REP Magazine reports, the wake of the subprime and auction rate securities debacles, huge outflows of client funds from the wirehouses and major banks. The money seems to be going to independent Registered Investment Advisors. I wonder if this drop in client confidence will affect the philanthropic planning divisions of places like CITI, Wachovia, Bank of America, and Merrill? Where will that money go? The independent Registered Investment Advisors tend not to be experts in philanthropy, and they too have conflicts of interest, since they are generally paid on assets under managment. (Philanthropy may involve managed money in trusts and foundations and donor advised funds, but ultimately is all about putting money to work in the community. Advisors, including independent ones must watch with mixed feelings as those dollars go out the door.) Perhaps clients will seek independent RIAs to manage the money and independent philanthropic advisors to tell them how to put that money to work in society? If so, firms like The Philanthropic Initiative, Inspired Legacies, Rockefeller Philanthropic Advisors, and Arabella may benefit.