why legacy? why now? · what is an endowment? a permanently restricted fund where the principal is...
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Why Legacy? Why Now?Dena Morris Kaufman February, 2015
Harold Grinspoon Foundation
"I found a fruitful world, because my
ancestors planted it for me. Likewise,
I am planting for my children."
-Talmud, Taanit 23a
“I love the Jewish People.
I speak Jewish with my dollars.”
– Harold Grinspoon
HGF invests in projects that provide a strong return on
investment for the Jewish Community.
To date, more than $350,000 in Greater Indianapolis
• PJ Library and Sifriyat Pijama have distributed Jewish storybooks and music to
more than 350,000 children worldwide. We have just delivered our 5 Millionth book!
• PJ Library launched in Indianapolis in 2009 and serves approximately 400
children each year.
• JCAMP180 provides mentors who support Jewish summer camp leadership in the
areas of strategic planning, board governance, and development in addition to
providing matching grants. Our camps have raised $80 million in response to HGF
challenge grants and an estimated $71 million in legacy commitments.
• Voices & Visions engages adults in Jewish conversations through art and scholarship.
We have gifted 128,000 posters to Jewish organizations throughout North America,
Europe, and Israel.
LIFE & LEGACY is a 2 – year partnership
program of the Harold Grinspoon
Foundation (HGF) that assists
communities across North America, to
promote after-lifetime giving to benefit
local Jewish day schools, synagogues, social
service organizations and other Jewish
entities.
Through training, support
and monetary incentives
the partnership between
LIFE & LEGACY and the Jewish
Federation of Greater
Indianapolis motivates Jewish
organizations to secure
legacy gifts and steward
donors.
Legacy:
Defined as something handed down from the past
What is Your Legacy?
Values, beliefs, hopes, and life lessons
that are conveyed to others
What is an Endowment?
A Permanently Restricted Fund where the principal is not touched.
Funds are invested as a large diversified pool, and monitored
Funds are held “For the Benefit of” your organization
Annual distribution from earnings, usually 4%-5%
There is a fee for management of these assets, usually .75%-1.25%
Endowments are designed for the principal to grow. When the annual
interest is more than annual distribution, the difference is added to the
principal, allowing for a larger distribution in subsequent years.
Endowment Example
$500,000 Endowment = ~$25,000 to Annual Operating Income
To reach a $500,000 Endowment Fund:
10 Legacy Gifts (Average Gift of $50,000)
What is a Legacy Gift?
After Lifetime Gift
Bequest of cash or assets (Will or Trust)
Named beneficiary, Retirement
Named beneficiary, Life Insurance
Estate Planning Vehicle
Current Gift into Permanent Endowment Fund
Why Now?
The $59 Trillion transfer of wealth is underway.
If we don’t ask we will miss an opportunity.
To maintain the vibrant Jewish community we all value.
To secure the future for the next generation.
“We must be the change we wish
to see in the world.” Gandhi
Why Now?
Having this knowledge, the question HGF sought to answer is:
“Can Jewish communities be motivated to become proactive in encouraging widespread legacy giving?”
With the implementation of the partnership between LIFE & LEGACY and the Indianapolis community, the answer is now
YES!
Building Jewish LegaciesAcross North America
Year 1 LIFE & LEGACY
Charlotte, NC
Memphis, TN
Miami, FL
New Haven, CT
Orange County, CA
Portland, OR
Princeton, NJ
Year 2 LIFE & LEGACY
Chicago, IL
Greater Metro West, NJ
Greater Washington, DC
Jacksonville, FL
Milwaukee, WI
Omaha, NE
Sacramento, CA
Southern NJ
Areivim: St Louis, Tucson, San Francisco,
Philadelphia, Hillel
HGF: Jewish Camps, Western Mass
Other: Kansas City, San Diego, Denver,
New Orleans, Atlanta
Year 3 LIFE & LEGACY
Cincinnati, OH
Delaware
East Bay, CA
Houston, TX
Indianapolis, IN
Phoenix, AZ
South Palm Beach, FL
Tampa, Orlando, Pinellas, FL
Proven Track Record
Sept 30, 2014
TOTAL
3,731
LOI
Estimated
value
$131
Million!
