# Financial advisors not meeting client needs due to lack of philanthropy knowledge, research finds

- Link: https://fundraising.co.uk/2023/12/19/financial-advisors-not-meeting-client-needs-due-to-lack-of-philanthropy-knowledge-research-finds/
- Published: 2023-12-19T09:35:00+00:00
- Author: Melanie May

**More than one in five financial advisers do not know how to offer wealthy clients
support on becoming philanthropists despite demand rising among younger affluent
generations for advice on how to distribute their wealth to charities, according
to new research by Charities Aid Foundation.**

5% of 215 independent financial advisers (IFAs), wealth managers and planners surveyed
by [CAF](http://www.cafonline.org/) said they are “very confident” about advising
clients on philanthropy and half of all surveyed said this was due to a lack of 
training in the profession.

CAF also found that almost three quarters (72%) do not include philanthropy as part
of their initial fact find with clients, although 21% say they see a direct link
between providing philanthropic advice and winning new business.

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CAF is calling on the profession to increase awareness and training in the UK to
ensure some of the £5.5 trillion set to pass between generations within the next
thirty years finds its way to charities.

A separate CAF survey of 500 high-net-worth individuals found that a third consider
themselves to be a philanthropist and 62% say that giving to charity is an important
part of their life. Demand for advice is rising among younger generations, with 
more than half of 18-34 year-old HNWIs (57%) and 49% of 35-54 year old HNWIs saying
an adviser could help with their philanthropy.

The research found around 42% of advisers said they plan to increase their knowledge
of philanthropy and how to advise clients on it, however 22% said they did not know
where to signpost clients for the expertise they need. By comparison, those who 
regularly give philanthropy advice said it helped them build on existing relationships
with clients. Around 56% of advisers said they saw it as an opportunity to get to
know their clients better, and nearly half said it makes them feel closer to their
clients.

Mark Greer, Managing Director of Giving & Impact, Charities Aid Foundation said:

> “The next generation are expected to be the most significant donors in history.
> But it is how they approach their giving that makes them different from previous
> generations. As philanthropy advisers, we know it is essential to understand the
> motivations, values and attitudes of clients, as well as the mechanisms available
> to them, to ensure philanthropy is as effective as it can be.
>  
> “We would like to see philanthropy added to CPD and industry qualifications for
> financial advisers to ensure that private client advisers are able to better meet
> the needs of their clients. Forward-thinking advisers looking to provide a holistic
> service to the next generation would be amiss to ignore this rich topic of engagement.”

 * **[Inaugural Giving and Impact Summit held at London Stock Exchange](https://fundraising.co.uk/2024/10/15/inaugural-giving-and-impact-summit-held-at-london-stock-exchange/)**(
   15 October 2024)
 * **[Philanthropy Journal Online](https://fundraising.co.uk/1996/09/20/philanthropy-journal-online/)**(
   20 September 1996)
 * **[Launch of Kent University Philanthropy research centre](https://fundraising.co.uk/2008/10/10/launch-kent-university-philanthropy-research-centre/)**(
   10 October 2008)