Talking to Clients about Philanthropy: Now that you know the why, here’s the how.
15 August 2024We’ve learned from local professional advisors that starting philanthropic conversations can sometimes be challenging.
September, being Wills Month, highlights the need for these discussions. With 40% of Kiwis lacking a Will, addressing end-of-life planning—though uncomfortable—is essential. These conversations help ensure that both loved ones and community causes are cared for.
With the largest wealth transfer in history currently underway, discussions about philanthropy have never been more timely or significant. New Zealand’s strong tradition of generosity suggests a significant portion of this wealth will support charitable causes. As a professional advisor, you’re uniquely positioned to help clients incorporate philanthropy into their plans.
Tim Coleman from Connect Legal Taranaki captures this well: “Philanthropy often arises naturally in conversations I have with clients. Many have a generous desire to give back but are unsure where to start. In Taranaki, where people appreciate the benefits they’ve received from living in our community, discussing ways to give back to Taranaki based charities is often well-received.”
Practical Steps for Effective Conversations
1. Understand Their Values and Interests
Start by exploring what matters most to your clients. Ask questions like, “What causes are you passionate about?” or “Have you been involved in any volunteering?” Understanding their interests lays the groundwork for a meaningful discussion on how they might like to give back.
2. Introduce Philanthropy Naturally
Philanthropy often emerges during estate planning discussions. Many clients have charitable goals but need guidance on how to proceed. Use these moments to present charitable options and guide them through the process.
3. Why the Conversation Matters
Statistics show that about 20% of people making a Will choose to give to charity without prompting. However, if asked, about 70% are inclines to include charitable gifts.
Bruce Carter’s Story
Bruce Carter’s experience highlights the impact of thoughtful philanthropic planning. During a meeting with his accountant, Steve Waite, Bruce learned about the Taranaki Foundation’s giving model and he has been giving to support local causes since 2021 and leave a personal legacy for the future. “I really like the idea of an endowment fund that is invested and will keep giving. It’s the best way to support my causes long-term,” says Bruce.
Steve Waite, from BDO Taranaki adds, “The Taranaki Foundation is a valuable partner for clients with charitable intentions but uncertainty about their options. Community Foundations offer excellent solutions for clients who want to give back effectively and confidently.”
Practical Tips for Effective Conversations
Encourage clients to think about philanthropy with simple prompts like:
• “Many clients like to leave money to a charity in their will; are there causes you are passionate about?”
• “How would you like to be remembered?”
• “What changes would you like to see in the world?”
• “Have you been involved in any volunteering for a cause you care about?”
• “Did you know there are multiple ways to give through a gift in your will?”
• “Did you know you can set up your own fund to give back to a cause long-term without needing a separate trust?”
By initiating meaningful conversations and offering clear guidance, you help clients include charitable goals in their estate plans, ensuring their legacy supports local causes for generations.
What strategies do you use to encourage clients to think about philanthropy? Please share with us!
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