Chartered Advisor In Philanthropy - Professional Advisors and Community Foundations Partnering for Maximum Impact

PROFESSIONAL ADVISORS AND COMMUNITY FOUNDATIONS PARTNERING FOR MAXIMUM

IMPACT

Phil Cubeta, CLU®, ChFC®, MSFS, CAP® The Sallie B. and William B. Wallace Chair in Philanthropy at

The American College of Financial Services

Bryan Clontz Charitable Solutions

Lisa Jolley Columbus Foundation

Phil Cubeta The American College of Financial Services

WELCOME

DONOR ADVISOR DISCONNECT

US TRUST SURVEY, “THE PHILANTHROPIC CONVERSATION,” 2013

51%

17%

20%

33%

0%

10%

20%

30%

40%

50%

60%

HNW Individual initiates the conversation Advisor initiates the conversation

(Per

cen

tag

e o

f R

esp

on

ses)

HNW Individuals' Responses

Advisors' Responses

Clients say, I do

WHO INITIATES?

Advisors say, I do, more so that

clients

38%

41%

27%

63%

0% 20% 40% 60% 80%

Charitable Goals,

Values and Interests

Technical Issues

(Percentage of Responses)

HNW Individuals'

Responses

Advisors' Responses

ADVISOR FOCUS TODAY

Does advisor focus on

technical? Depends

who you ask.

Does advisor

focus on

charitable

goals, values,

interests?

Depends

who you ask.

HOW IMPORTANT ARE TAX BENEFITS?

46%

40%

78%

10%

6%

45%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Motivation for giving is reducing tax burden

HNW individuals would reduce their giving if estate tax were

eliminated

HNW Individuals would reduce their giving if income tax

deductions were eliminated

(Percentage of Responses)

HNW Individuals' Responses

Advisors' Responses

INHIBITORS TO GIVING

30%

24%

17%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

My gift will not be used wisely

Lack of knowledge/connection

to charity

Fear of increased donation requests

from others

Reasons for Why HNW Individuals Don't Give

HNW Individuals' Responses

NEXT GEN GIVING

0

5

10

15

20

25

30

35

40

45

50

Advisors saying they

provide it

Clients who say advisors

discuss it

Clients who want it

A Conversation Clients want and don't often get

“Among HNW individuals who discuss

philanthropy with an advisor, 47% use one or

more structured giving vehicles when making

donations to charitable organizations — while

such vehicles are used by just 12% of

individuals who don’t discuss philanthropy

with an advisor.”

STRUCTURED GIVING VEHICLES RESULT

“Nearly one-third of HNW individuals (31%)

indicate that they would be more likely to

choose an advisor who is knowledgeable about

charitable giving.”

“More than half of advisors (57%) plan to

increase their knowledge about philanthropy

and to better their ability to advise clients

about charitable giving.”

VALUABLE KNOWLEDGE

HIGH CAPACITY DONOR PERSPECTIVE

GIVING IS TOP-HEAVY

Top 10% give 96%

Top 1% give 81%

Top 10% of the 1% give 61%

4 schools, total life time giving.

Data from Peter Wylie 2013 at

Cooldata.wordpress.copm

A REVOLUTION IN GIVING

“…donors used to support

nonprofits to help them

achieve their mission. Now we

support nonprofits to help us

achieve our personal mission.

Charles Bronfman and

Joel Solomon in The

Art of Giving 2010

COPERNICAN REVOLUTION “In the realm of nonprofits,

it’s a transformation as

dramatic as the one that

Copernicus created in society

when he discovered that the

sun did not revolve around the

earth, but the reverse.” The Art

of Giving

How can I use some combination of strategies

now, later, at death and beyond death to get

the results I want?

For me? My family? For the nonprofits I care

about? And through the nonprofit, for the

community?

What makes your organization the best

investment of my scarce resources?

HIGH CAPACITY DONOR PERSPECTIVE

How much do we need for ourselves?

How much is enough for children?

How much is too much?

How can we have an impact on society?

How can we reduce taxes in favor of children

or philanthropy?

“Is that all there is….?” Peggy Lee

WHAT IS ON THEIR MINDS?

Copyright The American College

2014 16

73% of Boomers…say there is a responsibility

to be philanthropic.

US Trust 2012 Insights on Wealth and Worth

A RESPONSIBILITY OF WEALTH

Copyright The American College

2014 17

CONVERSATION STARTERS

MICHAEL SHAUGHNESSY

What kind of person do you

want to be?

In what kind of world?

Teaches ethics at St. Ignatius College

Prep School in San Francisco

“Do you recognize any element of

luck, blessing, or grace in your

success?”

- Via Steenhuysen, “Philanthropy Planning,” 2012 National

Conference of PPP

CHARITABLE PHILOSOPHY

“What is your rationale for charitable giving?