* 2 year goal – these communities are in their second year
Community Population LOI
received
Time
period
Estimated
Value
LOI
Goal
Charlotte, NC 10,000 400 21 months $9.8 M 240*
Princeton, NJ 10,000 217 15 months $10.2 M 276*
Memphis,TN 8,000 491 24 months $12.5 M 250*
Miami, FL 113,000 468 21 months $23.8 M 432*
New Haven, CT 23,000 203 18 months $4.5 M 150*
Orange County, CA 80,000 194 15 months $8.4 M 108
Portland, OR 45,000 220 13 months $9.8 M 132
Chicago, IL 265,400 211 9 months $6.8 M 270
Greater Washington DC 215,600 305 15 months $14.1 M 414
Sacramento, CA 21,300 196 7 months $5.5 M 216
Omaha, NE 6,100 200 8 months $7.4 M 162
Southern New Jersey 22,100 333 9 months $9.0 M 324
Milwaukee, WI 30,000 191 7 months $5.0 M 270
MetroWest, NJ 140,000 102 6 months $4.8 M 270
Sample Organization
Success Stories
Update: In 14 communities, we represent 183 organizations
Organizations Population LOI
received
Time
period
Estimated
Value
JCC (Omaha) 6,100 22 6 months $368,000
Day School (New Haven) 23,000 20 3 months $500,000
Synagogue (Sacramento) 21,300 14 6 months $330,000
Family Service (Charlotte) 10,000 17 3 months $445,000
Synagogue (Princeton, NJ) 10,000 10 6 months $500,000
Senior Living (Memphis) 8,000 31 9 months $610,000
Legacy Giving Myths
The Legacy Conversation is NOT
about the donor’s death.
The Legacy Conversation is
offering the donor an opportunity
to do something significant during
their lifetime.
Legacy Giving Myths
Legacy gifts are ONLY endowments Yes endowments, now or later
Also bequests, retirement funds, life insurance, and other assets
Legacy gifts are taking away inheritance Majority estate is left to family members
Legacy commitments only a percentage of an estate
No will means no legacy gift Portion of retirement funds, life insurance policies or other planned
giving vehicles.
Organizational Myths
Planned giving hurts annual campaign Donors tend to increase their annual giving after making a legacy
commitment
We need money now An annual incentive grant allows you to benefit both now and later.
We don’t have time Already spending time on donor relations, and you should be, then have the
time.
Philanthropic advisors state: If 20% of your operating budget is not coming from your endowment by 2025 then your organization will be in fiscal crisis, so you need to make the time now to build your future endowment base.
Organizational Myths
We don’t have experienced planned giving staff Your Create a Jewish Legacy staff is available to assist you and
your donors.
Our lay leaders are not financial advisors Legacy team to have mission-based conversations with donors.
Planned giving marketing should be passive No, three-fold - agency-wide marketing; targeted communication;
one-on-one conversations.
Legacy Prospects Myths
Only those over 65 are planned giving prospects A donor of any age can be a legacy donor.
Recent study found that 40-49 year olds have the greatest number of bequests to Jewish causes IF they have a will.
Only wealthy people are prospects Legacy most egalitarian form of fundraising.
Best prospects - most loyal donors
Donors are going to leave everything to their children Donors who have demonstrated a commitment to your organization
are likely going to want to illustrate that relationship to their children by leaving a percentage of their estate to you.
Your Concerns?
Organizational?
Prospects?
Personal?
Need to get out of the
mindset of the here and
now and instead
cultivate a culture of
planning for the future.
What Motivates
Legacy Giving?
• A commitment to being Jewish
• A desire to live up to the values instilled by parents and grandparents
• To give back.
• To make a difference.
• To be a part of something larger than ourselves.
• To be recognized.
• To feel united with others of similar commitment & values.
• To commemorate loved ones.
• To share their good fortune.
