Professional Advisors
Common Excuses for Not Advising Clients on Giving
The professional advisor is the client's most trusted counselor on all financial
matters, second only to the client's spouse. Statistics show that people today want charitable planning help, and no one is better suited to give that help than professional advisors. Why is it, then, that so many professional advisors do not discuss charitable giving with their clients? Here are some common professional advisor objections and our answers to them.
Appropriateness
Business Sense
Ignorance
Appropriateness
Giving is a very private issue; it is not my place to ask clients about it.
Granted, giving is a private issue, but so are all financial matters, really. Professional advisors should discuss giving with their clients in the same way they discuss financial issues generally. By definition, professional advising means being invited into a client's private financial world. Charitable planning may take one a bit further into clients' religious commitments than one would otherwise go, which is of course cause for particular respect. But by and large, charitable planning is not any more private than any other aspect of financial planning. Therefore, advisors should act with the same discretion here that they do in all their work with clients. In short, the fact that giving is a private issue is a reason for, not against, doing charitable planning.
My clients are not interested in philanthropy.
That would be statistically unlikely. Of course, we cannot speak for every client, but the statistics show that the people coming in for financial counsel today are very interested in philanthropy. For one thing, it has always been the case that as people move into the second half of life, they tend to become interested in leaving a legacy. Their thoughts turn from accumulation to benefaction, and they are eager to leave a mark for good in the world. For another thing, the present generation is witnessing a rise of interest in philanthropy generally. In contrast to the modern era, which valued progress above all else, our postmodern era values 'soft' commodities like spirituality, community and well-being. As a result, people of all demographics (both Christian and non-Christian) are taking an interest in charitable giving. Many clients would like the chance to discuss their giving, but they do not ask due to either ignorance or nervousness. Here, just as in other areas of financial practice, the advisor must ask the client the questions he needs to consider but would never think of himself. Clients today are indeed interested in philanthropy. Professional advisors must consider whether they will adapt their practices to respond to this interest.
My clients already give. They don't need me interfering.
If one's clients are already active givers, this is good news. But by what standard do we recognize a person as generous? The fact that they give something at all? That they give more than other clients? We must ask ourselves: What is the Bible's
standard for generosity? The Old Testament establishes the tithe system, one tenth of gross income. Most Christians fail to meet even this meager standard. Consider then that in the New Testament, Jesus. one chosen example of generosity is a poverty-stricken widow who gives her last two pennies (Mark 12:41-44), 100 percent of all she owned. Very few of us have ever even dreamt of this, but Jesus calls it a realistic Christian goal. The logic of the Bible goes this way: Jesus has accomplished our redemption, and we have received the Holy Spirit, therefore we are empowered for generosity that previously seemed unimaginable. The Scriptures call Christians ever on to greater and greater generosity. The biblical question is not 'How much must I give to have done enough' but 'How much can I give'? (2 Corinthians 8:4). Advisors who fail to offer charitable planning because they think their clients already give enough underestimate the Holy Spirit and deny their clients the chance for greater service to Christ.
My clients would rebuff my attempts to raise the subject.
This fear is understandable, but probably not warranted. The statistics show that the people coming in for financial counsel today want to discuss charitable giving. We should not underestimate this growing trend. Nor should we underestimate the gospel's power to make Christians eager to give to the Lord. Many clients would like the chance to discuss their giving, but they do not ask due to either ignorance or nervousness. The professional advisor who gives them the opportunity may find them eager to share their goals and ask about their options. Here, just as in other areas of financial practice, the advisor must ask the client the questions he needs to consider but would never think of himself. In fact, advisors who remain silent on the issue risk losing their clients to others who will give them the guidance they want. Indeed, this is more to be feared than the prospect of being rebuffed.
Charitable giving is a religious issue, outside the bounds of financial management.
This objection is mistaken on two counts. First, charitable giving is undeniably a financial management issue, insofar as it involves the strategic allocation of funds. (The only difference with charitable giving is that there is usually not an immediate or measurable return.) Second, it is not the case that religious considerations are 'out of bounds' in financial discussions. On the contrary, all sorts of financial decisions (not just charitable giving) involve the religious convictions of the owner. It is a fact that beliefs about God and financial decisions are very closely related (Matthew 6:21). So professional financial advisors are very much involved with religious issues, whether they realize it or not. In short, the fact that charitable planning involves religious beliefs is no reason not to do it.
