6/11/2012 1 Planned Giving Round Table of Arizona Planned Giving Round Table of Arizona Effectively Collaborating with Effectively Collaborating with Professional Advisors Professional Advisors Lorraine F. del Prado, CSPG Lorraine F. del Prado, CSPG Sr. Director, Trust Services & Legacy Planning Sr. Director, Trust Services & Legacy Planning Children’s Hospital Seattle Children’s Hospital Seattle Agenda Agenda • Value of professional advisors Value of professional advisors • Overcoming barriers of working together Overcoming barriers of working together • Overcoming barriers of working together Overcoming barriers of working together • Keys to positive relationships with advisors Keys to positive relationships with advisors • What value What value-added service you can provide to their added service you can provide to their practice practice • How they can help your organization How they can help your organization • Bases of formal involvement Bases of formal involvement • Professional Advisory Boards Professional Advisory Boards • Case Study Case Study
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Planned Giving Round Table of ArizonaPlanned Giving Round Table of Arizona
Effectively Collaborating with Effectively Collaborating with Professional AdvisorsProfessional Advisors
Lorraine F. del Prado, CSPGLorraine F. del Prado, CSPGSr. Director, Trust Services & Legacy PlanningSr. Director, Trust Services & Legacy Planning
•• Value of professional advisorsValue of professional advisors
•• Overcoming barriers of working togetherOvercoming barriers of working together•• Overcoming barriers of working togetherOvercoming barriers of working together
•• Keys to positive relationships with advisorsKeys to positive relationships with advisors
•• What valueWhat value--added service you can provide to their added service you can provide to their practicepractice
•• How they can help your organizationHow they can help your organization
•• Bases of formal involvementBases of formal involvement
•• Professional Advisory BoardsProfessional Advisory Boards
•• Case StudyCase Study
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A Couple of Telling TrendsA Couple of Telling Trends•• BofABofA 2010 Survey of High2010 Survey of High--NetNet--Worth Donors revealed that donors’ leading Worth Donors revealed that donors’ leading
sources of charitable giving advice include accountants (67.5%), attorneys sources of charitable giving advice include accountants (67.5%), attorneys (40.8%), financial advisors (38.8%), compared to nonprofit personnel (40.8%), financial advisors (38.8%), compared to nonprofit personnel (24.1%)(24.1%)
•• The power of advisorThe power of advisor--enabled philanthropy is powerfully demonstrated by enabled philanthropy is powerfully demonstrated by the Fidelity Charitable Gift Fund phenomenon. Established only 20 years the Fidelity Charitable Gift Fund phenomenon. Established only 20 years ago, it is now ranked the third largest charity in value of contributions and ago, it is now ranked the third largest charity in value of contributions and second in value of grants made. Contributions to the Gift Fund in the form of second in value of grants made. Contributions to the Gift Fund in the form of appreciated securities represented 50 percent of total incoming appreciated securities represented 50 percent of total incoming contributions in 2010, up from 44 percent in 2009, while contributions in the contributions in 2010, up from 44 percent in 2009, while contributions in the form of nonform of non--publiclypublicly--traded assets, such as privatetraded assets, such as private--held Cheld C-- and Sand S--Corp Corp stock and real estate, nearly tripled. stock and real estate, nearly tripled.
•• 2007 survey conducted by 2007 survey conducted by PentonPenton Research and sponsored by Schwab Research and sponsored by Schwab Charitable revealed that while nearly eight out of ten financial advisors are Charitable revealed that while nearly eight out of ten financial advisors are talking with their clients about charitable giving, they are challenged to talking with their clients about charitable giving, they are challenged to provide the level of assistance and expertise on this subject that clients provide the level of assistance and expertise on this subject that clients desire and are coming to expectdesire and are coming to expect
Professional AdvisorsProfessional Advisors
•• Attorneys (estate, tax, real estate, family, general)Attorneys (estate, tax, real estate, family, general)
•• Real estate professionalsReal estate professionals
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The Value of Professional Advisors:The Value of Professional Advisors:Training & ExperienceTraining & Experience
Professional designation Professional designation –– JD, JD, LLM, CPA, CFP, LLM, CPA, CFP, ChFCChFC, CSA, , CSA, CLU etcCLU etcCLU, etc.CLU, etc.
