Enhancing Client Conversations About Charitable Giving: Sample Questions, Scripts, And Tools For Better Engagement

Many financial advisors have a unique opportunity to assist their clients in crafting meaningful charitable plans that resonate deeply with their values. While conversations around philanthropy can bring emotional satisfaction and financial benefits, advisors may approach these topics thoughtfully, looking for ways to feel fully equipped for these discussions. By using targeted questions and strategies, such as the ones included in the examples presented later, advisors can help clients uncover their charitable intentions and create meaningful, tax-smart giving strategies that align with their priorities. Not only do these conversations add meaningful emotional and financial rewards for clients, but they can also strengthen client relationships and open new business opportunities through strategic philanthropic advising.

I know. As a comprehensive financial planner, one of my specialties has been charitable gift planning, which led to features in dozens of professional and lay publications. I was a rare bird – very few advisors include charitable gift planning in their work with clients. In fact, the year Mutual Funds magazine featured me in its list of "100 Great Advisors", I was the only one noted for being "an expert on charitable giving". Several new clients told me they were attracted to working with me specifically because of this expertise.

When I accepted clients, and before they signed my retainer agreement, I would ask, "Would you like to earn a 10% discount on my financial planning fee?" Of course, everyone replied, "YES!" I'd then explain that I would reduce my fee by 10% if they donated that amount to their favorite nonprofit. Nobody turned down my offer! For some clients, choosing where to make their gift marked the real beginning of their charitable giving, while for others, it served as a reward for their ongoing generosity.

The Opportunity Gap

A 2023 survey discussed in Financial Advisor revealed that only 19.2% of wealth managers regularly discussed charitable giving with their clients, while another 44.2% occasionally did so. Of the wealth managers who talked about charitable giving, there were 4 times as many advisors who concentrated on the gift mechanics rather than on the personal implications for their clients. The research suggested that focusing on what matters most to clients instead of the technical details of the gift was paramount. The study points out that this distinction separates the most successful wealth managers from others in the industry.

An earlier study by U.S. Trust and The Philanthropic Initiative found that 74% of advisors said that discussing philanthropy with clients was good for their business. Most advisors – and their clients – agreed this was an excellent way to deepen and establish new relationships. Nearly one-third (31%) of HNW individuals surveyed said they would be more apt to choose an advisor who was knowledgeable about charitable giving. Yet 55% of advisors expressed a need to learn how to help clients develop a strategic giving plan and mission formation, with 50% indicating that they wanted to understand more about giving vehicles and 46% wanting to learn how to integrate client philanthropic values/goals into an overarching wealth management plan.

Charitable giving isn't just about reducing tax liabilities. It's a powerful way for clients to align their wealth with their values, support their sense of purpose, solve specific problems, and leave a lasting legacy. Successful advisors can deepen client relationships and differentiate themselves from other firms that don't offer this planning service by incorporating philanthropic discussions into their practice. Indeed, recent research, such as Capital Group's Pathways to Growth: 2023 Advisor Benchmark Study, reports that charitable planning is among the services more likely offered by advisors experiencing high growth.

Giving to nonprofits can also benefit clients financially and emotionally. For many, philanthropy is a way to express their values and make a difference in their communities and beyond. This can provide a profound sense of fulfillment and purpose, often more meaningful than the financial benefits alone.

From a tax perspective, charitable contributions can reduce income tax, capital gains tax, and estate tax liabilities. Advisors who understand and articulate these benefits will be better positioned to encourage charitable giving. However, the true value lies in helping clients balance personal satisfaction and financial optimization.

Why Some Advisors May Feel Reluctant To Engage In Charitable Giving Conversations

Despite these benefits, many advisors hesitate to initiate conversations about charitable giving. When I asked several colleagues why, their common responses included fear of overstepping boundaries, uncertainty about the client's interest in philanthropy, and lack of experience or expertise in charitable planning. Some advisors who base their fees on the client's investment portfolio may fear that their revenues will decline if their clients donate substantial amounts of money. (That was never an issue for me since I charged a flat fee for my comprehensive planning services, and paying a flat fee was what my clients wanted to do in the first place.)

