Financial advisors are urged to “take a values-led approach" rather than a transactional one when talking to wealthy clients about legacy gifting, according to guidance published by charity consortium Remember A Charity.

This approach is needed to ensure time is taken “to explore what really matters to them and the impact they hope to achieve”.

Advisors are also being urged to talk to charities about the impact of their work to enable them to give more information to clients about giving options.

They are also called on to start conversations with their clients about leaving large sums of money to good causes in their will at an early stage.

The guidance adds that talking to clients about legacy gifting “at regular intervals” offers clarity in how the money will be used and ensure wealthy individuals are connected “with the right charities and legal expertise”.

Philanthropy 'can be deeply personal'

“Philanthropic conversations can be deeply personal, providing opportunities to build rapport. Tailor the conversation to your client’s needs, circumstances and interests,” states the guidance.

Advisors are urged to talk to wealthy clients about the long term change they would like to see from their gift and what they would like to be remembered for.

Asking clients whether they would like their family to be involved in discussions around philanthropy in their will is also advised as well as any tax implications.

The guidance says: “During the conversation, it helps to convey the impact of charitable legacies, that they can fit around the client’s wishes for their loved ones and other beneficiaries, the tax benefits and the different ways they can be structured.”

This advice is backed by Sianne Haldane, founder of Boon Philanthropy Consulting.

She said: “My clients see their philanthropy as ‘investments’, though in a way it is even more precious as there is no expectation of a financial return, but they do want the reassurance that the funding will be used well and most importantly have a lasting impact.”

Remember A Charity director Lucinda Frostick added: “Clients increasingly want their wealth to reflect who they are and the impact they wish to have on the world.

“This guide has been developed to support advisers in responding to that shift, helping them to feel more confident introducing conversations about philanthropy and legacy giving, and to integrate these discussions naturally within broader financial planning.”

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