96% percent of advisors say bringing up philanthropy is part of the job. 80% of clients agree. Yet only 45% of advisors are having that conversation with most of their clients.
Why the gap? 58% of advisors worry their clients could question their motives if they bring up the topic. Another 40% say philanthropy feels too personal to comfortably discuss. That suggests the issue is not a lack of willingness. Opening the door may simply feel riskier than it should.
These findings and the stats below are from a recent study of 300 professional advisors and more than 100 HNW donors. The research was conducted by The Philanthropic Initiative, co-sponsored by DAFgiving360 and Foundation Source, with support from The Boston Foundation.
We’ve spent a lot of time in these conversations and they generally fall into a pattern we’ll call… Conversation, Strategy, Structure, Implementation, and Stewardship.
When a stage is skipped, the process can stall. Sometimes it’s stalled for a while. In other cases, it goes unfinished until it’s too late to ask the donor what they truly intended.
In fact, a prospective client reached out to us last week to say “intransigent” family members were making it impossible to determine how to best run their foundation after the dad passed without setting up strong governance, financial direction, and an aligned mission in place.
We’re hoping for the opportunity to turn that challenge into a positive case study…
The Conversation
80% of clients believe it is the advisor’s responsibility to raise philanthropy. That’s encouraging because it means most clients are ready for the discussion. But the numbers at the beginning of this article imply there is some hesitation. Whether it’s a philanthropic advisor or a financial advisor, posing thoughtful questions to a client about values, family, legacy, or charitable interests can open the door to a broader philanthropic planning relationship.
The Strategy
There is an interesting mismatch between what advisors believe motivates giving and what clients say motivates them.
40% of advisors think clients give mainly for the tax benefit. Only 21% of clients say that is true for them. Many give because it feels meaningful, because they want to make an impact, or because charity is important to them.
For extra credit: Read Stanford Social Innovation Review’s “The Thirteen Intentions of Philanthropy” which offers a richer way to understand why donors give and how different definitions of impact can shape their approach to philanthropy.
Tax planning matters, but it’s usually one chapter in the story, and often a smaller one than advisors may expect. A good philanthropic strategy begins with what the client wants to accomplish, who they want to involve, and how they define success.
The Structure
78% percent of clients already use some type of structured giving vehicle, such as a donor-advised fund, charitable trust, or private foundation.
At the same time, 38% have encountered questions that went beyond what their advisor could answer, and 80% of those clients wanted a specialist brought in, someone who can distinguish how each vehicle can uniquely affect the impact and outcomes of their philanthropy.
The Implementation
Close to 50% of advisors would prefer to set up structures and strategies themselves rather than refer it out, which is understandable. We all value efficiency. But this is also where momentum can slow. The vehicle can get created before the donor has a clear sense of how to drive it.
The fund, trust, or foundation may exist on paper, but the family can be left wondering what it will actually take to turn good intentions into meaningful action.
A well-designed structure is important, but it often needs an expert to turn it into sustainable impact.
Stewardship
Only 27% of clients say their advisor has helped bring the next generation into the conversation, while 35% say they would welcome that support.
Philanthropy is not something a family sets up once and then leaves alone. Families change. Interests shift. Children and grandchildren may have different priorities or expectations.
This is the stage where families often need steady support over time. That can mean bringing the next generation into the conversation, revisiting governance, clarifying roles, planning for succession, or simply making sure the giving still reflects what the family cares about.
Going Forward
Many advisors handle one or more of these stages well. The challenge is making sure the work keeps moving from one stage to the next, so the energy and intention at the beginning do not fade over time.
The question is simple: what do donors need to keep their philanthropy sustainable after the first conversation?
Most clients don’t need one advisor to do everything. They need the right people around the table at the right time. Working together, financial advisors, attorneys, accountants, trustees, and philanthropic advisors can help shared clients feel understood, supported, and better prepared to carry their charitable intentions forward.