The $18 Trillion Opportunity You're Probably Ignoring (And Why Your Clients Are Going Elsewhere for Philanthropy Advice)
Part 6 in our series on private philanthropy's obligation to support high-impact nonprofits.
As a wealth manager, your success hinges, not just on your financial acumen and ability to analyze markets, but on the relationship of trust you build with your clients. In addition to helping them increase their net worth, optimize tax deductions, and plan for retirement, you also have the opportunity to support them in their philanthropic activities. Philanthropy is an area many advisors avoid, but we think this is a crucial area of wealth management, and something that can not only enhance your relationship with your client, but something that can help them make a real difference in the world as well.
In addition to the less-tangible benefits outlined above, philanthropic advising represents an enormous opportunity for wealth managers. Over the next 25 years, as part of the Great Wealth Transfer, more than $84 trillion (that’s trillion with a “T”) is set to pass to younger generations of high net worth individuals and family office owners, much of which is already earmarked for charity. A staggering 91% of high-net-worth households made charitable donations last year, yet only 5% of wealth managers feel "very confident" discussing philanthropy with clients. Their hesitation is understandable - after all, impact can be complicated and easy to screw up. It touches potentially very emotional things like legacy, not to mention the lives of the vulnerable people nonprofits support.
Your clients want philanthropic guidance, but most of you aren't providing it. So they're getting advice elsewhere—from family offices, philanthropic consultants, and nonprofit development officers who understand that giving strategy matters as much as investment strategy. Some of that guidance is biased, some uninformed, and all of it is a missed opportunity for increased trust (and service revenue) between you and your clients.
If you're tired of losing influence over your clients' most meaningful financial decisions, here are a few ideas for how to integrate philanthropic planning into your practice before someone else becomes their trusted advisor for the money that matters most to them.
The Opportunity Gap (And Why It's Getting Worse)
The data is already in your favor - 94% of financial advisors want to be more knowledgeable about charitable giving, with nearly half considering themselves "complete novices." Meanwhile, 72% don't include philanthropy in their initial fact-finding with clients, despite 21% seeing a direct link between providing philanthropic advice and winning new business.
This creates a massive advice (and opportunity) gap. Your clients are making substantial financial decisions—often involving hundreds of thousands or millions of dollars—based on emotion rather than strategy, tax optimization, or impact analysis.
The generational imperative:
Millennial heirs are 42% more likely to stay with their benefactor's advisor if that advisor helps with family philanthropy. If you're not providing philanthropic guidance, you're not just missing current opportunities—you're losing the next generation of clients.
Millennials and gen Z philanthropists care about impact, and changing the world - much moreso than their parents and grandparents did. And, they want to put their own stamp on things, taking in action in ways that only they can.
Next Generation philanthropists are also tech-savvy, comfortable with AI, and demand solutions that are fun, simple, and easy-to-use.
They’re also busy. They want to eliminate noise, and focus only on the things that matter most in a given area, so they can get on with the rest of their lives.
The competitive reality: Advisors who offer charitable planning report 6x the median assets and 3x the organic growth of those who don't. Your competitors who get this right aren't just serving clients better; they're building larger, more sustainable practices.
Five Ways Wealth Managers Can Capture the Philanthropy Opportunity
1. Start with Values, Not Vehicles
Most wealth managers who dabble in philanthropy focus immediately on tax-advantaged vehicles—donor-advised funds, charitable remainder trusts, private foundations. This misses the point entirely. Your clients don't start with vehicles; they start with values.
The right conversation sequence:
Discover motivations: What social issues keep them up at night? What kind of world do they want to leave their children?
Explore family dynamics: How do other family members feel about giving? What are their philanthropic histories?
Understand impact goals: Do they want to see immediate results or build long-term change? Are they interested in local or global impact?
Assess engagement preferences: Do they want to be hands-on or hands-off? Do they want to collaborate with others or give independently?
Only then discuss vehicles: Once you understand their philanthropic goals, you can recommend the financial structures that best support those goals.
Client retention insight: Clients stick with advisors who understand their values, not just their tax obligations. The wealth manager who can articulate why a client cares about education reform will keep that client longer than one who only knows their preferred asset allocation.
2. Integrate Philanthropy into Comprehensive Planning
Stop treating charitable giving as a separate planning conversation. Philanthropy should be woven throughout estate planning, tax strategy, succession planning, and family governance discussions.
Integration opportunities:
Estate planning: How do charitable bequests affect estate tax calculations and family inheritance goals?
Tax optimization: When should clients bunch charitable deductions? How can appreciated securities be used for giving?
Business succession: How can business owners incorporate charitable giving into their exit strategies?