To overcome these barriers, advisors can view charitable giving as a natural extension of the broader financial planning conversation. By positioning philanthropy as a way to align financial resources with personal values, advisors can introduce the topic in a way that feels both relevant and nonintrusive. Understanding how to frame these discussions is essential for success.

Advisors play a critical role in helping clients navigate the complex landscape of charitable giving. By integrating philanthropic planning into their services, advisors can add significant value to their client relationships. Clients often turn to their advisors for guidance on making the most of their wealth, including the impact of charitable contributions. This role involves knowing when to introduce the topic, asking the right questions, and creating a comprehensive charitable plan that aligns with each client's values and financial goals.

Effective philanthropy conversations start with understanding the client's values, goals, and legacy aspirations. Depending on the stage of the client relationship, advisors can introduce charitable giving in various situations, as will be discussed later.

Ultimately, these conversations present opportunities to create more comprehensive financial plans and to deepen client relationships. By discussing and getting involved in philanthropy,  advisors can also establish themselves as the go-to resource for their clients and community.

Integrating Charitable Giving Into Client Conversations: Sample Questions To Ask

Introducing the concept of charitable giving can be a sensitive yet impactful way to expand planning conversations. The following sections offer conversation-starting questions, which are examples that advisors can use to help them explore how charitable giving can fit with a client's values, history, family needs, and interests. Open-ended questions can be especially useful, as they encourage reflective dialogue that allows the advisor to identify and explore the client's values and priorities while gently introducing the concept of charitable giving into their discussions.

7 Questions To Introduce Charitable Planning Conversations

I've used many of the 7 questions below to start conversations about charitable giving during estate planning meetings with my own clients. As we'll explore, estate planning is just one of many situations where these discussions can begin naturally, helping clients align their wealth with their values.

Normalizing The Discussion

Normalizing the inclusion of a nonprofit in an estate plan can open the door to further conversation about leaving a legacy contribution. Advisors can ease into the discussion by first sharing their own philanthropic experiences (or giving examples of what others may have done).

Question #1: Many of our clients leave gifts to charities as part of their estate plans. In fact, that's what I did myself. I named 2 nonprofits that are very important to me as beneficiaries. Would you also like to think about doing this, too?

This question invites the client to explore options while positioning the advisor as a partner in crafting a plan that honors the client's wishes.

Question #2: You've shared that although you don't have children, you do have several nieces and nephews who are part of your extended family.

You liked the "birthday gift annuities" article we featured in our recent newsletter that talked about how they could receive a special birthday gift check in your name every year and how your alma mater would benefit later, after all those gift payments to family are made.

Would you like to know more about this way of remembering your nieces and nephews that also help your university?

Open-Ended Exploration Of Values And Legacy Priorities

This open-ended question helps introduce the idea of charitable giving without overwhelming the client. It's not about pushing a specific agenda but exploring whether the client has considered incorporating charitable elements into their legacy.

Question #3: What do you want your family to remember about you? Have you thought about how leaving a gift from your estate to your church after you're gone might fit into that?

This question can help the client envision a future where their values live on by focusing on the causes they already support. The advisor can then guide the client toward strategies that allow them to make a difference while still ensuring their family is cared for.

Question #4: You've told me how much your rescue dog means to you and that you love volunteering for the humane society. Have you considered putting the humane society in your will or trust for a future gift after you're gone?

When clients engage in this process, they share what matters most, often leading to a meaningful charitable connection. This question can open dialogue later for a possible legacy gift.

Question #5: Your legacy is more than the financial assets and stuff you own that you'll pass on to your heirs. Your legacy includes the values, hopes, dreams, memories, and more you share with family and friends. This might be a legacy letter. It could be a legacy story.

We've helped our clients create legacy writings treasured by those they love and care for. Would you like to talk more about this in a future meeting?

This question introduces a visualization that can help the client connect emotionally with charitable giving. It's not just about financial planning—it's about creating a legacy that resonates with their core values.

Question #6: Picture how it might feel to know that your estate plan reflects your values and supports your loved ones and meaningful causes. What do you think about that?

Examining The Balance Between Financial Security And Philanthropic Goals

This question allows the client to reflect on how they balance their family's financial security with their philanthropic goals. It opens the door for a deeper discussion about their values and how those might be reflected in their estate plan.

Question #7: Share with me how you prioritize your family's needs alongside your interest in supporting a cause that means a lot to you – like the oncology hospital that helped you beat cancer.

