Women and philanthropy: A growing opportunity

Historically, advisor relationships with heterosexual client couples have tended to focus on the male partner. Driving this dynamic is the legacy of legal inequality that put men in the proverbial driver’s seat. Reinforcing this dynamic is that advisory industries have long been male-dominated.

According to one study, only 15% of advisors are women even though women make up almost 51% of the U.S. population. Recently, that environment has been changing, especially where charitable giving is concerned. 

According to a recent analysis published in the Stanford Social Innovation Review, over the next decade trillions of dollars will transfer to women through inheritance, earnings and outliving their partner. Women’s growing control over wealth has the potential to reshape philanthropy and you are in a position to capitalize on that trend to grow your practice.

Many advisors are familiar with high-profile examples such as MacKenzie Scott (who has donated an estimated $19 billion) and Melinda Gates (who’s reportedly pledged more than $12 billion). But the trend is much more widespread than just a few big names. Indeed, women tend to give more generously, more broadly, and more collaboratively than men. The ways women approach philanthropy differ from men’s, especially with respect to motivations such as empathy, personal priorities, and firsthand involvement.  

Advisors cannot ignore this. Not only is charitable giving an important priority for women clients, but women often wind up being key decision-makers; as many as 70% of widows fire their advisors after their spouse passes away.

This creates an opportunity for attorneys, CPAs and financial advisors to build stronger relationships with female clients by tapping into philanthropic interests.

Here are few suggestions to make that easier:

–Always raise the topic of charitable giving in your client meetings and make sure you direct your comments and questions to both partners. If you are at a loss for words, the Community Foundation for Greater Atlanta would be happy to help. Our team wants to be your first call on any matter related to philanthropy. In most cases, we can help. If not, we will point you and your client in the right direction.

–Get to know the various charitable giving vehicles and resources available to execute your client’s philanthropic vision. The Foundation team is well-practiced at balancing tax-planning strategies, impact-focused giving, and emotional engagement. We’ll help you structure a couple’s philanthropy plan to reflect the priorities of both partners.  

–Watch the news for items related to your client’s charitable interests. Whether that’s highlighting the work of a specific organization or the Foundation’s updates on the latest tax developments impacting charitable giving. This will help you be prepared for both the financial and the impact components of a client conversation with female clients. 

With women controlling so much of the trillions of dollars expected to transfer from one generation to the next by 2030, now is the time to consider how you can better serve women in your practice, especially by incorporating charitable giving as a bigger part of the conversation.