A philanthropic strategy for your practice can give you the personal satisfaction of helping a cause that’s important to you and raise your profile in the community, says Peter Nicholson, president of Ottawa-based Wealth Creation Preservation & Donation Inc,
While philanthropy may not be for everyone, says Nicholson, a certified financial planner who specializes in insurance, tax and philanthropic planning, you don’t have to be a multimillionaire to make a difference in the community through your practice. First and foremost, he stresses, choose charitable causes about which you are passionate. From that passion, he says, the connections and the business will follow.
Nicholson offers the following suggestions to help you bring philanthropy into your practice:
> Narrow your focus
Consider only a few causes that matter to you most — such as a medical foundation or an environmental initiative. If you cast too wide a net, you may spread yourself too thin.
Your goal should be to become recognized as a part of a chosen cause. If you aren’t strongly committed to that charity, Nicholson says, then don’t bother.
“People will be able to find out, quickly, if you are really there for the cause,” Nicholson says, “or just to help your bottom line.”
> Building better relationships
When you become philanthropically active, you are aligning yourself with like-minded people in the community. Your charitable activities help you define your practice, Nicholson says, because you are building your business around a cause that your clients can buy into.
By engaging your clients emotionally — as well as financially — you will form deeper relationships.
> Start small
Regardless of the size of your practice, keep your level of charitable involvement consistent with your resources. (Larger firms often have their own foundations that do philanthropic work. Find out if your firm offers any philanthropic opportunities.)
For example, you might start by volunteering to sit on the board of a charitable foundation, becoming involved in a community religious group or volunteering with a local hospital board.
Whatever your initial level of involvement, Nicholson says, “the most important part is to be intertwined in that community.” Once you are there, he says, you will become familiar with the stakeholders who might be able to help refer you to other organizations that are more in line with your goals.
Nicholson says he has met former U.S. President Bill Clinton and actor Matt Damon as a result of his philanthropic activities. But, he adds, the biggest benefit has been the spike in his credibility.
“It just fans out,” he says, “and helps you meet great people.”