While Eight Out of 10 Advisors Talk to Clients About Giving, Many Feel a
Lack of Expertise
SAN FRANCISCO, Oct. 30 /PRNewswire-FirstCall/ -- A new survey conducted
by Penton Research and sponsored by Schwab Charitable
(http://www.schwabcharitable.org) reveals that while nearly eight out of ten
financial advisors are talking with their clients about charitable giving,
they are challenged to provide the level of assistance and expertise on
this subject that clients desire and are coming to expect.
The July/August survey showed that a perceived lack of expertise was
the most common reason advisors cited for not fully discussing charitable
giving with clients. Thirty-seven percent of respondents indicated they are
concerned with their own level of expertise regarding charitable giving,
while 22 percent said clients do not expect to receive charitable giving
guidance from them, and therefore it would feel presumptuous to initiate
the conversation.
When asked what might encourage financial advisors to discuss
charitable giving with their clients more frequently than they currently
do, nearly half (47 percent) said that if they received more education
and/or training on charitable giving and related tax issues, they would
increase charitable giving discussions.
"Charitable planning and giving is integral to wealth management, but
it requires a specific base of knowledge," says Kim Wright-Violich,
president of Schwab Charitable. "Advisors increasingly need to have a bench
of experts upon which to draw to meet their clients' needs. It is
unrealistic, given the demands on their time, to be subject matter experts
on all issues important to their clients' financial lives. They may not
have the answers to all of the questions, but they do need to know where to
get them."
Charitable Giving: A Major Financial and Lifestyle Focus for Americans
Charitable giving has become both a financial and lifestyle focus for a
growing number of Americans. More Americans give to charity (70 percent of
households) than vote, and with high profile initiatives such as the Bill &
Melinda Gates Foundation, the Clinton Global Initiative, and Google.org,
giving is likely to continue to grow.
In 2006, U.S. donors gave $295 billion directly to charitable causes,
or about 2.2 percent of GDP, according to Giving USA's Annual Report on
Philanthropy. Wealthy Americans are among the most engaged in philanthropy,
giving approximately 8-10 percent of annual income, compared to 2 percent
for the average American. In addition, research conducted by Schwab
Institutional in July 2007 found that 67 percent of affluent Americans
include charitable giving as a goal and 40 percent of those who are retired
serve on boards (including non-profit boards). Involvement with charities
is increasingly becoming the "post-retirement career."
"Americans are generous givers and, for many, philanthropy is as much a
part of their lifestyle as their work and family lives," said
Wright-Violich. "Financial advisors can help clients use their wealth in
ways that express their values and enhance the sense of fulfillment and
richness in their lives. Just think about the level of loyalty a client
would feel toward an advisor that helped them achieve that."
Survey and White Paper Reveal Additional Trends
The Penton/Schwab Charitable survey, and a subsequent white paper,
"Opportunities and Obstacles: The role of financial advisors in charitable
planning and decision making," also found:
-- Charitable giving discussions are most commonly initiated during the
financial planning process (includes estate and tax planning) by both
advisors and their clients.
-- "Triggering" events, including a stock transfer to a charity, a
mention of non-profit work or an invitation to a charity event, enable
discussion of charitable planning & giving.
-- The majority of advisors have assisted clients with gifts to charity,
including donor-advised funds and charitable trusts.
-- Advisors and their firms are charitably-minded and perceive an
increase in client interest in charitable giving as well.
-- Clients expect financial advisors to play an increasingly important
role in their charitable planning and giving.
About the Survey
The survey was conducted between July 25, 2007 and Aug. 2, 2007, to
select subscribers of Registered Representative magazine. The total
population for the study was 318, with 89 identifying themselves as
Registered Investment Advisors.
About Schwab Charitable
Schwab Charitable is the name used for the combined programs and
services of Schwab Charitable Fund, an independent nonprofit organization,
and Charitable Trust Services, a limited liability company owned by Schwab
Charitable Fund. The Fund has entered in to service agreements with certain
affiliates of The Charles Schwab Corporation. For more information, visit
http://www.schwabcharitable.org.
SOURCE Charles Schwab
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Related links:
http://www.schwabcharitable.org
CONTACT:
Kim Laughton of Schwab Charitable,
+1-415-667-3638; or Morrison Shafroth of Communications Strategy
Group, +1-720-470-3653, for Schwab Charitable
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