Transfer of Wealth

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Transfer of Wealth Community Foundations
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Promoting a Rural Renaissance

• Regards to Rural IV
• Salem, Oregon
• March 20, 2009

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Warm Up Exercise
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Todays Workshop
What?
Why?
Use
How to Launch?
Resources?
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WHAT?
Traditional Philanthropy
Community Development Philanthropy
TO
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Traditional Philanthropy

• High Net Worth Donors Focus
• Reactive/Stewards of Resources
• Top Down Grant Making
• Narrow Community Ownership
• Fiduciary vs. Developer

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Community Development Philanthropy

• All Donors Matter
• Pro-Active
• Distributed Grant Making
• Broad-Based Community Ownership
• Community Developer

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Challenge
Transformation
Traditional Foundations
Community Development Philanthropy
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WHY?

• Opportunity
• Community Needs
• Civic Building

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Opportunity
TOW Opportunity 53 Trillion
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Opportunity
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Opportunity
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Oregon Opportunity
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Curry County, Oregon
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Curry County Transfer Timing
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Community Needs
Growing Community Economic Development Needs

• Federal
• State
• Local
• Corporate
• Foundations

Two Trends X
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Civic Capacity
Old Environment
New Environment

• Planning
• Set Goals
• Raise Money?
• Action?

Community Resources Planning Goals Action! Imp
act!
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USE OF COMMUNITY FOUNDATIONS
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Use of Charitable Dollars
Development
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Nebraska Rural Poll - 2002
Already in will
Would Consider
4
8
Intend to do so
12
Would not Consider
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Not sure
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Rural Community Fundraising

• Whats been successful?
• Events
• Annual Operating Campaigns
• Capital Campaigns
• Whats been lacking?
• Endowments to sustain the community
• Endowments for economic development

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What are Endowments?

• An endowment fund is a permanent fund whose
  assets are invested to generate income every year
  forever to be used by the beneficiary nonprofit
  organization.
• When asked what the most powerful force in the
  universe is, Einstein replied, compound
  interest.

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Community Case StudyValley County, Nebraska

• Population 4,647 10 loss in ten years
• Primarily farm/ranch economy strong retail and
  service sector little manufacturing
• 50 more low-income residents than state average
  50 less upper-income residents
• 22 elders 13 over 75 (2x state average)

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Valley County Charitable Goal Setting

• 10- Year County Wealth Transfer 129,400,000
• 5 of 10-Year Transfer 6,470,000
• Current Endowment 1,495,673
• Current Expectancies (5 expectancies)
  5,250,000
  __________________________
• Total Endowment Expectancies 6,745,673
• Percent of 5 Wealth 104.26
• Transfer Achieved

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Flexibility of Endowment is Greatest Future Asset

• Valley County has not only been blessed with a
  wonderful 1.5 million endowment they have been
  blessed with a flexible asset.
• This unrestricted endowment provides what
  communities need most today and tomorrow
  opportunity capital for discretionary,
  prioritized investment.

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HOW TO LAUNCH?
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Community Development Philanthropy Cycle of
Progress
Community Foundation
Community Interests
Strategic Grant Making
Community Investment
Community Impact
Giveback Cases
Community Endowments
Donor Development
Legacy Donors
Underwriters
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Community Foundation
Energized One?
Have One?
Community Engagement?
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Giveback Cases
Community Interests
Case Statements
Passion
Energy
Diverse Community Ownership
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Scholarships
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Entrepreneurship
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Youth Engagement
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Donor Development
Underwriters
Legacy Donors
Enable Projects
Sustain Initiatives
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Getting Started - Catalysts

• Choose and pursue one or more of the following
  catalysts to get your endowment building started
• Challenge Grants
• Education and training
• Outreach to financial advisors
• Communications and Marketing
• Community Celebration

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What Professional Advisors Want

• To do what is best for a client
• New ideas
• Donor stories
• Information about what the charity is doing
• Who to contact

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Donor Visitation Opening the Door

• Long-term, trusting, peer-to-peer relationships
  critical to help open the door and start the
  conversation.

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People Give to People

• To help people in need.
• To bring about change.
• To improve quality of life.
• To educate.
• To help heal.

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Why People Give

• Most Influential
• 1. Belief in mission of the institution
• 2. Fiscal responsibility of the Institution
• 3. Regard for staff leadership
• 4. Serves on board of trustees

• Least Influential
• 1. Guilt feelings
• 2. The appeal drama of the campaign material
  requesting the gift
• 3. Tax considerations

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Identify Prospects

• FLAG System
• F Frequency of giving
• L Longevity of giving
• A Age
• 87 over Age of 70
• G Gender
• 61 Female

Other Factors
65 Single or Surviving Spouse 52 Childless
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Purpose of the Visit

• Educate, Educate, Educate
• What kind of organization is it?
• What difference does the organization make in the
  community?
• Who does it help?
• Will the organization use gifts wisely?
• Why am I involved and advocating?

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Four Steps to Yes

• Create a Trusting Relationship
• Jointly Determine a Common Concern, Need or
  Problem
• Jointly Determine a Real Solution to the Problem
• Express the Sense of Urgency in Creating a
  Solution

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In philanthropy, we cant make anybody do
anything.We can only

• Motivate and inspire
• Provide role models/examples
• Be wise and prudent stewards
• ASK

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Marketing Motivators

• 50 to 70 have no will or estate plan.
• 8 of 12 largest gifts were bequests.
• 70 of endowments from bequests
• Fewer than 20 of people have ever been asked
• Wealth Transfer

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Ways to Give

• Outright Gifts
• Cash
• Real Estate
• Securities

• Planned Gifts
• Bequest by Will
• Life Insurance
• Financial Account
• Retirement Account
• Charitable Gift Annuity
• Charitable Remainder Trust

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RESOURCES
www.energizingentrepreneurs.org

• Don Macke
• Phone [phone]
• don_at_e2mail.org

Community Wealth News
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Questions Discussion