Alexandria, VA, Dec. 15, 2020 (GLOBE NEWSWIRE) -- In the world of mass affluent advising, estate planning attorneys, tax advisors and wealth managers have a lot to think about – not only what their clients are seeking, but keeping pace with changing tax rules, investment fluctuations and inter-generational wealth transfer. Cerulli reports that the mass affluent market segment is growing, and more advisors are turning their focus to include mass affluent individuals. Further research shows that this segment is looking for personalized, human advice. What are the themes advisors can use to open up conversations with these clients? There’s one topic that acts as an access point and differentiator for tax planning, investments and estate planning through generations: Philanthropy and charitable giving.
Many mass affluent advisors may shy away from charitable giving as a discussion topic, understanding it to require expertise gifting complex assets, in-depth knowledge of the charity sector, or a topic mass affluent individuals might not be interested in – yet. But it could be a differentiating, relationship building conversation for advisors, and there is a risk free way to pilot the conversation: By introducing the use of a self-service, no‑minimum donor advised fund (DAF) for their clients to explore strategic charitable giving. DAFs are a hot topic of conversation given their popularity and contributions growth of 20% year over year, but many assume these options remain only for the high net worth philanthropist. High minimum opening requirements can be deterrents to mass affluent individuals who aren’t experienced with philanthropy.
As a smart, risk free way for advisors to bridge these conversations with clients, Growfund emerges as a gateway DAF for starting a philanthropy journey. As the original no-minimum DAF, it offers features that are available in higher priced DAF options, with no minimums to open an account, a hassle free online account opening process and the unique feature of accepting donations by credit card. As a way to foster engagement, Growfund provides access to giving opportunities, investment options and the ability for any individual to create customized Giving Circles, an innovation that counters the argument that funds in DAFs aren’t being spent down quickly enough (Growfund’s average payout rate for Giving Circles was estimated at 73% last year). Developed by Global Impact, a 60+ year old global nonprofit, Growfund presents a way for advisors to provide value to the mass affluent and de-risk the philanthropy conversation by presenting Growfund as an easy training wheel option for budding, everyday philanthropists.
At the end of a trying year, philanthropy could be a way for clients to start thinking about longer term impact, giving while living and a fun way to foster generosity with friends and family in a year they might not be together in person. December and the giving season might be the best time to have these conversations with clients, ahead of the new year, and an alternative discussion encouraging clients to engage in giving as a way to start thinking about social impact, countering the post-Thanksgiving retail therapy splurge in a year where so many lives have been in dire need of philanthropic support. And interest might be more widespread than you think: In 2020, despite expectations for a pullback, individuals’ donations to charity have surpassed projections, according to various charities including Giving Tuesday, who saw a 25% increase in giving this year over 2019. For advisors, philanthropy may be the way advisors use to differentiate their advice and lay the groundwork for successful longer term relationships across generations in 2021 and beyond.
ABOUT GROWFUND
Growfund offers a low cost donor advised fund (DAF) for individuals, giving circles, and organizations. We provide a charitable giving tool that helps donors give strategically and with impact. Growfund is an innovation of Global Impact, a longstanding 501(c)3 with strong partnerships across the philanthropic landscape, including with the Bill and Melinda Gates Foundation. Growfund is one of the only DAFs to serve individuals, organizations, and giving circles to democratize giving.
ABOUT GLOBAL IMPACT
Global Impact works on charitable ventures to inspire greater giving. We serve as a trusted advisor, intermediary and implementing partner across the private, nonprofit and public sectors. Through these partnerships, we have raised nearly $2 billion for causes such as disaster relief and global development. Our expertise includes fundraising and partnerships, employee engagement and corporate social responsibility (CSR), and finance and business services. Global Impact’s reach and services are complemented by the work of our subsidiary company, Geneva Global.