure the impact of the work in human terms “so that people can feel what saving a life means to the families affected”; and share the successes and failures “so that others learn from your efforts”.
We would recommend as a first step that all advisors work through Philanthropy UK’s Advisors’ Framework for Effective Giving. Also be aware of other sources of advice and support that you or your client may wish to call on.
Case study: helping a client to get started in philanthropy
One of our clients, a young entrepreneur, was introduced to the concept of charitable giving three years ago during a regular meeting with his trustees and a financial advisor. Besides the usual agenda, the philanthropy topic was raised by the trustees and set aside by the settlor with a disapproving smile.
