by Lesley Roberts, Philanthropic Advisor
Advisors often share that their happiest clients are those who include charitable giving in their estate and financial plans. Whether philanthropy inspires happiness or happy people are drawn to giving, one thing is clear: incorporating charitable giving into financial planning delivers emotional and practical benefits. Advisors who embrace this conversation are often seen as more effective, impactful, and well-rounded, helping clients improve their lives and find peace of mind.
Why Aren’t More Advisors Talking About Philanthropy?
Despite its benefits, many advisors feel unprepared to discuss philanthropy with their clients. A survey revealed that only 5% of advisors feel “very confident” in addressing charitable giving, and 72% don’t bring it up during initial client discussions. This gap represents a significant opportunity to strengthen client relationships and enhance advisory services by integrating philanthropy into your conversations.
The Health Benefits of Giving
Beyond the tax and financial implications, charitable giving has been shown to improve mental and physical well-being. A recent Wall Street Journal article highlights these benefits:
- Improved Mood and Health: Donating to charity can boost happiness, lower blood pressure, and even extend lifespan.
- Hormonal Benefits: Acts of giving may trigger the release of serotonin and dopamine—hormones associated with happiness—while reducing stress-inducing cortisol levels.
- Scientific Backing: Studies by neuroscientists and economists confirm that generosity can positively affect mental health and overall well-being.
- Sustained Positivity: The positive feelings associated with giving can have lasting health benefits.
While not every client may experience these benefits in the same way, the potential for charitable giving to enhance their lives is an important consideration.
More Than a Tax Strategy
While the tax benefits of charitable giving are often top of mind, the primary motivation for philanthropy remains a desire to help others. Advisors who understand this balance can better serve their clients by addressing both the financial and emotional aspects of giving.
The Community Foundation is Here to Help
Our team at the Community Foundation is ready to assist you and your clients in navigating the complexities of charitable giving. From tax planning strategies to exploring the emotional rewards of philanthropy, we’re here to ensure your clients achieve their financial goals while making a meaningful difference in their communities.
Let’s work together to make philanthropy a powerful and rewarding part of your clients’ financial plans. Reach out anytime—your clients will thank you.