The silent chorus
Philanthropists may grab the headlines, but the truth is they rarely act alone. There is an ecosystem of support around them, such as wealth managers, estate planners, tax advisors, giving vehicle providers and foundation staff. A lesser-known member of this ecosystem is the philanthropy advisor, described by advisor Sharna Goldseker as ‘the silent chorus that can help donors to thrive’. Although STEP members are far more informed than most about the role and impact of philanthropy advisors, until now there has been minimal data and evidence about what kind of people successfully undertake this role, what specific skills they bring to clients and the business model for making this work viable.
Who are the philanthropy advisors and what do they do?
Philanthropy advisors combine technical knowledge with a high degree of emotional intelligence so that they can explore a client’s values and aspirations and work with them to craft a bespoke roadmap for their giving. They fulfil a range of client needs, from helping them navigate the overwhelming array of options to do good, to more practical tasks such as connecting them to peers and measuring their impact. Success for philanthropy advisors includes enabling clients to become more informed and confident donors, which often results in them giving more and changing their practice, e.g., switching from scattergun to more strategic giving.
What is driving growth in philanthropy advice?
There is an increasing demand from wealthy clients seeking help with their philanthropic giving,[1] making this an opportunity for all advisors to build their in-house expertise and develop referral routes with specialist philanthropy advisors. Key drivers behind this growth are listed below.
More potential philanthropists
Over the course of just 20 years, the global population of high-net-worth individuals and their collective wealth both tripled. This wealth is transferring to a generation that is more globally oriented and socially and environmentally conscious, and seeking to make an impact, resulting in the existence of many potential clients with both the resources and the inclination to pay for philanthropic advice.
Greater need for skilled help
Philanthropy and the wealthy are under scrutiny, bringing heightened demands for more ethical and effective practice. New approaches in how best to give, such as effective altruism and reparative donations, are combined with increased complexity, including intersectional issues of climate and social justice at a global scale. This combination of criticism and complexity creates a greater need for expert advice to identify how donors can best contribute without making mistakes highlighted by critics and causing inadvertent harm to beneficiaries.
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