Counseling Philanthropic Donors

People who wish to make direct gifts to charities or other nonprofit organizations are faced with an overwhelming number of choices. There exist several types of sources of information to help potential donors choose whether, where, and how much to give. Each of these has its limitations, and at some point the size of the gift contemplated by the donor can justify the marginal cost of consulting with an advisor, particularly when the donor is already consulting with legal or financial planners for estate or other planning. Fundraisers and nonprofit organizations advocate for advisors to encourage their clients to donate. This raises the questions of the proper role of, and the duties incumbent on, those who counsel potential donors on donations (whether or not such counsel is given in connection with other professional advice). After reviewing the situation that gives rise to these issues, this article discusses answers to these questions and how philanthropy and client service can be furthered as part of the same process.