How to Unlock Major Gifts by Working with Professional Advisors
“Are we doing this all WRONG? I mean, why are donors not FLOCKING to our nonprofit? We are doing good work.
So, why aren’t we finding more donors?”
Okay, admit it: this is YOU in a weak moment, lamenting about your nonprofit’s major gifts fundraising.
The good news is that there’s a simple explanation: You are not talking to the right people.
You need to be approaching the professional advisors who WORK with your donors and potential donors.
Talking About Charitable Giving with Wealth Advisors
How do you get referrals for major donors and major gifts from professional advisors, like CPAs, wealth advisors, and estate attorneys?
It starts with one word: trust.
But let’s address this first: many professional advisors don’t talk about charitable giving with their clients. Period. Others would LIKE to talk about charitable giving but feel that their clients should bring it up first. And, occasionally, you will meet advisors who are very proactive about the conversation.
As it relates to financial advisors, Fidelity produces a report called “On the Leading Edge: Accelerating Firm Growth with Charitable Planning.” According to the Fidelity report:
Firms that offer charitable planning had 6x the median assets of those that do not offer charitable planning
Firms that offer charitable planning had 3x the median organic growth of those that do not offer charitable planning
Firms that offer charitable planning had 1.3x the median new money per investor of those that do not offer charitable planning
Another report says that 90% of the time, if companies don’t have conversations with the next gen, the assets will move to another firm upon the death of the first generation (Preisser & Williams, “The Future of Estate Planning,” Journal of Trusts & Estates, June 2010).
So, what does it look like to right the ship here? Everyone appears to be losing: the advisor, the firm, the family, and even nonprofits.
How Nonprofits Can Get to Know Professional Advisors
First, meet the professional advisors where they are. Go to where they gather.
For example, look in your hometown for events sponsored by the Chambers of Commerce U.S. Chamber of Commerce | U.S. Chamber of Commerce, various business networking events, AICPA Become an AICPA member | Resources | AICPA & CIMA, FPA We're Celebrating 25 Years as Your Partner in Planning™ | Financial Planning Association, and ACTEC ACTEC | The American College of Trust and Estate Counsel.
See if you can become a speaker at an event, showcasing your nonprofit's work, or in a speaker series they are offering.
Here are a few things that can happen as a result:
The advisor will invite you in to have a Zoom meeting with one of their clients
Even better, the advisor will invite you to have in-person meetings with client families
In those meetings, you get to talk with these clients about values, issues to solve for, and legacy
New dollars or business could also come to the firm as a result of those conversations:
Maybe the family creates a new donor-advised fund with the firm
Maybe a private foundation is established that needs various advisors to help
A trust or annuity is created
Or, a new single-life insurance policy or second-to-die is created
Importantly, clients (both first- and second-generation) are retained. And new referrals could come from existing clients who are happy with the holistic process of philanthropic planning.
If you are a bit skittish, before starting the relationship, consider asking advisors:
What are you hoping to get out of working with me at our nonprofit, with an emphasis on philanthropic planning and charitable giving?
Why might you think this is NOT a good use of time?
Do you have a situation to talk about where having philanthropic training and application could have been useful in client conversations?
Then, maybe check back in six months to see if the advisor is getting value from working with you.
The moral of the story? Step out of your comfort zone and reach out to the professional advisors in your community. Make yourself available and approachable, and you might be surprised when an advisor calls you (or e-mails you) and says, "I was talking with a client and thought of you..."
