Asset Aquisition Ideas from the Top Advisors in the Country - Part 3Submitted by American Endowment Foundation on August 14th, 2017
By Susan Kay, VP-Business Development, MFS Advisors, Guest Columnist
I have had the pleasure of meeting and learning from some of the brightest and most successful financial advisors in the country. Let me share one of the efforts that I learned on how these successful advisors have used the power of charity to grow their business.
Board Member Education: Cash vs. Appreciated Assets
Board members of a charity are united in support of the organization that they serve and the responsibility that they share in fundraising.
However, in most cases, these donations/fundraising are being made in cash. Why cash? Because most people do not realize that there are alternative -- often smarter -- ways to donate appreciated assets toward their favorite charitable causes instead of sending in a check.
This is an opportunity that some top advisors have benefitted from: the ability to attend a meeting and educate board members about the value of cash donations vs. appreciated assets. Sharing these insights not only help educate the board members themselves in their personal giving, but allows them to think about how their charity can position itself better for gaining appreciated assets from donors instead of only a focus on getting cash. A useful article on better understanding noncash assets for charitable giving is available here .
One advisor that I met recently took this idea and expanded on it. Her name is Mary, and she has been in business over 20 years. She shared with me how over an 18 month span she pulled in over $30 million in AUM from this approach! Her approach: she knows which of her clients sit on which charitable boards. She reaches out to them and says, “Most people who give don’t actually know how to give. I’d be happy to host your board and the top 10-15 donors of your organization to a luncheon and teach them the best way to consider giving.”
Furthermore, she goes over the following: “Which are the best assets to give, whether it is cash, appreciated stock, a position in a business, or some other asset type. Secondarily, which contributory vehicles are the best to use? Private foundations, charitable trusts, donor advised funds and other options.”
She shared with me that she has been able to consistently be put in front of 9 to 15 HNW individuals at luncheons like this! This effort has proven successful for her because she knows that donors want to know how to be circumspect about their financial decisions around giving. Many HNW donors have a desire for some simple coaching.
By utilizing a great idea like the one I featured here, you too can build your book to levels you might have never imagined before. Good luck!
At American Endowment Foundation, we look forward to discussing how DAFs can play a role in building your AUM. Contact us or call at 1-888-660-4508 to learn more.
Learn more great tips from Susan Kay: