Why Legacy? Why Now? · What is an Endowment? A Permanently Restricted Fund where the principal is not touched. Funds are invested as a large diversified pool, and monitored Funds

Why Legacy? Why Now?Dena Morris Kaufman February, 2015

Harold Grinspoon Foundation

"I found a fruitful world, because my

ancestors planted it for me. Likewise,

I am planting for my children."

-Talmud, Taanit 23a

“I love the Jewish People.

I speak Jewish with my dollars.”

– Harold Grinspoon

HGF invests in projects that provide a strong return on

investment for the Jewish Community.

To date, more than $350,000 in Greater Indianapolis

• PJ Library and Sifriyat Pijama have distributed Jewish storybooks and music to

more than 350,000 children worldwide. We have just delivered our 5 Millionth book!

• PJ Library launched in Indianapolis in 2009 and serves approximately 400

children each year.

• JCAMP180 provides mentors who support Jewish summer camp leadership in the

areas of strategic planning, board governance, and development in addition to

providing matching grants. Our camps have raised $80 million in response to HGF

challenge grants and an estimated $71 million in legacy commitments.

• Voices & Visions engages adults in Jewish conversations through art and scholarship.

We have gifted 128,000 posters to Jewish organizations throughout North America,

Europe, and Israel.

LIFE & LEGACY is a 2 – year partnership

program of the Harold Grinspoon

Foundation (HGF) that assists

communities across North America, to

promote after-lifetime giving to benefit

local Jewish day schools, synagogues, social

service organizations and other Jewish

entities.

Through training, support

and monetary incentives

the partnership between

LIFE & LEGACY and the Jewish

Federation of Greater

Indianapolis motivates Jewish

organizations to secure

legacy gifts and steward

donors.

Legacy:

Defined as something handed down from the past

What is Your Legacy?

Values, beliefs, hopes, and life lessons

that are conveyed to others

What is an Endowment?

A Permanently Restricted Fund where the principal is not touched.

Funds are invested as a large diversified pool, and monitored

Funds are held “For the Benefit of” your organization

Annual distribution from earnings, usually 4%-5%

There is a fee for management of these assets, usually .75%-1.25%

Endowments are designed for the principal to grow. When the annual

interest is more than annual distribution, the difference is added to the

principal, allowing for a larger distribution in subsequent years.

Endowment Example

$500,000 Endowment = ~$25,000 to Annual Operating Income

To reach a $500,000 Endowment Fund:

10 Legacy Gifts (Average Gift of $50,000)

What is a Legacy Gift?

After Lifetime Gift

Bequest of cash or assets (Will or Trust)

Named beneficiary, Retirement

Named beneficiary, Life Insurance

Estate Planning Vehicle

Current Gift into Permanent Endowment Fund

Why Now?

The $59 Trillion transfer of wealth is underway.

If we don’t ask we will miss an opportunity.

To maintain the vibrant Jewish community we all value.

To secure the future for the next generation.

“We must be the change we wish

to see in the world.” Gandhi

Why Now?

Having this knowledge, the question HGF sought to answer is:

“Can Jewish communities be motivated to become proactive in encouraging widespread legacy giving?”

With the implementation of the partnership between LIFE & LEGACY and the Indianapolis community, the answer is now

YES!

Building Jewish LegaciesAcross North America

Year 1 LIFE & LEGACY

Charlotte, NC

Memphis, TN

Miami, FL

New Haven, CT

Orange County, CA

Portland, OR

Princeton, NJ

Year 2 LIFE & LEGACY

Chicago, IL

Greater Metro West, NJ

Greater Washington, DC

Jacksonville, FL

Milwaukee, WI

Omaha, NE

Sacramento, CA

Southern NJ

Areivim: St Louis, Tucson, San Francisco,

Philadelphia, Hillel

HGF: Jewish Camps, Western Mass

Other: Kansas City, San Diego, Denver,

New Orleans, Atlanta

Year 3 LIFE & LEGACY

Cincinnati, OH

Delaware

East Bay, CA

Houston, TX

Indianapolis, IN

Phoenix, AZ

South Palm Beach, FL

Tampa, Orlando, Pinellas, FL

Proven Track Record

Sept 30, 2014

TOTAL

3,731

LOI

Estimated

value

$131

Million!

