Planned-Giving-High-Impact-Philanthropy-Strategies-for-Partnering- by csgirla


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									                      Planned Giving
                      Trends, opportunities and challenges in bequests, endowments and major gifts
                      By Robin R. Ganzert, Ph.D.; Tracy A. Mack, Esq.; Joseph Fortuna; and William L. Sutton Jr., J.D.

                         Bequests, endowments and major gifts—part of your donors’ big plans—are critical to
                         your organization and what it will accomplish in the future. If you have a suggestion, chal-
                         lenge or information you would like to share regarding planned giving and major gifts,
                         please email

                      High-Impact Philanthropy: Strategies for
                      Partnering With Professional Advisers
                      Today, 90 percent of wealth advisers                                                                results by partnering with profession-
                      ask clients about their interest in phil-                                                           al advisers.
                      anthropic planning or charitable giving.
                      In fact, 53 percent say they always bring                                                          A Snapshot of Professional
                      up philanthropy with clients, while 41                                                             Wealth Advisers
                      percent report being comfortable with                                                              The survey, conducted during the sum-
                      raising the issue of philanthropy with                                                             mer of 2008, aimed to provide a look
                      certain clients.                                                                                   at today’s wealth advisers and to bet-
                          Compare this to results of previous                                                            ter understand their views on philan-
                      studies, such as Doing Well by Doing                                                               thropic planning. Approximately 75
                      Good in California. Improving Client                                                               professionals from seven leading finan-
                      Service, Increasing Philanthropic Capi-                                                            cial institutions (some of which no lon-
                      tal: the California Legal and Financial                                                            ger exist) participated in the survey. In
                      Advisor’s Role conducted by The Phil-                                                              addition, more than 75 percent of the
                      anthropic Initiative (TPI) in 2004. TPI                                                            participants had more than 10 years of
                      noted that for most professional ad-                                                               experience in the industry.
                      visers in the 1990s, talking about phi-                                                                Taking a page from mainstream me-
                      lanthropy with their clients was inter-                                                            dia, philanthropy is a “hot topic” with-
                      mittent at best and largely done in the                                                            in financial services firms and among
                      context of tax planning. Indeed, most             sion panel—Tracy A. Mack, Esq., se-              advisers and their clients. Nearly 80
                      felt it was not their role to raise the is-       nior officer, philanthropic services, The        percent of survey participants reported
                      sue of philanthropy with clients.                 Pew Charitable Trusts, Philadelphia;             that their firms discuss philanthropy as
                          These are just some of the issues             Joseph Fortuna, senior vice president,           a client service more now than they did
                      discussed at the session “High-Impact             investments, The Aegis Group, UBS,               five years ago. Furthermore, 92 per-
                      Philanthropy: Strategies for Partnering           Hartford, Conn.; and William L. Sut-             cent of the advisers polled are asking
                      With Professional Advisers” presented             ton Jr., J.D., head of philanthropy, U.S.,       their clients about philanthropic plan-
                      at the National Conference on Philan-             UBS, New York—also provided                      ning interests compared to 80 percent
                      thropic Planning held by the Partner-             insights on several issues as they               reported four years earlier. In addition,
                      ship for Philanthropic Planning (www.             relate to achieving high-impact phi-             93 percent believe that the aging baby
            , formerly the National                lanthropy in partnership with profes-            boomer population will create a greater
                      Committee on Planned Giving, in Den-              sional advisers:                                 need for philanthropic planning servic-
                      ver last October.                                 • How professional advisers are includ-          es. According to 63 percent of advisers
                          The session, which was moderated                ing the philanthropic dialogue in their        surveyed, their clients are talking more
                      by Robin R. Ganzert, Ph.D., deputy                  client work                                    about philanthropy today than they did
                      director, philanthropic services, with            • What tools are needed by the profes-           five years ago.
                      The Pew Charitable Trusts in Philadel-              sional adviser community to be suc-                What is the effect of offering phil-

                      phia, highlighted results from recent               cessful in this dialogue                       anthropic services on the bottom line?
                      research conducted in the professional            • How people within the planned-                 In 2004, only 8 percent of advisers
                      financial adviser community. The ses-               giving community can achieve better            polled indicated that a philanthropic

                      w w w. a f p n e t .o rg                                                33                                            Ad vancing Ph i l a nt hrop y
Planned Giving

services offering was a significant rev-     has a general lack of focus on long-term
enue generator for their business. To-       planning, including their philanthropic      Works Cited
day, the survey shows a noteworthy           legacy.”                                     2006 Bank of America Study of High
increase, with 42 percent of the advis-         Another challenge for advisers is deal-   Net-Worth Philanthropy, developed in
ers reporting that such an offering sig-     ing with clients’ worries. “Market con-      partnership with the Center on Philan-
nificantly helps generate revenues. An       ditions have clients concerned that they     thropy at Indiana University
overwhelming 91 percent of advisers          will not have enough to support family       w w w. p h i l a n t h r o p y. i u p u i . e d u /
believe that being able to address phil-     needs over the long term,” one adviser       R e s e a rc h / g i v i n g _ f u n d r a i s i n g _
anthropic needs would help differenti-       said. Other survey respondents said cli-     research.aspx
ate themselves in the eyes of existing       ents are preoccupied about “teaching
and would-be clients.                        heirs to use wealth responsibly,” “trans-    2007 Bank of America Study of High-
                                                                                          Net Worth Philanthropy: A Portrait of
“A greater partnership between the adviser and the                                        Donors, researched and written by the
                                                                                          Center on Philanthropy at Indiana Univer-
nonprofit organization—with a single goal of promoting                                    sity, December 2007
philanthropy, not managing assets or booking a deal—                                      w w w. p h i l a n t h r o p y. i u p u i . e d u /
                                                                                          R e s e a rc h / g i v i n g _ f u n d r a i s i n g _
should foster these opportunities.”                                                       research.aspx

