When the time is right, the Jewish Community Foundation is ready to help your clients develop their philanthropic plan. With expert advice, our philanthropic advisors are here to make it easy for them to manage all of their philanthropy in one place. As their advisors, having a philanthropic conversation with them is key. Here are a few reasons why:
Why Having The Philanthropic Conversation With Your Clients Is Key?
- With over 91% of Canadians (amounting to over $4.9 billion), making donations to various causes annually, charitable giving is becoming an increasingly important part of your clients’ overall financial and estate plans.
- Taking a proactive approach that speaks to your clients’ values to include charitable interests, builds deeper and richer relationships that enhance client loyalty and strengthen the service provided to clients.
- The JCF understands the importance of catering to your clients’ interests and values, and is here to help guide you in your quest to have the Philanthropic Conversation.
91% of advisors report they are having philanthropic conversations with many of their clients. The study revealed, however, that only 13% of the clients reported having meaningful conversations with their advisors.
When Should You Have The Philanthropic Conversation?
As you know, timing is everything. That is why it is crucial that you know when is the right time to have a philanthropic discussion with your client. While some may perceive this type of conversation as uncomfortable, rest assured that it is a waiting opportunity for advisors such as you. In fact, studies have shown that clients not only welcome this type of conversation, but they also appreciate the advice.
Here are some of the times when it might be appropriate to discuss charitable giving with your client:
- Discussing their estate plan
- Year-end tax planning
- Writing or revising a will
- Planning for the sale of a business or other major asset
- Preparing a retirement plan
What Is The Main Driving Force That Motivates Giving?
Over the years, the Canadian Association of Gift Planning (CAGP) study has looked at giving behaviours of High Net Worth Individuals (HNW), their inspirations and barriers to giving, the nature of the conversation, and the benefits to both the financial advisor and the client of having those conversations.
One of the pieces of information from these findings that stuck out the most is that one of the central motivations of giving is wanting to have an impact on their world, either on a local or international level. Donors that are passionate about a cause will want to support it. Many want to support the community where they have lived and prospered. Others have a specific connection, whether it is a religious affiliation or a personal experience for themselves or a loved one.
What is surprising to most advisors is that low on the list of motivations is the motivation for tax savings. This reason affects the type or timing of the gift but is not a primary motivation for making the actual gift.
This type of discrepancy is not unusual, and may be related to the depth of the conversation rather than the conversation itself. HNW donors prefer discussions that encompass their giving values, as well as learn more about the giving vehicles, and how to develop a tactical plan to manage their wealth to look after themselves and their families while also supporting the community. The key is a balanced discussion, taking into account the client’s values as part of the overall financial plan.
Source: Canadian Association of Gift Planners
The JCF is part of your team
- Working with you to develop a philanthropic plan that works with your client’s priorities.
- Re-engaging your client with you – helping to protect and strengthen your client relationships.
- Exploring philanthropy personally. Take a moment to discuss with us your personal philanthropic goals and desires. This experience will help when you are dealing with your clients.
Resource for learning and expert advise
- Providing family philanthropic structures and questionnaires to pursue philanthropic planning.
- Consulting advisors on how to have fruitful philanthropic conversations with their clients while providing ideas, calculations, gift plans, and contracts for follow-up action.
- Sharing information with advisors at an annual professional development seminar (PAC) or by providing expert seminars on request at their firms.
- Strategic donor-centered charitable gift planning that balances family, personal and tax considerations.