As ESG gains momentum, clients are seeking more than just a charitable tax deduction so be aware of social consciousness as a rising force in estate planning and wealth management. Here’s why it matters ...

Environmental, social and governance (ESG) is the term used to refer to three factors that are increasingly used to measure the sustainability and ethical impact of an investment in a company or business. What's interesting is that this rise in overall awareness of the health of people and the planet has also paralleled an increase in the desire to make wealth matter.

U.S. Trust’s 2018 “Insights on Wealth and Worth” survey, for example, found that 47 percent of people in the study had begun to identify a “purpose for their wealth.” What's more, according to Investment News, over the course of a 12-month period, the percentage of Millennials highly interested in ESG investing leaped from 26% to 35%. GenXers' interest jumped from 16% to 35%.

What all of this means to you is that as an advisor, your responsibility to serve your clients now extends beyond an understanding of the tax ramifications of giving to 501(c)(3) organizations. Now, you'll also want to be aware how ESG influences the ways your clients are giving back through their investments, which come with a separate set of tax ramifications.

The net-net is that as the definition of "doing good" expands, your tax savvy radar must expand, too.


Our team is your partner. We understand your responsibilities to your clients from a holistic perspective. It's our job to help you make your clients feel successful as they pursue and achieve a purpose for their wealth, in whatever form that might take.

Learn more by talking to a giving expert today!