Financial Planning
Advisers forgo charitable conversations: Poll

Many financial advisers intend to incorporate charitable giving in the advice process, but the majority still do not broach the topic with clients, a Financial Standard survey shows.

More than half (54%) of the financial advisers polled do not have charitable giving conversations with clients, although more than a third want to embed it in the near future.

Australian Unity Trustees executive general manager Emma Sakellaris says discussing clients' philanthropic objectives should be a key component of financial planning conversations - not just for clients considered to be wealthy.

It has the potential to result in stronger client relationships and the added bonus of providing better outcomes for the charities, she added.

"Many advisers find that when they ask their clients questions around their charitable giving intentions - as well as explain the idea of structured giving and its associated benefits, it is a concept that is well received.

"Clients like the idea that unlike ad-hoc donations, the underlying investment strategy of a perpetual charitable trust means they can grow the capital over time, whilst also generating a sustainable income for annual granting distributions," Sakellaris said.

Koda Capital's 2018 research of charitable activity found Australians are not as giving and are becoming less trusting of charities. About with 14% of participants claim they "outright distrust" charities.

About one-third of Australian taxpayers make a donation to charity and claim a deduction. But this has declined by 7.2% from $3.1 billion to $2.9 billion, the research found.

Read more: Emma SakellarisAustralian Unity TrusteesKoda Capital
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