• To support your organization and its mission because they value what you offer to the community.
How the program works
• Indianapolis – one of 8 communities selected from across the country to participate in the program’s third cohort. One of only 23 communities.
• Your community was selected because the HGF considered you to be a strong community with effective leadership.
• Jewish Federation’s Application Review committee selects local organizations to be part of this initiative through an application process.
How the program works
• JFGI develops budget and aggregate goal.
• HGF funds 50% of the program budget up to $150,000 per year for 2 years.
• HGF’s funding allows the JFGI to offer a financial incentive to you.
• HGF, in partnership with the JFGI, provides training sessions and private consultations.
• Successful legacy effort
• Legacy giving part of community culture.
Benefits of Participating
• Training with a proven method for success
• Marketing and Stewardship Best Practices
• Incentive Grants
• Professional Support
• Resource-oriented Website
• Community organizations work together to transform philanthropy in your community
Training Provided
Year 1
How to Write a Legacy Plan
The Legacy Conversation & Team Meetings
Marketing Your Legacy Program
Effective Stewardship & Team Meetings
Year 2
2 Team Meetings
From Letter of Intent to Formalized Gift
Best Practices / The Integrated Ask
Being Donor-Centric
Legacy Plan Components
Case Statement
Management Plan
Identify Potential Donor Groups
Develop Marketing Plan
Develop Stewardship Plan
Set Goals
Implementation Plan
Stewardship
Strengthen your relationship with your legacy donors.
Keep them engaged.
Make them feel appreciated.
Letter of Intent
LOI is a donor’s commitment:
• LOI includes all partners so donors can choose
more than one
• Each partner chosen can count that donor’s Letter
of Intent toward their goal
Sample
Letter of Intent
Set Goals
Make goals ambitious yet achievable. In the
end this is all about planning for the future of your organization so the more work we do now, the brighter that future will be.
Plan on having one conversation per month
Commit to obtaining Letters of Intent
Year 1: Minimum of 18 - reach for 25!
Year 2: Minimum of 18 - reach for 25!
Post-LIFE & LEGACY: The sky’s the limit!
How to
Reach Your Goal
New Conversations yielding new gifts
Newly discovered gift
Gifts received 8/25/14 – 6/30/16 is Year 1
Incentive Grants
Incentive grants awarded to those organizations who
reach their legacy commitment goals, each year of the
two year program:
Year 1 secure 18 Letters of Intent
Year 2 secure 18 Letters of Intent
Since your list of potential legacy donors will
grow every year, this makes your legacy plan a
living document that becomes the
foundation for fully integrating legacy
giving into the philanthropic culture of
your organization.
Integrated into
your Culture
Establish a Legacy team.
Develop a Legacy plan.
Attend training sessions.
Have conversations with your donors re: after-lifetime gifts.
Report your progress on a quarterly basis to Life and Legacy
Indianapolis Program Director, Paula Goldberg.
Seek assistance and support from Paula as needed.
Attain goals outlined in your Legacy plan.
Place after-lifetime gifts secured through this program at the
Jewish Federation of Greater Indianapolis in an endowment fund
“for the benefit of” for your organization.
Your Responsibilities
Applications due on March 20, 2015
Why should
you participate?
The time is right!
LIFE & LEGACY will allow your organization to:
take advantage of the tremendous transfer of wealth;
change the language and landscape of giving and;
incorporate legacy gifts into the philanthropic culture of your organization and the Greater Indianapolis Jewish community.
Why should
you participate?
The community works together.
LIFE & LEGACY fosters a camaraderie
and respect among Jewish organizations
that share the goal of legacy-building for
the entire Jewish community.
Why should
you participate?
So generous and forward-thinking members of your Jewish community have an opportunity to express their passion, purpose and commitment to the future of your organization and the Jewish Community of Greater Indianapolis.
Why Legacy? Why Now?Dena Morris Kaufman February, 2015
Harold Grinspoon Foundation
HGF looks forward to
working with you to
assure Jewish tomorrows in Greater Indianapolis.