Philanthropy Advisors have been labelled a potential threat to fundraisers and charities. I have a different take on our role: we provide a valuable service to wealthy donors. Our motivation is to unlock generosity in support of social and environmental change. Our key role is to guide our clients through the many choices and challenges that philanthropy brings in order to move their good intentions into action. There is a growing demand for this specialist support with over 80% of High-Net-Worth-Individuals wanting more advice from professionals about their philanthropic aims and objectives. Research finds that both those taking advice and those with a giving plan (something most Philanthropy Advisors help create) give more. So why are we seen as a challenge?
The concern was raised recently by Ian MacQuillin in Third Sector, in ‘Philanthropy advisers pose a serious challenge for fundraisers’. His piece is linked to ‘Death by a Thousand Cuts’ a report from the fundraising think tank Rogare and Kingston University London published this summer. That report sets out all the other actors who are encroaching on the space traditionally held by charities and fundraisers. For example, giving directly through microloans and crowdfunding, point of sale donations, workplace giving, and Philanthropy Advisors.
A separate paper from Rogare, ‘Take My Advice … How philanthropy advisors are reshaping the stewardship of donors’ giving relationships’, focuses on philanthropic advisors, identifying seven challenges for fundraisers including competition for donor attention. It describes philanthropic advisors as ‘disruptive’, “inserting themselves as the central locus of decision-making, relationship management and impact evaluation.” The paper is right to highlight the increased complexity within the philanthropy ecosystem, which is one of the reasons that wealthy donors benefit from support. It is also helpful that it brings attention to the growth of philanthropy advising and what it means for fundraisers.
My plea is that, when working out how best to work with Philanthropy Advisors, fundraisers view us not as a challenge or a competitor but as allies. Three aspects of our work explain why:
Our work before an introduction can help a potential donor become a well-informed partner: clear about their role and approach, ready to listen, and able to ask pertinent questions. Philanthropy Advisors do far more than connect donors to charitable organisations. Behind the scenes, we facilitate conversations - often across generations - about the purpose of wealth, ideas of enough, legacy, and purpose. We help donors understand how the third sector works, good practice in grant-making, and different approaches to philanthropy, and connect them with resources and peers. That preparation matters to fundraisers because it helps donors arrive ready to build a successful partnership.
When a Philanthropy Advisor introduces a donor to an organisation, we bring a prospect with a clear interest in its work. By explaining the donor’s interests and concerns, we help the fundraiser begin building the relationship. Where we can get out of the way, we do. However, where a donor is giving anonymously, we may provide the only route for the organisation to connect with them. We also have time that busy donors often don’t have to follow up questions, liaise with other advisors, and steward things along so that donations happen.
Our contribution also extends beyond direct client work. Many Philanthropy Advisors work to increase understanding of philanthropy across the wealth and financial industries. When wealth managers, investment managers, estate planners, and others supporting wealthy families raise the topic of giving and refer clients to specialist help, more funds become available to charities. Promoting and encouraging philanthropy is another way we support the work of fundraisers.
Rather than frame Philanthropy Advisors as displacing fundraisers, we should be seen as valuable partners in the philanthropy ecosystem. After all, both Philanthropy Advisors and fundraisers are working to the same shared goal: bringing resources to vital work that makes a real difference.