Advisors and Clients: The Importance of the Philanthropic Conversation

In 2018, U.S. TRUST® published a Study of the Philanthropic Conversation taking place between professional advisors and their high net worth clients. 

One of the main takeaways of the study is, “high net worth individuals are looking to advisors to help them fulfill their philanthropic missions, involve the next generation, and leave a legacy. They are also seeking more values-based discussions that go beyond tax considerations and include life goals, values and passions — to help achieve philanthropic ambitions for themselves, their families and their communities.”

“I have always felt it’s the responsibility of the professional advisor to raise the topic of philanthropy with clients and present all of their options; it’s part of the overall estate planning process. If you don’t raise it, I have found it may not happen, even though many clients have an interest,” said Norman Lipoff, estate planning attorney and partner with Greenberg Traurig. Norman is a past Chair of The Foundation of the Greater Miami Jewish Federation and past Chair of the Board of the Federation.  He and his wife, Nancy, are also Forever Pacesetters.

Putting his advice into practice, Norman was instrumental in facilitating the largest single endowment or bequest the Greater Miami Jewish Federation has ever received. Norman’s client, Louis Nieweg, established a $12 million endowment through a gift in his will and designated it for Jews in need. Each year, the Louis Nieweg Fund of The Foundation of the Greater Miami Jewish Federation, makes a $600,000 grant to help Jews in need in Miami and in Israel.

When asked how he brings up these conversations with clients, Norman responded, “If I see there is an indication of philanthropic interest or support by a client, I will ask them ‘would you like to perpetuate your philanthropy?’  The client will typically answer ‘how do I do that?’ and that gives me the perfect segue to discuss the different ways they can make a legacy commitment.”

Andrew Wolf, independent insurance agent and past Chair of The Foundation’s Professional Advisors Council, finds it easy to incorporate charitable giving as part of a conversation about client priorities. He finds that many clients have interest but may not be aware of different ways to put their values into action. “The Federation’s Special Life Insurance Program is one way a donor can establish a lasting legacy with extra value; it’s an opportunity to leverage the size of your endowment gift, since Federation shares in the policy cost and the paid premiums are tax-deductible.”

Another charitable giving vehicle Andy discusses with clients is the Donor-Advised Fund.  “The donor-advised fund is a great way to involve your family and create teachable moments in charitable giving. As an investment account that facilitates giving, it can be an incredibly valuable tool for so many.” 

Andy has also found sharing his own philanthropic choices with his clients is another way to engage them in meaningful conversation. As a result, he has enabled more than 30 individuals and couples to structure their own Jewish legacy totaling over $5 million in estimated expectancies. This includes his own legacy gift that he and his wife, Cheryl, made when Andy first got involved in The Foundation. “As a volunteer and donor to the Greater Miami Jewish Federation, I am especially proud of partnering with clients and friends to help guarantee in perpetuity, an additional $250,000 in future annual campaign gifts for our community.

“I have found The Foundation professionals to be a valuable resource in these charitable conversations with my clients,” said Susan Morrison, a partner with BDO. A proud Lion of Judah and Forever Lion, she also serves as the current Chair of The Foundation’s Professional Advisors Council. “For those of my clients who are charitable and would benefit from a larger tax deduction, the donor-advised fund is an effective tool to support their philanthropy through this special investment account for charitable giving.”

The Foundation has over a fifty-year history of being a trusted philanthropic partner in the Miami Jewish community.  Foundation professionals have the expertise to assist advisors in providing their clients with the best gift options for maximum charitable impact.  For more information, please contact Scott Kaplan, Foundation Director, at [email protected] or Jill Hagler, Director of Foundation Development at [email protected].