Content adapted from http://www.philanthropyUK.org
Myth 1: My clients aren´t interested in philanthropy or giving.
The Truth: Maybe they are! In the last 10 years interest in philanthropy and giving has increased dramatically at all income levels. According to Francois Debiesse, head of Private Banking at BNP Paribas, “Philanthropy advising is become a requirement, because our clients are asking for it with increasing frequency.”
If you don´t ask…. you´ll never know!
Myth 2: My clients don´t want any outside advice on their giving.
The Truth: Today sophisticated clients realize that it´s not that easy to make a donation that is effective and harder still to create a charitable legacy that is meaningful. The world of philanthropy is increasingly complex. There are new options for giving (social enterprises, mission related investment funds, social impact bonds, venture philanthropy, etc. ) and few people know them all well. In a study by Scorpio Partnership, 90% of Ultra High Net Wealth family members and Family Office Directors identified the need for greater access to experienced professionals to guide their donations and social investments and reported that their current financial advisers were not able to meet that need.
Myth 3: My clients don´t want me to stick my nose in.
The Truth: You´re already talking about many things that are quite personal and potentially sensitive. You can talk with your clients about their passion and their concerns for the world in the same way, with total discretion and great respect for their values. In fact, these types of intimate discussions usually broaden and strengthen your relationship with your client. They can even lead to very productive discussions about involving the next generation, stewardship and children or grandchildren’s readiness to play a larger role in family decision-making.
Myth 4: Talking about philanthropy won´t do anything for my bottom line
The Truth: There are many ultra high net worth families who already pay for the administration of their foundations and the management of the financial assets held by those foundations. Scorpio Partners predicts that in Europe philanthropy advising will become “core to wealth advisers´ offerings” by 2013, whether firms offer these services in-house or contract with specialized partners. This is already commonplace in the US. Offering your clients access to consultants who are specialized in philanthropy will make it easier for you to stay involved in this aspect of the family´s wealth planning and management.