The amount of new capital being transferred into private foundations has exceeded $20 billion per year since 2000, says King McGlaughon of Foundation Source, which provides back-room support for foundations. Here, McGlaughon tells contributor Michelle Lodge how a financial advisor's knowledge of philanthropy gives him or her an edge.

1. Why do financial advisors need to know about charitable giving? They should understand that philanthropy is a core financial behavior of most of their clients, most of whom give money to charities every year. The higher the client's net worth, the more likely it is that they are making substantial contributions to charitable organizations each year: 95% of clients with a net worth of $1 million or more give to charity each year; 98% of clients with a net worth of $5 million or more do so. That being the case, financial advisors need to understand charitable giving with as much insight and knowledge as they have about financial planning, retirement planning, investment management and planning, and overall wealth planning. Clients are seeking and want the same level of strategic and tactical advice and planning around their philanthropy as they do advice and planning in the other core areas of their financial lives.

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