19 Situations To Introduce Philanthropy Discussions – And Some Questions To Ask In Each One

Looking for the right approach to use in various situations? I've suggested 19 situations below with a few questions to start conversations and engage clients in meaningful discussions about philanthropy. A downloadable version of these scenarios and questions can also be downloaded here for easy reference.

Common Client Meeting Questions

1. Discovery Phase with a New Client

• I'd love to hear about any causes or organizations that are important to you. How do you currently support them?
• What matters most to you?
• Besides financial goals, what personal values or goals do you have that we can incorporate into your financial plan?

2. Annual Review Meeting

• Have any charitable contributions or volunteer activities brought you significant fulfillment over the past year?
• What charitable goals would you like to discuss or update as part of your financial plan for the coming year?

3. Major Life Events Such As Retirement

• With this new chapter in your life, have you considered how charitable giving might fit into your plans?
• Now that you have more time and resources, are there any causes you feel particularly passionate about supporting?

Financial Strategy And Planning Questions

4. Estate Planning Discussion

• Many of our clients include gifts to charities as part of their estate plans. That's what I did. I named 2 groups that are very important to me. I'm wondering if you'd also like to think about doing this.
• As we talk about your estate plan, are there charitable legacies you'd like to establish or specific organizations you want to support?
• How would you like to be remembered by your family and community?

5. Tax Planning and Legal Considerations

• Have you considered how charitable giving can contribute to your tax strategy? We can structure gifts to benefit you financially while supporting your favorite causes in several ways.
• Would you like to explore tax-smart charitable giving strategies that align with your financial goals? We can consider options that maximize the tax efficiency of your donations.
• Following recent tax law, your children won't be able to stretch an inherited IRA from you. Would you like to explore alternatives to benefit your family and charitable interests to help relieve a potentially huge tax liability in the future?
• Have you considered the legal structures available for charitable giving, such as donor-advised funds or private foundations?

6. Client Expresses Interest in Giving Back

• I understand you're interested in giving back. Can you tell me more about what motivates this desire and what causes you to be passionate about it?
• Have you considered creating a charitable mission statement to guide your giving and ensure it aligns with your values? We've helped many clients do this as part of their comprehensive financial planning.

7. Client's Charitable Giving Increases

• I noticed that you've been increasing your charitable contributions. What has inspired this change?
• Would you like to discuss any specific strategies to maximize the impact of your donations?

8. Planning for a Significant Windfall

• With the anticipated windfall, have you considered dedicating some of it to charitable causes? We can structure this in many ways to benefit you and the organizations you care about.
• What impact would you like your charitable giving to have, especially with this new financial opportunity?

Family And Legacy Questions

9. Incorporating Family Values

• How do you involve your family in your charitable decisions? Would you like to create a family giving plan that reflects your collective values?
• What lessons or values do you hope to pass on to your children or grandchildren through your philanthropic efforts?

10. Reviewing Charitable Impact

• Let's review the impact of your charitable contributions so far. Are there any adjustments you'd like to make to better align with your goals?
• How do you feel about the outcomes of your charitable giving? Are there any new directions or causes you'd like to explore?

11. Understanding Values and Motivations

• What causes or organizations do you care the most about?
• Have any personal experiences influenced your interest in charitable giving?
• Do you have any family traditions related to giving or volunteering?
• How important is it for you to involve your family in charitable activities?

12. Identifying Financial Goals and Assets

• How do you see charitable giving fitting into your financial plan?
• Do you want to achieve any specific financial goals through your philanthropy?
• What types of assets are you considering for your charitable contributions (cash, stocks, real estate, etc.)?

Personal Connections And Impact Questions

13. Exploring Impact and Legacy

• What impact do you hope to make with your charitable contributions?
• Are there specific issues or communities you want to help?
• What legacy do you want to leave through charitable giving?
• Have you considered setting up a charitable trust or foundation?

14. Personal and Emotional Connections

• What personal or emotional connections do you have to the causes you support?
• How do you feel when you make a charitable gift or see the impact of your contributions?
• Can you share a story about a charitable gift you made that was particularly meaningful?
• Have you had any experiences with charitable organizations that stood out to you, either positively or negatively?

