CHARITABLE PLANNING

Stephen Kump

Charitable giving know-how can set your firm apart . Why are advisors uncomfortable talking about it ?

HILE LISTENING TO CHIP ROAME ’ S KEYNOTE presentation on trends in wealth management at the Tiburon Summit , I was struck when he mentioned two of the top fastest-growing “ service areas ” in 2024 — estate planning and charitable giving ( specifically private foundations and donor-advised funds ).

It was striking because these growth areas suggest many wealth management clients want answers to deeper questions . They want to know their life stories will mean something to other people , and they want their money to work toward that end . Rather than a feelgood extra , meaningful philanthropy is becoming a more essential endeavor for wealthy clients .

Millennials and Gen Z are in part responsible for this trend because social impact , sustainability and market ethics are priorities for them . Simultaneously , as baby boomers grow older and Gen Xers near the traditional retirement age , these cohorts are putting more thought into what their legacy will look like beyond dollar signs . According to research by U . S . Trust , more than 90 % of high-net-worth wealth management clients want philanthropy to come up in the first few conversations with their advisors . Whether they ’ re interested in maximizing their tax benefits or crafting a long-term giving plan , people want access to help that marries practical financial smarts with their personal values .

This means philanthropy is a significant way for you to add value to your service offering . With that in mind , here are three ways that leaning into giving will take your practice to the next level in 2025 .

Rather than a feel-good extra , meaningful philanthropy is becoming a more essential endeavor for wealthy clients .

Deepen Your Client Relationships

When you ask a client about their charitable interests , you ’ re inviting them to share their personal stories , family traditions and the pivotal moments that have shaped their lives . Perhaps they support medical research after they faced a family health crisis or they remain passionate about education because a scholarship changed their life ’ s trajectory .

These discussions will go far beyond portfolio returns and help you forge emotional connections and trust . Such talks also redefine the measure of your clients ’ success : Instead of focusing solely on growing their assets or increasing their liquidity , you ’ ll help them get to deeper motivations — and that will help you create a more enduring , loyalty-driven relationship .

When clients feel their advisors truly understand them , they ’ re more likely to remain loyal , refer friends and entrust more assets . You ’ ll also strengthen bonds in a way that makes you a client ’ s go-to counsel for major life decisions . That can turn you over time into a resource for the client ’ s entire family as well , meaning you can serve multiple generations .

Launch New Philanthropic Tools

In the past it was a cumbersome process to create philanthropic vehicles such as foundations or donor-advised funds . It required paperwork , a lengthy administrative process , and coordination with multiple entities . Today , technology has emerged that can automate much of the paperwork and streamline much of the process .

Some tech-driven philanthropy tools can even be branded under your firm ’ s banner , which can further elevate your

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