Financial advisors often share that their happiest clients are those who incorporate charitable giving into their financial and estate plans. Whether this phenomenon is due to philanthropy itself or the clients’ outlook on life, there’s no denying the dual benefits — emotional and rational— that giving back offers. By leaning into philanthropy, financial advisors can strengthen their client relationships, differentiate their services, and deliver a more holistic approach to financial planning.
- Clients Value Charitable Discussions
Despite the clear advantages, many advisors are hesitant to discuss charitable giving. In fact, only 5% of advisors report feeling “very confident” in addressing the topic, and 72% don’t include it in their initial client conversations. Yet, studies show that clients deeply appreciate advisors who prioritize their charitable giving goals. Engaging in these discussions helps foster trust, build loyalty, and align financial plans with personal values.
- Giving Improves Emotional and Physical Well-Being
Charitable giving isn’t just good for the community — it’s good for the giver. A recent Wall Street Journal article shows that donating to charity can boost mood, reduce stress, and even lower blood pressure. Giving activates serotonin and dopamine, hormones associated with happiness, while reducing cortisol, a stress hormone. These health benefits, combined with the emotional fulfillment of making a difference, create a compelling reason to explore charitable giving with clients.
- Tax Benefits
From donating appreciated stock to establishing a Donor Advised Fund, charitable giving offers significant tax advantages. These strategies help clients reduce tax burdens while supporting causes they care about. Financial advisors who incorporate charitable giving into financial planning deliver value that goes beyond the bottom line.
- It Strengthens Multigenerational Planning
Charitable giving fosters shared values among family members, creating opportunities for meaningful discussions about a client’s legacy. Financial advisors who address charitable with their clients often engage the next generation, building long-term relationships with the entire family.
- It Differentiates Your Practice
Incorporating charitable giving advice and expertise drawn from the Omaha Community Foundation into your service offerings sets you apart in a competitive field. Clients increasingly seek advisors who offer a comprehensive approach to financial management, addressing both financial and personal goals. Discussing charitable giving demonstrates that you’re invested in their overall well-being and legacy.
Philanthropy: A Holistic Approach to Financial Planning
Charitable giving ties together financial, emotional, and longterm legacy goals, providing benefits that go far beyond financial returns. It improves well-being, delivers tax advantages, and strengthens family bonds — all while allowing clients to make a meaningful impact.
At the Omaha Community Foundation, we’re here to support you as you help your clients navigate the complexities of charitable giving. Our experienced team can help with everything from tax strategies to aligning giving with personal values. Reach out to us today to ensure your clients achieve their financial and charitable giving goals.
Contact us at giving@omahafoundation.org or 402-342-3458.