In every community, there are a very small handful of professional advisors who “get” philanthropy. They are the raving fans who advise the largest majority of charitable gifts while moving beyond just tools and techniques to the deeper meaning of impact and systemic change. What if your community foundation could replicate just one of those advisors... or 10 or 100? This webinar will discuss how each community can customize a path to deeper and broader advisor collaboration. Participants will learn: • Trends of Professional Advisors and Philanthropy • Current Charitable Advisor Roles • Community Foundation and Advisor Best Practices • Landscape of Charitable Advisor Groups • Extending the Advisor and Community Foundation Conversation
Text of Igniting Advisor and Community Foundation Collaborations
Igniting Professional Advisor and Community Foundation Collaborations: Part I of 3 Presenter Bryan Clontz, MSFS, CFP, CAP, CLU, ChFC, AEP Founder/President Charitable Solutions, LLC Leon L. Levy Fellow in Philanthropy at The American College of Financial Services Webinar Host Committee Lisa Jolley, JD (ADNET Steering Committee) Director of Donor Services and Development The Columbus Foundation Phil Cubeta, MSFS, CLU, ChFC, CAP Assistant Professor of Philanthropy | Academics The Sallie B. And William B. Wallace Chair in Philanthropy The American College of Financial Services
Bryan Clontz Charitable Solutions, LLC Lisa Jolley The Columbus Foundation Phil Cubeta The American College of Financial Services Welcome and Introductions
Three Part Webinar Series Part I - Igniting Professional Advisor and Community Foundation Collaborations Today (Session is Recorded) Part II - Partnering with Advisors for Inspired Outcomes 4/29 and 5/6 from 1-2 EST Part III - How to Organize a CAP Study Groups 5/27 from 1-2 EST
Agenda Why are Professional Advisors so Critical to Community Foundations Landscape and Trends of Professional Advisor Groups Trends of Professional Advisors and Philanthropy Community Foundation and Advisor Best Practices Extending the Professional Advisor and Community Foundation Conversation Webinar #2 Partnering with Advisors for Inspired Outcomes
Objective: High Net Worth Donors Increase the percentage of high net worth households giving through CFs Market penetration Market share Increase the percentage of high net worth charitable dollars directed to CFs or expanded in community
Objective: High Net Worth Donors Primary focus on professional advisors Most high net worth individuals rely on advisors unpaid sales force!!!! Usually aware of trigger events for charitable donations Easier and less expensive to locate and reach than high net worth individuals Larger gifts are created with a much shorter sales cycle
Professional Advisor Overview Fee-based or Fee-only Advisors Valued for their technical expertise. You can enhance their value to their clients by being an educational resource CF Value Proposition: Help Them Look Really Smart and Be Hyper- Objective! Commissioned Advisors These advisors value a straightforward and direct sales approach. Constantly looking for new clients and to introduce new ideas to existing client base They are excellent networkers and salespeople CF Value Proposition: Help Them Sell More Products or Services!
Professional Advisors Who Are They? Banker/Trustee Broker Financial Planner Life Insurance Agent Accountant Attorney (general) Attorney (estate) Life insurance, financial planning, evolving lifetime products Estate and tax planning, wills, trusts, financial planning, consultations Business and family legal consultation, estate and tax planning, wills, real estate transactions, business sales Tax planning and returns, business consultation, financial planning Investment services, portfolio management, financial consultation Banking and investment services, long-term trust administration, private banking Financial planning, retirement income planning
Communicating Your Value Proposition Our Community Foundation can provide a unique charitable solution if the charitable plan would benefit from: permanence, anonymity, stewardship, no set-up and low on-going costs, maximum public charity tax advantages, simplicity, local knowledge, investment process, no pay-out requirement and objective, expert charitable advice. Most Effective Method: Stories, Stories and Stories! In Advisor-Speak, this means Case Studies (fact or fiction!).
Professional Advisor Trends Trends $41 Trillion (or so) wealth transfer Nonprofits are losing the charitable gift planning monopoly. Advisors options are expanding; CFs can guide their process... before someone else does. CFs need to let advisors know how you can help with charitable gift solutions. Professional advisors are looking for collaborative partners. More advisors interested in discussing philanthropy with their clients.
