Giving charitable advice related to more assets, faster growth: loyalty
What would you like to know
- Consulting firms that offer charitable planning had six times more median assets than those that do not.
- They also had a median organic growth three times that of those who don’t offer charitable planning.
- High net worth clients who benefit from charitable planning tend to rate their advisors significantly higher on the main factors of the Net Promoter Score.
Financial advisers who offer charitable planning advice to their clients tend to enjoy significantly larger assets, organic growth and new money, according to an analysis of some 1,200 RIAs and family offices released Tuesday by Fidelity Charitable.
Charitable planning highlights the breadth of expertise of advisors and enables them to strengthen client relationships and offer more holistic financial plans.
Growth with charitable planning
Fidelity Charitable reported that consulting firms that offer charitable planning services have six times the median assets and three times the median organic growth of those that do not.
Additionally, companies that offered charitable planning had 1.3 times more new money per investor than those that did not.
The report says recent studies of high net worth investors found that clients who benefit from charitable planning are more loyal and more likely to recommend their advisor than those who do not.
Fidelity Charitable looked at how millionaire clients rate their advisors through the Net Promoter Score measure to gauge loyalty and likelihood to recommend. Clients who benefit from charitable planning tend to give their advisors a much higher rating on key NPS factors:
- Trusted advisor to make decisions that are in my best interest: 7% more.
- Counselors demonstrate that they take my needs / goals / preferences into account: 13% more.
- Advisor is a multigenerational resource for my family: 27% more.
Growing trend in philanthropy
Charitable giving trends show that the stakes for advisors are high. Donations in the United States set a record last year, with three-quarters of donations coming from individuals rather than corporations and foundations, according to the report, citing the Lilly Family School of Giving USA 2021 study. Philanthropy.