- “The top three reasons why advisors believe their HNW clients engage in charitable giving are consistent with the top motivations reported by HNW individuals themselves, which are: being passionate about a cause, having a strong desire to give back, and having a positive impact on society and the world. After that, however, reasons provided by HNW individuals and advisors differ significantly:
- The next three most cited reasons by HNW individuals were: to encourage charitable giving by the next generation (30%), religious or spiritual motivations (23%), and because they believe giving back is an obligation of wealth (22%). Meanwhile, advisors believed their clients’ next most popular motivations would include: reducing their tax burden (46%), religious or spiritual reasons (41%), and creating a family legacy (30%). The study found that, in fact, just 10% of HNW individuals cite reducing taxes among their motivations for giving.
- Further evidence of a disconnect on the topic of taxes was found when advisors cited a belief that 40% of HNW individuals would reduce their giving if the estate tax were eliminated, and that 78% would do so if income tax deductions for donations were eliminated — whereas just 6% and 45% of HNW individuals, respectively, indicated that they would reduce their charitable giving if these tax policy changes occurred.”
- THE U.S. TRUST STUDY OF THE PHILANTHROPIC CONVERSATION: Understanding advisor approaches and client expectations OCTOBER 2013 Conducted in partnership with The Philanthropic Initiative (TPI)
- “Nearly one-third of HNW individuals (31%) indicate that they would be more likely to choose an advisor who is knowledgeable about charitable giving. More than half of advisors (57%) plan to increase their knowledge about philanthropy and to better their ability to advise clients about charitable giving. • Among advisors interested in becoming more proficient at rendering philanthropic advice, the areas they would most like to learn about are: developing a strategic giving plan (55%); understanding more about giving vehicles (50%); becoming better at integrating a client’s philanthropic values and goals into an overarching wealth management plan (46%); engaging the next generation in giving (45%), and the role that impacts investing (or Socially Responsible Investing) plays in their clients’ philanthropic pursuits (38%).”THE U.S. TRUST STUDY OF THE PHILANTHROPIC CONVERSATION: Understanding advisor approaches and client expectations OCTOBER 2013 Conducted in partnership with The Philanthropic Initiative (TPI)
- “Three out of four (74%) advisors say that discussing philanthropy with clients is good for their business for a variety of reasons, including that it: presents a more comprehensive and holistic approach to managing a client’s wealth (24%); demonstrates greater interest in their clients’ charitable goals and aspirations (18%); shows clients that they are interested in more than just their clients’ money (13%), and provides insights that help advisors better serve their clients (13%). Many advisors (75%) find discussing philanthropy with clients to be an excellent way to deepen relationships and establish new relationships (54%). Many HNW individuals (40%) agree that discussing philanthropy with an advisor has, in fact, deepened their relationship. More than half of advisors (56%) have also found that discussing philanthropy with clients has helped them build relationships with members of the client’s extended family – this proved most true among wealth/ financial advisors (64%).” THE U.S. TRUST STUDY OF THE PHILANTHROPIC CONVERSATION: Understanding advisor approaches and client expectations OCTOBER 2013 Conducted in partnership with The Philanthropic Initiative (TPI)
- Further evidence of a disconnect on the topic of taxes was found when advisors cited a belief that 40% of HNW individuals would reduce their giving if the estate tax were eliminated, and that 78% would do so if income tax deductions for donations were eliminated — whereas just 6% and 45% of HNW individuals, respectively, indicated that they would reduce their charitable giving if these tax policy changes occurred.”
- THE U.S. TRUST STUDY OF THE PHILANTHROPIC CONVERSATION: Understanding advisor approaches and client expectations OCTOBER 2013 Conducted in partnership with The Philanthropic Initiative (TPI)