Want Happy Clients? Talk about Charitable Giving

Whether or not it is a “chicken or egg” situation, it’s hard to dispute that philanthropy offers both emotional and rational upsides for you, and for your clients. Advisors who lean into the benefits of giving stand a strong chance of being viewed by their clients as effective, impactful, and delivering well-rounded services to improve clients’ lives and providing peace of mind.  

Research also shows that clients who receive charitable planning are more loyal and likely to recommend their advisor and consider their advisor a multigenerational resource compared to those who don’t.  

For your clients, a recent Wall Street Journal article sheds light on the ways charitable giving can have positive effects on a donor’s mental and physical health, including:    

• Improved mood, lower blood pressure, and potentially a longer life.
• The act of giving may trigger a release of serotonin and dopamine, hormones associated with happiness, while reducing cortisol levels.

Despite these advantages, many advisors report limited confidence in discussing philanthropy with clients. A survey from Charities Aid Foundation found that only 5% of advisors felt "very confident" in this area, and 72% do not include philanthropy in their initial fact-finding conversation with clients. This gap represents a significant opportunity for advisors to enhance their services and strengthen client relationships through philanthropic discussions.  

Of course, not every client will have the same experience with charitable giving, and charitable giving is above all primarily motivated by a client’s desire to help others. Still, it’s important to be aware of the unique role charitable giving can play in a client’s life.

Not sure how to start the conversation? Try this: “Okay! Now that we’ve looked at your retirement projections, beneficiary designations, and portfolio allocation, let’s check in on charitable giving. Bring me up to speed on your involvement with community organizations.”  Then, let them talk — and help make them happy!

The Community Foundation is here for you! Please reach out anytime you are working with a client who is charitably inclined. Our highly trained, professional staff can help navigate the complexities, as well as guide your clients to the nonprofits that match their charitable goals