When Do I Need a Philanthropic Advisor?

I’m sometimes asked: “What does a philanthropic advisor do?”

The answer is as varied as the individuals and families we serve.

And then there’s the other question: “When does philanthropic advising make a difference?”

Let’s dive into the answers!

Is This You?

Consider the following hypothetical situations. None represents an actual client, but each illustrates circumstances in which thoughtful philanthropic guidance can make a meaningful difference.

As you read, ask yourself: Does any part of this sound familiar?

You have raised a family, led a fulfilling career, inherited some wealth and earned even more. You’ve worked with professionals to help you with your retirement planning, your tax planning, and managing your assets. You’re generally methodical and intentional and pride yourself on making thoughtful decisions that reflect your love for your family - as well as your alma mater and your hometown.

(You’re thinking: I’m not loving the amount I pay in taxes every year. I hate the idea of just giving all that money to the government. And I feel like I already give a fair amount to charitable causes every year. But it doesn’t really bring me any satisfaction. It feels more like a quid pro quo situation – donating to my friends’ favorite charities so they give to mine. I guess that’s what philanthropy is? I’m not a “warm and fuzzy” kind of person, but isn’t donating to charity supposed to make you feel good? I feel like there’s got to be a smarter – and more comprehensive - solution to all of this.)

You have recently experienced a significant liquidity event – IPO, M&A, Private Equity Recapitalization. You want to use every tool at your disposal to make prudent planning decisions that will reach far into the future.

(My own research – and the advice of my advisors – tells me that a great way to lower my taxable income as well as reduce capital gains is through charitable giving. But I have no idea where to start. I’ve heard a lot about “impact investing” and it sounds like exactly how I approach solving problems. Approaching philanthropy as an investment makes sense to me. But when I start talking about it with my financial team, we spend all the time talking about the logistics and never get around to figuring out the right nonprofit for me. If I’m honest, I’m not even sure what problems or causes are that important to me.)

You’d describe yourself as “just a regular couple." You know you’ve done well in life but don’t feel like “philanthropy” is something you’re comfortable with. That’s such a grandiose term. You’re accustomed to writing a check for this cause or that one and have even considered volunteering (but not yet pulled the trigger). Even after socializing with friends and playing a round of golf each week, you feel like you’ve got plenty of extra time on your hands.

(You think: is this all there is? Shouldn’t there be something more meaningful in my life? We’ve worked hard but now what? When I’ve given money to charities in past, it’s not been an especially joyful task. They just keep asking for more, and I don’t really see any impact from my donation. What’s the point?)

You have – or will at some point in the future – inherited wealth. You desire to pass as much of this on to your heirs - and upgrade your own lifestyle a little too. You seek to make strategic decisions – like you do in the rest of your planning – and realize that you will likely end up with an even larger sum than you inherited. The last thing you want to do is give the money to Uncle Sam when you pass.

(I’ve made sure the kids are well taken care of. But I certainly don’t want to spoil them or even screw up their lives by giving them “too much.” And Joe tells me that my estate may very well be so large after I pass that I’ll end up giving a bunch to the government. My grandparents always seemed so generous and engaged in their community. But I’ve never really had time for that. When I think about it, I think I’ve been kicking these decisions down the road for some time now. It all feels overwhelming, overly complex, and even a bit pointless.)

You have led a successful career. You pride yourself on your independence and ability to make decisions that, by and large, have been highly profitable for your firm and for you. Now what? You’re connected to several nonprofits but don’t see them succeeding the way you know they could.

(I don’t want to be pushy, but I know I could make a dramatic difference for that nonprofit – and, more importantly, in the lives of those they serve. I’ve led several companies during my career and helped them solve big challenges. I don’t want to overstep but also would love to do something important and meaningful at this point in my life. But I’m not sure how to navigate this strange nonprofit landscape.)

You’ve led a rich life – “rich” meaning “full” but certainly not “extravagant” or “wealthy.” You don’t have children and you don’t have any real debt. As you look around your community and the world, you feel like there’s so much that needs to be done.

(I’m not a “philanthropist”, but I care - and care A LOT - about my community. When I take the time to stop and think about it, I know my life’s trajectory was changed by Mrs. Skylar, my amazing seventh grade teacher. Wouldn’t it be incredible to help others the way she inspired and helped me? But where do I start?)

You’re relatively young and you’ve recently come into a great deal of wealth – maybe through a gift of appreciated stock or an inheritance. You love and respect the generations that came before you, but you know deep down you are called to do something bigger and bolder. You want to act – and act sooner than later – but you don’t want to be reckless and squander this unique opportunity.

(I don’t want to seem disloyal to my parents and grandparents, but I’d love to employ the wealth I have to do something that I don’t think they would understand. How do I talk about this with them? They always treat me like a little kid, so I’m sure they won’t take me seriously. But the clock is ticking and I feel like I need to make a bold move sooner than later.)

