Part of your responsibility as a financial advisor is to assess and manage risk with respect to your clients’ financial investments. Shouldn’t the same responsibilities extend to the charitable “investments” your clients make?

As with any investment activity, when clients establish a philanthropic fund or family foundation, they’re investing with expectations of a return — the difference being instead of a financial return on investment (ROI), the philanthropic return is measured in social or environmental impact. Maximizing the potential of that return means managing or navigating risk associated with that philanthropic investment, and more specifically, impact risk — that is, events that could negatively affect the intended impact of a project. Working with your clients to maximize the ROI of charitable giving by managing impact risk is not only a role a financial advisor can play, but also one that the advisor should embrace and emphasize.

Read the full article, including Cliff’s four tips for maximizing ROI of charitable giving, here.


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