15. Long-Term Vision and Involvement

• How involved do you want to be in the organizations you support?
• Would you like to explore volunteerism or board participation opportunities?
• What are your long-term plans for charitable giving?
• How can we help you ensure your philanthropic goals are met in the future?

Special Circumstance Questions

16. Concern for Adult Child

• You mentioned you're worried that if your son received his inheritance outright from you, he would blow it in less than a year. Would you be interested in hearing how another client with this issue found a solution that supported their values and cared for their son?

17. New Widow Managing Rental Properties

• Would you like to know more about a strategy for selling your rental properties that minimizes income and capital gain taxes?
• Are you interested in receiving a guaranteed income without the hassle of managing your distant rental properties?

18. Honoring a Deceased Relative

• Have you considered memorializing your daughter through a special gift in her name in a way that could keep giving forever? Others who also loved her could join in.
• You shared that your German grandmother, who raised you after your mother died, was denied a secondary education because she was a girl. Education for young women is important, and you've asked about helping female seminary students. Have you considered setting up a scholarship fund in your grandmother's name, using some of your appreciated stocks? Would you like to explore this tax-saving option further?

19. Setting up a Virtual Endowment

• Have you ever been curious about the possibility of establishing a virtual endowment while you are still alive?

What if you could be involved with the causes you care about now, seeing the immediate effects of your philanthropy while ensuring it continues to grow and support others long after you're gone?

Sample Scripts For Charitable Giving Discussions

The following sample scripts offer a practical way to see how conversation openers might play out in real discussions between an advisor and their client. Each script draws from the question prompts above and showcases adaptable approaches to exploring charitable giving, depending on the client's unique situation, values, and goals. These dialogues are designed to spark thoughtful, personalized conversations that can help deepen the client-advisor relationship and bring clarity to the client's philanthropic vision.

Common Client Meeting Scripts

Example For Discovery Phase With A New Client

This script emphasizes understanding the client's values and integrating those into the financial plan, fostering a more meaningful advisor-client relationship. The advisor includes the client's safety, security, family, and health concerns while gently transitioning into a discussion about charitable interests.

Advisor: Thanks for sharing your financial goals with me. What matters most to you as we work together?

Client: Honestly, being safe and secure in my financial life is my top priority, especially since my husband died. I want to make sure I can take care of myself. Family is very important to me. Even though they live far away, staying in touch is something I value deeply. And, of course, health matters a lot to me, too. I want to age healthy and live a long life.

Advisor: I get that entirely, and those are all crucial points. We'll make sure your financial plan reflects your priorities. Beyond what you mentioned, are there any causes or organizations that are important to you?

Client: Yes, there are a few I've supported over the years when I could, but I haven't done much lately.

Advisor: That's a great place to start. We can explore how to incorporate your interest in these causes into your plan in a way that aligns with your financial and personal goals.

Client: That sounds good. I'd like to see if that's possible.

Example For Annual Review Meeting

This script emphasizes the advisor's role in connecting the client's values and fulfillment with their financial plan, encouraging deeper engagement in charitable giving.

Advisor: As we review your financial planning over the past year, I want to take a moment to ask about the volunteer activities you've been involved in this year. How has that been for you?

Client: Oh yes. I generally help out at the local food bank for a few hours every Tuesday. I've made some good friends there and have recently been invited to serve on their board. I'm thinking about doing that next year. Seeing the impact of their work in this community makes me feel my involvement makes a difference. I like that.

Advisor: That's wonderful to hear. I'm glad this work is important to you. Do you want to continue giving the same amount to the food bank next year, or do you have another goal in mind that you'd like to discuss? Perhaps we could explore other ways for you to make contributions besides cash.

Client: I've been thinking about that. I certainly can give more, and I'd like to hear your thoughts about other ways. I know the food bank needs to expand into a more spacious building. That will certainly cost more money.

Advisor: We can review your current investments to see if there are opportunities to align them with your charitable goals. The new tax laws have some revised provisions that apply to you and can also impact your giving.

Client: Good. I'd like to know more about what choices I have.

Advisor: Excellent. I'll prepare some information on various strategies, and we can discuss them in our next meeting. This way, we can ensure your contributions have the lasting impact you aim for.

