I spoke on philanthropy today to 55 life insurance agents from around the US who work with clients many of whom are business owners in cities and towns large and small. The median age of the agents was probably 55. The median age of their business clients about the same. Each agent has several such clients, or a dozen or two, whose business is worth in excess of $10 million. We talked about listening to what the client most deeply wants to accomplish in the time remaining. Keep the business? Sell? Pass on to children? Do more volunteering? Get active as a leader in the community? Give? Get children involved in giving? We talked about how hard times are today for nonprofits and about how important it is that we work with clients on the gift of "now money," not just on deferred gifts and legacies.
If you raise money for a nonprofit, please consider the following suggestions:
- Look upon blue collar business owners as potential givers. They may not look wealthy; they don't act wealty, but they have wealth embedded in an operating business, farm, or ranch.
- Cultivate the life insurance agents who work in this market. (Get the directory of the local Estate Planning Council.)
- Talk to the agent in this spirit, "We are happy to have you sell life insurance to replace gifted assets. We are happy to have you do estate planning and business planning for donors. We are happy if deferred gifts come out of it, but we do need the current funding too. Can you think of things we could do together to promote that outcome?"
If the agents come up blank , well, they are not too on top of their game. There are many ways advisors can free up current giving. They don't get paid to do that. But if you can help them create working relationships with other business owners, that too, those relationships, are "as good as gold" in the insurance business. So, what small business owners, who may not yet be big givers, do you have in your donor base? How can you stir the pot in such a way that these business owners get exposure to the agents in town who "get" and promote not only legacy planning, but also current giving? An event might be in order. A panel of business owners and professionals on how philanthropy fits in estate and financial planning? A success story in which a business owner exited a business, got engaged with giving, and got his or her kids engaged? The small business market is where so much of the wealth is (about 60% of GNP), it just makes sense to cultivate these "protophilanthropists" in this turbulent time. It is the advisors who have access. Referrals in and referrals out. That is how you stir the pot to the advantage of all concerned.
