Learning a new planned giving skill set requires commitment while raising a number of questions – Why am I doing this? Will I make money? Does it fit my business model?
Whether you’re an attorney, a CPA, a financial advisor or an insurance agent, there are at least 9 compelling reasons to embark on this journey and add charitable planning to your expertise.
The wealthy want advisors to have the conversation with them
31% of the HNW indicated they would switch advisors if they could identify one they can discuss their philanthropy with.
You’ll attract wealthier clients
They give more and have more to give. In fact, 92% give regularly compared with about 65% of the general population. This translates well for your own financial success.
It rounds out your qualifications
If you do any type of estate or income tax planning, it seems impossible not to have the philanthropic tools at your disposal. I’m not sure I’d call it malpractice not to know them, but if you are trying to be the best planner your clients can get, you can’t leave this gaping hole in your abilities.
It will differentiate you from your competitors
If no one else is in your community has these skills, you automatically stand apart from other advisors. Being the only game in town is an unfair competitive advantage.
You’ll see things other advisors don’t and solve problems other advisors can’t
This will open more doors and certainly produce more referrals, both from clients and from other professionals.
You’re no longer perceived as a rival
If you’re the “go to” philanthropic planner, it’ll open ample opportunities to collaborate with other professionals on client matters. Carving that kind of niche keeps you out of the everyday ‘dog eat dog’ fray of your profession – like being an open-heart surgeon in a hospital full of general practitioners.
You’ll have sticky clients
When you deal with clients at their “values” level you’ll build truly deep and lasting bonds, especially since many charitable strategies are multi-generational. Your success will not be dependent on last quarter’s portfolio return, but rather on your ability to deploy tools that fulfill your clients’ goals and dreams for their family and their place in the world.
It’s good for the community and for society
While the usual corporate mission may not include making the world a better place, it should. Living with integrity and improving the lives of others can’t be considered anything but good.
And you’ll make more money
Many charitable vehicles are established in order to avoid capital gains tax. This means you end up with 100% of the original capital to invest and possibly manage for generations. And when assets are given to charity donors and replaced with life insurance, the life insurance can be paid for with the charitable income tax savings. Attorneys get to draft and review much more complex documents – all good for business.