When Sondra Shaw-Hardy was mapping out her annual charitable giving plan, she decided to include a donation to a local university. A few weeks later an envelope from the university appeared in her mailbox-addressed to her husband, who had died seven years earlier. Curious, she opened it only to find a thank-you note for the donation. "He didn't even go to that university, but for some reason they assumed it was a male who donated."

It may have been an innocent mistake on behalf of the institution but Shaw-Hardy feels it is symptomatic of a lingering bias in the philanthropic world. "The major reason why women aren't giving more is they're not being asked. The old boys network is still part of the fundraising apparatus and it's assumed women don't have control of the finances," says Shaw-Hardy, an author and co-founder of the Women's Philanthropy Institute now based at Indiana University.

But the numbers tell a different story. Women now make up 1.2 million, or 43%, of the nation's top wealth holders-those with gross assets of $1.5 million or more-according to the Internal Revenue Service. Their combined net worth is $4.4 trillion.

And this looks only set to grow. It's estimated that there will be a $41 trillion inter-generational wealth transfer over the next half century, and with women continuing to outlive their spouses, they're going to be in charge of determining where much of this wealth is ultimately directed. This presents a big opportunity for investment professionals. But advisors with a large portion of female clients say that there are differences in the way women approach charitable giving. As a result, more innovative philanthropic plans are needed to suit that new mindset.

Barbara Culver, president of Cincinnati-based legacy planners Resonate Inc., has found differences in the way her female clients choose the charities to which they donate. "Women need to feel a connection with the mission, vision and values of the not-for-profit organization. They're not giving because one of their golfing buddies comes up and says, 'Give to mine because I gave to yours,'" she says. Culver also notes that once her female clients choose their charities, they like to become involved. That means meeting the board members and attending events hosted by the charity. "They want to have a connection to the people and a relationship with the organization," she adds.

Not surprisingly, advisors note that women tend to favor charities that benefit women and children. Marilyn Gunther, a partner at the Center for Financial Planning, part of Raymond James Financial Services in Southfield, Mich., says a number of her female clients donate to women's shelters, while none of her male clients do. She says she has found that women also give more to schools and arts programs.

And it's not only the types of charities they donate to that distinguishes female donors from their male counterparts; it's also their method of giving. David Ness, president of St. Petersburg, Fla.-based Raymond James Trust N.A., says he has noticed female clients banding together with other women to form "giving circles," where they pool their money and decide together where it will go. There are 400 catalogued giving circles in the U.S., according to the non-profit organization Giving Circles Network, and there may be as many as 800 when unofficial circles are counted. Shaw-Hardy says she has personally established around 20 circles and has seen significant interest from women who wish to collaborate with other women in their giving. "This is an incredible movement that has started," she says. "You can see women want to address issues that affect women and children, and do it collaboratively."

Raising the Philanthropy Issue

While many clients want to donate a portion of their assets to causes they care about, they often need help converting this desire into an actionable, tax-efficient charitable giving plan. And while the issue must be approached sensitively for both male and female clients, again advisors cite differences between the two. Raymond James Trust's Ness says his female clients tend to react more positively to a general discussion about what is important to them. "An estate-planning question I like to use is: 'How rich do you want to make your kids?' and then follow with, 'And what are you going to do with the rest?'" he says.

Resonate's Culver agrees. While she says women want to give in a tax-efficient manner, it isn't their main motivation. "Often times the traditional efficient wealth transfer approach emphasizes tax savings, as opposed to personal values and philanthropy, and these conversations don't work as well with women as they have with men in the past."

While the most effective way to reach the genders may differ, a big portion of clients makes decisions on charitable giving with their spouses. Therefore advisors need to ensure that they consider the opinions of both spouses in the discussion. Jonne Syverson is the president of Des Moines, Iowa-based wealth manager Syverson, Stregge & Co., as well as president of trade group Advisors in Philanthropy. He says the advisors at his firm help their clients, the majority of whom have net worths of over $5 million, create a "Family Financial Philosophy" document. One of the questions in the document is: If I give you a million dollars today and you need to give this money to charity, which charity would you give it to and in what amounts? Each spouse answers individually. Then they compare their lists. "There can be similarities between the two lists but they hardly ever match," says Syverson. "It generates a good discussion."

In addition to involving both spouses, it's a good idea to include adult children in any philanthropic planning discussion. After all, charitable donations are likely to reduce their inheritance and this may cause resentment in some families. Culver says many of her clients see it as an opportunity to share their values with their children and teach them the importance of sharing their wealth. And, as a side benefit to the advisor, involving children in this discussion can also provide an opportunity to establish a relationship with the next generation of potential clients.