Wealth advisors who integrate charitable services into their offerings see it as a uniquely powerful opportunity to foster stronger and deeper client relationships. There are obvious reasons why, not to mention an element of impeccable timing.

Turning to charitable giving as a business differentiator can be a unique juxtaposition for some. With today's intersection of Great Wealth Transfer, the proliferation and embrace of technology, the desire for inclusion, and ongoing policy and tax debates, philanthropy now plays a distinctly special role for advisors seeking to make an even greater impact. in the lives of their customers. According to a report from Fidelity Charitable, On the leading edge: Accelerating firm growth with charitable planningfirms that offer charitable planning had 6 times the average assets and 3 times the organic growth of those that do not.

Connected: Crypto is now part of the charity conversation

Three drivers

Here are three top advisors to include philanthropic efforts in their portfolio of services:

1. Technology-driven charities are leading the pack. One of the most essential traits of a successful wealth advisor is the ability to meet their clients where they are – and clients increasingly want charity services that incorporate user-friendly technology, even if they are not tech-savvy. Donors find giving tools such as donor-advised funds (DAFs) increasingly attractive because of the tax benefits, as well as donor platforms that offer referral grants to their favorite charities seamlessly. Additionally, vehicles such as DAFs appeal to a wide spectrum of people, including tech-savvy donors, modest donors, new donors, and donors looking to connect with a charitable community.
2. More wealth comes online. With $84.4 trillion in wealth set to be transferred between now and 2045, this shift is a powerful catalyst for wealth advisors to quickly understand which charitable service options are the best fit for them and their clients. It has been reported that women are likely to be the biggest beneficiaries of wealth. Couple this with studies showing that the charities women tend to be drawn to include opportunities to network and belong to a community of peers, and it places philanthropy as a key cornerstone for their wealth advisors. With the backdrop of the Great Wealth Transfer, it is time for advisors to consider adding charitable services to existing clients and their families. Building relationships with the next generation should be a top priority for wealth advisors concerned about long-term portfolio retention. According to one The Cerulli study, 90% of wealthy investors who use their own advisors did not consider their parents' advisors in their selection process. The millennial heirs are 42% more likely stay with their benefactor's advisor if they help with family philanthropy.
3. Potentially significant tax changes. Tax policy changes are on the table for 2025. Both sides of the square see advantages. Lawmakers are expected to introduce new wealth taxes and changes to the way investment and property income is taxed. The proposals may even include possible changes to some charitable giving vehicles. Given the country's large national deficit, perceived buckets of cash will be attractive sources of revenue – and policymakers may even try to harness charitable giving or intra- and intergenerational wealth transfers, while also considering incentives for encourage more community giving.

Connected: Engaging with customers around charitable giving

By embracing charitable giving, advisors are finding that these client conversations are another opportunity to build relationships with the client's family members who are looking to inherit much of their existing wealth. These are key moments in the client-advisor relationship, as families often change advisors after receiving an inheritance. A 2024 STUDY shows that nearly half of all Americans intend to leave an inheritance, but only 35% plan to discuss the transfer of their wealth with family. Now is the time to inject the expertise and guidance that a wealth advisor can provide. In addition, there are potential upcoming tax changes and now is the time to implement these crucial charitable services.

Joseph Fisher is the CEO of Renan independent philanthropic technology company, and Sandra Swirski is the founder and CEO of Whole numbera full-service advocacy firm in Washington, DC, specializing in economic and nonprofit policy.