Usually, the individuals who are looking into wealth management services have already obtained a significant (at least somewhat) amount of wealth to be managed. Now that these individuals have worked hard and made a place for themselves, many of them want to give back. This is why philanthropic budgeting is a big part of wealth management. Poor use of philanthropic funds is usually a waste of money, with little actual benefit to the cause that an individual was hoping to help.
What Philanthropy Covers
Finding the Right Causes
A large of part of budgeting funds for philanthropic spending is deciding what is truly important to the client, and how, specifically, they would like to be remembered for their philanthropy. Determining a cause is only a small part of philanthropic spending, however. Simply writing a check and throwing it at a problem can usually be chalked up to a waste of funds, very little of which are used to actually help an issue. A wealth manager will help you determine an effective and smart amount of capital to put towards philanthropic issues, and can help you find organizations that are effective at actually helping a cause, rather than having funds get tied up in administrative costs.
Sticking to one cause and giving to one organization isn’t necessarily an effective way of using funds to better the world. Finding different causes to donate to is a large part of what many wealthy individuals hope to do to give back to their communities, and the rest of the planet. Finding different social and environmental issues to donate to is a major part of philanthropic services.