CHARITABLE PLANNING

Gillian Howell

As women command more wealth , they ’ ll likely want to make a charitable impact with it .

N JUST FIVE MORE YEARS , ACCORDING TO MCKINSEY & CO ., WOMEN will control two-thirds of all U . S . wealth . This is happening for a couple of reasons : On one hand , their earning power in the workforce is increasing . On the other , they ’ re expected to live longer than men .

Now consider that multiple studies find women are more likely than men to care about making positive social impact . For instance , in a study by the Women ’ s Philanthropy Institute at the Lilly Family School of Philanthropy , 51 % of single women indicated that they would give to charity , while only 41 % of single men said the same thing . Additionally , take into account that , according to various sources , many women fire their wealth managers when their spouses die — a sign the advisory industry has not yet adequately addressed their needs .

Given women ’ s growing financial power , this is the time for advisors to take a look at their own charitable giving expertise . As women are socially conscious , that will play a part in how they create wealth , manage it and transfer it to the next generation . So financial advisors who are well-versed in charitable giving strategies will be best positioned to help these women achieve their financial and philanthropic goals .

Doing so will be lucrative for them , too : David Gillespie and Jessica Clempner at consulting firm Oliver Wyman write in a World Economic Forum blog that there ’ s a $ 700 billion revenue opportunity for those financial services companies that effectively support women as customers ( that number takes into account $ 500 million in new insurance premiums that could be written , while the rest is a combination of fees from loans and asset management and revenue captured from competitors ).

As women are socially conscious , that will play a part in how they create wealth , manage it and transfer it to the next generation .

Meet The Wealthy Female Philanthropist

Let ’ s first look at who we ’ re serving . Who is the typical wealthy woman focused on charitable giving ? For starters , she cares about giving back . Research from Fidelity Charitable says 86 % of women wish they could be doing more to make a difference . Among ultra-high-networth women , one in six say that philanthropy is their top priority .

Women have a unique giving style as well , one quite different from that of men , according to the Women ’ s Philanthropy Institute . Women give more as a percentage of assets and to a broader range of causes , and they provide more hands-on help by donating their time and expertise in addition to monetary support . It ’ s critical that advisors note and respect these differences in female givers and offer tailored guidance accordingly to retain and deepen relationships with them .

The woman philanthropist is also a leader . At Foundation Source , we ’ ve observed the rise of women ’ s giving power . Since 2019 , we ’ ve seen a 32 % increase in women taking on leadership roles within private foundations , as well as a 76 % increase in dollars granted by women .

Organized Philanthropy Gains Popularity

We ’ ve also seen our clients increasingly use multiple charitable giving vehicles to drive impact and meet their philanthropic goals . That means it ’ s important for you to build your knowledge of donor-advised

22 | FINANCIAL ADVISOR MAGAZINE | MARCH 2025 WWW . FA-MAG . COM