Insights into the Philanthropic Mind: What Charitable Gift Planners and Advisors Need to Know 2017 Western Regional Planned Giving Conference June 1, 2017 Marguerite H. Griffin Director, Philanthropic Advisory Services Senior Vice President 50 S. LaSalle, Suite B-4 Chicago, IL 60603 312-630-0677 mg38@ntrs.com 1
OVERVIEW Shifting Paradigms, Barriers and Breakthroughs The Psychology of Planned Giving: Insights into the Mind of a Wealthy Donor What Wealthy Donors Want from Their Advisors Best Practices for Gift Planners and Advisors 2
SHIFTING PARADIGMS AND TRENDS IN PHILANTHROPY Traditional Philanthropy Bequests Private Foundations Split-Interest Trusts Community Foundations Citizen Philanthropy Funding Collaboratives Giving Circles Social Impact Bonds Individual Philanthropy Donor Advised Funds Venture Philanthropy Impact Investing Five T s of Philanthropy 3
BARRIERS AND BREAKTHROUGHS TO CHARITABLE GIVING, ENGAGEMENT AND PHILANTHROPY Barriers Becoming financially secure (perception) Being comfortable as a public, visible philanthropist Making a difference; adequately addressing seemingly insurmountable challenges Gaining access to information regarding causes and charitable giving structures Breakthroughs Celebrating family values and goals Volunteering Giving while living Connecting with the next generation of wealth holders 4
THE PSYCHOLOGY OF PLANNED GIVING: INSIGHTS INTO THE MIND OF A WEALTHY DONOR Motivations Identity Alignment Affiliation Privacy Education Impact Legacy Donor (Charitable) Intent 5
THE NEW PHILANTHROPIST Philanthropists Have redefined mission, strategies and scope of giving Use various charitable giving vehicles to achieve philanthropic goals Scrutinize leadership, strategic plans and nonprofit revenue models Consider (equally) donor-designated contributions and anonymous giving Consider risk/return analysis prior to investing in charitable organizations or causes Participate as social investors and build strategic alliances and social enterprises Engage with next generation family members to create philanthropic legacies 6
WHAT WEALTHY DONORS WANT FROM THEIR ADVISORS Collaboration Among financial planner, bank trust officer, investment advisor, attorney, accountant, philanthropic advisor, development professional Direction Guide discussions regarding family and legacy planning Ask the hard questions Education Be knowledgeable about tax efficient charitable giving solutions and resources Access Share information regarding various charitable giving strategies make it simple 7
COLLABORATION, DIRECTION, EDUCATION, ACCESS Strategic Philanthropy: Creating a Giving Plan Conduct Philanthropic Audit - Attorney, Accountant, Bank Trust Officer, Philanthropic Advisor, Gift Planner Develop a Mission Statement - Attorney, Philanthropic Advisor, Gift Planner Create a Governing Instrument - Attorney, Accountant Design Philanthropic Program - Development Professional, Philanthropic Advisor, Gift Planner Make Strategic, Mission-driven Gifts and Grants - Philanthropic Advisor, Bank Trust Officer, Gift Planner Monitor and Evaluate - Philanthropic Advisor, Bank Trust Officer, Gift Planner Investing Funds - Financial Planner, Portfolio Manager, Wealth Advisor Ensure Regulatory Compliance - Accountant, Attorney 8
BEST PRACTICES FOR GIFT PLANNERS AND ADVISORS Understand the diversity of giving models, opportunities (and limitations), resources and strategies Discuss core values and priorities with family members Identify family members who are interested in participating in philanthropy Understand special estate planning needs of blended families Walk a mile in the donor s shoes Coordinate efforts with financial, legal, philanthropic and tax advisors 9
PLANNING FOR PHILANTHROPY Questions to ask when considering philanthropy Why are you interested in charitable giving? What would you like to accomplish with your giving? What are your values and goals for your giving? How would you like to be involved in, or manage, your giving? How much money do you want to commit to your philanthropy during your lifetime? After your death? 10
PLANNING FOR PHILANTHROPY Questions, continued Do you want to involve others in your giving, either inside or outside your family? If so, who? Are there time-sensitive tax considerations influencing your giving decision? Are you comfortable with a legally-binding commitment for a period of time? Do you need income from your financial assets now? What are these needs? Would you like your charitable giving to be part of your retirement planning? If so, in what ways? How have you given to charity in the past? 11
MARGUERITE GRIFFIN, SVP Marguerite H. Griffin is a Senior Vice President at Northern Trust. As Director of Philanthropic Advisory Services, Marguerite is responsible for the delivery and growth of Northern Trust's philanthropic advisory services to Wealth Management clients. She specializes in administering charitable trusts and private foundations and facilitating family philanthropy retreats. She also advises clients regarding impact investing, strategic philanthropy, international philanthropy, family succession planning and board development, governance and risk management for nonprofit organizations. Marguerite was most recently a Senior Trust Administrator and Relationship Manager in the Personal Trust Administration Department where she was responsible for the administration of large, complex trusts for individuals and families, charitable trusts and private foundations. Her duties involved working with sophisticated estate plans, sensitive family situations and complex property transfers. DIRECTOR, PHILANTHROPIC ADVISORY SERVICES Phone: 312-444-5857 Email: mg38@ntrs.com Marguerite received a B.A. degree from Washington University in St. Louis and a J.D. degree from Northwestern University School of Law. Marguerite is a member of the American Bar Association, the Chicago Bar Association, the Chicago Council on Planned Giving and the Chicago Estate Planning Council. Marguerite is admitted to practice before the Illinois Supreme Court. She is a sought-after speaker in the areas of impact investing, strategic philanthropy, board development, managing private foundations and family legacy philanthropy. Marguerite is an active volunteer, advisor and board member with several charitable and cultural institutions, including Aeris, the Art Institute of Chicago, Audubon Great Lakes, Chicago Foundation for Women, The Chicago Symphony Orchestra, The Chicago Community Trust, Forefront, The Ravinia Festival and WTTW/WFMT. 12
DISCLOSURES LEGAL, INVESTMENT AND TAX NOTICE: This information is not intended to be and should not be treated as legal advice, investment advice or tax advice. Readers, including professionals, should under no circumstances rely upon this information as a substitute for their own research or for obtaining specific legal or tax advice from their own counsel. OTHER IMPORTANT INFORMATION: The information is intended for illustrative purposes only and should not be relied upon as investment advice or an investment solution. Opinions expressed are current only as of the date appearing in this material and are subject to change without notice 13
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