   While it is clear that advisers and       ferring wealth effectively and efficiently   Doing Well By Doing Good in California.
their firms believe that talking about       [i.e., multigenerational planning],” “tax    Improving Client Service, Increasing Phil-
philanthropy is helpful from a busi-         minimization,” “philanthropic effec-         anthropic Capital: The California Legal
ness perspective, it is less clear that      tiveness” and “bringing children into        and Financial Advisor’s Role, The Phil-
advisers feel prepared to discuss this       the family’s philanthropy.”                  anthropic Initiative (TPI), January 2004,
issue at a strategic level with clients.         Because advisers have a direct pipe-     with support from the David and Lucile
In fact, 95 percent of respondents indi-     line to affluent clients and are moti-       Packard Foundation
cated that they raise the topic of philan-   vated to raise the philanthropic ques-
thropic planning and charitable giving       tion and to address their clients’ needs,
“through informal conversation.” In-         nonprofit organizations that can best        Millionaires and the Millennium: New
terestingly, however, less than half (41     articulate how they can help advisers        Estimates of the Forthcoming Wealth
percent) reported that they are indeed       will have opportunities to fill affluent     Transfer and the Prospects for a Golden
“comfortable” bringing up philanthro-        individuals’ needs.                          Age of Philanthropy by John J. Havens
py with clients. As one respondent ex-                                                    and Paul G. Schervish, Social Welfare
plained, one difficulty is “helping with     Understanding the Opportunities              Research Institute, now the Center on
the softer side of philanthropy, such as     How can nonprofit organizations help         Wealth and Philanthropy, Boston Col-
understanding passions and interests         in philanthropic planning? One wealth        lege, October 1999
and translating that into a family mis-      adviser answered, “By being the best         w w w. b c . e d u / re s e a rc h / c w p /
sion or values statement.”                   resource for potential donors. A greater     research/previous.html
   What do wealth advisers consider          partnership between the adviser and the
to be other important challenges in          nonprofit organization—with a single         Why the $41 Trillion Wealth Transfer Is
addressing their clients’ philanthropic      goal of promoting philanthropy, not          Still Valid: A Review of Challenges and
needs? Responses varied to this ques-        managing assets or booking a deal—           Questions by John J. Havens and Paul
tion, with some acknowledging a lack         should foster these opportunities.”          G. Schervish, Social Welfare Research
of expertise in philanthropic planning.         In fact, nonprofit organizations can      Institute, now the Center on Wealth and
“I need to learn the topic more,” one        assist financial advisers to better un-      Philanthropy, at Boston College (The
said. For some advisers, their clients’      derstand the philanthropic field. When       Journal of Gift Planning, Vol. 7, No. 1,
lack of direction also makes it difficult    advisers were asked what would be            January 2003, pp.11-15, 47-50)
to discuss philanthropy. “Most people        the greatest help to them in addressing      w w w. b c . e d u / re s e a rc h / c w p /
have a vague idea of being charitable,       their client’s philanthropic needs, one      features/wealth.html
but no clue what they really want to         said it best: “Education. Education.
do,” one explained. Another respon-          Education.” Among the most common
dent said, “The high-net-worth public        training and professional development

A d v a n c i n g P h i l a n t h ro p y                        34                                                       March    |   A p r i l 2009
in the area of philanthropic planning techniques mentioned
in the survey are networking with professionals in the field
(68 percent), in-house programs (64 percent) and local
trade associations (54 percent).
    Wealth advisers also reported needing to connect their
clients with unbiased, actionable information to guide
them in their giving. Yet whom do their clients consider an
expert resource for their philanthropy? The 2007 Bank of
America Study of High-Net Worth Philanthropy: A Por-
trait of Donors (see sidebar) identifies 12 archetypes or
“portraits” of donors. For the purposes of this article, the
focus will be on two: the “Very Wealthy” with a net worth
greater than $50 million and the “Entrepreneurs,” who
are high-net-worth households with 50 percent or more of
their net worth in entrepreneurial assets.
    The Very Wealthy and Entrepreneurs surveyed in the
Bank of America study rely much more on fundraisers
within nonprofits to provide philanthropic guidance than
on wealth advisers. Also, the Very Wealthy are much more
likely to seek external advice about charitable giving de-
cisions than are other wealthy households. More Very
Wealthy households seek advice from accountants than
from other types of advisers (50 percent), and also look
for advice from fundraisers (47.6 percent), attorneys (47.5
percent) and their peers (41.5 percent). Financial advisers
ranked 6th out of 10 (31.6 percent). Entrepreneurs are
most likely to seek advice from fundraisers (38 percent)
than any other source; financial advisers ranked 5th out of
10 (13.2 percent) as sources for philanthropic advice.
    Consequently, the panelists agree, open and honest com-
munication is essential for the adviser/nonprofit partner-
ship to succeed. “The more information advisers have, the
better,” Fortuna said. “They are catalysts. In the conversa-
tion with donors, you have to pull out their passion. But if
you don’t ask the question in the first place, someone else

                Robin R. Ganzert,                   Joseph Fortuna
                Ph.D., is deputy                    is senior vice
                director, philan-                   president, in-
                thropic services,                   vestments, The
                The Pew Chari-                      Aegis Group,
table Trusts, Philadelphia.         UBS, Hartford, Conn.

               Tracy A. Mack,                     William L. Sutton
               Esq., is senior                    Jr., J.D., is head
               officer, philan-                   of philanthropy,
               thropic services,                  U.S., UBS, New
               The Pew Chari-                     York.
table Trusts, Philadelphia.

w w w. a f p n e t .o rg                                               35   Ad vancing Ph i l a nt hrop y

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