Enforceable codes of ethics Enforceable codes of ethics ----ABA, AICPA, FPA, ABA, AICPA, FPA, NAFPA, NAFPA, Insurance regulationInsurance regulation
Undergone some multiUndergone some multi--disciplinary trainingdisciplinary training
Aware of limits of practiceAware of limits of practice Aware of limits of practice, Aware of limits of practice, knowledge, adviceknowledge, advice
Have worked with other Have worked with other professionalsprofessionals
Many volunteer for other Many volunteer for other charitiescharities
Value of Professional Advisors:Value of Professional Advisors:Client KnowledgeClient Knowledge
Individuals trusted by Individuals trusted by clients for the growth,clients for the growth,clients for the growth, clients for the growth, management, use and management, use and distribution of assetsdistribution of assets
May know the client’s “big May know the client’s “big picture” picture” –– financial, estate financial, estate planning, charitable and planning, charitable and multimulti generational goalsgenerational goalsmultimulti--generational goals generational goals of clientof client
May be treated as part of May be treated as part of the familythe family
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Value of Professional Advisors: Value of Professional Advisors: Client DevelopmentClient Development
Client list is usually 100+Client list is usually 100+
•• Referrals Referrals –– clients, other professionals and charitiesclients, other professionals and charities
Client case cycle similar to donor cultivation/ Client case cycle similar to donor cultivation/ stewardship cyclestewardship cyclep yp y
Client retention is important Client retention is important –– how to constantly how to constantly add value to relationshipadd value to relationship
Sources of LivelihoodSources of Livelihood
Attorneys Attorneys –– hourly, specific fees for planning, hourly, specific fees for planning, ti (liti ti )ti (liti ti )contingency (litigation)contingency (litigation)
CPAs CPAs ---- hourly, specific fees for planning, hourly, specific fees for planning,
Investment advisors Investment advisors –– fees for assets under fees for assets under managementmanagement
Financial advisors Financial advisors –– specific fees for planning, specific fees for planning, fees for assets under management, commissionsfees for assets under management, commissions
Dependence on presence of client activityDependence on presence of client activity
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Professional Advisors’ Biggest FearsProfessional Advisors’ Biggest Fears
Loss of clients due to:Loss of clients due to:
Loss of credibilityLoss of credibility
Unmet expectationsUnmet expectations
Perception of lack of competencePerception of lack of competence
Perception of not serving clients’ best interestPerception of not serving clients’ best interestPerception of not serving clients best interestPerception of not serving clients best interest
Damaged reputation Damaged reputation –– decline in referralsdecline in referrals
CompetitionCompetition
Professional Advisor Concerns Professional Advisor Concerns about Charitiesabout Charities
Lack of technical competenceLack of technical competence
C fid ti litC fid ti litConfidentialityConfidentiality
May pressure client into making giftMay pressure client into making gift
Loss of flexibility and choice in disposition of Loss of flexibility and choice in disposition of charitable assetscharitable assets
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Professional Advisor Concerns Professional Advisor Concerns about Charitiesabout Charities
Mismanaged expectationsMismanaged expectations
Loss of client control Loss of client control
Loss of asset managementLoss of asset management
Appropriate recognition / validation of client and Appropriate recognition / validation of client and advisor’s roleadvisor’s roleadvisor s roleadvisor s role
AccountabilityAccountability
Charities’ Concerns about Charities’ Concerns about Professional AdvisorsProfessional Advisors
May delay or obstruct giftMay delay or obstruct gift
May have narrow view of charitable applicationMay have narrow view of charitable application
May exclude gift planner in the processMay exclude gift planner in the process May exclude gift planner in the processMay exclude gift planner in the process
Conflict of interestConflict of interest
May pressure donor to purchase products or servicesMay pressure donor to purchase products or services
Undue influenceUndue influence
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Missed Opportunities: Missed Opportunities: The Price of Not Working TogetherThe Price of Not Working Together
Gifts directed to other charities Gifts directed to other charities
Gifts directed to donor advised Gifts directed to donor advised funds hosted by financial funds hosted by financial institutionsinstitutions
Unknown donors Unknown donors –– inability to inability to steward donor and familysteward donor and familyyy
No “philanthropic conversion,” no No “philanthropic conversion,” no charitable legacycharitable legacy
Keys to Positive RelationshipsKeys to Positive Relationships
Heightened awareness and Heightened awareness and constant reinforcement of:constant reinforcement of:
Charity’s mission in actionCharity’s mission in action
Charitable planning Charitable planning applications in problem applications in problem solvingsolving
Your role as a resource/ Your role as a resource/ partner in charitable planningpartner in charitable planningp p gp p g
Their ability to make an Their ability to make an impactimpact
How well your institution will How well your institution will recognize and steward their recognize and steward their clients as donors.clients as donors.
