Sean Stannard-Stockton is a bitof a Renaissance man in the wealth advisory world. A principal of Ensemble Capital Management in Burlingame, Calif., he's an expert who brings the two disciplines of wealth management and philanthropy consulting into harmony for high-net-worth clients interested in giving.

He's a "rare find," says Reneta Rafferty of the Rafferty Consulting Group, a firm specializing in philanthropic counsel. "I consider his blog (http://tacticalphilanthropy.com) a must-read for professionals and academics in the nonprofit world." His column in the Financial Times, "On Philanthropy,"also reflects his wealth management credentials, she says..

Two Worlds

Dual designations equip Stannard-Stockton to operate fluidly in both worlds; he's one of the few people who hold both the CFA and the CAP (Chartered Advisor in Philanthropy) designations.

Stannard-Stockton joined Ensemble in 2002, after several years of working as a wealth manager for high-net-worth clients at Zurich Scudder (since purchased by Deutsche Bank). Stannard-Stockton has helped 11-year-old Ensemble grow to manage more than $200 million in assets for 68 clients. "The vast majority of our new business results from our specialty in [philanthropy] services," he notes. "Our focus in that area powered our 30% revenue growth last year. This dual competency sets us apart."

Underserved Need

Stannard-Stockton believes that philanthropic families are deeply underserved by the financial services community. "On the one hand, most advisors still view philanthropy as a slippery slope leading to lost assets under management," he says. On the other, many large wealth management firms claim they do charitable planning, but, he says have little to back up this claim. "Some have only a general awareness of donor-advised funds, while others, generally wirehouses, will send a team out from new york to answer client questions about philanthropy."

Ensemble prides itself on its capacity to advise clients about all major giving vehicles, including donor-advised funds, private foundations and charitable trusts, among others. While some financial advisors are moving toward providing objective advice, Stannard-Stockton laments that in general, philanthropy is "a sales business, with community foundations selling their donor advised funds (DAFs) and foundation administration firms selling their private foundations."

Distinguishing itself from philanthropic salesmen and large wirehouses, Ensemble charges fees for assets under management but not for philanthropic planning services.

While the practice typically accepts clients with $1 million or more in investable assets, it lowers that minimum to $500,000 for clients who maintain a charitable vehicle (such as a foundation or trust) through the firm. Ensemble draws a sharp distinction between the strategic philanthropy guidance offered by many firms and its own brand, which he considers more tactical.

Tactical V. Strategic

Many planners, he says, offer "a service that revolves around helping people think through their personal charitable interests, their family mission statement and/or social goals." Their guidance revolves around strategic thinking about philanthropy.

"We offer tactical philanthropy consulting, a phrase we coined in 2004 that is now beginning to enter common usage. This means we focus on structuring our clients' assets to maximize their personal and philanthropic goals. We are not in the business of encouraging people to give. We just make giving more effective."

In early 2004, Googling the term tactical philanthropy yielded zero results compared with 92,000 for strategic philanthropy. If you do the same search today, you end up with 110,000 hits for the tactical variety and 236,000 for the strategic.

Although tactical philanthropy is growing in name recognition, Stannard-Stockton still says that tactical philanthropy is not a code word for tax reduction which, as it turns out, is not the main goal of many donors. In fact, numerous studies show that tax reduction is not the primary motivation for charitable giving.

Ensemble's approach to philanthropy reflects this principle. "At Ensemble, we believe that true philanthropic planning structures assets to further philanthropic goals first and then figures out the most tax-advantageous way to make it all happen," Stannard-Stockton says.

For example, Ensemble's wealth management footing provides the firm with expertise in the investment management of charitable assets. And, of course, Stannard-Stockton is well versed in charitable remainder trusts, which can create tough tax problems, depending on how their assets are invested.

Due Diligence

Stannard-Stockton adds that the firm has performed "significant due diligence on outsourced philanthropic administration"—work that has produced partnerships (including those with Foundation Source and Schwab Charitable) that enable Ensemble to serve clients with remarkable speed and alacrity.