What Does Wall Street Know About Charitable Giving that Main Street Charities Don’t?

Did you know that major fund companies such as Fidelity and Schwab are now getting into the charity game on behalf of their clients? They are educating their advisors on how to discuss setting up donor advised funds to ensure they continue to manage their clients’ assets for generations to come.

Charities too often take the position that their donors do not care about taxes when they think about giving. I understand this if the charity is simply looking at the $50 or $500 a donor is giving; however,  why would a charity give up the opportunity to build themselves into the estate and financial plans of their donors and members?

A lack of initiative by the charity will lead to declining revenues when many of their $500 annual donors pass away. The fact is that most people do not have charity built into their wills. It is then safe to assume that the charity’s donors will unlikely pass on any assets in their will to the charity or move to a higher giving amount without the proper insights and illustrations by the charity.

Clearly, financial institutions have been able to sharpen their focus on this key group of individuals who will be passing billions if not trillions to the next generation.



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