Philanthropy Forum: Most HNW Clients Dissatisfied With Advice

"Anticipate their non-financial needs, concerns, challenges, worries, hopes. The money is a means or symptom of something. The non-financial needs can really touch," your clients, Rafferty adds.

Starting  the Conversation

According to Rafferty, the "average American household donates $1,173 to charity each year. Every client is already giving money." Ask if clients give to an alumni group or buy "wrapping paper from grandchildren."

Ask them, she advises, "What are you currently giving to? How did you come to give to those things?"

Chances are you can deepen your relationship with your clients by asking five simple questions about philanthropy, Rafferty says, and helping them find the right expert to work with:

1. "What is the area they are interested in making change in the world in? Get them to tell their story."
2. "Is there a geographic area [they'd prefer] for giving—local, national, international?"
3. "What sphere of influence do they want to have—specific or broad?"
4. "What's their tolerance for risk? Do they need to give to Blue Chip charities, [like the] Red Cross, etc., where impact is more diffuse? Or smaller, newer nonprofits" that should have a "great social return," but more risk because they are "younger, smaller organizations?"
5. "How philanthropically savvy are they?"

Investors have these "top complaints" about their advisors, according to Rafferty:

• "Not enough contact." Clients want "14" contacts a year; but "6 is typical especially when times are tough."
• "Rotten phone manners: not returning calls as soon as possible."
• "Silo mentality 1:" the advisor says, "'we're here to talk about the numbers and your finances … maybe legacy,' but [the advisor is] uncomfortable" with that.
• "Silo mentality 2:" the advisor is "not comfortable to talk about things other than money and won't bring in another professional." Clients "want you to bring in the others, so develop these professional experts for the team."
• "Dumb presents: clients don't want the wine, Godiva chocolate, tickets they can get on their own. They want the unexpected, when you first discover it, not because it's social obligation. Give them yourself."

In short, Rafferty advises advisors to "Get good at what you don't do."