Soliciting donations is not part of my job description.
This is a true statement, but it misses the point. Sadly, this is a common area of misunderstanding; many professional advisors confuse charitable planning with fund-raising or solicitation. But the two are very different. Professional advisors do not ask for money; they help clients reach their giving goals. Indeed, this is precisely what makes professional advisors so well suited to the task-they have no vested interest. With regard to charitable planning, the advisor's job is to
help the client make 'investments' that will pay eternal dividends. This sort of gospel-oriented thinking enables us to say sincerely with the apostle Paul, "Not that I am looking for a gift, but I am looking for what may be credited to your account" (Philippians 4:17). It is important that advisors be clear on this point, both in their own minds and with their clients. Indeed, professional advisors should not be soliciting donations-and that is precisely why they are so well positioned to do charitable planning.
It is not my responsibility to advise clients on charitable giving.
Actually, it is the professional advisor, more than any other person, who is best suited to advise clients on charitable giving. The advisor is probably the client's
most trusted counselor on all financial matters. Therefore Christian advisors have both the responsibility and the opportunity to encourage clients to model
Christ's generosity to the world. As Jesus taught in the parable of the talents (Matthew 25:14-28), we will all one day stand before the Master to account for how we handled His resources. Professional advisors' counsel to their 'clients-awaiting-judgment' will play a key role in whether those clients are found faithful on that day. This is clearly a tremendous responsibility. Advisors can either promote godliness and gain by urging clients to store up treasures in heaven (Matthew 6:19-21), or promote selfishness and loss by urging them to store up treasures here on earth. Inevitably, every advisor will do either one or the other. It is incumbent upon each of us to consider which we are doing.
I already encourage my clients to practice morally responsible investing. That's all the help they need on the matter.
Actually, morally responsible investing is not enough. Morally responsible, or values-based, investing, in which the investor or broker refuses to put money into any company that is known to be involved in sinful practices (e.g., pornography, marketing tobacco to minors, labor abuses), is a good step of Christian stewardship, but it is not the whole story. If we stop there, we have missed the bigger point. Stewardship is a lifestyle based on the biblical belief that God is the rightful owner of everything and that we are 'stewards' (i.e., caretakers) of his stuff, responsible to do with it what he wants done. So the stewardship question is, 'What does God want me to
do with his stuff'? Well, he certainly does not want us to use it sinfully, so values-based investing is a step in the right direction. But the Bible has much more to say. Paul's instruction to thieves who become Christians is relevant here. He tells them (1) to stop stealing, then (2) to get a job and earn for themselves, (3) so that they can give to others (Philippians 4:28). In other words, it is not enough to stop doing evil; we must go out of our way to do good. Really, any non-Christian can do values-based investing (in fact, many do), but only Christians can give generously to God and His kingdom. This kind of giving is a special mark of a person changed by the gospel. If a client simply uses values-based investing to make himself rich, then he is no better off than he was before. His investments may be ostensibly 'cleaner,' but he has not been rich toward God (Luke 12:21). By all means, Christian advisors should counsel their clients in morally responsible investing; but they should train them in biblical generosity, too.
I don't give myself, so I'm not in a position to encourage my clients to do so.
This is a conscientious objection. It is not good to tell others to give while neglecting to do so oneself; this is hypocrisy (Mark 7:6). But what is the proper next step in this situation? You could go on keeping your money to yourself, in which case you cannot tell your clients to give, lest you add hypocrisy to your sins. Or you might turn from your greed and start practicing generosity yourself, so that you can give philanthropic counsel with a clear conscience. The biblical choice in this situation is obvious. By no means does Jesus authorize us to persist in personal sins, provided only that we do not tell others to do what we are not doing. Rather, Jesus commands us to align both our private lives and public work with the whole word of God (Luke 11:42). Thankfully, the gospel includes not only God's forgiveness of our sins but also God's empowerment to change our behavior.
Business Sense
Advising clients to give their money away would reduce my total dollars under management and therefore my own income. It would be a bad business move.
In fact, this is not the case. Even apart from the biblical reasons for doing charitable planning (which are compelling), there are good economic reasons to do it, as well. True, in the short term, charitable giving by clients will reduce the advisor's total dollars under management. But in the long term, there is much more to be gained. As a rule, good charitable planning results in closer client relationships, relationships with clients' heirs, differentiation of one's practice from competitors, and increased referrals and brand recognition, all of which contribute to the prosperity of one's practice. So, contrary to what we might guess, counseling people to give their money away can actually result in more (not less) business for the advisor.
