Charitable giving is a powerful way to encourage clients to include families in their charitable planning.
While financial advisors often wonder if charitable giving is too personal a matter to discuss with clients, it’s something that clients want and need to discuss with their financial advisors. After all, charitable giving can play a big part in an overall financial portfolio.
As the year-end approaches and your clients begin to celebrate with their families, financial advisors can center the charitable conversation around sharing philanthropy with family during the holidays to create a legacy of giving.
A meaningful way for clients to include their family
While families work their way through delicious meals and light-hearted conversations, the topic of philanthropy is a great way to cultivate a spirit of generosity and instill financial responsibility in all generations. It’s also a way for families to bond over shared values and beliefs as they learn what motivates each other to support different causes.
It probably comes as no surprise that the experiences and characteristics of each generation influence the charitable causes they consider meaningful and important. Finding opportunities to share differing views about giving and volunteering, allows families to better understand each other and maybe even discover where their passions merge. And what better legacy can one generation leave for the next than to inspire an authentic desire to give back and make the world a better place?
Choosing causes to support as a family can also be a fun and unique way to spend time together. The Tuesday after Thanksgiving is GivingTuesday – a day created for the entire world to celebrate giving. That makes Thanksgiving the perfect time to collaborate as a family about which causes to support together. And support isn’t limited to monetary gifts – it includes volunteering and speaking up for the causes everyone cares about.
Balance the technical and personal benefits of giving
Of course, it’s important for advisors to discuss the technical benefits and details of charitable giving, but real connections are built when advisors open the door for clients to talk about their passions and goals. Discussions that center on the personal side of philanthropy offer clients the chance to share about the things that are deeply important to them. These discussions can build more meaningful relationships between an advisor and their client.
Talking about ways to involve their families in giving can open the door to deeper discussions. Here are some ideas advisors can share with clients that engage families in charitable activities together:
- Support a cause in honor of a family member – a gift of money or time.
- Choose favorite organizations to volunteer at together throughout the coming year.
- Talk about organizations and causes that are important to each other.
- Offer a holiday gift of a “charitable grant” to go toward a family member’s favorite charity.
- Use charitable giving as segue to discuss financial responsibility.
- Talk about how important it is to do our part to help others and improve our community.
- Discuss which organizations the family would like to donate to as a group – a donor-advised fund may be a great vehicle for clients to include their families in giving, and it’s flexible and easy enough to make a tradition out of holiday giving.
The number of ways charitable giving brings families together is endless.
Over 30% of charitable donations are given in the month of December – by far it’s the most generous time of year. Whether that’s due to the holiday spirit, tax benefits, the excitement of #GivingTuesday, or all the above, there’s no doubt that this is a great time of year to talk to your clients about the best ways to support their favorite charitable causes.
Learn more about donor-advised funds to see if this is the right fit for your clients. If you have any questions, contact us. We’re happy to help with any of your charitable giving needs.
