For Professional Advisors
More than 80% of Canadians contribute to charity on an annual basis, so charitable giving is becoming an increasingly important part of your clients’ overall financial plans. With more than 80 years of charitable experience, community foundations can help you build a stronger relationship with your client and make a difference in your community at the same time.
Research shows that only 7% of Canadians would leave money to charity in their will, in the absence of a specific discussion around charitable giving. However, if the issue is raised with them, perhaps when drawing up a will or financial plan, the figure rises to 27% – more than a three-fold increase.
Community Foundations of Canada has good online resources (https://www.communityfoundations.ca/wp-content/uploads/2019/04/Professional-advisors-eResource.pdf) for professional advisors who want to include philanthropy in their work with clients.
Ten Reasons to Talk About Philanthropy with Clients (adapted from CFC resources)
- Proper tax and estate planning helps clients reduce taxes and protect their wealth.
- Clients feel advisors who incorporate philanthropy in planning have a more holistic strategic approach.
- Discussing giving priorities and tax needs leads to a better understanding and relationship with clients.
- Being known as an advisor who understands philanthropy increases your credibility and reputation.
- Advisors who ask about giving priorities are seen as having deeper connection with clients.
- As fundraising becomes more common in all charities and clients feel more pressure to give, advisors are seen as neutral partners and create a safe space for clients to discuss their goals.
- In a client world obsessed with fees, an advisor who includes the philanthropic conversation is seen as less about cost and more about client benefit.
- Advisors who talk about philanthropy and give and volunteer themselves are a much more attractive choice to prospective clients.
- Advisors who incorporate philanthropy in their practice have clients bring more assets into their book of business as a result.
- As charities raise their level of sophistication in fundraising, they need expert advisors to help their donors complete gifts of capital and estates. Advisors who are seen as philanthropic partners are more likely to be referred to high net worth donors.