Example For A Major Life Event – Retirement

This script shows how a financial advisor can gently introduce the idea of charitable giving during a major life transition such as retirement, focusing on aligning the client's values and goals with their new circumstances in this new life chapter.

Advisor: Congratulations on your retirement! This is such an exciting milestone. With this new chapter, have you considered how some of your priorities and goals might change, especially now that you don't have your former work responsibilities?

Client: Thank you! It's a big change. I've thought about it a little, but I'm not sure where to start. I want to make sure I'm using my time and resources wisely. I've got lots of projects to do around the house first. Stuff I didn't have time to do before – like remodeling my kitchen. I also want to learn how to play pickleball. And my sister wants me to go on a cruise with her.

Advisor: That's a great approach. Now that you have more time and flexibility, are there any causes you feel particularly passionate about connecting with? This could be a good opportunity to explore how you can impact areas that matter most to you.

Client: I've always been interested in education and helping underprivileged students. With my schedule now, I could even volunteer more, but I'm not sure how that aligns with my financial goals.

Advisor: Supporting education is a wonderful cause, and it sounds like a perfect fit for your time and resources. We can look at ways to incorporate charitable giving into your retirement plan. For example, we might consider a way that provides income while supporting a scholarship fund, or we could explore other ways that offer flexibility and tax benefits.

Client: That sounds interesting. I want to know more about how to balance giving with ensuring my financial security in retirement.

Advisor: Absolutely. We'll work together to create a plan reflecting your financial needs and interest in helping others. It's all about making sure this next chapter is fulfilling in every way.

Financial Strategy And Planning Scripts

Estate Planning Discussion

This thoughtful dialogue explores how the client might incorporate charitable giving into their estate plan while aligning with both family priorities and personal values. The conversation helps the client consider causes they care about, alongside their family's needs, while introducing estate planning options that can benefit both loved ones and cherished nonprofits.

Advisor: We've discussed goals for your family and the legacy you want to leave behind. As we start mapping out your estate plan, I'm curious – have you thought about how charitable giving might also fit into your legacy?

Client: I've considered it, but I'm not sure where to start. I want to take care of my family first.

Advisor: That makes perfect sense. Balancing your family's needs with your charitable interests is key. One approach that might work is setting aside a portion of your estate specifically for a cause that's important to you. I know you're quite involved with your church, for example. Are there other organizations or causes you've supported that you'd like to include in your estate plan?

Client: I've been involved with a couple over the years, especially recently. I love being a docent at our local art museum. But I've never even considered including them in my estate plans. I'd have to think about that some more.

Financial Advisor: It could be a powerful way to continue supporting those causes even after you're gone. There are many ways to do this, including plans that benefit you and your family, plus help your favorite nonprofit in the future. Would you like to explore how that might work with your estate plan?

Client: That sounds interesting. I'd especially like to know more about how my family could benefit.

Advisor: Great! We can walk through how your estate plan ensures your family is provided for and your values live on. How does that sound?

Client: I like that idea. Sure. Let's see how this might work for us.

Example For Tax Planning

This script illustrates how a financial advisor can introduce tax-smart charitable giving strategies in response to a client's frustration with their tax burden.

Client: (frustrated) It's the same story every year – I'm paying too much in taxes! Can't we do something to reduce this problem?

Advisor: Taxes can feel overwhelming. One strategy we might explore is using charitable giving to manage your tax liability. Have you considered how giving to causes you care about could benefit you financially? I recall you telling me you love live theater in our community and enjoy ushering at some of their shows.

Client: Yes, I've donated to that theater company and a few other nonprofits, but I didn't realize it could help that much with my taxes.

Advisor: Absolutely. There are several tax-smart strategies we could look into. For example, we could consider a Qualified Charitable Distribution from your IRA since you're over 70 1/2. That would satisfy your required minimum distribution without increasing your taxable income. Or you might consider donating some of your highly appreciated stock instead of cash, allowing you to avoid capital gains taxes. Would you like to explore these options?

Client: That sounds interesting. Sure, I'd like to know more.

Advisor: Great! We can tailor a plan that aligns with your financial goals while supporting the theater and other causes you care about. Let's set up a meeting to discuss structuring these gifts to provide you with the maximum benefit.

