Women and Philanthropy: Opportunity to Grow Your Practice

by Ann Summerson, Director and CFP^®, Raymond James & Associates, Inc., member New York Stock Exchange / SIPC

Until recently, an attorney, CPA, or financial advisor’s relationship with many client couples has tended to focus on the male partner. Driving this dynamic is that male advisors historically have been the norm; according to at least one study, only 15% of advisors are women. This has been the case even though women make up almost 51% of the U.S. population. 

But the environment is changing, especially where charitable giving is concerned. 

For starters, women’s growing control over wealth is fueling transformative potential to reshape philanthropy. 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 male partners in heterosexual couples. 

Many attorneys, CPAs, and financial 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, perhaps even influencing 85% of family philanthropic decisions. The ways women approach philanthropy differ significantly from men’s, especially with respect to motivations such as empathy, personal priorities, and firsthand involvement.  

Advisors can’t 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 post-spousal death. 

What this means for attorneys, CPAs, and financial advisors is that there’s a real opportunity 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, please reach out to the community foundation. 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 through the community foundation. Our 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 for the community foundation’s updates to stay current on the latest tax developments impacting charitable giving, as well as opportunities in our community to support charities and causes that impact women and girls. 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.

Any opinions are those of The Wise Investor Group and not necessarily those of Raymond James.  Investing involves risk, and you may incur a profit or loss regardless of the strategy selected.  Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation.

The Community Foundation team is happy to help you structure charitable giving tools and plans to achieve your clients’ philanthropic goals—whether through beneficiary designations or any other type of charitable giving vehicle. This email address is being protected from spambots. You need JavaScript enabled to view it.!

The information contained in this article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.