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Keys to Positive RelationshipsKeys to Positive Relationships
Embracing missionEmbracing missiongg
Multiple levels of engagementMultiple levels of engagement
Services that add value to practiceServices that add value to practice
Center on client’s best interestsCenter on client’s best interests
Full disclosure of choices and Full disclosure of choices and consequencesconsequences
Serve and educate without agendaServe and educate without agenda
Balance financial security, family legacy Balance financial security, family legacy and philanthropy and philanthropy
Approach charitable legacy as fulfilling Approach charitable legacy as fulfilling client’s most cherished goals and client’s most cherished goals and aspirations for family and communityaspirations for family and community
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What You Can OfferWhat You Can Offer
Meaningful connection to hospital’s missionMeaningful connection to hospital’s mission
Opportunities to apply advisors’ expertise and sphere of Opportunities to apply advisors’ expertise and sphere of i fli flinfluenceinfluence
Client satisfaction in making a difference; leaving a legacyClient satisfaction in making a difference; leaving a legacy
Networking eventsNetworking events
Marketing support and collaborationMarketing support and collaboration
Ongoing contact and stewardshipOngoing contact and stewardshipOngoing contact and stewardshipOngoing contact and stewardship
Volunteer opportunitiesVolunteer opportunities
Referrals when appropriateReferrals when appropriate
What You Can OfferWhat You Can Offer
Technical support in charitable planning Technical support in charitable planning
Case consultations, calculations, bound proposalsCase consultations, calculations, bound proposals, , p p, , p p
Planned giving publications Planned giving publications –– print and electronic print and electronic
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Donor Recognition for ClientsDonor Recognition for Clients
•• Recognition and acknowledgment by appropriate leaderRecognition and acknowledgment by appropriate leader
•• Recognition society names on wall Honor RollRecognition society names on wall Honor Roll•• Recognition society, names on wall, Honor RollRecognition society, names on wall, Honor Roll
•• Stories read at Legacy Society LuncheonStories read at Legacy Society Luncheon
•• Anonymity / confidentiality is honoredAnonymity / confidentiality is honored
•• Accountability through gift stewardship reportAccountability through gift stewardship report
Technical SupportTechnical Support
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MissionMission--Oriented and Networking EventsOriented and Networking Events
Continuing Education: Continuing Education:
•• Family Wealth Family Wealth StewardshipStewardship
•• Models of Family Models of Family PhilanthropyPhilanthropy
•• Charitable Planning for:Charitable Planning for:•• Rental propertyRental property•• IRAsIRAs•• Business Business
continuationcontinuation•• Unusual assetsUnusual assets•• Same sex couplesSame sex couples•• MultiMulti--generational generational
planningplanning•• Real estateReal estate•• Zero estate taxZero estate tax•• Insurance productsInsurance products•• Different seasons of Different seasons of
••Annual Champion for Annual Champion for Children’s AwardChildren’s Award
P bli iti hP bli iti h••Public recognition whenever Public recognition whenever possiblepossible
••Stewardship of donor referralStewardship of donor referral
••Referrals as appropriateReferrals as appropriate
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Professional Advisory BoardsProfessional Advisory Boards
•• Recruit advisors who are truly passionate about your Recruit advisors who are truly passionate about your mission and volunteering servicesmission and volunteering services
•• History of donor support, family or client supportHistory of donor support, family or client supportHistory of donor support, family or client supportHistory of donor support, family or client support
•• Community influence (politically, socially, Community influence (politically, socially, economically, professionally) economically, professionally)
•• History of use of services provided History of use of services provided
•• Amount of time available to volunteerAmount of time available to volunteer
•• Previous commitments to other organizations Previous commitments to other organizations ( ti i )( ti i )(negative scoring) (negative scoring)
•• Leadership skills Leadership skills
-- Kathryn Kathryn MireeMiree
Professional Advisory BoardsProfessional Advisory Boards
•• Inform them of the scope of their commitmentInform them of the scope of their commitment•• A statement of the purpose and the goals of the professional A statement of the purpose and the goals of the professional
advisory board advisory board
A d i ti f th t f b h th l t dA d i ti f th t f b h th l t d•• A description of the types of members, how they are selected, A description of the types of members, how they are selected, and how long they serve and how long they serve
•• A schedule of the anticipated meetings (generally, i.e., quarterly, A schedule of the anticipated meetings (generally, i.e., quarterly, monthly, etc.) monthly, etc.)
