Don’t you wish you could read your clients’ minds? Understanding what clients really care about is crucial to constructing any estate or financial plan. When it comes to charitable giving, you can be a step ahead. Plenty of research offers clues about what matters most to your philanthropic clients.
For starters, the numbers show that year after year, people are giving money to U.S. nonprofits — to the tune of $592.50 billion in 2024 alone according to Giving USA. Indeed, most of your clients are probably philanthropic; more than 85% of affluent households give to nonprofits each year.Â
Here’s what else they may be thinking:
“We want to make the world a better place, starting right at home.”
The importance of a local connection is a common theme throughout various research studies on the motivations for charitable giving. A widely cited peer-reviewed study conducted by the University of Chicago Booth School of Business found that people are more likely to donate to local nonprofits than distant ones. Our team at the Foundation certainly witnesses this every day as we work with donors to address local needs right here in our community. We are honored to be a resource for you and your clients to structure charitable gifts that make the biggest difference.Â
“We really enjoy charitable giving.”
Philanthropy is a positive experience for the benefactor, not just the beneficiaries. Research suggests that the benefits are both psychological and physiological. This is in sharp contrast to something clients may view as a mostly negative or stressful experience — updating financial and estate plans. Estate planning forces clients to confront uncomfortable topics such as their own mortality, potential incapacity, and the possibility of family conflict, not to mention the complexity of the planning process, fear of making the wrong decisions, and anxiety about financial security. By infusing charitable giving into the conversation, you’re taking the pressure off the uncomfortable topics and potentially lifting the mood of the entire process.Â
“We want to be sure we are making a difference.”
Philanthropists, by definition, seek to create positive social change and are often eager to address complex issues. Indeed, at this moment in time, commentary has suggested that philanthropy may be re-examining its role amid global “polycrises” by considering not just the material resources it provides but also its potential to lead within organizations, across the sector, and in society at large. The Foundation is uniquely positioned to help your clients expand their philanthropic portfolios to include not only ongoing financial support for nonprofits, but also advocacy and structuring unrestricted endowments or other long-term vehicles to support sustained positive change.
As always, our Foundation team stays closely connected with the full range of nonprofits in our region, and that expertise is invaluable in helping your clients achieve the charitable impact they wish to make. Please reach out anytime, and we look forward to hearing from you!