CLEVELAND, Sept. 18, 2019 /PRNewswire/ -- Key Private Bank
released the results of its latest advisor poll, which explored the
key triggers for giving, including differences in opinion among
parents and children; the biggest challenges clients face and
common philanthropy mistakes; and steps clients are taking to
measure the impact of their donations.
Key Private Bank, the wealth management arm of KeyCorp (NYSE:
KEY) surveyed nearly 130 of its client-facing advisors about their
experiences working with high-net-worth (HNW) individuals on
philanthropy.
Lack of Family Conversations About Philanthropy Fuels
Differences of Opinion
Most parents are not discussing philanthropy with their
children—or agreeing with them on charitable causes:
- Eight in ten (82%) advisors say only "some" or "hardly any"
clients involve the next generation in family philanthropy.
- Environmental/Sustainability causes receive the most amount of
support from children (59%) and the least amount of support from
parents (3%).
- Religious-/faith-based causes receive the most amount of
support from parents (73%) and the least amount of support from
children (3%)—representing the largest divide between parents and
children.
- More than half of advisors (57%) say the generational
differences seen in philanthropy strategy stem from a lack of
conversation and/or participation in giving discussions among
parents and children.
- Additionally, one third of advisors (33%) cite lack of child
involvement in giving conversations, while one fourth (25%) point
to a lack of parent transparency around giving strategy.
"Nearly half of advisors say the biggest mistake they've seen
among clients is not factoring philanthropy into their overall
estate and legacy plans," said Anne Marie
Levin, National Director of Family Wealth Legacy Planning
Services at Key Private Bank. "There's a clear opportunity for
parents and children to overcome generational differences and work
together to find common ground and set a family mission for giving.
These conversations should center how families can get on the same
page."
Doing Good or Doing Well?
Doing good in the world is a top priority for clients. The poll
found:
- Two-thirds (66%) of advisors saying clients are motivated to
donate to philanthropic causes by a desire to make the world a
better place
- One-third (34%) feel morally or ethically obligated to repay
the people and institutions who contributed to their success
(32%).
- Without an income tax benefit, however, three in four (75%)
advisors say clients are more likely to keep their donating
approach the same.
The top triggers for giving are personal in nature, such as
aging clients getting their estate in order (41%) or a family
health crisis (31%), as opposed to world events, like humanitarian
crises (5%) and disease outbreaks (1%). To add, clients favor local
causes (71%) that hit close to home, over strictly national causes
(2%). Over the last year, advisors have seen more HNW investors
directing one-time donations to organizations (49%).
"For high net worth families, the best investment strategies go
beyond protecting wealth―they protect clients' values. Because
giving can be so personal, the more thoughtful the philanthropy
strategy, the more impactful the dollars will be," said
Karen Arth, National Director of
Trust and Wealth Services at Key Private Bank. "Charitable
Remainder Trusts and Donor-Advised Funds (DAF) are two powerful
vehicles that can enable families to be strategic, both tax-wise
and 'philanthropy-wise.'"
Measuring Impact is the Biggest Giving
Challenge
Measuring impact is the most difficult aspect of philanthropic
giving (43%), the poll found. Six in ten (65%) advisors say "hardly
any" or "none" of their clients use online charity assessment
tools, such as GuideStar and Charity Navigator, to perform due
diligence on potential philanthropic donations. "Taking the time to
investigate whether your donation is doing what it's supposed to do
can be a rewarding process," added Levin.
To see how charitable giving can be part of your wealth
management strategy visit
https://www.key.com/kpb/our-insights/charitable-giving.jsp
About Key Private Bank
Key Private Bank is a leading provider of wealth management
solutions and advice for high-net worth and ultra-high-net worth
clients, including wealth advisory, investment management, trust
administration, customized credit, family office and private
banking services. Key's wealth management platform combines the
market insights of local advisors with a national team of wealth
and investment strategists to deliver proactive and personalized
advice and expertise to clients. Advisors also leverage
partnerships with Key's business banking and capital markets teams
to build wealth plans tailored to meet each client's specific need.
Key Private Bank's wealth management platform is delivered across
15 of the United States. Key
Private Bank has $38.9 billion in AUM
and $44.4 billion in AUA at
June 30, 2019.
About KeyCorp
KeyCorp's roots trace back 190 years to Albany, New York. Headquartered in
Cleveland, Ohio, Key is one of the
nation's largest bank-based financial services companies, with
assets of approximately $144.5
billion at June 30, 2019. Key
provides deposit, lending, cash management, and investment services
to individuals and businesses in 15 states under the name KeyBank
National Association through a network of over 1,100 branches and
more than 1,500 ATMs. Key also provides a broad range of
sophisticated corporate and investment banking products, such as
merger and acquisition advice, public and private debt and equity,
syndications and derivatives to middle market companies in selected
industries throughout the United
States under the KeyBanc Capital Markets trade name. For
more information, visit https://www.key.com/. KeyBank is Member
FDIC.
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SOURCE KeyCorp