The 2010 Fidelity Charitable Gift Fund "Advice and Giving" survey received replies from more than 500 advisors over a broad spectrum of firms from wirehouses to independents and insurance and bank broker/dealers. The poll found that only 52% of advisors actually offered charitable planning advice to their clients without those clients having introduced the subject first, with 44% citing a belief that philanthropy was a "client's personal decision" as the reason not to broach the subject. However, 63% believed that clients would be interested in it; 31% did not feel knowledgeable enough about the topic to bring it up.
Interestingly, fully 82% believe that donor-advised funds are valuable options for clients, and 39% believe that such funds will be on the increase over the next five years. In a statement, Sarah C. Libbey, president of the Fidelity Charitable Gift Fund, cited several advantages such funds had over private foundations as a giving strategy: "[d]onor anonymity, fewer administrative burdens, lower costs and greater tax advantages." In addition, advisors added simplified giving (75%), ease of administration (74%), and the ability to bring "an immediate tax deduction but [grant time to donors] to decide where to disburse grants (65%)," as well as other reasons to use funds.
Being proactive about charitable giving with clients offers advantages, too, chief among them relationship building, cited by 80% of advisors who incorporated charitable planning in their practices, keeping assets under management (61%), and multigenerational relationships (56%).
The Gift Fund poll also offered three suggestions to planners who want to start the conversation with their clients: mention its use as a financial strategy as well as philanthropy; show clients which assets are the most beneficial gifts, and explain why; and be prepared to help them select the right means of giving.
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