A new study suggests there is an opportunity for advisors to use strategic charitable planning as a key differentiator for growing their practice.
The wealth management industry faces an interesting paradox. While the profession has long measured success through asset growth, new research from Fidelity Charitable reveals a significant blind spot: advisors consistently misjudge how much their clients care about strategic charitable giving.
The data tells a striking story. Among high-net-worth individuals surveyed, 85% of respondents actively donate to charity, with nearly three-quarters contributing $10,000 or more each year. The commitment at higher wealth levels: 61% of those with $3 million or more rank charitable giving among their top financial priorities, placing it alongside retirement planning and wealth transfer.
Despite this reality, advisors estimate that only 57% of their high-net-worth clients engage in charitable giving, a nearly 30-point gap between perception and reality. This disconnect extends to practice management: advisors report discussing philanthropy with just 57% of their high-net-worth clients and a mere 28% of mass-affluent clients.
Where Conversations Are Happening—And Where They Aren’t
The research, which surveyed over 400 advisors and broker-dealers alongside 600 affluent consumers, uncovered an interesting dynamic around tax-efficient giving strategies. Among clients familiar with these approaches, 91% have engaged in some level of discussion with their advisors.
But here’s the catch: these conversations appear largely reactive rather than proactive. No single giving strategy, whether donor-advised funds, charitable remainder trusts, or appreciated stock donations, was discussed by advisors with more than 30% of clients. This fragmented approach suggests clients are often driving these discussions rather than advisors systematically introducing options.
The Business Case for Charitable Planning
Forward-thinking advisors are discovering that philanthropic planning delivers measurable business benefits. Nearly half of survey respondents credit charitable planning discussions with strengthening existing client relationships. More compelling still, 60% report these conversations have directly contributed to new client acquisition.
The generational divide is particularly telling. Among advisors with less than 15 years of experience, 61% cite relationship enhancement and 52% report new client growth from charitable planning discussions, suggesting the next generation of advisors better appreciates philanthropy’s role in comprehensive wealth management.
Breaking Through the Barriers
What prevents more advisors from capitalizing on this opportunity? The research identifies two primary obstacles. First, approximately one-third of advisors express discomfort with the personal nature of philanthropic discussions, a surprising finding given the industry’s proclaimed shift toward holistic planning. Second, 37% acknowledge they need deeper expertise in tax-advantaged giving strategies, a knowledge gap that’s addressable through targeted education.
The Path Forward
The study points to a clear opportunity: advisors who systematically incorporate philanthropic planning into client conversations can differentiate their practices while better serving client priorities. Rather than waiting for clients to initiate these discussions, proactive advisors can demonstrate value beyond portfolio management by addressing what matters most to their affluent clients.
In an industry increasingly focused on comprehensive wealth planning, charitable giving represents more than a planning technique, it’s a gateway to deeper client engagement and practice growth. The data suggests that advisors who embrace this opportunity won’t just help clients achieve their philanthropic goals; they’ll build stronger, more sustainable practices in the process.
