7 ways financial advisors can benefit by giving back to nonprofits

You are giving back to the community for all the right reasons. Altruistic traits show through, just as a predatory attitude will. You are using a gentle touch, development acquaintances and friendships within the high-net-worth community. People are getting comfortable with you. But a little voice inside you asks, “Where does the business come from?

Here is where it doesn’t come from! Do not treat your nonprofit organization as a networking group. If you always bring the conversation around to business, you will be branded as a pariah.  People will talk about you behind your back. No one will want to have lunch with you. You will have flashbacks to your high school cafeteria days.

Your objective is to communicate three things about yourself. You want everyone to know who you are, what you do and why you are good at it. Information flow is a two-way street. You want to learn three things about everyone you meet. This includes who they are, what they do and where they work. You can see your strategy is planting seeds, not selecting a target and shooting them between the eyes.

How do you get business? It should come from seven sources:

1. People you meet. They have a need. Your name comes to mind. They already work with an advisor but are not getting much attention. Maybe their agent retired. Maybe they have questions. They see you as a resource.
2. People they know. Let us assume everyone in the organization has an advisory relationship already in place. It might not be perfect but is not bad enough to motivate them to make a change. They know plenty of people! Some of them have needs or problems. They refer you.
3. Business within the organization. Because an organization carries the label “charity” or “nonprofit” does not mean they have no money! They have an operating budget where funds might be tight, but there is likely an endowment or foundation in the background funding scholarships or grants. If this money is invested for the long term, this likely means they use money managers.
4. Referrals to other organizations. Your nonprofit might be in great financial shape. Now you see a hidden benefit of your involvement. The professional staff at different nonprofits all know each other! It’s a community. The animal shelter endowment might be in fine shape, but the endowment at the local aquarium is under water! They refer you.
5. Life changing events. Members know what you do. They don’t have a need until one day they do! There is a death in the family. Someone receives an inheritance. They need advice from a trusted source. You are part of the organization family.
6. Speaking engagements. This has two aspects. The logical one is the professional connection. You give a talk on behalf of the organization about how members can remember the charity in their wills. Your knowledge benefits the organization. The less obvious one is speaking on behalf of your nonprofit in front of other community groups. Your charity is launching a capital campaign. You are booked to tell that story at various local business organizations. Your professional credentials are part of your introduction.
7. The ideal seminar location. Like hotels, museums and cultural institutions also rent out space. They often have a central location, an impressive building, a positive community image and plenty of parking. This is an ideal location for your next public seminar.

7 ways advisors will benefit

Ever see the acronym WIIFM?  It stands for What’s In It For Me?  Here are your benefits:

1. Direct business. People come to you.
2. Introductions and referrals. Fellow members send business to you.
3. Opportunity to tell Who, What, Why: This gets your story out.
4. You are meeting plenty of people.
5. Identify with organization. Their positive reputation enhances your reputation.
6. Access to social circles. You start getting invited to parties.
7. Ideal seminar location. The organization’s prestige makes your event more attractive.

Those are very substantial benefits. Why would this charity or nonprofit let you have them? The answer is simple. They are getting great benefits too.

1. You are an active member. You show up at meetings.
2. Direct financial support. You are writing checks.
3. Indirect support. They will start asking how they can get donations from your firm.
4. Volunteer involvement. You have chosen membership, fundraising or event planning.
5. Professional skills. You understand insurance and investing. You can explain things.
6. Your public speaking skills. You can tell the organization’s story to other groups in the community.

This can be a virtuous relationship. Both you and the nonprofit benefit from your involvement.