Why it Matters

The Great Wealth Transfer is accelerating, and financial advisors face a choice: adapt to values-driven investing or lose the next generation of clients. Smart advisors are discovering that starting "the values conversation" isn't just good for impact—it's essential for business survival.

The Big Picture

A $125 trillion wealth transfer is underway, and the recipients think differently about money. While traditional advisors stick to risk-return conversations, forward-thinking firms are winning by asking clients about their values first, their portfolio preferences second.

What's Happening

In Philadelphia alone, more than a dozen foundations have switched advisors in recent years, seeking deeper alignment between their portfolios and missions. What was once considered risky is becoming the expectation.

"If you were a foundation here in Philly and you were doing this, people would probably raise an eyebrow," says ImpactPHL's Cory Donovan. "I'm hoping that in another 10 years, if you're not doing this, people will look at you with a... why not? What's wrong?"

The shift is driven by powerful forces:

• Next-gen investors who see purpose as non-negotiable, not an afterthought.

• Foundations realizing their portfolios contradict their missions,

• Local impact becoming a key investment lens.

• B Corp certified wealth managers like Westfuller gaining market share.

The Challenge

A "chicken-and-egg" problem is slowing progress. Clients don't want to seem foolish asking about impact investing. Advisors don't want to appear inexpert discussing unfamiliar territory. Both sides stay in their comfort zones.

The Solution

Top advisors are flipping the script entirely. Instead of leading with jargon (ESG, SRI, sustainable), they start with what clients actually care about:

• Look at charitable giving patterns to identify passion areas.

• Ask about legacy and purpose before discussing asset allocation.

• Focus on specific themes rather than buzzwords.

• Meet clients where they are on their values journey.

"Let's talk about how you think about your passions and your legacy and your purpose," suggests Glenmede's Julia Fish, whose firm works with clients allocating 10% to 100% of portfolios to sustainable investing.

The Opportunity

Advisors who embrace this shift gain multiple advantages:

• Deeper client relationships built on shared values.

• Differentiation in a commoditized industry.

• Access to the next generation of wealth holders.

• Expanded services through impact investment options.

Investment options now span public equities, private markets, muni bonds, social bonds, and community development financial institutions. The infrastructure exists—advisors just need to learn the language.

The Bottom Line

Advisors "are the front door to this conversation," explains Donovan. "They already have the relationships, they already have the trust. They're already managing the money." The question isn't whether values-based investing will grow—it's whether your firm will lead or follow.

Go Deeper

• Philadelphia foundations deploy local endowments for impact - See how regional foundations are changing advisor relationships

• ImpactPHL's local impact initiatives - Learn how once city is building an impact investment ecosystem