How to Help Clients Build a Giving Legacy

For many clients, philanthropy is about more than making charitable donations. It is an opportunity to express personal values, create a positive impact, and pass those values on to the next generation. As wealth transitions between generations, private client advisors are increasingly well placed to help clients think about what they want their giving to achieve, not only during their lifetime, but for years to come. Building a giving legacy does not necessarily require a complex structure. It starts with a conversation about what matters to the client and how they would like their philanthropy to evolve.

Here are examples of how to guide the conversation.

 

Start with the story, not just the structure

The most meaningful philanthropy conversations often begin with a simple question: What do you want your giving to achieve? Rather than starting with a particular charitable vehicle or tax consideration, advisors can help clients explore the causes, communities and issues that matter most to them. Some clients may have supported the same organisations for many years. Others may be motivated by personal experiences or want to address issues they believe will become increasingly important in the future. Understanding these motivations can help create a philanthropic strategy that is aligned with the client’s wider financial and family objectives. It can also make philanthropy a more natural part of the broader wealth planning conversation.

 

Think beyond lifetime giving

Beyond their lifetime, a donor may want to provide ongoing support to particular charities, create a lasting fund, or make future generations responsible for continuing the family’s charitable work. A donor-advised fund (DAF) can provide a flexible way to structure this. Depending on the client’s wishes, they may be able to establish a succession plan, appoint family members as successor advisors, or recommend charitable beneficiaries for the remaining assets. An endowment can also be established through a DAF to support longer-term grantmaking.

For private client advisors, the important point is to raise the question early. A clear succession plan can help ensure that a client’s charitable intentions are considered alongside their wider estate and wealth plans. The conversation might be as simple as: If you wanted your giving to continue after your lifetime, who would you trust to carry it forward? That question can open the door to a broader discussion about family involvement, succession, and the structures that could help turn a client’s current giving into a lasting legacy.

 

Bring the next generation into the conversation

For families, philanthropy can provide a practical way for different generations to spend time together, discuss important issues, and make decisions about how they want to contribute to society. Advisors can encourage clients to consider how much responsibility they want the next generation to have. This might involve inviting children or grandchildren into philanthropic discussions, giving them opportunities to recommend grants, or eventually appointing them as successor advisors.

 

Connect giving with the wider wealth plan

Philanthropy is often most effective when it is considered as part of a client’s wider financial and estate planning, rather than as a separate activity. There may be natural points in the wealth planning journey where charitable giving becomes particularly relevant, for example, when reviewing a will or considering succession to the next generation.

Advisors can help clients explore how their charitable intentions fit alongside these broader plans today and in the future. This may include considering which assets they would like to give, when they would like to give them, and whether they want their philanthropy to continue beyond their lifetime.

Ultimately, building a giving legacy is about helping clients turn their values into lasting impact. For advisors, philanthropy provides an opportunity to look beyond traditional wealth planning and understand what clients want their wealth to achieve. By starting the conversation early, involving the family and connecting charitable giving with wider estate and succession planning, advisors can help clients create a legacy that is not only financially considered, but personally meaningful and enduring.

For more information about how NPT UK can support your clients, contact us.