Financial Planners + Philanthropy Advisers = In This Together
5 min read
I am not a financial planner but over my ten years working as a philanthropy adviser, I have come to realise we have much in common. We both want the best outcomes for our clients. We share skills in listening, educating, advising, and guiding. We both go beyond the money to get to the heart of the matter: what is your money for? what do you want from life? what brings you purpose and meaning?
What does a philanthropy adviser actually do?
My clients are wealthy individuals and families who want to start or increase their giving. My role is to guide them from intention to action. This involves exploring their motivations and aspirations, discovering what they want to support, and how. This is not a straightforward process as philanthropy brings many choices. For example, how much to give? will you give in your lifetime or over generations to come? The possibilities are overwhelming: do you want to focus on young people, or the environment, or poverty, or housing, or the arts, or …. I help my clients work out the best way to use their strengths, interests, and resources to contribute to society. This is not just the case of supporting a client with whatever they want, my role is also to bring information, ideas, and challenge to both stretch their thinking and also to ensure that their giving is effective and done in a way that respects non-profits and the communities they serve.
How financial planners help
For something that should make us feel good and that helps others, there are a lot of negative emotions when it comes to philanthropy. Most people in the UK don’t like to talk about their giving. They worry about getting asked for money all the time. They feel guilty about not doing enough. They feel dissatisfied when they are not sure what difference a gift made. Very few people are aware that Philanthropy Advice is a profession and that they can get help with their giving. The strangeness of this was highlighted in a recent report from Pro Bono Economics in which it’s pointed out that:
As a form of investment, philanthropy is a bizarre outlier. People rarely invest tens of thousands of pounds in a house, a car, stocks or bonds, without expert advice, support and information. Yet they are left to invest similar sums in organisations tackling cancer, poverty or climate change, often without any equivalent support.
Nicole Sykes, Ragged patchwork: The need to overcome the philanthropy knowledge gulf
Pro Bono Economics, November 2023, page 3
Those working in financial services also lack awareness of the help on offer and are reluctant to raise the topic of philanthropy (Advising the giving generation CAF 2023), even though their clients want them to (The US Trust Study of the Philanthropic Conversation: Understanding Advisor Approaches & Client Expectations 2018).
I am on a mission to raise awareness of philanthropy advice (which is why I co-wrote the first book on this topic: Advising Philanthropists: Principles and practice Emma Beeston and Beth Breeze – 2023) so that more givers get the help they need.
Imagine if every financial planner did talk to their clients about giving? Not only would this help your clients, but it would also promote the idea that giving is a normal thing to do and increase the flow of much-needed funds to the charitable sector. The number one thing financial planners can do is confidently raise the topic in their conversations with clients and from an early stage. It really is not hard to do. It is a case of asking a simple question such as:
- Would you be open to including philanthropy in this conversation?
- Do you discuss giving in your family? Is this something you would like help with?
- My clients often give alongside their investing. Is philanthropy something you would like us to discuss?
- We find many of our clients want to give but find it hard to get started, is that the same for you?
How philanthropy advisers help you
Once you have raised the topic, you may not have the time or the expertise to take your client’s interest any further, but specialist philanthropy advisers do. Making an appropriate referral puts you in a good light with your client. There is no risk of competition – I will not be discussing pensions, tax or investments. Instead, you are helping your client receive the advice they need. You can even bring philanthropy advice in-house to add to your offer as many private banks do.
The prize of working together
There are gains for everyone when financial planners and philanthropy advisers collaborate. Talking about philanthropy brings you deep, trust-building conversations where you help your clients with something that matters to them. Your clients get the holistic advice they want and need. Philanthropy advisers like me receive referrals and the result is that more private funds are unlocked to create social and environmental good. It is a joy when I see a client moving from being stuck to enjoying their giving and I would love you to be part of that journey.
Further resources
Visit https://www.emmabeeston.co.uk/insight
Interview for magazine, Ticino Welcome: Profession: Philanthropy Advisor
Article in Inside Philanthropy: Lifting the Curtain on Philanthropy Advising
Blog for Directory of Social Change: Shedding some light on philanthropy advising
Extract of Book in Stanford Social Innovation Review: Disciplining Generosity
The Financial Well-being Podcast https://www.financialwell-being.co.uk/2024/05/24/episode-109-reclaiming-philanthropy-with-emma-beeston
Purposeful Planning Institute Podcast https://purposefulplanninginstitute.com/podcasts/s1e18-how-philanthropy-advice-unlocks-giving/
The Purposely Podcast https://www.purposelypodcast.com/post/the-rise-of-philanthropy-advice-and-advisors
