Over the years, more than a handful of attorneys, CPAs, and financial advisors have shared with the Community Foundation team that their happiest clients seem to be those who’ve incorporated charitable giving into their estate and financial plans. Whether or not you believe this phenomenon, it’s hard to dispute that philanthropy offers both emotional and rational upsides to your clients. Advisors who embrace these benefits are likely to be seen by their clients as effective, impactful, and providers of comprehensive services that enhance their lives and offer peace of mind.

Despite these advantages, many advisors lack confidence in discussing philanthropy with clients. A survey found that only 5% of advisors felt "very confident" in this area, with 72% who do not include philanthropy in their initial fact-finding conversation with clients. This gap represents a significant opportunity for advisors to enhance their services and strengthen client relationships through philanthropic discussions.

Keeping clients loyal and engaged with your services is just one of many reasons to talk with clients about charitable giving. A recent Wall Street Journal article sheds light on the ways charitable giving can have positive effects on both mental and physical health.

In summary, the article makes these points:

• Donating to charity can lead to improved mood, lower blood pressure, and potentially a longer life.
• The act of giving triggers a release of serotonin and dopamine, hormones associated with happiness, while reducing cortisol levels.
• Both scientists and economists have conducted studies supporting the health benefits of charitable acts.
• Research suggests that the positive feelings associated with giving may contribute to health improvements.

The article implies that engaging in charitable activities could be a way to enhance overall well-being, suggesting that generosity has tangible benefits beyond helping others.

Of course, not every client will have exactly the same experience with charitable giving, and charitable giving is usually motivated by a client’s desire to help others rather than solely for personal benefit. Still, it’s critical for advisors to be aware of the unique role charitable giving can play in a client’s life.

Please reach out to CFAAC anytime you are working with a client who is charitably-inclined. Our highly-trained, professional staff can help navigate both the tax planning complexities as well as the emotional side of giving to ensure that your clients achieve their financial and charitable goals. Please reach out at info@cfaac.org or 410.280.1102.