Welcome

The Omaha Community FoundationChartered Advisor in Philanthropy (CAP)

Study Group Project

Prepared For: Association of Fundraising Professionals

Presented byMark A. Weber, JD, CAP, MSFS, CLU, ChFC

June 15, 2017

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Acknowledgment

Slides are provided by The American College and are copyrighted. They are excerpts from the Chartered Advisor in Philanthropy curriculum.

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We Will Discuss …

Why CAP is important to you The Chartered Advisor in Philanthropy

designation The Omaha CAP Study Group Program Sample materials covered in the curriculum Impact on the community Next steps

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Why CAP Is ImportantTo You Technical education Advisor interaction Donor exposure

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Origin of the Chartered Advisor In Philanthropy Designation

Bill and Sallie Wallace endowed Chair in Philanthropy Four primary goals:

– Create awareness nationally of the need for philanthropic advisors;– Provide a comprehensive common curriculum for fundraisers and

advisors; – Promote understanding of common issues for fundraisers and advisors; – Help fundraisers and advisors understand each other’s perspectives

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Goals of Omaha CAP Study Group Program Increase philanthropy in our community through

educating professional advisors on how to incorporate charitable giving into the estate and financial plans of their high net worth clients

Develop a network of local professional advisors and planned giving specialist who might collaborate on helping their clients/donors discover their unique philanthropic legacy

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Wealth Transfer 1998 – 2052

$41 – $136 trillion $6 – $25 trillion to charity So, where is all the money?

Boston College Social Welfare Institute

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Generations

Millenial (“Generation Y”)– Born between 1980 – 2000– In 2017, age 17 – 37

Generation X (“Gen X”)– Born between 1965 – 1980– In 2017, age 37 – 52

Boomer (“Baby Boomer”)– Born between 1946 – 1964– In 2017, age 53 – 71

Silent (“Greatest” Generation)– Born between 1922 – 1944– In 2017, age 73 – 95

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Share of Wealth

0

10

20

30

40

50

Millennial Gen X Boomer Silent/Great

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“Charitable Giving and the Millennial Generation, Giving USA Spotlight, Issue 2,” 2010

Giving in Context

0

5

10

15

20

25

30

35

40

45

50

Millennial Gen X Boomer Silent/Great

Share of Households Share of Income Share of Dollars Given Share of Wealth

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Percent Estate to Charity After Fees And Surviving Spouse

0 5 10 15 20 25 30 35

1m – 2.5m

2.5m – 5m

5m – 10m

10m – 20m

20m+

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Schervish and Havens 2006, “Charitable Giving, How Much, To Whom, How?”

Giving is Top Heavy

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Top 10% give 90%.

Source: William Sturtevant, The Artful Journey: Cultivating and Soliciting the Major Gift

Top 10%

Core Donors

Basic Donors

What Triggers the Decision To Give Big? Life changing experiences Confidence in having enough Inspiring role models Connection to a cause, community or identity Invitation to give big Ongoing philanthropic support

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What Moves People To Give Big? Passion for a cause or issue area Religious teachings/beliefs Commitment to fairness Desire for simplicity Search for impact Personal satisfaction

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Major Gifts Other Than Cash

Age Under 45 45 – 55 55 – 65 65+Number of Returns 23,139 41,540 43,411 93,522

Number ofGifts 7,610 35,584 89,701 230,804

Value $1.6 billion $3.6 billion $5.5 billion $15.7 billion

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IRS data from older donors

Note: Such gifts often require planning and advisor engagement.

Where the Wealthy GiveNote the Biggest Slice

Giving Vehicle22.1%

Religious13.3%

Combination5.9%

Basic Needs4.7%Youth/Family Services

8.8%

Health6.0%

Education19.1%

Art7.5%

Environment/Animal Care3.5%

International2.8%

Other6.3%

Giving Vehicle

Religious

Combination

Basic Needs

Youth/Family Services

Health

Education

Art

Environment/Animal Care

International

Other

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2009 Data cited in Bank of America Merrill Lynch study done with the Center on Philanthropy at University of Indiana, “The 2011 Study of High Net Worth Women’s Philanthropy.” Data includes giving of both high net worth men and women.

Age of Top Donors 2009

Age %90 – 99 2%80 – 89 17%70 – 79 23%60 – 69 26%50 – 59 9%40 – 49 9%

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• Table shows age at date of gift.

• Of the matured bequests in the study, the average age was 92.

From Chronicle of Philanthropy, February 7, 2010

Generational Shifts

• Trust and serve organizations• Give and let go without restrictions• Traditional planned and major gifts built with these donors in mind

World War II Generation

• Seek meaning through encore career and legacy plan• Skeptical, seek control• Restrict gifts, want results, demand reports

Boomers

• Attracted to social enterprise to build career and have social impact• Are “social” online• Like the idea of social impact investing

Millennials

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Know Your Demographics

Higher Age• Bequests • Gift annuities

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High Income and Assets• Noncash gifts • CRTs

• Real estate with retained life estate • Bargain sales

High Wealth/High Age

• Gifts of securities • IRA

• Beneficiary of life insurance • Qualified plans

Dramatic Shift Since 2006

A dramatic increase in donors’ use of legal and financial professionals

to help them make charitable decisions.

