By Serena Hak
It is no secret that for decades there has been a push, both in the financial sector and the charitable sector, for more strategic collaboration to enhance charitable giving. As financial advisors, we know that this is good for our business. Clients appreciate advisors who understand their values and priorities. By helping clients make impactful charitable gifts, advisors can strengthen their relationships with them. This personal touch can lead to long-term client loyalty.
The financial sector has participated in re-directing billions of tax dollars to the charitable sector. Today, we have over 6,700 private Canadian foundations accounting for $100 billion charitable dollars. We also have over 4,700 Canadian public foundations. These public foundations include our Donor Advised Fund (DAF) market. The DAF was in response to our clients’ demands to create a charitable giving vehicle that could be incorporated within their financial portfolio while providing a repeatable and convenient way of contributing to the causes they care about. The DAF Market is set to hit $12.5 billion by 2025.
We have one of the most incentivized charitable tax systems in the world. Advisors look to tax minimizing strategies to create efficient charitable giving opportunities to help our clients navigate the complex and ever-changing Canadian tax laws. Additionally, by integrating charitable giving into a comprehensive financial plan, advisors ensure that clients can support their philanthropic endeavours without jeopardizing their financial security. Whether your client is giving through appreciated securities, insurance policies, DAF, private foundation, or their estate — there is so much opportunity for our clients, their families, and the communities they care about most. However, with this opportunity for impact, are we also creating space for our charitable sector to join in on the conversation? Whether the conversation be with you or your clients, when talking about charitable giving ask yourself the question… “Who is not at the table that should be?”
The charitable sector, and the people who work in it, are our allies and could be your secret weapon to achieving the highest levels of impact for you, your clients and their charitable dollars. For example, have you engaged with your local Community Foundation? For those clients looking to identify with local city issues and work with grassroots organizations in their own backyard, The Vital Signs Report is an essential resource. Or perhaps, have you reached out to an organization that your client is thinking about donating to and asking where their biggest need is rather than assuming a directed gift? Asking the charitable expert in your community will position you with your clients as a valued resource and trusted partner.
Our charitable sector is an essential resource for you and your business. The following opportunities are available to help enhance your charitable giving expertise and business development:
Education & Training: Industry leaders provide workshops and seminars to help you stay up to date on strategies, legislature and charitable giving trends. Many of these sessions qualify for continuing education (CE) credits.
Bespoke Collaboration on Giving Strategies for a Particular Client: Many charities can work with you and your client to design their customized giving plan, discussing impact and designing your client’s goals with a holistic view of the issues that are trying to be addressed. This strategy in particular aligns expectations and creates a more informed and connected relationship with the cause and organization that your client cares about.
Networking and Relationship Building: Have you joined a professional network or association for financial advisors, such as the Canadian Association of Gift Planners? This can help you build relationships and raise awareness about the charity within the advisor community and creates learning opportunities.
Leveraging Technology and Data for the Client: The use of donor management systems to track and report on donations and how funds are used, demonstrates the impact of your clients’ contributions.
Data Sharing: By working with charities to understand their relevant data, you can better understand giving trends, donor/client behaviours, and the result of different types of donations. This information can help you make more informed recommendations to clients and positions you as valued ally.
Marketing & Communication: You can get creative here — are you able to co-brand materials or host a joint-event? Or are you able to develop case studies and encourage your clients to create testimonials to help their charity of choice? The possibilities are endless.
Support During Legislative Changes: Perhaps one of the most important elements of any charitable organization is their advocacy work and their ability to provide financial advisors with real-time updates on legislative changes that affect charitable giving, such as tax reforms or new regulations.
These are just some of the ways that you, the advisor, can benefit from working with our charitable community. We must remember that every time we are initiate the generosity conversation and direct charitable dollars, we have a responsibility to ensure that we are being mindful of how it affects its beneficiaries. Our charitable sector is our secret weapon to helping clients become more informed donors, creating more impact and enhance our business by creating a more valuable client experience for those we work with.
Serena Hak is Head of Philanthropic Advisory Services, CI Assante Private Client. She is a frequent speaker and consults with major organizations to build their unique client philanthropic strategies, processes and their overall vision.
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