You’re successful by any definition. You’d like to make a significant difference in the world. Your financial advisors have said you “need” to make some significant charitable donations from a tax and estate planning standpoint. But you don’t want to call attention to yourself. You hate publicity and are reluctant to make large gifts because you can already imagine the reaction in the press and online.

(I was about to make a really transformational gift to my alma mater when I saw a post online about someone who did the same thing. Geez, did they vilify her! It’s not worth it. I don’t want to put myself – let alone my spouse and kids - through that. I guess I’ll just sit tight for now.)

Do any of these sound like you?  

We help solve these challenges – and many more. We start with where you are today and, more importantly, who you are. And we craft a path forward. We help you with the “outer” descriptions of where you find yourself, as well as those inner concerns.

What We Do: Managing The Details

First and foremost, we listen. We gather information.

We always begin with who you are. Our goal is finding the right fit for you.

We feel there’s real magic in the details, and we believe the best decisions come when we’ve considered a situation from as many vantage points as possible.

For each of those scenarios above – and countless others – our work falls into two categories.

First, there’s the mechanics and logistics of a giving strategy.

Many of us are used to working methodically and strategically. We make decisions after weighing the evidence and the options. The choices we make work within the larger framework of our lives. The last thing we want to do is waste our time or hard-earned assets.

With you, we spend the time to create a map for your giving that reflects the meticulous details and thoughtful approach you give to all of the important decisions you’ve made in life. Creating a plan that exists in harmony with your overall financial/tax/retirement/estate planning and goals. It is geared for impact. We strive for a plan that is easy to execute and has clear metrics for success.

We help you find focus. Most of us are drawn to supporting many worthy organizations and causes. We want to do it all. But often, by trying to do it all, we cast a wide net and reduce our impact. In your business life – and probably in your personal planning – you were used to making tough choices when they led to greater success. Why should your philanthropic planning be any different?

Imagine what you could do if you focused your philanthropic intent and dollars. If you strategically chose one or two priorities that are intimately tied to who you are. If you understood the full array of options available to optimize your charitable dollars. If you decided to make a real difference rather than dilute and disperse your giving.

We explore answers to questions like “Did you know there’s a way to make a lasting gift to (your favorite nonprofit organization) that costs you nothing during your lifetime?” or “Many people like you hold their wealth in assets rather than in cash. Have you ever considered using an asset to support a cause you care about?”

We match you with the right organizations. Right for you. This takes thoughtful, careful vetting and deliberate, independent eyes and ears.

We don’t come with predetermined ideas and nonprofits. Each solution is the outcome of our process of understanding you. And finding your fit.

 What We Do: What Makes You Tick?

The other part of our work is less about logistics and dollars. Once again, it starts with listening.

Our clients and friends will tell you that we have a knack for asking the right questions. We love diving into the details of your journey. Your joys and triumphs – and what makes you light up or laugh.

We learn about you: your dreams, your goals, your aspirations, what keeps you up at night, what you would do if you believed you couldn’t fail. Together we discern the patterns and themes of your life.

We explore answers to questions like “Think about a time in your life when everything felt like it was running smoothly. Tell us about that. What were the factors that led to that?” or “What’s the one thing you feel uniquely capable of doing that would help someone else (or a nonprofit)?”

For families, we take the time to build consensus and buy-in. To create a respectful place where all viewpoints can be shared and considered. To establish shared values, vision, and goals. To find clarity. To move forward.

We emerge with a vibrant tapestry of your life, whether you’re an individual, a couple, or a family. We take the time for this process to unfold. With you, we notice the key ingredients that have shaped your life. We watch as you become clear and confident about your unique journey and role in the world. 

This process is often joyful and filled with unexpected insights. You gain focus about the details so they can inform your future giving. Your legacy. We’ve found this to be true even with clients who come to us believing they have a clear picture of what should drive their philanthropy.

Though we’ve discussed this part of our work second to our more data-driven work, I’m certain you can see the value in figuring this part out first. When our clients go through a process of discovery, it not only clarifies their values, vision, and goals but the results underpin all of the decisions that follow. Our clients who are clear about why they are giving give confidently and put more trust in their team to handle how they give.  

We’ve seen the biggest sceptics of this part of the process become the biggest cheerleaders. They have tapped into a confidence and sense of purpose they didn’t think possible.

Watching the joy on a client’s face when they have an “Aha! Moment.” Listening to a couple share formulative stories that shaped who they are and how they seek to make a difference in their world. Seeing the transformational work of a nonprofit partner made possible by a strategic and intentional gift from you. These make the work especially rewarding.

We help you find what fits you best.