Do you feel that any of the following play a

role in your rationale?

giving back to those who gave to you

making a difference in the world

addressing a specific need that touched your life or

the life of a loved one”

- Via Steenhuysen, “Philanthropy Planning,” 2012 National Conference of PPP

CHARITABLE PHILOSOPHY

ESSENTIAL QUESTIONS

“What principles have guided

your legacy planning to date?”

“What are you up against with

your children?”

“How wealthy do you want your

children to be?”

Charles Collier,

M. Div. Senior

Philanthropic

Consultant, Harvard

What is your vision of a better

world?

What conditions are needed to

realize it?

What are the obstacles?

What parts of the vision are realistic

and what ideas, strategies and plans

can make it so?

PETER’S QUESTIONS

Founded

The Philanthroic

Initiative

What would you like to change or

preserve in the world?

Has past giving reflected your

hopes?

What are the causes behind the

issues?

What might change the situation?

Who joins you in this work?

How will you experiment and

revise?

TRACY GARY’S QUESTIONS

If your family had a crest what

would be the motto?

What keeps you awake at night?

CONVERSATION STARTERS

Joe Breiteneicher,

The late President

of TPI

When you were younger were there things you

wanted to accomplish in life you have not yet

done?

How might you get back to that while you still

have time?

CONVERSATION STARTERS

Beyond self and family is there anything else

in the world on which you would like to have

a positive impact?

CONVERSATION STARTERS

Why?

• What kind of person do you want to be?

• In what kind of world?

How?

• Plans

• Tools

• Gifts

Impact?

• On self

• Family

• Community

WHERE WILL YOUR LIFE HAVE IMPACT?

WHY WE NEED EACH OTHER

BALANCE SHEET

Are you in the room, when the

balance sheet is on the table?

“CHARITY OF YOUR CHOICE”

Results

Strategies

Tools Foundation

Heirsinancial for family

Heirs Tax

Charitable

“Charity of your Choice”

CHECK YOUR VISION

Advisors

Vision, ideals, hopes, aspirations

Needs of organizations and community

Financial goals

Financial facts

Financial strategies

Gifts

To charity of choice

Financial results

Social impact

Gift Planner

Vision, ideals, hopes, aspirations

Needs of organization and community

Financial goals

Financial facts

Financial strategies

Gifts

To specific charity

Financial results

Social impact

Bring together funders and causes.

Serve, in essence, as a local market maker

Help your clients connect to a cause and to a

gift plan that will achieve specific social

impact

Saves you time, and provides a service for

which the best clients are hungry.

COMMUNITY FOUNDATIONS

WHAT IT MEANS TO BE A CAP®

Over 87 Years old, The American College is a non-profit educational institution with the highest level of academic accreditation dedicated to leadership in innovative training and development for financial services professionals.

Teaches such credentials as CLU, ChFC, CFP, MSFS, and CAP.

Over 180,000 living alums.

THE AMERICAN COLLEGE

BILL AND SALLIE WALLACE’S GOALS

1. Create national awareness of

the need for philanthropic

advisors

2. Provide comprehensive

common curriculum for

fundraisers and advisors

3. Help fundraisers and advisors

understand each other’s

perspective

• Elicit aspirations

• Connect through a good estate plan or financial plan

• Steer dollars to orgs that do the most good

Advisor, CAP®

• Represent org worthy of support

• Connect to donor ideals, identity, and life story

• Show how programs meet donor criteria

• Show “reasonable evidence of results”

Nonprofit CAP®

GETTING RESULTS TOGETHER

OUR SYMBOL

“What is that pin on

your lapel?”

Passion and craft

Art and science

Poetry and practice

Above and below the line

Moral compass and financial

capacity

High intentions and proven results

CAP STUDY GROUPS

FOR YOUR COMMUNITY

THE PLANNING TABLE

Attorney

CPA

Trust Officer

Insurance

Professional

Investment Advisor

Family Dynamics

Consultant

Community

Foundation

Single Issue Charity

GS 839: Planning for Impact in the Context of

Family Wealth

GS 849: Charitable Giving Strategies

GS 859: Planning for Impact in the Context of

Family Wealth

THREE MASTERS COURSES

Meet every other week to discuss recorded

lectures.

Takes about 9 months total.

Lectures lead to exam in exam center

Study Group sessions lead to camaraderie,

trust, rapport and ultimately to well informed

gift plans.

LOGISITICS

Nonprofit package price $2,700

For-profit $3,100

PRICES

Bryan Clontz Charitable Solutions

Lisa Jolley Columbus Foundation

THOUGHTS FROM BRYAN AND LISA

Attend our third session, “How to Organize a

CAP® Study Group”

Who should attend? The Community

Foundation Convener and a For-Profit Co-

Convener

NEXT STEPS

[email protected]

We will get back to you with more info on

CAP and Study Groups.

Then attend the next session and see if this

makes sense for you in your community

TO OPT IN OR LEARN MORE

Bryan Clontz Charitable Solutions

Lisa Jolley Columbus Foundation

Phil Cubeta The American College of Financial Services

THANK YOU!