Advisers who don't find a way to strengthen their philanthropic planning services and knowledge could be “left behind” within a few years, according to the head of a Bay Area-based firm focused on educating RIAs on the matter.

“The reason is because there's this huge transfer of wealth happening and they expect about $11.9 trillion to go to charity. This is huge,” said Dien Yuen, CEO of Daylight Advisors, in an interview with WealthManagement.com. “So (unless) you definitely don't want to lose your AUM, you'd better figure out what products you're going to put into the market to try to keep that money.”

Prior to founding Daylight Advisors, Yuen worked at Evercore Wealth Management and founded the Center for Philanthropy and Social Impact at the American College of Financial Sciences. She also taught counselors and earned a Chartered Counselor in Philanthropy designation.

Yuen's ambitions for Daylight include training approximately 10,000 advisors in the next three years on aspects of philanthropic planning through a number of certification and education programs, including the newly launched Impact Philanthropy Advisor certification program for wealth and philanthropy advisors.

“The idea was, can we do something that looks at the modern global blended family and not only teach advisors how to work with them from a financial and estate planning perspective, but also from a philanthropic planning perspective? she said. “Some of these advisors are great at planning, we have attorneys who are great estate and family planners, but they can't figure out how to put the three together.”

For Yuen, part of the challenge stems from advisors' lack of familiarity with philanthropy-related services or tools beyond the basics.

Counselors may also find it difficult to discuss family dynamics, particularly how to enhance philanthropic values ​​(and the family's charitable legacy) in that context. Some firms direct advisers not to bring up philanthropy at all, as they worry it could devolve into political, issue-based conversations.

“A lot of them are reluctant to even raise philanthropy because they don't know where it's going to go,” she said.

The need for philanthropic planning knowledge is top of mind for advisers like Padric Scott, a former NFL player and CEO of Tallahassee, Fla.-based firm Crossroads Capital Partners. In an interview with WealthManagement.comScott described how he met Yuen at the American College of Financial Services while pursuing a CAP certification. They kept in touch and Scott is now an advisory board member for Daylight Advisors.

Like Yuen, Scott emphasized that there are several layers to the philanthropic planning competency in the HNW and UHNW space. The stakes of the table are understanding of tax and wealth benefits and not knowing them can cause the client to lose confidence in their advisor on this matter. However, advisors also need to be able to speak to clients' hopes and wishes for themselves, their families, and their legacy.

“What you will find is like going to a doctor. While a patient may not have a medical degree, they know what hurts,” he said. “And it's up to doctors to be able to translate that.”

Often, discussions about philanthropic planning are generated by discussions about other topics. Scott recalled talking to the husband of a client who had recently passed away. According to Scott, the husband talked about a historically black college or university that he cared about “deeply.” The conversation between counselor and client turned into a conversation about the client's children, college, and how to make “a lasting impact.”

However, Scott was shocked by the industry's approach to teaching these necessary skills. He compared that to his pro-athlete peers and said counselors weren't “reinvesting in their craft” like athletes constantly do.

“Professional athletes, they don't just show up and play football or basketball. They're training 24/7 to get better for that moment,” he said. “So when it happens, they're ready for it.”

Beyond the need for more competency in philanthropy among RIAs, Yuen said the HNW and UHNW space desperately needs “philanthropy advisors” who are fully focused on the issue.

Currently, Yuen estimates there are about 800 philanthropy advisors in the U.S., including those who work at banks, multifamily offices and community foundations. (Even a giant bank like Morgan Stanley had only about 12 such specialists, Yuen said.)

She warned that by 2030, customer demand would require at least 3,000 of these philanthropically focused representatives. However, legitimacy in the space is difficult to assess, as there is no standardized certification or education. Yuen hopes to address this through certification programs like the Daylight IPA program, so that if a wealth advisor or a family wants to partner with a philanthropy advisor, “they know what they're getting.”

“They don't know how to compare apples to apples,” she said. “And that's the problem.”

October's lineup of advisors enrolled in the IPA program is 62 and includes nonprofit fundraisers hoping to enter the space, estate planning attorneys and CFPs who felt the certification didn't offer what they needed to know about philanthropy.

Daylight's Bay Area location is also well-suited to working with a wide range of entrepreneurs in Silicon Valley, especially younger potential clients with excess capital and a desire to “leverage” that capital for philanthropy.

But this need makes philanthropic advisors even more important, since wealth advisors won't be heavily invested in the nuances of philanthropic giving.

“They don't need to spend 30 hours doing research on AI and philanthropy. They make more money doing wealth management business,” she said. “So I think that's why wealth advisors are really looking for key partners to bring in that they can trust and that can to work with their clients.”