Charitable giving continues to be a priority for affluent households, and we believe their financial advisors would be remiss to overlook its importance when it comes to deepening key client relationships. 

The 2021 Bank of America Study of Philanthropy: Charitable Giving by Affluent Households, created in partnership by Bank of America and Indiana University Lilly Family School of Philanthropy, revealed notable insights that advisors can leverage to better serve the charitable needs of their clients.

It provides new insight into how affluent households engage in philanthropy. Of note:

• Affluent households remained consistently generous in their giving.
• Nearly 90% of affluent households gave to nonprofit organizations in 2020, compared to nearly 50% of the general population who give.
• The average amount donated increased by 48% from 2017. By contrast, members of the general population give just under $2,500 on average, or 5 times less.
• Roughly half of affluent donors donated primarily based on cause, rather than organization.
• Sustainable and impact investing participation has doubled since 2017.
• More affluent donors used giving vehicles to reach their charitable goals (i.e. donor advised funds). 

Remember the motivation for client charitable activity, of course, encompasses more than just tax-optimization. While this can be an added incentive for affluent clients to engage in philanthropy, most do not view it as the sole motivator. In fact, 72% of respondents say their charitable giving would stay the same, even without income tax deductions. 

Joining us for our discussion on Charitable Giving is  Zacch Estrada-Petersen who is calling in from his Charlotte office.   Zacch Estrada-Petersen has served as the Advisor Success Manager for TIFIN since March 2022. In his current position, he serves as the liaison for all financial advisors using the TIFIN Give platform, and works with the internal Product and Development teams as well. He previously served in Operations, Finance and project-based roles at Amicus.io, a digital Donor Advised Fund platform that was acquired by TIFIN in Q1 of 2022. 

 

He graduated from the University of North Carolina at Charlotte in 2005 with a B.S. degree in Accounting.  Tifin Wealth and Fulbright Financial Consulting PA have a business relationship.

 

WELCOME TO MASTERING YOUR MONEY,  ZACCH ESTRADA-PETERSEN