Engaging clients who show little interest in charitable giving can be challenging but ultimately rewarding. By understanding their motivations and addressing their concerns, financial advisors can initiate conversations that may lead to meaningful philanthropy.
How can you identify their motivations, address their concerns, and create meaningful conversations about philanthropy?
Start with these 10 tips:
1. Identify Potential Barriers
Clients who are not inclined to give may simply want to preserve their lifestyle. However, many lack a connection with charitable causes, worry about how their donations will be used, or fear ongoing solicitation. Recognizing these barriers is the first step toward initiating a productive dialogue.
2. Leverage Current Events
Global crises like pandemics, wars, and natural disasters often highlight the critical need for philanthropy. Use these events as conversation starters to tap into your client’s values and concerns.
3. Ask Thoughtful Questions
Engage your client with questions that prompt reflection on their life and values, such as:
- Which communities or causes have had a significant impact on your life, business, or family?
- Are there particular issues you’re passionate about addressing?
- Do you want to leave a legacy? If so, what would it look like?
- Have you named any charitable beneficiaries in your estate plan?
- Which family members or colleagues do you admire, and what causes do they support?
4. Address Client Concerns
Listen closely to your client’s specific concerns, such as asset preservation, family dynamics, or tax implications. Tailor your approach to ease these worries and show how charitable giving can complement their overall financial strategy. Help them understand how charitable goals can align with financial, legal, and tax planning.
5. Frame Giving as a Strategic Choice
Present charitable giving as an intentional decision between leaving assets to heirs, the government, or causes they care about. Emphasize the power of planned giving to achieve desired outcomes while minimizing unwanted consequences.
6. Introduce Charitable Options
Familiarize clients with flexible and straightforward giving options, like donor-advised funds (DAFs). These accounts offer a simple, effective way to manage charitable contributions while providing clients with control over their giving.
7. Offer Ongoing Support
Many clients worry about the complexity of charitable giving. Reassure them by offering practical support and introducing resources, such as philanthropic advisory firms or American Endowment Foundation (AEF), which can guide them through the process.
8. Highlight Client Control
Reinforce that clients have full autonomy to recommend grants and their purpose. Highlight the lasting impact they can make through strategic philanthropy and the flexibility available in the giving process.
9. Emphasize the Empowering Nature of Giving
Frame charitable giving as an empowering choice, where clients can decide to direct funds to causes they care about. This sense of control can motivate clients to explore philanthropy as part of their financial legacy.
10. Be Patient—Take It Slow
Philanthropic engagement often takes time. Rather than expecting immediate results, initiate ongoing, low-pressure conversations. Planting the seeds gradually can lead to meaningful, long-term engagement in charitable giving.
Even if a client is hesitant to donate at first, it doesn’t mean the conversation is over. With these tips, you could unlock a whole new aspect of their philanthropic potential. And if they’re considering donating to a DAF, reach out to AEF for more information.