During the holiday giving season, it is not unusual for a client to ask an advisor about a specific charity. Clients might want to know whether that charity is reputable and effective. That's a tough question to answer! Most attorneys, accountants, and wealth advisors are not in a position to know the ins and outs of how charities in the community are being managed. That’s okay, as long as you have a few strategies for client conversations when they do arise. 

Your responsibility to your clients in today’s social impact culture is to be equipped with at least a minimum level of working knowledge. For example:

• Tell your client to consider the source. Your talk track can go something like this: "If it’s a friend, colleague, or a neighbor asking you to support a cause she knows and loves, you can be more confident in your contribution. Ask about the organization to find out whether it’s a fit for you. Don’t worry—you won’t offend your friend by asking questions. Instead, your interest in the cause your friend is marketing will give her a chance to tell the story about how that organization is making a social impact."

• If the charity is brand new and not one you’ve heard of, suggest that your client start with something other than money. You can say something like the following: "Giving money to a charity is not the only way to do good. Supporting causes includes a wide range of other activities, such as recycling, volunteering, serving on boards, donating canned goods or clothing, attending community events, marketing a favorite nonprofit, sharing with friends and families in need, purchasing brands that support causes, and caring for your own health and wellness. So, if you are uncomfortable with a monetary contribution, do something else for the charity you’re being asked to support. Volunteer for an hour or two, donate household items, or attend one of the charity’s events by buying a ticket instead of making an outright donation. These activities give you a chance to check things out."

• Encourage your client to go online. Here's what you can say: "You should check out the charity online. Giving is big business, and charities today know they need to report compelling information on their websites about the difference they’re making with your dollars. Be sure to look at the charity’s Form 990, too, available through GuideStar.org. The Form 990 is the charity’s tax return, and it will contain important disclosures to provide a glimpse into the financial stability of the organization."