•• A description of the committees that are a part of the A description of the committees that are a part of the professional advisory board, and the membership requirements professional advisory board, and the membership requirements for participation for participation
•• A detailed list of possible activities A detailed list of possible activities
•• A statement on the adoption of conflict of interest policies A statement on the adoption of conflict of interest policies
•• A description of the board’s relationship to the nonprofit board, if A description of the board’s relationship to the nonprofit board, if any any
•• The name or job description of the staff member responsible for The name or job description of the staff member responsible for the professional advisory board the professional advisory board
-- Kathryn Kathryn MireeMiree
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Professional Advisory BoardsProfessional Advisory Boards
•• If you form a professional advisory board, make sure If you form a professional advisory board, make sure your meetings make meaningful use of the volunteer’s your meetings make meaningful use of the volunteer’s time and are not simply ceremonial.time and are not simply ceremonial.
•• Boards need to be managed thoughtfully, ensuring that Boards need to be managed thoughtfully, ensuring that volunteers are given a real opportunity to contribute and volunteers are given a real opportunity to contribute and feel their opinions and advice countfeel their opinions and advice count
•• Volunteers appreciate the opportunity to lead projects Volunteers appreciate the opportunity to lead projects and outreach efforts with your guidance and and outreach efforts with your guidance and managementmanagementgg
•• You don’t have to have a professional advisory board to You don’t have to have a professional advisory board to involve advisors meaningfully in your hospital’s missioninvolve advisors meaningfully in your hospital’s mission
Sample Agenda for Professional Advisory Sample Agenda for Professional Advisory Board MeetingBoard Meeting
•• Mission moment: presentation by physician leader on particular Mission moment: presentation by physician leader on particular programprogram
•• Financial & Fundraising Update: report on legacy gifts secured to Financial & Fundraising Update: report on legacy gifts secured to date and significant funddate and significant fund raising/planned giving milestonesraising/planned giving milestonesdate and significant funddate and significant fund--raising/planned giving milestonesraising/planned giving milestones
•• Recognition Moment: recognize advisors who made notable Recognition Moment: recognize advisors who made notable contributions (time, talent, treasure, network) in the past quarter contributions (time, talent, treasure, network) in the past quarter
•• Reports on Specific Projects, Outreach or Cases by Advisor LeadsReports on Specific Projects, Outreach or Cases by Advisor Leads
•• Unusual planned giving case or issueUnusual planned giving case or issue
•• Charitable planning outreach projectCharitable planning outreach projectp g p jp g p j
•• Policy developmentPolicy development
•• Thoughts on specific issue (Example: impact of new legislation Thoughts on specific issue (Example: impact of new legislation on charitable bequests)on charitable bequests)
•• Next StepsNext Steps
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SCH Experience: Two Tiers of Formal SCH Experience: Two Tiers of Formal InvolvementInvolvement
Children’s Legacy Children’s Legacy Council (professionalCouncil (professionalCouncil (professional Council (professional advisory board) advisory board)
Children’s Legacy Children’s Legacy Advisors Advisors (ambassadors and (ambassadors and broadbroad--based based volunteers)volunteers)
Children’s Legacy CouncilChildren’s Legacy Council
Provide leadership and direction for Children’s Provide leadership and direction for Children’s Legacy AdvisorsLegacy AdvisorsLegacy AdvisorsLegacy Advisors
Meet three times a year in addition to CE Meet three times a year in addition to CE seminar and other eventsseminar and other events
Provide guidance and counsel for marketing Provide guidance and counsel for marketing outreach efforts, gift acceptance and other outreach efforts, gift acceptance and other policiespolicies
Actively involved in outreach effortsActively involved in outreach efforts
