# Philanthropy Is an Underrated Tool for Growing Financial Services Businesses Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-03-20 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Unlocking the Power of Philanthropic Giving in Financial Services Meta Description: Learn how Gideon Taub, Ren's CSO, discusses the benefits of incorporating philanthropy into financial services to retain and attract high-net-worth URL: https://financedigest.com/philanthropy-is-an-underrated-tool-for-growing-financial-services-businesseshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1333972582-1736814296165-compressed.jpg) ![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/taub-gideon-1-1736814296190-compressed.jpg) _Gideon Taub currently serves as the chief strategy officer at Ren_ _, a leading independent provider of philanthropic services._ Giving away clients’ money may seem counterintuitive for a financial services firm looking to grow its wealth management business. Still, there are benefits for all involved, both from a philanthropic and business enablement perspective. It’s a win-win scenario institutions often overlook. Firms want to both retain and gain high-net-worth clients. One of the endeavors existing and future clients are typically already engaged in is helping their community through charitable donations – they’re just not doing it through the assistance of their [financial institution](https://www.financedigest.com/how-can-financial-institutions-make-the-most-of-data-for-their-business.html "HOW CAN FINANCIAL INSTITUTIONS MAKE THE MOST OF DATA FOR THEIR BUSINESS?  "). Recent studies show that almost 90% of affluent U.S. families [currently give to some form of charitable organization](https://www.financedigest.com/organic-fertilizer-market-2020-outlook-current-and-future-industry-landscape-analysis-2030.html "Organic Fertilizer Market 2020 Outlook, Current and Future Industry Landscape Analysis 2030") – and it can be substantial amounts that are rooted in deep emotional ties to the cause or organization itself. These [potential clients are good patrons and connected](https://www.financedigest.com/connectivity-concerns-must-be-addressed-to-unlock-iots-potential-for-energy-sector.html "Connectivity concerns must be addressed to unlock IoT’s potential for energy sector") to acts of charitable goodwill through a commitment that stands out among their other activities. Philanthropic giving stands as an underutilized tool that can [improve and deepen a financial](https://www.financedigest.com/5-ways-to-improve-your-financial-literacy.html "5 Ways to Improve Your Financial Literacy") institution’s relationship with its clients. Almost [50% of affluent donors say they’re unsatisfied with the philanthropic conversations they’re having with their financial](https://www.financedigest.com/50-of-consumers-wont-spend-more-than-20-minutes-applying-for-financial-products-online.html "50% of consumers won’t spend more than 20 minutes applying for financial products online") advisors. That can easily translate into [money leaving the institution to work with other professionals and businesses](https://www.financedigest.com/how-to-save-money-on-business-tripsabroad.html "How to save money on business trips abroad") to create strategic giving plans – and the contributions can be significant and ongoing. Why not keep that philanthropic piece of the puzzle in-house and [fully harness client](https://www.financedigest.com/is-your-client-data-fully-secure-magazine.html "Is your client data fully secure?-Magazine") relationships? Differentiation among other institutions is [key for growth](https://www.financedigest.com/leading-payment-platform-appoints-new-key-positions-to-help-with-growth.html "Leading Payment Platform Appoints New Key Positions to Help With Growth"). Discussing philanthropic desires with clients is the first obvious step but [maintaining that collaboration with clients is what spawns opportunities for further growth](https://www.financedigest.com/how-a-british-tech-brand-can-maintain-category-leading-position-and-continued-growth-by-investing-in-the-uk-people-and-infrastructure.html "How a British tech brand can maintain category leading position and continued growth by investing in the UK people and infrastructure"). For example, a [financial institution](https://www.financedigest.com/the-future-of-financial-institutions-in-2023.html "The Future of Financial Institutions in 2023") with its own publicly marketed charitable efforts attracts like-minded clients with philanthropic intentions. Additionally, these clients see giving as a [way to make an impact](https://www.financedigest.com/3-impactful-ways-that-leaders-can-contribute-to-the-independent-development-of-their-employees.html "3 Impactful Ways that Leaders Can Contribute to the Independent Development of Their Employees") and less as a transactional moment. Institutions should prioritize [services that illustrate how clients’](https://www.financedigest.com/brand-metrics-bolsters-client-services-team-as-brand-lift-measurement-booms.html "Brand Metrics bolsters client services team as brand lift measurement booms") charitable dollars are being used. From broader [social impact](https://www.financedigest.com/the-impact-of-environmental-social-and-governance-esg-investing.html "The Impact of Environmental, Social, and Governance (ESG) Investing") to how clients progress towards their individual philanthropic goals, there is an appetite for visually understanding one’s influence on their cause or community. Institutions pride themselves on their corporate identity and lengthy [time in business](https://www.financedigest.com/cfos-its-time-to-own-the-business-model.html "CFOs: It’s time to own the business model"), their well-known brand(s), professionalism, and overall implied expertise. Charitable giving services can become another powerful tool that underscores the [firm’s](https://www.financedigest.com/how-green-are-your-investments-why-esg-data-integration-is-key-for-financial-services-firms.html "“How green are your investments?” – Why ESG data integration is key for financial services firms") holistic approach to their services – showing clients there’s really no need to go elsewhere when it comes time to either begin giving or continue building a legacy full of generational philanthropic endeavors. Any institution committed to establishing philanthropic-related services can do so quickly, harnessing the expertise of third parties and [technology tools that focus on charitable giving](https://www.financedigest.com/legislate-raises-3-6m-to-give-startups-smes-the-technology-to-query-and-compare-every-contract.html "Legislate raises .6M to give startups & SMEs the technology to query and compare every contract") and integrating easily within existing systems already relied upon by financial advisors. [Expanding your role in clients’](https://www.financedigest.com/the-digital-voice-appointed-by-raft-of-new-clients-as-its-team-expands-by-270.html "The Digital Voice™ appointed by raft of new clients as its team expands by 270%") financial planning only increases the opportunity for ongoing growth and impact. [It’s the added trust](https://www.financedigest.com/its-a-matter-of-trust.html "It’s a matter of trust") that comes with consistently helping to arrange heartfelt plans and transactions that generates an ongoing win-win for all. _Gideon Taub currently serves as the chief strategy officer at Ren (_ [_www.reninc.com_](http://www.reninc.com/) _), a leading independent provider of philanthropic services._ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---