Family governance: How can philanthropic activities strengthen family relationships and teach values to next generations?
The comprehensive advantage: Clients who see philanthropy as integral to their overall wealth strategy, not as an add-on service, typically give more strategically and require less outside advice.
Implementation approach: Include philanthropic goals in every financial planning review, just as you would discuss investment performance or insurance needs.
3. Leverage Technology and Build Nonprofit Partnerships
One reason advisors avoid philanthropic conversations is the perceived complexity of research and implementation. Technology platforms now make it easier to identify effective nonprofits, execute charitable transactions, and track impact. Technology solutions:
Donor-advised fund platforms: Simplify the process of establishing and managing charitable accounts through platforms like Fidelity Charitable, Schwab Charitable, or Vanguard Charitable
Impact research & management tools: Altruous helps you and your clients cut through the noise by making targeted recommendations based on your specific philanthropic goals, and providing easily relatable stories to help you understand, not just what a given organization is doing, but why it matters so much to the people they serve. Altruous also streamlines the impact reporting process to better help you and your clients quantify their Social Return on Investment (SROI).
Charitable planning software: Integrate philanthropic strategies into broader financial planning using tools like PhilanthPro to help craft philanthropic spending strategies, or platforms like FreeWill for planned giving
Platform advantages:
Reduced complexity: Clients can research nonprofits, execute transactions, and track impact through single platforms
Professional credibility: Advisor-facilitated giving appears more sophisticated than individual online donations
Ongoing relationship: Charitable planning creates regular touchpoints for client reviews and strategy adjustments
Strategic nonprofit partnerships: Instead of treating each client's philanthropic interests as unique snowflakes, develop relationships with a portfolio of high-quality nonprofits you can confidently recommend to multiple clients.
Partnership approach:
Vet organizations thoroughly: Partner with nonprofits that have strong leadership, clear impact metrics, and transparent operations
Offer due diligence services: Provide clients with professional analysis of nonprofit effectiveness rather than leaving them to research organizations themselves
Create giving circles: Connect clients with similar interests to collaborate on larger grants to shared organizations
Facilitate engagement: Arrange for clients to visit programs and meet nonprofit leaders to deepen their involvement
4. Master the Planned Giving Conversation
With $18 trillion expected to flow to philanthropy through bequests and estate transfers, planned giving represents one of the largest wealth management opportunities of the next two decades. Yet most advisors avoid these conversations entirely.
Planned giving integration strategies:
Charitable remainder trusts: Help clients convert appreciated assets into income streams while supporting charity—particularly valuable for clients with highly appreciated stock or real estate
Charitable lead trusts: Allow clients to pass assets to heirs while providing income to charity and reducing estate taxes
Bequest planning: Help clients structure charitable bequests that complement their family inheritance goals
Life insurance strategies: Use life insurance to replace wealth transferred to charity or to create larger charitable gifts
The family conversation advantage: Many clients want to involve next-generation family members in philanthropic planning. Advisors who can facilitate these family discussions often become trusted advisors to multiple generations.
Competitive positioning: Planned giving conversations naturally lead to discussions about overall estate strategy, family governance, and multi-generational wealth management—all high-value advisory services.
5. Develop Philanthropic Expertise and Professional Credentials
The biggest barrier to philanthropic planning isn't client interest—it's advisor confidence. Clients can sense when their advisor is uncomfortable with a topic, which destroys trust and creates opportunities for competitors.
Education and credentialing options:
Chartered Advisor in Philanthropy (CAP): The American College's specialized designation provides comprehensive training in charitable planning strategies
Continuing education: Regular workshops and conferences on charitable planning, estate strategy, and philanthropic trends
Professional associations: Join organizations like Advisors in Philanthropy or local planned giving councils to network and learn from specialists
Building internal expertise:
Team specialization: Designate specific team members to develop deep philanthropic planning expertise
Referral networks: Build relationships with estate planning attorneys, tax specialists, and philanthropic consultants for complex situations
Client education: Develop educational content and workshops to position your firm as a thought leader in charitable planning
The confidence factor: Clients work with advisors they trust to handle complex financial decisions. Developing genuine expertise in philanthropic planning expands the range of client needs you can address professionally.
Marketing advantage: Advisors with recognized philanthropic expertise often attract clients who prioritize values-aligned financial planning, typically resulting in deeper, more profitable relationships.
The Competitive Landscape (And Why You're Losing Ground)
While traditional wealth managers struggle with philanthropic planning, specialized firms are capturing this market. Family offices routinely provide philanthropic advisory services. Firms like Geneva Global, Rockefeller Philanthropy Advisors, and BNY Mellon Wealth Management have built significant practices around charitable planning.