* 2 year goal – these communities are in their second year

Community Population LOI

received

Time

period

Estimated

Value

LOI

Goal

Charlotte, NC 10,000 400 21 months $9.8 M 240*

Princeton, NJ 10,000 217 15 months $10.2 M 276*

Memphis,TN 8,000 491 24 months $12.5 M 250*

Miami, FL 113,000 468 21 months $23.8 M 432*

New Haven, CT 23,000 203 18 months $4.5 M 150*

Orange County, CA 80,000 194 15 months $8.4 M 108

Portland, OR 45,000 220 13 months $9.8 M 132

Chicago, IL 265,400 211 9 months $6.8 M 270

Greater Washington DC 215,600 305 15 months $14.1 M 414

Sacramento, CA 21,300 196 7 months $5.5 M 216

Omaha, NE 6,100 200 8 months $7.4 M 162

Southern New Jersey 22,100 333 9 months $9.0 M 324

Milwaukee, WI 30,000 191 7 months $5.0 M 270

MetroWest, NJ 140,000 102 6 months $4.8 M 270

Sample Organization

Success Stories

Update: In 14 communities, we represent 183 organizations

Organizations Population LOI

received

Time

period

Estimated

Value

JCC (Omaha) 6,100 22 6 months $368,000

Day School (New Haven) 23,000 20 3 months $500,000

Synagogue (Sacramento) 21,300 14 6 months $330,000

Family Service (Charlotte) 10,000 17 3 months $445,000

Synagogue (Princeton, NJ) 10,000 10 6 months $500,000

Senior Living (Memphis) 8,000 31 9 months $610,000

Legacy Giving Myths

The Legacy Conversation is NOT

about the donor’s death.

The Legacy Conversation is

offering the donor an opportunity

to do something significant during

their lifetime.

Legacy Giving Myths

Legacy gifts are ONLY endowments Yes endowments, now or later

Also bequests, retirement funds, life insurance, and other assets

Legacy gifts are taking away inheritance Majority estate is left to family members

Legacy commitments only a percentage of an estate

No will means no legacy gift Portion of retirement funds, life insurance policies or other planned

giving vehicles.

Organizational Myths

Planned giving hurts annual campaign Donors tend to increase their annual giving after making a legacy

commitment

We need money now An annual incentive grant allows you to benefit both now and later.

We don’t have time Already spending time on donor relations, and you should be, then have the

time.

Philanthropic advisors state: If 20% of your operating budget is not coming from your endowment by 2025 then your organization will be in fiscal crisis, so you need to make the time now to build your future endowment base.

Organizational Myths

We don’t have experienced planned giving staff Your Create a Jewish Legacy staff is available to assist you and

your donors.

Our lay leaders are not financial advisors Legacy team to have mission-based conversations with donors.

Planned giving marketing should be passive No, three-fold - agency-wide marketing; targeted communication;

one-on-one conversations.

Legacy Prospects Myths

Only those over 65 are planned giving prospects A donor of any age can be a legacy donor.

Recent study found that 40-49 year olds have the greatest number of bequests to Jewish causes IF they have a will.

Only wealthy people are prospects Legacy most egalitarian form of fundraising.

Best prospects - most loyal donors

Donors are going to leave everything to their children Donors who have demonstrated a commitment to your organization

are likely going to want to illustrate that relationship to their children by leaving a percentage of their estate to you.

Your Concerns?

Organizational?

Prospects?

Personal?

Need to get out of the

mindset of the here and

now and instead

cultivate a culture of

planning for the future.

What Motivates

Legacy Giving?

• A commitment to being Jewish

• A desire to live up to the values instilled by parents and grandparents

• To give back.

• To make a difference.

• To be a part of something larger than ourselves.

• To be recognized.

• To feel united with others of similar commitment & values.

• To commemorate loved ones.

