Professional Advisor and Community Foundation Collaborations. Presented by Bryan Clontz, CFP, CAP

Transcription

1 Professional Advisor and Community Foundation Collaborations Presented by Bryan Clontz, CFP, CAP (404)

2 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

3 Objective: High Net Worth Donors Market penetration Increase the percentage of high net worth households giving through CFs Market share Increase the percentage of high net worth charitable dollars directed to CFs

4 Objective: High Net Worth Donors Primary focus on professional advisors Most high net worth individuals rely on advisors 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

5 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 They are excellent networkers and salespeople CF Value Proposition: Help Them Sell More Products or Services!

6 Professional Advisors Who Are They? Attorney (estate) Estate and tax planning, wills, trusts, financial planning, consultations Attorney (general) Business and family legal consultation, estate and tax planning, wills, real estate transactions, business sales Accountant Tax planning and returns, business consultation, financial planning Banker/Trustee Banking and investment services, long-term trust administration, private banking Life Insurance Agent Life insurance, financial planning, evolving lifetime products Financial Planner Financial planning, retirement income planning Broker Investment services, portfolio management, financial consultation

7 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!).

8 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.

9 HNW Philanthropy Study HIGH NET WORTH HOUSEHOLDS CHARITABLE GIVING DECISIONS BY TYPE OF PERSON CONSULTED (%) Accountant Attorney Financial and Wealth Advisors Fundraisers / Nonprofit staff Peers or Peer Networks 18.10% Community Foundation Staff 15.10% 15.20% 26.60% 16.40% 27.80% 16.60% 24.10% 26.00% 19.80% 16.10% 67.50% 44.30% 40.80% 42.90% 38.80% 41.20% 35.90% Bank or Trust Co. Staff 8.70% 16.50% Others 3.30% 12.30% Broker 9.90% 7.10% Coaching Program 4.00% 3.70% 0% 10% 20% 30% 40% 50% 60% 70% 80% 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

10 Who Initiated the Charitable Conversation?

11 Challenges/Solutions Working with Advisors Everyone listens to the same radio station WII-FM (What s In It For Me!) 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.

12 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 or Estate planning council lists, events Track contacts FIMS, Foundation Power, Blackbaud, Salesforce, etc.

13 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 Measure success Recognize and Thank profusely Consistently Communicate CF value proposition/solutions through stories/case studies

14 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

15 Post-Meeting Relationship Building Execute A, B and C Level Personal Meetings (A level annually, B level biannually and C level to qualify into A or B) Web-based Information Planned Giving Design Center (PGDC) or GiftLaw ($ /yr) Newsletter content is generic, not specific to CFs Your own CF website

16 Professional Advisor Recognition President or Board Member Thank You Call and Customer Service Check List Referrals in Newsletter and on Web site Honor top 3 referral firms at Annual Meeting Host a Thank You Recognition Event Create council or society for advisors who have provided referrals

17 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!