Helping Donor Clients- A Social Role

Chantal Thomas

Managing Director, Development, Faculty of Medicine chez McGill University and an experienced professional in philanthropy

Behind the Act of Giving, There Is a Story

I have been interested in philanthropy for almost thirty years. I first became a professional fundraiser to help others, contribute to society and do a meaningful job that also has a practical purpose. Then, over time, I became passionate about people who give—their approach, the reasons that lead them to give, and their values, roots and stories. Experience has taught me that giving is a reflection of the giver and there is often a story behind the act of giving. It’s a tale that is sometimes told but which, at its core, is most often profound, personal and private. The more significant the gesture, the more complex the motivation can be.

My Crusade to Increase Efficiency

I also found that large segments of society are unfamiliar with the government rules designed to help them make the most of their donations. One of the explanations given is that financial community professionals are in the same boat as they are: they are curious about philanthropy and willing to play a role but know little or nothing about the subject. The result is slow and difficult progress that is often attributed, probably partly correctly, to “culture.” Therefore, I embarked on a personal crusade to acquire the financial, tax and inheritance knowledge needed to assist donors while sparking interest in planning donations among financial professionals.

Progress, but so Much Remains to Be Done

Over the years, a variety of factors has motivated financial professionals to support philanthropic clients. Many have gained a better understanding of the tax rules that can help make the most of donations. Some have made the effort to better understand the inner workings of organizations, volunteered, taken and given training, etc. Yet there is still so much to be done to be able to say that the financial community is comfortable with this clientele and fully embraces its role.

Succession, Governance, Philanthropic Goals: How Far Should this Dialogue Be Taken?

Can we say that every financial professional is able to identify donor clients and steer them to a philanthropic initiative? Do they feel competent or useful? Are they able to refer their clients to specialized colleagues? Can they make an informed analysis of the multitude of existing organizations to the point of being able to advise a client? Do they feel comfortable calling some of them, even in confidence, for their clients? If so, do they do so? Do they ask for details about governance rules, administrative costs, fund structures and suggested testamentary provisions? Do they think it is outside their role to talk about giving? That the issue of children’s inheritance rules out donations even if significant benefits can make a donation possible while protecting the heirs? Are they embarrassed to initiate such a conversation?

Helping Donor Clients: A Rewarding Experience!

The literature states that beyond making a simple monetary transaction, people who give want to accomplish something. They want to have an impact and make a difference. Taxation alone is probably not the most important factor when the decision is made to give. Is it really normal that professionals do not feel collectively responsible for informing donor clients of their rights and privileges when it comes to donations? As advisors, you have a fantastic opportunity to make a difference in this matter. This may mean getting out of your comfort zone, acquiring new knowledge or simply asking questions and listening to clients even more intently. And you can bet that it will be rewarding!Let’s share an inspiring story

We’re not millionaires! This statement punctuated the meeting with a university professor couple the day they signed their wills at the notary. They provided a legacy gift to benefit an organization that had made them aware of the possibility.

A few years later, in the presence of their legal and financial advisors, they mentioned an artistic passion that had not yet been channelled into a donation. The professional listening to them explained that they could create additional capital for the purpose of donations by leveraging life insurance, with the whole amount being weighted based on their philanthropic goals and financial, tax, and estate planning situation. After understanding the mechanism and thoroughly reflecting on the issue, they were as happy as can be as they went ahead with this second gift.

At the suggestion of their advisor, they took the occasion of a meal with their three children to explain their estate plans: first, as the plans related to them, and then, in part, their chosen organizations. After some surprise, a subdued response and the usual Sunday night parting embrace, the children’s reaction came the following week and superbly capped off the episode: Mom, Dad, we’re so proud of you!