Example For Client Expressing Interest In Giving Forward

This script can help illustrate a thoughtful and supportive approach to discussing charitable giving with clients. It integrates the client's financial situation and tax concerns into the discussion.

Client: I've recently gone into cancer remission. I'm so blessed to have more years ahead. I know how fortunate I am. I really want to give forward, with a grateful heart! In the past, I funded 2 scholarships for students to study abroad. It was so rewarding to help them widen their world perspectives. With everything that's happened, I'm thinking about doing something more now, especially since I have to take a large required minimum distribution from my IRA this year. I don't need that money for living expenses. My pension, Social Security, and other investments cover that.

Advisor: I'm glad to hear about your remission, and it's wonderful that you're considering expanding your charitable giving. I'd love to hear more about what motivates you. Are there specific causes or experiences that have inspired you, especially as you consider your required minimum distribution as a future gift?

Client: With my health journey, I'm drawn to health-related causes, but I'm passionate about education, too. I want to ensure whatever I do reflects my values and helps minimize the taxes on that RMD.

Advisor: Those are important considerations. Have you thought about writing a charitable mission statement? It's a way to define the values and goals that matter most to you, and it can guide your giving in a focused and tax-efficient way. For example, we could explore strategies like a Qualified Charitable Distribution (QCD) from your IRA. This can satisfy your RMD while also supporting the causes you care about, all without increasing your taxable income. We've helped many clients do this as part of their comprehensive financial planning.

Client: That sounds like a great option, especially if you help me with the writing part! I hadn't considered creating a charitable mission statement or using my IRA like that, but it makes sense. I want my giving to be impactful and smart from a tax perspective.

Advisor: Absolutely. Combining a mission statement with tax-efficient giving strategies like a QCD can help you achieve both goals. We can work together to identify the causes and organizations that align with your passions, ensuring your contributions have an important impact while reducing your tax liability.

Client: I'd like that. Let's get started soon.

Example Of Client's Charitable Giving Increases

This script demonstrates how an advisor can engage a client in a conversation about their increased charitable giving, offering guidance on maximizing impact while integrating philanthropy into the client's overall financial strategy.

Advisor: You've increased your charitable contributions over the last few years. What's inspired this change?

Client: You're right. After my granddaughter was born, I started thinking more about the kind of world I wanted to leave behind for kids like her. I've gotten more involved with a couple of organizations focused on climate change. We have to make things better for the future of our grandchildren!

Advisor: That's wonderful. Giving is always meaningful when it aligns with what truly matters to you. Would you like to discuss specific strategies to maximize the impact of your donations?

Client: I'd love that. I want to make sure that what I'm doing benefits those causes and fits with my overall financial plan.

Advisor: We can discuss some options. For example, have you considered setting up a donor-advised fund? It could allow you to manage and grow your charitable contributions while providing some tax benefits.

Client: I've heard of those but don't know much about them. How do they work?

Advisor: Essentially, a donor-advised fund allows you to contribute to a fund, receive an immediate tax deduction, and then recommend grants to your favorite charities over time. It can also be a way to involve your family in philanthropy if that's something you're interested in.

Client: That sounds like a great option. Let's investigate it further and see how it could fit with my goals.

Advisor: Perfect. I'll prepare some strategic information, and we can review it together at our next meeting.

Example For Planning For A Significant Windfall: Sale Of A Business

This script highlights how an advisor can guide a client in considering charitable giving as part of their strategy for managing a significant windfall, ensuring the approach aligns with the client's financial and philanthropic goals.

Advisor: With the anticipated windfall from selling your successful business, have you considered dedicating some of your profits to charitable causes? We can structure this in many ways to benefit your family and the organizations you care about. Plus, we can also look at how to reduce your taxes on that sale.

Client: I've thought about it, but I'm not sure where to start. This is a big opportunity, and I want to do it right.

Advisor: Absolutely. This windfall presents a unique chance to make a meaningful impact. What legacy might you want to create, especially with this new financial opportunity?

Client: I've always wanted to support education, particularly for underserved communities like the one I came from. And not just at fancy universities. Some of those kids would be great with trade schools. Girls could get good jobs with that training out of high school. Maybe there's a way to make a lasting difference for young folks in that area.

Advisor: That's a wonderful goal. We can explore several strategies, like establishing a scholarship fund or creating a charitable trust that supports educational initiatives, as you described. We can tailor the approach to align with your values and financial objectives.