The specialization threat: Clients increasingly work with multiple advisors—one for investments, another for estate planning, and a third for philanthropy. This fragmentation reduces your influence and creates client retention risks.
The integration opportunity: Advisors who can competently handle all three areas become indispensable to clients and capture a larger share of the client relationship.
The boutique challenge: Smaller firms specializing in philanthropic planning often provide more sophisticated charitable advice than larger wealth management firms, despite having fewer resources for investment management.
Your Implementation Plan (If You're Ready to Lead)
Transform your practice to capture the philanthropy opportunity:
Assess your knowledge gaps. Get educated through programs like the American College's Chartered Advisor in Philanthropy (CAP) designation or continuing education focused on charitable planning. Follow the Altruous blog to learn more about how social impact really works, and find examples of great organizations your clients can support.
Audit your current clients. How many have made charitable gifts in the past year? How many have discussed philanthropic goals with you? Start conversations with your most charitable clients first.
Develop nonprofit partnerships. Identify 10-15 high-quality nonprofits across different issue areas and geographic regions that you can confidently recommend to clients.
Integrate philanthropy into reviews. Add philanthropic goals to your standard client review agenda, just as you discuss investment performance and insurance needs.
Build referral relationships. Partner with estate planning attorneys, tax advisors, and nonprofit professionals who can provide specialized expertise when needed.
Invest in technology. Choose platforms like Altruous that make charitable planning easier for both you and your clients, reducing the operational burden of philanthropic advice, and maximizing its effectiveness.
Market your expertise. Once you've developed genuine philanthropic planning capabilities, promote them through client communications, educational events, and professional networking.
The Business Case for Philanthropic Planning
Advisors who integrate charitable planning into their practices don't just serve clients better—they build more successful businesses. Research shows that firms offering charitable planning have 6x the median assets under management and 3x the organic growth rates of those that don't.
Revenue opportunities:
Increased assets: Clients often consolidate their charitable accounts with advisors they trust
Fee generation: Charitable trusts, private foundations, and DAF management create ongoing revenue streams
Client retention: Philanthropic planning creates emotional connections that transcend investment performance
Referral generation: Satisfied clients often refer family members and friends for similar services
Premium pricing: Comprehensive wealth management that includes philanthropic planning commands higher fees than investment-only services
Risk mitigation: Clients who work with advisors for both investment and philanthropic planning are less likely to leave during market downturns, since the relationship extends beyond investment performance.
The Urgency of Now
The Great Wealth Transfer isn't a future event—it's happening now. Every month you delay building philanthropic planning capabilities is another month of missed opportunities and potential client defections to more comprehensive advisors.
The competitive window: Early adopters of philanthropic planning gained significant competitive advantages. But there's still time to capture this opportunity before it becomes table stakes for wealth management.
The client expectation shift: Younger affluent clients expect integrated advice that reflects their values. Advisors who can't provide this will lose clients to those who can, regardless of investment performance. There will be first-mover advantages for firms who expand their services to include philanthropy, and do so in technology-forward ways.
The Choice
The Great Wealth Transfer is happening whether you participate or not. Your clients will make philanthropic decisions whether you advise them or not. The question is whether you'll be their trusted advisor for all their important financial decisions, or just the person who manages their investments.
The strategic reality: Clients who see their advisor as a comprehensive wealth partner stay longer, refer more, and consolidate more assets than those who view them as investment managers.
The competitive advantage: In an increasingly commoditized investment management industry, philanthropic planning represents one of the few areas where advisors can provide truly differentiated value.
The generational imperative: The next generation of wealthy clients expects integrated advice that reflects their values, not just their financial goals. Advisors who can't provide this will lose clients to those who can.
The $18 trillion philanthropy opportunity represents the largest shift in wealth management since the creation of the 401(k). Position yourself to capture it, or watch other advisors capture your clients.
Your clients are already making philanthropic decisions. The only question is whether they're making them with you or without you.
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This concludes our series on how different philanthropic entities can strengthen high-impact nonprofits during challenging times. Each sector—family foundations, DAF holders, institutional foundations, corporate CSR programs, and wealth managers—has unique capabilities and responsibilities in supporting effective nonprofit organizations.
Altruous provides wealth managers with the research, tools, and nonprofit partnerships needed to offer sophisticated philanthropic planning services to clients. Our platform helps advisors integrate charitable planning into comprehensive wealth management while providing clients with access to vetted, high-impact nonprofit organizations. Because the greatest wealth transfer in history deserves strategic philanthropic planning.
