CHARITABLE PLANNING

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How can advisors offer such guidance ? For starters , they can be well-versed in the various types of charitable giving vehicles — from private foundations and donor-advised funds to planned gifts and charitable remainder trusts — so they can help clients realize that giving can be far more impactful than making typical year-end donations to charities . Additionally , advisors can encourage clients to determine a charitable focus , one that aligns with their interests and values , so their giving is strategically directed to effect the change they most care about .

Furthermore , advisors can discuss the merits of hands-on philanthropy , in which clients can do things such as volunteer or work for a nonprofit , run their own charitable activities ( for example , tutoring programs for children in need ), or start a business with a mission of sustainability . It ’ s also helpful for advisors to build a network of specialists to tap into that offers clients education and more indepth guidance .

By helping next-gen clients adhere to their impact-driven value system and effect positive change with their financial decisions , advisors can connect with them on a deeper level and be better equipped to support them .

Technology : Expanding Fintech To Philtech

Given the next generation ’ s propensity toward creating impact , advisors need to expand their suite of tech-based tools to ensure they ’ re able to assist clients with impact and philanthropic matters in the same way they help them with the core components of planning such as investing , retirement , banking , taxes and estate planning .

Regardless of which formal giving vehicles clients choose , financial advisors can use technology in a way that helps them more actively partner with their clients to drive impact and offer them turnkey services that help them implement their visions with efficiency and ease .

Fortunately , new philanthropic technology , called “ philtech ,” can help advisors support experienced donors as well as clients who are new to giving . There is an array of software , platforms and mobile apps that can facilitate activities as simple as making a gift or opening a charitable vehicle as well as complex and sophisticated giving strategies that entail research , grant proposals and impact measurement .

So now it ’ s a matter of using these tools so they become part of the same process

A new philanthropic technology , called “ philtech ,” can help advisors support experienced donors as well as clients who are new to giving . that ’ s used to manage the other key aspects of a client ’ s wealth . Ideally , advisors should be able to look at a client ’ s complete financial picture on their portal or dashboard and help with charitable assets and transactions the same way they do with , say , a client ’ s retirement accounts . Likewise , clients should have access to the technology as well — to conduct their own research , view their accounts and initiate impromptu gifts — so that all parties in the relationship can work together and do it more effectively .

This adoption and integration won ’ t occur overnight , but we are on the way to elevating philanthropy to the same level as investing and retirement planning in the wealth management landscape , and we are right on time for the largest-ever transfer of wealth to the generations who are embracing giving as a way to create lasting and meaningful impact .

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

26 | FINANCIAL ADVISOR MAGAZINE | MAY 2024 WWW . FA-MAG . COM