Client: I like the sound of that. I want to be thoughtful about how I give, not just for tax benefits but to ensure it's making a difference.

Advisor: Exactly. We can design a plan that maximizes the impact of your contributions while also integrating with your broader financial goals. I'll prepare a few options to review, and we can decide on the best path forward together.

Client: That sounds perfect. I'm looking forward to seeing what we can accomplish.

Incorporating Family Values Scripts

The advisor and client discuss the next steps for creating a family giving plan that reflects and reinforces their shared values.

Advisor: You've been consistent with your charitable contributions. I'm curious. How do you involve your family in these decisions?

Client: My husband and I discussed this, but we haven't involved the kids much except for long ago when we invited each of our school-aged children to recommend an organization to receive a gift from our family at Christmas. We haven't done that again, although I'm not sure why not. I've thought about it, especially as our children are grown and starting their own families.

Advisor: That's understandable. Many clients find it challenging to bring their children into these discussions. But it can also be a great opportunity to pass on the values that are important to you. Have you ever considered creating a family giving plan that reflects your collective values?

Client: That's an interesting idea. I want our kids to understand why we give and carry that forward. But I'm not sure where to begin.

Advisor: Starting the conversation can be the hardest part, but it doesn't have to be formal or complicated. We could begin by identifying the causes that matter most to your family and discussing how to support them together. It's a chance to give back and share the values and lessons you want to pass on to your children and grandchildren. Do you hope to encourage any lessons or values through your philanthropic efforts?

Client: I've always valued education and giving back to the community. I'd love for my kids and grandkids to prioritize those things, too.

Advisor: Those are wonderful values to emphasize. Let's explore some ways to incorporate them into a family giving plan. We can structure it so everyone feels involved and aligned with these goals. This could be a meaningful way for your family to connect and make a lasting impact.

Client: That sounds like exactly what I wanted to do, but I didn't know how. I'd love to get started.

Special Circumstances Scripts

A New Widow Can't Manage Rental Properties And Has Been Asked By Her Alma Mater To Consider A 50th-Class Reunion Gift

This dialogue emphasizes empathy, provides a clear solution, and highlights the strategy's benefits in a way that resonates with the widow's concerns. Note the advisor's questions:

Advisor: You mentioned that managing your two Branson rental condos has become overwhelming since your husband's passing. Since those properties have been fully depreciated and have increased in value significantly, selling them outright would trigger a substantial tax liability.

Client: Yes, it's been really hard. I don't have the energy to deal with tenants and maintenance anymore. But selling and facing such a large tax bill is too stressful. Frank always said we'd never sell those vacation properties because the rental income was so good, and the taxes would eat up lots of our profit.

But maybe I should sell them now. I forgot to tell you that I'm on the Capital University 50th class reunion committee and want to make a meaningful gift to my school. That would also be in Frank's memory, especially since that's where we met.

Advisor: I didn't know you met there. I'll bet you have lots of happy memories of that campus.

I understand your dilemma with the rental properties. You're in a tough spot, but there may be a solution that addresses both concerns. I recently worked with another client in a similar situation. Like you, she wanted to simplify her life and support a cause close to her heart while receiving a guaranteed income for life. We helped her set up a Charitable Gift Annuity, which allowed her to achieve all those goals.

Client: A Charitable Gift Annuity? How does that work?

Advisor: With a Charitable Gift Annuity, you can transfer your appreciated rental properties to Capital University. They would sell the properties and, in return, give you fixed income payments for the rest of your life. You wouldn't have to worry about managing the properties, and you could also avoid any immediate capital gains tax.

Client: That sounds appealing, especially since I need a steady income. But I also want to make that class gift to Capital.

Advisor: Exactly. Not only would you receive a reliable income stream, but you'd also get a partial charitable deduction right now. When your annuity payments end, the remaining value will go to Capital University as your class gift.

Client: I like that idea a lot. It would simplify things while letting me make the gift I want. The regular income sounds good, too.

Advisor: It's a win-win. You gain financial security, eliminate the hassle of property management, and significantly contribute to Capital University. If this sounds right for you, we can explore the details further.

Client: Yes, let's move forward with that. This feels like a great solution!

