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ABAG's Adventures in Philanthropy Column
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"Charitable Giving - Charitable Planning from the Advisor's Perspective"
The Daily Record
August 20, 2004
Betsy Nelson
According to a study by the Philanthropic Initiative, “high wealth individuals want to be guided in their philanthropy to achieve important personal and social objectives.” “They want help creating comprehensive and cohesive giving programs.”
Lots of advisors — attorneys, accountants, financial planners — want to help their clients be more philanthropic. And there's lots of information out there on estate planning and charitable giving — most of it technical — about different useful vehicles advisors can recommend to their clients.
But many advisors find it challenging to start the charitable conversation with their clients and to help their clients figure out what to do. How can you help clients determine what areas of philanthropy interest them most?
According to J. Darby Bowman, a vice president with Mercantile Investment & Wealth Management, “First, you have to be able to talk to them about philanthropy in a way that makes sense to them. You want to learn what emotional need philanthropy could fulfill. Remember that philanthropy is fundamentally an expression of personal values, not a financial transaction.”
According to Bowman, you talk with them about their four F's: family history, fundamental beliefs, friends and associates, and financial orientation.
“By listening to what they say, you will find that either they are already interested in philanthropy or could become interested in philanthropy.”
Faces of philanthropy
Russ Alan Prince, in his work “Seven Faces of Philanthropy,” describes seven different urges that cause people to give. The job of the advisor is to figure out which of these motivations are at work and speak to the client in that context.
Here are the “faces”:
* The Repayer — Doing Good in Return. This person gives out of a desire to repay a moral obligation. For example, in conversation the client tells you that her father had cancer and ever since then the family has supported nonprofits in that field.
* The Dynast — Doing Good is a Family Tradition. This person gives out of a desire to carry on tradition. For example, the client mentions that giving to charitable causes was something he grew up with.
* The Devout — Doing Good is God's Will. This person gives out of religious beliefs. For example, the client tells you that her success is God's gift to her and that she wants to share that gift with others.
* The Altruist — Doing Good Feels Right. This person gives out of a desire to find self-fulfillment. For example, the client tells you she believes that by being charitable, she grows as a person.
* The Socialite — Doing Good is Fun. This person gives out of a desire to fit in with a social network. For example, the client tells you that his social peers are involved in certain charitable organizations.
* The Communitarian — Doing Good is Neighborly. This person gives out of a desire to help the local community. For example, the client may be a “neighborhood boy” who made good and wants to give back.
* The Investor — Doing Good is Good Business. This person desires to maximize the tax efficiency and effectiveness of giving. For example, in conversation the client shows great interest in the tax implications of philanthropic behavior and is quite concerned about the efficiency of the nonprofits that she supports.
Focusing on “the soft stuff” — values and beliefs — can help you assist your clients to create effective and satisfying charitable plans. You will also be providing a service that high net worth individuals expect. If you don't provide the service, then someone else will.
Betsy Nelson is executive director of the Association of Baltimore Area Grantmakers. Her column appears every other week. She can be contacted at bnelson@abagmd.org .
Other archived articles from ABAG's Adventures in Philanthropy Column:
"Charitable Giving - How to Build Healthy Neighborhoods"
"Charitable Giving - Neighborhood Excellence Initiative"
"Charitable Giving - Annie E. Casey Exec Inspires"
"Charitable Giving - Maryland's eSource for Advisors"
"Charitable Giving - Local Donor Collaborations"
"Charitable Giving - ABC and African-American Philanthropy"
"Charitable Giving - Local Foundations Show Support for Baltimore School System "
Charitable Giving: Maryland Business Giving Workbook
Charitable Giving - Take care with the Care Act
"Charitable Giving - Local Foundation Investment in Baltimore High School Reform"
"Charitable Giving - Shape Up...Live Well"
Charitable Giving - The Cost of Raising Money
CareFirst plus WellPoint equals foundation
Charitable Giving - National Philanthropy Day Celebrates Giving in Maryland
Charitable Giving - A Plan of One's Own: A Woman's Guide to Philanthropy
Charitable Giving - Defining moments
Charitable Giving - Corporate Caring
Charitable Giving - Conflicts of Interest
The Baltimore Fund of the TRF Urban Growth Partners
Teaching That Achievement Counts
"Charitable Giving - Good Time to Decide How Much to Give"
Charitable Giving - Capital/Endowment Fund Campaigns
Making Education a Priority
Charitable Giving - B'MORE Fund
State of Giving
How Effective Nonprofits Work
"Charitable Giving - Women Begin to Realize Full Potential as Philanthropists, Expert Says"
"Charitable Giving - Charitable Planning from the Advisor's Perspective"
"Charitable Giving - Expanding Corporate Giving"
"Charitable Giving - IYF Addresses Critical Concerns Facing Youth"
"Charitable Giving - Strategic Planning Part One
"Charitable Giving - Tips for Developing a Strategic Business Plan"
"Charitable Giving - There's A Right Way to Do the Right Thing"
"Charitable Giving - While You're Passing the Turkey, Take a Minute to Reflect"
"Charitable Giving - What We Give and Where It Goes"
"Charitable Giving - MD Companies Working to Make Holidays Special for Less Fortunate"
"Charitable Giving - Coming Together: Global Community Responds to a Natural Disaster"
"Charitable Giving - National Philanthropy Day Winners"
"Charitable Giving - Role of the Nonprofit Board"
Reason to believe
Charitable Giving - Technology & nonprofits
Charitable Giving - Advice to foundations
Charitable Giving - New resource for nonprofit groups
Charitable Giving - Inspired philanthropy
Charitable Giving - Developing Leaders
Charitable Giving - Wanted: Professional volunteers
Donor Advised Funds
"Charitable Giving - Salute to T. Rowe Price
"Charitable Giving - Teacher Appreciation Fund"
Charitable Giving - Youth and Volunteers
Charitable Giving - To Honor Mothers
"Charitable Giving - Future of philanthropy"
"Charitable Giving - Contributions to charities"
"Charitable Giving - Giving in tough times"
"Charitable Giving - Celebrating special occasions with philanthropy"
"Charitable Giving - B'MORE Fund"
"Charitable Giving - 20 years of building a community of grantmakers"
"Charitable Giving - Building a more effective board"
"Charitable Giving - When nonprofits discover the executive chair empty"
"Charitable Giving - Sustaining Yourself"
"Charitable Giving - Community development in Baltimore"
"Charitable Giving - Resource at Risk"
"Charitable Giving - Fundraising"
Maryland's Community Foundations: For Good and For Ever
Advisors
Knott Nonprofit Leadership Initiative
Digital Bridge Initiative
Dollars for doers'
Businesses Earn State Tax Credits Through Nonprofit Giving
Leadership Program of Their Own
CHARITABLE GIVING
Maryland foundations and corporations respond to tragedy
Reason to believe
Where's the Good News?
Turning the Corner
How to get youth involved in civic life
Recognizing Volunteers
Standards for Excellence
Considerations for Endowment Gifts
Determining what works
New directions for philanthropy
Giving through a business partnership
Your business can make a difference
A helping hand for helping hands
Donate Your Rebate – Maryland!
Leave a Legacy
Forming a Circle of Giving
Cultivating civically engaged young people through work, service
Celebrating the Spirit of Giving
Thanks/Giving Day
Stocks in the Future
Baltimore Neighborhood Collaborative
The Great Wealth Transfer
Investing in Our Community
In the Wake of Sept. 11
Adventures in Philanthropy
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