Nonprofit personnel’s involvement dropped from

41% of cases to 29%

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2006 – 2008 Bank of America Study, of Affluent Families.

Where Donors Turn

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4% in 1994

28% in 2008

Percent of donors learning about giving from advisors

NCPG Task Force study, The Future of Charitable Gift Planning, 2008.

Source of Charitable Advice

67.5

40.8

38.8

24.1

19.8

18.1

12.1

0 10 20 30 40 50 60 70 80

Accountant

JD

Financial Advisor

Nonprofit

Peers

CF Staff

Bank Staff

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Source of Charitable Advice Sought by Wealthy Donors with investable assets of $3 million or more

Why Incorporate Philanthropy in Your Estate Planning Practice? Client retention Gain new clients Deeper client relationships Personally rewarding

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Who are Omaha’s CAPs?

Accounting– Bland & Associates PC– Boyle, Hess & Elliott– Deloitte– Goracke & Associates, PC– GWR Wealth Management, LLC– Hancock & Dana, PC– KPMG– Lutz & Company, PC– O’Donnell, Ficenec, Willis & Ferdig LLP– RSM– Seim Johnson, LLP

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Who are Omaha’s CAPs? (continued) Financial Services

– Bridges Investment Management– Collaborative Planning Group– D.A. Davidson & Co. – Executive Solutions– First National Bank– First Nebraska Trust Company– Hiley Hunt Wealth Management– Lutz Financial– Merrill Lynch– Morgan Stanley– Mundy & Associates

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Who are Omaha’s CAPs? (continued) Financial Services (continued)

– New York Life– Pinnacle Trust Services– SilverStone Group– UBS Financial Services– Wells Fargo Bank Nebraska– Westwood Group

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Who are Omaha’s CAPs? (continued) Law

– Abrahams Kaslow & Cassman LLP– Baird Holm LLP– Cline, Williams, Wright, Johnson & Oldfather, LLP– Erickson & Sederstrom– Fitzgerald, Schorr, Barmettler & Brennan, PC, LLO– Fraser Stryker, PC LLO– Koley Jessen, PC LLO– Lamson Dugan & Murray, LLP– Likes Meyerson Hatch LLC

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Who are Omaha’s CAPs? (continued) Law (continued)

– Marks, Clare & Richards PC– McGill, Gotsdiner, Workman & Lepp– McGrath North– Vandenack Williams LLC

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Who are Omaha’s CAPs? (continued) Nonprofit

– Boys Town– Children International– Creighton University– Duchesne Academy of the Sacred Heart– Goodwill Industries– Jewish Federation of Omaha Foundation– Madonna Rehabilitation Hospital– Methodist Hospital Foundation– Metropolitan Community College Foundation

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Who are Omaha’s CAPs? (continued) Nonprofit (continued)

– Omaha Community Foundation– The Salvation Army– Sisters of Mercy of the Americas– University of Nebraska Foundation

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Who Has Addressed Our CAP Grads?

As guest speakers for the CAP Program, these local philanthropists have shared their real world experiences and knowledge. – Mogens Bay – Chairman & CEO, Valmont Industries– Bill Fitzgerald – Former CEO & Chairman of the Board, Retired,

Commercial Federal Bank– Jeff Gordman – Former CEO, Retired, Gordman’s– John Gottschalk – Former CEO & Publisher, Retired,

Omaha World- Herald– Bill Hanley – Former CEO, Retired, Cummins Great Plains– Todd Johnson – Entrepreneur– Bill Kernen – Former Controller, Retired, Omaha World-Herald– Jim Landen – Chairman & CEO, Security National Bank

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Who Has Addressed Our CAP Grads? (continued)

– Dianne Lozier – Trustee, Lozier Foundation– Mike McCarthy – Chairman & CEO, McCarthy Group– Sue Morris – President, Heritage Services– John P. Nelson – Chairman, SilverStone Group– Jim Ricketts – CEO, Opportunity Education Foundation– Walter Scott Jr. – Former Chairman of the Board, Retired, Peter Kiewit

Sons’, Inc. – Todd Simon – Senior Vice President, Omaha Steaks International, Inc.– Ken Stinson – Former CEO & Chairman, Retired, Peter Kiewit Sons’, Inc. – L.B. “Red” Thomas – Former SVP Finance & Corporate Secretary,

Retired, ConAgra, Inc.

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Who Has Addressed Our CAP Grads? (continued)

– Wally Weitz – President, Weitz Funds– Gail Werner-Robertson – President, GWR Wealth Management, LLC– Mike Yanney – Chairman, Burlington Capital Group

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Are We Making a Difference?

In 2017, CAP Study Group graduates were asked to share the value of the gifts they have worked on since completing the CAP program. These gifts could include bequests, split interest gifts and current charitable cash gifts.

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Current Gifts7%

Bequests80%

Split Interest Gifts13%

Omaha Cap Study Group Graduates’ Gift Types* $1,400,000,000 Total Gifts

*Includes self-reported data from 43 graduates

Next Steps for CAP

Book for donors Advisory committee Annual charitable event

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Questions

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Thank you!