Create a vital financial, estate and charitable Create a vital financial, estate and charitable planning resource for Children’s Hospital’s planning resource for Children’s Hospital’s Foundation and our constitutentsFoundation and our constitutents
Inspire, equip and support advisors as Inspire, equip and support advisors as educators, ambassadors and advocates of educators, ambassadors and advocates of charitable planning charitable planning
Leverage the role of professional advisors in Leverage the role of professional advisors in charitable planning outreachcharitable planning outreach
Keep professionals on the cutting edge of Keep professionals on the cutting edge of charitable planning and add value to their charitable planning and add value to their practicepracticep act cep act ce
Create fellowship and networking Create fellowship and networking opportunitiesopportunities
Educate the public on the role of Educate the public on the role of philanthropy in advancing pediatric medicinephilanthropy in advancing pediatric medicine
Start a movement of professional advisors Start a movement of professional advisors who are engaged in charitable planning who are engaged in charitable planning with children’s hospitals with children’s hospitals
Volunteer for the Foundation Volunteer for the Foundation –– recruit new members, pro recruit new members, pro bono work, host planned giving education, serve as case bono work, host planned giving education, serve as case planning resource speakers’ bureau seminar marketingplanning resource speakers’ bureau seminar marketing
Attend at least one continuing education program on Attend at least one continuing education program on philanthropic planning.philanthropic planning.
Attend a program, highlighting Children’s Hospital’s Attend a program, highlighting Children’s Hospital’s missionmissionmission.mission.
Comply with standards of professional conduct and Comply with standards of professional conduct and disclose volunteer relationship with Children’s to clientsdisclose volunteer relationship with Children’s to clients
Invitations to continuing education programInvitations to continuing education program
BENEFITSBENEFITS
Invitations to continuing education programInvitations to continuing education program
Invitations to Invitations to An Inside Look at Children’s An Inside Look at Children’s and and other special eventsother special events
Children’s Legacy Advisor Reference ListChildren’s Legacy Advisor Reference List
Connections magazine & The GuardianConnections magazine & The GuardianConnections magazine & The Guardian Connections magazine & The Guardian newsletternewsletter
The satisfaction of helping Children’s fulfill its The satisfaction of helping Children’s fulfill its mission now and into the future.mission now and into the future.
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The Rewards of Working TogetherThe Rewards of Working Together
900+ bequest notifications about clients who’ve included 900+ bequest notifications about clients who’ve included SCH in estate plansSCH in estate plans
Gifts resulting from collaborationsGifts resulting from collaborations
$26 M (FMV) in irrevocable gifts in the $26 M (FMV) in irrevocable gifts in the past five yearspast five years
$3.5M in outright gifts$3.5M in outright gifts
$126 M in potential value of bequest expectancies$126 M in potential value of bequest expectancies
The Rewards of Working TogetherThe Rewards of Working Together
Bequest Notifications from Prof. Advisors:Bequest Notifications from Prof. Advisors:
82% came from attorneys (average of 4 per attorney)82% came from attorneys (average of 4 per attorney) 82% came from attorneys (average of 4 per attorney)82% came from attorneys (average of 4 per attorney)
12% came from financial advisors (average of 3 per FA)12% came from financial advisors (average of 3 per FA)
–– 1% came from CPAs (average of 2 per CPA)1% came from CPAs (average of 2 per CPA)
–– 1% came from trust officers (average of 2 per TO)1% came from trust officers (average of 2 per TO)
•• 46% came from Children’s Legacy Advisors46% came from Children’s Legacy Advisors ((average 6 average 6 per CLA) per CLA)
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Questions?Questions?
Lorraine del PradoLorraine del PradoLorraine del PradoLorraine del Prado
Sr. Director of Development, Sr. Director of Development,