I don't stand to gain anything from offering charitable planning services.
Actually, quite the opposite is true. There are many long term benefits to those advisors who incorporate charitable planning into their practices. A few of them are: (1) Sense of purpose. Over time, many professional advisors lose sight of why they got into the business in the first place. But charitable planning can give new purpose to an established practice. (2) Eternal rewards. Stewardship is about more than money. One part of the professional advisor's stewardship before God is the use of his advising gifts. If the advisor uses his financial savvy to spur others on to generosity and profit the kingdom, he can expect to be rewarded by the Master (Matthew 25:14-30). (3) Client relationships. Giving, like most financial matters, is a very personal subject. Working with clients in the area of giving will help to solidify advisor-client relationships. (4) Differentiation. Most advisors simply do not address giving issues with their clients. They focus their practice and marketing on traditional financial issues like retirement, insurance, estate and tax planning. Advisors who make giving planning a part of their practice stand out from a very crowded field, and that is a good position to be in. (5) Referrals. The payoff for differentiation and good client relationships is referrals. When clients understand the unique value of giving planning services, they will recommend those services to others. (6) Influence with clients' children. The children of clients might know advisors to whom they will turn in the future, or worse and more likely, they may have no advisors and make ruinous financial decisions as a result. The advisor's
participation in family giving decisions now establishes relationships with clients'
children and makes him a likely resource for counsel in the future. In short, professional advisors stand to gain a lot from adding charitable planning to their repertoire.
Ignorance
I wouldn't know where to begin.
This objection is fair, but easily remedied. The first step in charitable planning is simple. Veteran financial planner Ron Blue recommends the following: Ask the client, 'What are your overall financial goals?' Then follow up by asking, 'Where
does charitable giving fit in?' Very few people have given much thought to charitable giving goals, but most will be intrigued by the idea. Also, we never know when the Holy Spirit will have been working in a client's life, moving him to give generously. The advisor is simply asking the right question, in the right place, at the right time. Often, just this simple question is all that is needed to initiate a charitable planning relationship.
I don't know how to integrate charitable planning into my practice.
We can help with this need. Generous Giving maintains an online library of useful research, tools, books, tapes and other resources that advisors can use to address giving issues with their clients. We would encourage you to read, listen and pray through these materials yourself before giving them to clients. Advisors must first be convinced of the importance of Christian generosity before they can be effective in charitable planning. The key is to understand the connection between the gospel of Jesus and the practice of giving generously. Educating clients will take time and effort. You might start by sharing stories and testimonies of wealthy Christians who have experienced the joys and benefits of giving. Send clients Randy Alcorn's small book The Treasure Principle: Discovering the Secret of Joyful Giving as birthday gifts. Distribute audiotapes to stir clients' hearts with the Bible's
message on generous giving. Just as one might design a calendar for a marketing plan, advisors should assemble a calendar to guide their educational efforts in giving counseling. We suggest leading clients through these three questions: (1) How much is enough for me? (2) How much is enough for my kids? (3) How can I use the rest for the Lord? Prayerfully seek God's guidance in answering the first two; once clients can answer these, then they will be better able to consider giving strategy. Advisors should cover all their efforts in prayer (Philippians 4:6-7), asking God to work in the hearts of His people to advance His kingdom through their charitable planning. Advisors who follow these steps and study these resources will know all they need to know.
I am unfamiliar with the charitable planning field.
The way to bring oneself up to speed is by reading a few good books and attending a few good events. There are several resources in particular that we recommend you start with. First, read the recent book by Alan Gotthardt, The Eternity Portfolio. Gotthardt, himself an accomplished financial advisor, makes a compelling case for a view of philanthropy as investment. If there is any one book you should read to orient yourself, this is it. Second, sign up for Generous Giving's e-newsletter for professional advisors. This monthly newsletter will keep you abreast of news and literature in the charitable planning field. Or, if you prefer, simply check in periodically on the Generous Giving professional advisors home page: www.GGAdvisor.org. Third, register to attend one of Generous Giving's semi-regular gatherings for professional advisors. Here you can hear firsthand from leaders in the charitable planning field and exchange ideas with your peers. If you start with these steps, you will be well on your way to proficiency in charitable planning. Lack of information need not be an obstacle.
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