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Use Charitable Giving to Tighten Your Bond With Clients

By Crucial Clips     March 26, 2014
The following text is a transcript of a portion of a speaker's presentation made at an industry conference or during an interview. This transcript solely represents the view of the individual who spoke, and not the view of Financial Advisor IQ or any other group.
Source: FA-IQ Exclusive, Mar. 26, 2014 

CHRIS LATHAM, REPORTER, FINANCIAL ADVISOR IQ: This is Chris Latham with Financial Advisor IQ. Here’s a look at the latest advisor-related conversations happening on Twitter.

Consultants have been speaking recently about the benefits of incorporating charitable giving into the practice. One suggestion is to offer charitable-giving cards, electronic cards or physical cards, to people who refer new clients to the practice. That person can then donate the money on the card to whichever charity they wish.

Another consultant points out that they know of advisors who donate to their clients’ own charitable interests as a way to support the client and also, perhaps, to build bonds with the client.

Another consultant points out that that can work in the other direction. They know of advisors who have told their clients about the advisor’s own charitable actions and that over time the clients have donated to help the advisor.

And then, there’s the social-media connection. Advisors can post about their charitable actions on Facebook, on Twitter, and generate interest in their own community, which most likely does include clients.

Now, all of this raises the question of what types of charities to mention to clients. I personally get e-mails from advisors who do charities involving the Salvation Army and the Ronald McDonald House, for example. Other advisors have been known to help out with things such as Alzheimer’s medical research and community giving for the impoverished in their communities.

There’s also the question of just how far you go in discussing this with clients and under what settings you would discuss it.

One more consideration. When it comes to clients’ own charitable giving, there are tax-mitigation advantages. So, there is a clear financial wealth-oriented reason to discuss this with clients.

That wraps up this edition. Please be sure to send us your comments; maybe we’ll mention them in the next video.