Conversations around philanthropy can unlock “invisible” clients, advisers heard at a Good Money Week event.
Jack Chellman, chief projects officer at the Global Returns Project, made the case for charitable giving as part of investment plans.
Chellman spoke about ‘pin’ clients - those that are philanthropic, nature and climate conscious and invisible.
He said just 28 per cent of advisers feature questions about philanthropy in their fact finding process.
Chellman also pointed out a disconnect between the perception of philanthropy between clients and advisers.
He said 49 per cent of advisers think philanthropy is important to clients for tax reasons, while just 16 per cent of clients say this is the case.
With the great wealth transfer on the horizon, Chellman said advisers talking to clients about philanthropy could be a way to keep hold of the next generation or women who are expected to be the first to inherit.
“Women have well defined priorities when it comes to money and they will often involve their children when it comes to philanthropy,” he said.
“Women also care about sustainability. Some 80 per cent of women want investments to be sustainable but nine in 10 have never been asked about sustainable products by advisers.
“There are clients out there who want to be talking about philanthropy and our planet.”
Chellman said green philanthropy is a “great complement” to sustainable investing.
“When we talk about philanthropy it is more likely to strengthen that relationship with the client", he added.
The Global Returns Project currently has six environmental causes it gives to and facilitates giving to the charities through advisers.
The charity is funded externally and works with a team of environmental scientists to choose the charities and re-assesses the selections every six-months, replacing them if it identifies charities performing even more strongly.
Chellman added: “In the face of the climate crisis it is easy to feel powerless but philanthropy is the gift of power.”
The event, titled The Business of Giving: Environmental Philanthropy in Financial advice took place on Tuesday (October 1) in central London.
tara.o'connor@ft.com
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