Advisers who don’t explicitly raise philanthropy with clients are leaving a potentially fruitful advice conversation unexplored at a time when an estimated $6 trillion or more is set to change hands between generations over the next two decades.
Adviser philanthropy education provider Generous You has launched a national program to encourage professional advisers, fundraisers and the philanthropy sector to work together to make structured giving easier for clients to access.
Research commissioned by the Edward Alexander Foundation and Minderoo Foundation, Unlocking Generosity, published in February this year, found more than 60 per cent of professional advisers rarely or never discuss philanthropy with clients. The same research found 93 per cent view philanthropy positively and 69 per cent agree that discussing it helps them better understand their clients’ goals.
The research estimated that between $7 billion and $12 billion in additional donations could be unlocked between now and 2030 if Australians had greater support and access to advice on charitable giving.
The report also showed why more advisers do not discuss philanthropy. It found 47 per cent of advisers and 68 per cent of accountants say they lack the training or knowledge to discuss the appropriate structures with clients, and advisers worry that prompting a client to donate will draw a negative reaction.
In addition, they are unsure how the conversation sits with their best interests duty and are conscious that money moved to charity comes off the asset base their fees are calculated on.
The report called on ASIC to update its regulatory guidance for financial advisers to include examples of how they can provide advice on charitable giving, for example, by explicitly clarifying that asking clients about philanthropy is not inconsistent with their regulatory obligations, and how advisers can charge a fee for service for providing this advice.
Generous You founder and chief executive Dan Wortley said in a statement that most Australians want their wealth, values and impact aligned, “but generosity isn’t always a conversation that naturally happens”.
“Generous You exists to make those conversations easier,” Wortley said.
“Whether someone is giving for the first time, considering their legacy, or thinking about the impact they want to have on future generations, we want to provide the inspiration, tools and connections that help turn good intentions into meaningful action.”
Adviser support
Support for advisers includes workshops, coaching and consulting. The four-workshop series covers structured giving fundamentals, how to raise the subject inside an existing client discussion, how to approach it with female clients, and how to convert a bequest into giving a client can see the results of while they are alive.
The introductory workshop is available self-paced online, as a live facilitated session or delivered in-house, and carries Financial Advice Association Australia accreditation for 1.5 continuing professional development hours, split across client care and practice, and technical competence.
It also supports CPD requirements for accountants and lawyers. Content covers private ancillary funds, public ancillary funds and sub-funds.
No-cost one-on-one coaching is aimed at advisers preparing for a specific client meeting or working through a live scenario.
Generous You provides an initial allocation of enablement support, also at no cost to advice firms, covering charitable structures such as a public giving fund, and embedding giving into adviser workflows and KPIs.
It is also piloting Quinn AI, which it describes as Australia’s first AI co-pilot built for advisers, accountants and lawyers navigating philanthropy conversations. The tool is intended to help advisers identify when to raise philanthropy as a topic, compare structured giving options and produce scenario modelling. It is currently being tested with a small group of advisers.
Separately, Generous You is working with HUB24’s Innovation Lab on a structured-giving advice solution that uses AI to give financial professionals guidance and resources.
HUB24 general manager of marketing and communications, Anne McDonnell, said advisers are already trusted with decisions about a client’s future, “including how they may want to give back”.
“That’s why we’re pleased to be collaborating with Generous You to make it easier to bring philanthropy into financial advice, enabling advisers to have broader conversations with clients to empower better financial futures, together,” McDonnell said.
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