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 can’t, they will refer in small cases that

they don’t 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 aspiration’s of the advisor’s

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 Community Foundations

Attendees will learn:

1. An overview of the CAP® designation?

2. What does it mean and require to be a CAP® host/sponsor of a

study group?

3. How were the initial attendees recruited?

4. What is the typical time-line for the full program?

5. What is the cost for each module?

6. What were the outcomes for completed programs and what would

hosts done differently in hindsight?