CHARITABLE PLANNING

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fa-mag . com / subscribe / newsletters . html wonder if they should pivot to a different focus area or change the amount of time they dedicate or the dollars they give . When this happens to your clients , encourage them to :

Reassess their philanthropy . How do they feel about their current and past giving ? Could they be making a bigger impact by doing things differently ? Are there trends , economic factors , advancements or technologies that have changed the landscape in their focus area ? Are there new needs and issues that have captured their attention ?

Take ( some ) risks . Complex social issues often call for bold solutions . Some charities might address the symptoms of a problem ( for instance , if there are not enough beds in a hospital ) while others focus on the root causes ( the contaminated drinking water that leads to higher hospitalization rates ). There are many ways to tackle an issue . When supporting untested , innovative ideas , there ’ s always a risk that those ideas might not have the desired outcome , but they might be transformational if they do .

Learn from their mistakes . Giving money away can be more difficult than it seems at first . So encourage your clients to be candid with themselves about whether their giving is actually helping the organizations they ’ re trying to support or saddling the recipients with too much responsibility .

Consider estate planning . Philanthropy is an excellent estate planning tool that can help create a multi-generational legacy of giving while shielding certain assets from estate taxes .

Philanthropy Builds Legacy

Clients who are further along on their philanthropic journey may be contemplating their legacy and how to cement it . They may be thinking about the next generation and leaving a heritage not only of dollars but of values , too . For clients in this advanced stage of giving , perhaps suggest they do the following :

Take on more visible roles at organizations . If they ’ re longtime , committed donors , they could assume a leadership role with the board of a nonprofit they support or serve as an ambassador for the causes they care about .

Become more effective philanthropists . Giving more isn ’ t always the answer for these clients , so consider helping them brainstorm other ways to support their causes . For instance , they could fund research to help deepen the understanding of an issue , increase public awareness and change policy to drive specific outcomes . They could also accept online grant proposals from new charities that meet specific conditions .

Pay it forward . They could share their giving expertise with younger and newer donors to help them get over the learning curve .

How do your clients feel about their current and past giving ? Could they be making a bigger impact by doing things differently ?

Measure their charitable impact . While your clients ’ grant terms and reports can confirm whether their donations are being used as intended , these reports don ’ t always answer the critical question : “ Am I making a difference ?” So you can help clients determine the criteria by which they measure their success and charitable impact .

According to research from Fidelity Charitable , 86 % of women wish they could be doing more to make a difference . This can be a huge opportunity for wealth advisors . By honing your expertise in charitable giving , you can connect with your clients in ways that reinforce their interests and align their assets with the social issues and global developments that matter to them most .

HANNAH SHAW GROVE is chief marketing officer of Foundation Source , the nation ’ s largest provider of technology , administration and expertise for private foundations and planned giving .

22 | FINANCIAL ADVISOR MAGAZINE | MARCH 2024 WWW . FA-MAG . COM