Help Your Client Create A Personal Charitable Mission Statement To Guide Their Giving

After the initial conversation starters, the next steps may be to help clients reflect on their values and passions, identify causes that resonate with them, and then to set charitable goals. One tool that advisors can use to help guide clients through this process is a charitable mission statement.

This written document is created by the client to serve as their guiding star, helping them focus their giving on nonprofits that are a good match for where they want to focus their charitable giving. The result can be a strategic giving plan for gifts made during their lifetime, after death, or a combination of both. Below is a graphic to help clients visualize the process:

 Sharing personal stories can be a powerful way to inspire clients. Advisors who lead by example and discuss their charitable experiences can create a comfortable space for clients to explore their philanthropic interests.

Below is my charitable mission statement and implications for how my values align with my charitable giving. Over the years, I've shared my actions with my clients because it's a powerful way to demonstrate that I don't just talk the talk but also walk the walk about charitable giving.

Real Stories Of Values-Based Charitable Gift Planning

Sharing what others have done can effectively illustrate the impact of thoughtful charitable planning. I offer this one-minute video to my graduate students at The American College of Financial Services. It shows a quick overview of a dozen clients who used the power of charitable giving vehicles to maximize their financial and tax benefits plus make a philanthropic impact. Sharing this may be a good lead into providing information about one or more of those 12 stories or others appropriate for their situation.

Practical Ideas For Integrating Charitable Giving Into Your Practice

Create a set of charitable conversation starters that work for you. Based on the advisor's own experience along with examples and sample dialogues presented earlier, good conversation starters can cover a range of situations from initial discussions to more in-depth planning conversations about specialized situations. Remember to make charitable giving a normal topic in financial reviews. This encourages clients to consider charitable giving as an ongoing priority rather than a one-time consideration.

Use Educational Tools and Resources. Offer clients handouts, one-page overviews, and activity sheets to help them explore their values and charitable interests. These resources can guide discussions and encourage clients to think more deeply about their philanthropic goals.

For example, I include this Rating Your Life Values exercise in my book, "Moving Forward On Your Own: A Financial Guidebook for Widows", to help clients identify what matters most to them. Clients are offered a list of commonly identified key values and then asked to identify which ones they would find most easy to give up. The ones that remain can then be ranked to identify what matters most on the list to the client. They can also be asked to include any values that do not appear on the list that may resonate highly with them. Advisors can use this worksheet with their clients by  downloading it here.

Advisors can also help clients determine the best time to make charitable contributions, whether during their lifetime or as part of their estate plan, by educating them about various gift types, such as the following:

1. Cash Donations
2. Appreciated Securities
3. Qualified Charitable Distributions (QCDs) From An IRA
4. Donor-Advised Funds (DAFs)
5. Life Insurance
6. Real Estate
7. Gifts Made Through Will Or Trust
8. Charitable Gift Annuities
9. Charitable Trusts
10. Testamentary Gifts From Retirement Accounts

Each of these methods has different tax implications and strategic benefits. Advanced strategies, such as charitable trusts give clients control and flexibility over their giving. The graphic below offers a summary of these 10 popular methods of giving. A PDF version of this list can also be downloaded here that advisors can share with clients.

Assist clients in vetting nonprofits. GuideStar, Charity Navigator, and Cause IQ provide valuable information on charities' financial health, transparency, and impact. Advisors and their clients can use these tools to research nonprofits and make informed decisions. When possible, encourage clients to meet with nonprofit staff to discuss how their contributions will be used.

Use software to establish and monitor charitable gifts. Various gifting situations can be modeled with Crescendo Interactive donor proposal software or PG Calc. They create gift illustrations that educate clients and their advisors about many charitable gifts' financial and tax benefits. Clients' philanthropy can also be managed with Philanthpro, which is an alternative to tracking gifts with a simple spreadsheet.

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Advisors who master the art of charitable giving conversations can unlock a wealth of opportunities—for their clients and themselves. By addressing philanthropy's emotional and financial aspects, advisors can help clients create impactful, values-based charitable plans. This enhances client satisfaction and strengthens the advisor-client relationship, leading to a more successful practice.

For a fun team activity, advisors can download instructions here for a Charitable Giving Conversation Card Game to practice their charitable giving conversation skills together.