What to Know Before You Hire a Philanthropy Advisor

I’m seeing a troubling trend: wealth management firms offering “free” succession planning services to foundations. Not as a gift but as a strategy to secure assets under management. On the surface, it sounds generous. But when the person advising your family on one of your most meaningful decisions is also trying to win your portfolio, you have to ask: whose interests are being served?

Succession planning is about more than leadership. It’s about timing, relationships, legacy, and trust. It deserves independent, unconflicted guidance.

A family foundation recently approached me about helping them with succession planning. They care deeply about their mission and understand that navigating leadership transitions requires thoughtfulness and courage.

Then they told me they were also considering a large wealth management firm offering similar services—for free. The catch? The services were only free if the foundation invested its assets with the firm.

In other words, the consulting was the bait. The real goal was assets under management (AUM).

To be fair, some wealth management firms offer strong philanthropic guidance. I’ve met advisors who understand foundations, family dynamics, and governance structures. But when advice is offered as a hook to win financial assets, it introduces a subtle yet serious conflict of interest.

And if you’re not paying close attention, it can cost far more than a consulting fee.

Free Isn’t Always Free

In my experience helping family foundations through succession planning, there’s often a turning point. The family begins by thinking about leadership transitions—and ends up seriously considering whether they want to continue in perpetuity or sunset the foundation within the next 5 to 10 years.

That’s a courageous conversation. But it’s also one a firm with a financial stake in managing your assets may be reluctant to support.

Would they encourage sunsetting if it meant less AUM? Would they challenge the executive director to consider stepping back or raise red flags about family dynamics, next-generation readiness, or risks to your mission if doing so risked disrupting the client relationship?

Or will they stay quiet, keep the peace, and keep the account?

These are not abstract risks. They’re real patterns I’ve seen. Families following advice shaped by asset retention rather than bold, mission-driven decision-making.

And the longer you delay honest conversations, the harder it becomes to change course later.

You Deserve Unbiased Guidance

Succession planning—when done right—isn’t easy. It involves real conversations about leadership, identity, values, legacy, family relationships, power, and trust. You need someone in the room who can ask the hard questions, facilitate the real dialogue, and help you uncover what’s beneath the surface.

And you need to know that their only incentive is your success, not your portfolio.

When I advise families and foundation leaders, I’m not trying to upsell a financial product or maintain a revenue stream. I’m there to guide you through complex, often emotional decisions with clarity, honesty, and care. If we determine that sunsetting your foundation is the most powerful way to achieve your mission, I’ll support you. If your adult children aren’t ready to take the reins, I’ll tell you. If I see risks you’re not talking about, I’ll name them.

That’s the kind of objectivity you deserve.

What’s the Real Cost?

“Free” advice isn’t always free. When an advisor’s compensation depends on your investment account, their guidance isn’t neutral. It’s filtered—consciously or not—through the lens of retention and risk avoidance.

So before you accept that no-cost offer, pause.

Ask yourself:

• Whose interests are being prioritized?
• What important conversations might be avoided?
• What decisions might be influenced by financial incentives—not family values?

Because your foundation’s future is too important to hand off to someone whose job depends on keeping your assets.

And your legacy deserves more than a discounted service.

Want to talk through your foundation’s succession planning needs?

I’d be happy to learn more about where you are in the process and explore how I can help. Schedule a call with me today.