Ignorance is not Bliss

Research is important. Without it, we risk applying our own biases and assumptions upon a populace and a world that share neither. My professional life's work is to educate donors and fundraisers on how to be effective philanthropists. It is important to note that I do not attempt to educate people on why they should give, or to whom they should give, but my niche in this world is on how they should give. Our friends at Fidelity Charitable? have done some excellent research with a group of retirees and pre-retirees to gather useful data on what this group of baby-boomers not only thinks about charitable giving, but what they know and how they act. Considering my focus within this space, I took special notice of the data detailing this cohort's awareness of gift vehicles or methods available to them to fulfill their charitable interests.

Here are some stark findings:

1. 68% Are unaware they can donate appreciated assets like stocks
2. 56% Are unaware they can leave money to charity in a will
3. 53% Are unaware they could name a charity as the beneficiary of a retirement plan account or insurance policy
4. 74% Are unaware of the Qualified Charitable Distribution
5. 78% are unaware of Donor-Advised Funds or donor-directed funds
6. 57% are unfamiliar or unaware with Charitable Gift Annuity or Trust options.
7. 21%, or more than 1 in 5, were not aware of any of these options.

The numbers look a bit better among those with $1M or more in assets but track similarly with still more than half of the cohort not being aware they could donate appreciated stocks.

Why is this? Once again, data illuminates the truth. The same study highlights that while many older donors find value in professional guidance from a financial advisor, CPA, attorney, or otherwise, only half of them report discussing their charitable giving plans with those advisors. This stands in contrast to this same group reporting that nearly 80% say that charitable giving is either "pretty important" or "significant" in their lives.

This highlights a gap in the presence of sophisticated and timely advise on how they can be effective philanthropists. As a former financial advisor/planner myself, it is easy to understand why some trusted advisors fail to discuss, let alone fulfill, their client's highest and best charitable intentions. Be it their own lack of awareness, a lack of formal education, income disincentive, or outright antagonism, the truth of the matter is that not all advisors are equipped to assist individuals seeking to maximize their charitable giving interests.

There is much work to be done, time to get back to it.