• To share their good fortune.

• To support your organization and its mission because they value what you offer to the community.

How the program works

• Indianapolis – one of 8 communities selected from across the country to participate in the program’s third cohort. One of only 23 communities.

• Your community was selected because the HGF considered you to be a strong community with effective leadership.

• Jewish Federation’s Application Review committee selects local organizations to be part of this initiative through an application process.

How the program works

• JFGI develops budget and aggregate goal.

• HGF funds 50% of the program budget up to $150,000 per year for 2 years.

• HGF’s funding allows the JFGI to offer a financial incentive to you.

• HGF, in partnership with the JFGI, provides training sessions and private consultations.

• Successful legacy effort

• Legacy giving part of community culture.

Benefits of Participating

• Training with a proven method for success

• Marketing and Stewardship Best Practices

• Incentive Grants

• Professional Support

• Resource-oriented Website

• Community organizations work together to transform philanthropy in your community

Training Provided

Year 1

How to Write a Legacy Plan

The Legacy Conversation & Team Meetings

Marketing Your Legacy Program

Effective Stewardship & Team Meetings

Year 2

2 Team Meetings

From Letter of Intent to Formalized Gift

Best Practices / The Integrated Ask

Being Donor-Centric

Legacy Plan Components

Case Statement

Management Plan

Identify Potential Donor Groups

Develop Marketing Plan

Develop Stewardship Plan

Set Goals

Implementation Plan

Stewardship

Strengthen your relationship with your legacy donors.

Keep them engaged.

Make them feel appreciated.

Letter of Intent

LOI is a donor’s commitment:

• LOI includes all partners so donors can choose

more than one

• Each partner chosen can count that donor’s Letter

of Intent toward their goal

Sample

Letter of Intent

Set Goals

Make goals ambitious yet achievable. In the

end this is all about planning for the future of your organization so the more work we do now, the brighter that future will be.

Plan on having one conversation per month

Commit to obtaining Letters of Intent

Year 1: Minimum of 18 - reach for 25!

Year 2: Minimum of 18 - reach for 25!

Post-LIFE & LEGACY: The sky’s the limit!

How to

Reach Your Goal

New Conversations yielding new gifts

Newly discovered gift

Gifts received 8/25/14 – 6/30/16 is Year 1

Incentive Grants

Incentive grants awarded to those organizations who

reach their legacy commitment goals, each year of the

two year program:

Year 1 secure 18 Letters of Intent

Year 2 secure 18 Letters of Intent

Since your list of potential legacy donors will

grow every year, this makes your legacy plan a

living document that becomes the

foundation for fully integrating legacy

giving into the philanthropic culture of

your organization.

Integrated into

your Culture

Establish a Legacy team.

Develop a Legacy plan.

Attend training sessions.

Have conversations with your donors re: after-lifetime gifts.

Report your progress on a quarterly basis to Life and Legacy

Indianapolis Program Director, Paula Goldberg.

Seek assistance and support from Paula as needed.

Attain goals outlined in your Legacy plan.

Place after-lifetime gifts secured through this program at the

Jewish Federation of Greater Indianapolis in an endowment fund

“for the benefit of” for your organization.

Your Responsibilities

Applications due on March 20, 2015

Why should

you participate?

The time is right!

LIFE & LEGACY will allow your organization to:

take advantage of the tremendous transfer of wealth;

change the language and landscape of giving and;

incorporate legacy gifts into the philanthropic culture of your organization and the Greater Indianapolis Jewish community.

Why should

you participate?

The community works together.

LIFE & LEGACY fosters a camaraderie

and respect among Jewish organizations

that share the goal of legacy-building for

the entire Jewish community.

Why should

you participate?

So generous and forward-thinking members of your Jewish community have an opportunity to express their passion, purpose and commitment to the future of your organization and the Jewish Community of Greater Indianapolis.

Why Legacy? Why Now?Dena Morris Kaufman February, 2015

Harold Grinspoon Foundation

HGF looks forward to

working with you to

assure Jewish tomorrows in Greater Indianapolis.