Advisors don’t understand rich donors: BMO survey

Wealthy clients give to charity because they believe in the value of philanthropy, says a BMO Harris survey, but their advisors think the donations are motivated by tax savings.

The majority (91%) of Canadians with more than $1,000,000 in investable assets have given to charitable causes in the past 12 months, and 74% say they’ve donated up to $10,000.

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More than half (55%) of wealthy people say they’re driven to donate because they’d like to have an impact on their communities. And:

• 32% feel passionate about a cause;
• 23% feel they should share their wealth with others;
• 21% want to reduce taxes.

But when the survey asked advisors about their clients’ motivations, many financial advisors put too much importance on tax savings and creating a family legacy.

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Along with motivations, the report found that affluent Canadians also have hesitations around charitable giving. Among the concerns cited around giving, 43% were worried their gifts might not be used wisely by the receiving organization, and 26% feared receiving an increase in donation requests as a result of their gift.

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Motivations for giving

	Financial Advisors	High Net Worth Individuals
To impact community/world	65%	55%
Passionate about a cause	64%	32%
To reduce taxes	63%	21%
To give back	62%	50%
Religious or spiritual	51%	21%
To create a family legacy	34%	4%
To start/continue a tradition of family giving	26%	18%
To encourage children/future generations	21%	11%
Were asked by someone	17%	14%
To fulfill an obligation of wealth	17%	23%

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Hesitations for Giving

	Financial Advisors	High Net Worth Individuals
Haven’t yet explored their philanthropic passions	49%	8%
Lack knowledge or connection to charities	41%	10%
Have no tradition of family giving	38%	3%
Don’t have enough money for heirs	28%	6%
Have not been asked	26%	5%
Think gifts won’t be used wisely	26%	43%
Don’t have enough money for self	25%	11%
Not wealthy enough	24%	16%
Fear an increase in donation requests	16%	26%