HNW Philanthropy Study 3.70% 7.10% 12.30% 8.70% 15.20% 35.90% 41.20% 16.60% 16.40% 26.60% 4.00% 9.90% 3.30% 16.50% 15.10% 16.10% 26.00% 27.80% 42.90% 44.30% 18.10% 19.80% 24.10% 38.80% 40.80% 67.50% 0% 10% 20% 30% 40% 50% 60% 70% 80% Coaching Program Broker Others Bank or Trust Co. Staff Community Foundation Staff Peers or Peer Networks Fundraisers / Nonprofit staff Financial and Wealth Advisors Attorney Accountant HIGH NET WORTH HOUSEHOLDS CHARITABLE GIVING DECISIONS BY TYPE OF PERSON CONSULTED (%) 2010 2008 2006 The following slides were developed by Lee Hoffman, President/CEO, Planned Giving Design Center from data derived from "The 2010 Study of High Net Worth Philanthropy" Sponsored by Bank of America and researched and written by The Center on Philanthropy at Indiana University
Who Initiated the Charitable Conversation?
Challenges/Solutions Working with Advisors Understand that attorneys, accountants and fee-only financial planners bill in 6 minute increments (1/10 of an hour) their time is all they have to sell! Take-Aways: Trust is everything! Nearly all discretionary gifts will come through estates via bequests. Understand that financial advisors/trust officers/banks are primarily paid on money management (usually 1%/year on assets) and insurance advisors on commissions from product sales. Take-Aways: If they can continue to get paid in some way, they will be your biggest advocates. If they cant, they will refer in small cases that they dont want to deal with or will locate other charitable options.
Professional Advisor Databases Gathering names: Board Professional Associations (CPA, Financial Planning, Bar, etc.) CAP (Chartered Advisor in Philanthropy designees) Current list of advisors Current and new donors Business Journal Book of Lists Martindale-Hubbell www.martindale.com or www.lawyers.com Estate planning council lists, events Track contacts FIMS, Foundation Power, Blackbaud, Salesforce, etc.
Professional Advisor Marketing Identify professional advisor prospects Develop relationships Educate advisors and clients Handle referrals effectively Create a professional advisor group Maintain an advisor database Track and Measure success Recognize and Thank profusely Consistently Communicate CF value proposition/solutions through stories/case studies
Professional Advisor Segmentation and Outreach 80/20: Specific Relationship Management Plan (A, B and C Level Advisors) Develop relationships with most productive, influential advisors Large group, small group, one-on-one Advantages, challenges with each type Continuing Education Positions CF as knowledgeable resource Advisors need CEUs Collaborate with other groups Critical role of case studies and donor stories
Post-Meeting Relationship Building Execute A, B and C Level Personal Meetings (A level annually, B level bi- annually and C level to qualify into A or B) Web-based Information Planned Giving Design Center (PGDC) or GiftLaw ($250-995/yr) Newsletter content is generic, not specific to CFs Your own CF website
Professional Advisor Recognition President or Board Member Thank You Call and Customer Service Check List Referrals in Newsletter and on Website Honor top 3 referral firms at Annual Meeting Host a Thank You Recognition Event Create council or society for advisors who have provided referrals
Success Measures: Tracking and Reporting Benchmark Existing Advisor Activity Database, Meetings, Presentations, Referrals, New Current Funds, New Planned Gifts, Breakdown by Profession Set Goals for Number of PA meetings (Individual, Small and Large new vs. existing relationships) Number of New Database Names Number of Referrals, Outright Gifts and Planned Gifts Evolving Advisor Breakdown per 10 referrals Provide Senior Management and Board with Progress Updates Limited Resource CFs Should Use a Volunteer or Two to Assist Be Patient and Set Internal Expectations!
Extending the Conversation: April 29th and May 6th Webinar 1-2 EST You invite your top advisors, and those like them. Phil Cubeta, Bryan Clontz, and Lisa Jolley will discuss why CFs are critical to addressing the philanthropic aspirations of the advisors highest capacity clients. Then, if you and the advisors wish, you can keep the conversation going through a Chartered Advisor in Philanthropy Study Group, as have many CFs around the country.
CAP Study Group: How to May 27th Webinar 1-2 EST Panel discussion of CAP study group successes and best practices from Commun