A
joint U.S. trust study by The Philanthropic Initiative and the Bank of America
has shown several discrepancies between the ways in which high net-worth (HNW)
individuals and their professional advisors view philanthropic goals,
motivations and conversations. Using a sample of 312 advisors and 119 HNW
individuals, some of the key findings of the study which could be especially
relevant to family enterprise advisors are as follows:
• there
are several disconnects between HNW individuals and advisors centering on the initiation
and substance of philanthropic conversations
• philanthropy
today is a pivotal consideration that should take place at the front end of the
wealth structuring process
• only 55
per cent of HNW individuals say they discuss philanthropy with a professional
advisor
• 51 per
cent of HNW individuals say they are typically the one to initiate the
conversation on philanthropy
• what
matters more to HNW individuals than who initiates the conversation is the
discussion be held in a meaningful way early in the relationship
• 34 per
cent of HNW individuals feel the topic should be raised during their very first
meeting and 90 per cent agree it should occur within the first several meetings
• 63 per
cent of HNW individuals report that ensuing discussions about charitable giving
centers on more technical issues and 27 per cent say the discussions center on
their goals, values and interests
• the
study illustrates several ways in which HNW individuals and their advisors’
views differ, including the reasons why HNW individuals don’t give or are
reluctant to give
• the vast
majority (71 per cent) give strategically and have a plan for their giving
• 31 per
cent say they would be more likely to choose an advisor who is knowledgeable
about charitable giving
• 75 per
cent of advisors find discussing philanthropy is an excellent way to deepen
relationship and establish new relationships
• 40 per
cent of HNW individuals report that discussing philanthropy with an advisor has
deepened their relationship
“While many HNW individuals rely
on the technical expertise of their advisors in this area, they are also
seeking conversations that are deeply meaningful on a personal level,” said Jim
Coutre, a partner with The Philanthropic Initiative, a collaborator in the
study.
To
read the full study, go to http://newsroom.bankofamerica.com/press-releases/global-wealth-and-investment-management/us-trust-study-reveals-disconnects-philanthro
To
read a related post from FFI’s Practitioner, go to http://ffipractitioner.org/2013/11/05/philanthropy-advisors-and-their-clients-are-they-on-the-same-page/
What is your
experience with philanthropic conversations with your clients?
Would you say that
your HNW clients would agree with these results?