European private client wealth advisors, including family offices, are not meeting the needs of today's philanthropists according to a new report. Nevertheless, philanthropy services are expected to become a core service of such providers within the next five years.
The report, More Advice Needed, carried out by New Philanthropy Capital (NPC), wise Partnership and the Bertelsmann Stiftung, also found that although more advisors are offering philanthropy services to their clients due to increased demand, the range of services is limited and many donors are unaware of the advice available.
"Private client wealth advisors are still not meeting clients' needs and many wealth advisors are missing out on significant benefits as a result," said Plum Lomax, spokesperson for NPC.
However, the majority of wealth advisors feel that they are not adequately trained to discuss philanthropy with their clients and hence offer philanthropic advice on an informal, reactive basis.
This research adds to the debate about a family's need for third party advice on its philanthropic giving. Earlier this year, Campden FB looked at this very issue as part of its survey on the challenges to family philanthropy – click here to see the results.
Finding relevant advisors was not thought to be the biggest challenge, with a clear majority (59.3%) not actively seeking advice on their philanthropic endeavours.
Of those that did, however, independent philanthropy advisors/institutions were regarded as being the most worthy.