Bequest Gold Rush. Study of high net worth philanthropy. Wealth transfer study. William D. Samers

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2 Why in These Times?

3 Bequest Gold Rush Study of high net worth philanthropy Wealth transfer study William D. Samers

4 Strategic Plan: Steps to Success Create a need and a legacy case Integrate Legacy message must be core fundraising priority Fundraisers need legacy prospects/goals with accountability Systems and financials should include planned giving information Solicit and engage Executive Committee, Board, and high-level, long-time donors Select which gifts to promote Create marketing plan Understand motivations and how to solicit Seek legal advice Enhance donor recognition

5 Legacy Case Statement Long term vision and relevance of organization Future plans and needs How the money will be used Future sources of funds/endowment goal

6 Integration and Counting

7 Total Financial Resource Development Fiscal Year 2000 = $76,325, E+07 Pledges $28,633,000 3E+07 Outright cash $17,278, E+07 2E+07 Legacies and Bequests $10,663,000 Testamentary pledges $10,850,000 Charitable trusts and gift annuities $4,765,000 Commitments from bequests, living trusts $4,136, E+07 1E Cash or Equivalent Lifetime gifts Commitments Three Dimension of Charitable Giving William D. Samers

8 Work with Your CFO

9 Engage the Executive Committee and Find a Lay leader Champion

10 Focus on those who can make a difference

11 Focus on the Basics

12 FY 2010 Gifts by Type as a % of Total Planned Giving & Endowments Supporting Foundations 4% Trust for the Disabled 8% Endowment Gifts 9% Bequests 69% Life Income Gifts 10% William D. Samers

13 Marketing Plan Recognition yearbook and event legacy brochure Highlight/recognize PG&E donors at events Board meeting presentations Billing statements and direct mail (tagline/stuffer) Letterhead CEO/Chairperson message General newsletter Internal marketing to staff and lay people

14 Why Are These Gifts Different From All Other Gifts?

15 Annual Gifts Capital Projects Restricted Endowments General Endowments William D. Samers

16 Recognition Mr. Philip Altheim Dr. Miriam Caslow Ms. Cheryl Fishbein Mr. Richard L. Kay, Esq. Mrs. Joan Ginsburg Ms. Marcie Imberman Mrs. Bonnie Tisch Alisa F. Levin, Esq. Mr. John J. Pomerantz Mr. Lawrence Ruben Mr. Harvey Schulweis Mrs. Lynn Tobias Mr. Leonard A. Wilf Mr. Larry Zicklin

17 Endowment Recognition Opportunities Scholarships for Students/Tuition Assistance Chairs for Staff, Rabbis and Administrators Major School Trips Academic, Elective and Extra-Curricular Programs Facilities Teacher Excellence and other Training Programs Technology

18 Investment and Negotiation

19 Ethics and Disclosure Who do you represent? Donor or the organization? Honor restrictions Ensure charitable intent Consider timing issues Limit donor s giving What to disclose Costs and fees, assets, tax benefits, investment issues Investment vs. charitable gifts Where to disclose it Marketing materials Conversations Detailed proposals

20 Proper Agreements William D. Samers

21 In House Consultant Attorney Accountant Financial planner

22 Outside Consultant

23 Delegate and Focus

24 Choosing the Right Gifts and Asking for Them

25 Over the Transom

26 Donor Motivations 1. Caring Heart 2. Recognition 3. Religious belief 4. Peer pressure 5. Mission critical 6. Content 7. Giving back 8. Reciprocity 9. Effect change 10. Drink the water 11. Counted 12. Financial Stability 13. Responsibility for Future 14. Family values 14. No/hate/love kids 15. Government vs. you 16. Name lives on/legacy 17. Exchange of value 18. Tax savings 19. Financially beneficial 20. Stewardship/cultivation 21. Financial sound org 22. Last chance to do good 23. Recession 3x effect 24. Reduce expenses 25. Program Affordability and enhancement 26. Alternative support

27 And One More Motivation

28 Big donors really matter Pyramid of Giving Campaigns based upon a large number of people each making equal gifts never works The larger the top of the pyramid the easier your campaign Remember gifts are both current and future money William D. Samers

29 Ways to Ask for Bequests

30 How to Ask: Key Phrases

31 The Less Personal Asks

32 Bequests

33 Testamentary Pledges

34 Gifts That Work Like Bequests Life Income Gifts IRA S Life Insurance Real Estate

35 IRA s & Life Insurance

36 Life Income Gifts

37 Real Estate

38 CANNOT WAIT

39 Creative Bequests Bequests lead to outright Virtual endowment Mortgage endowment Gift annuity proceeds reduction Trade-in Layaway Family philanthropy William D. Samers

40 Balloon Loans = Virtual Endowment

41 Home Mortgage = Mortgage Endowment

42 Mortgage Endowment Year Endowment value held at ACWIS at beginni ng of year Annual Paym ent by donor to ACWI S Amount sent to Instit ute from ACW IS Portion of Payme nt used for annual costs (intere st) Endowment earnings applied to annual amount sent to Institute Portion of payment applied to endowme nt (principal) Endowment value held at ACWIS at end of year 2007 $0 $272,000 $120,000 $120,000 0 $152,000 $152, $152,000 $272,000 $120,000 $110,880 $9,120 $161,120 $313, $313,120 $272,000 $120,000 $101,213 $18,787 $170,787 $483, $483,907 $272,000 $120,000 $90,966 $29,034 $181,034 $664, $664,942 $272,000 $120,000 $80,104 $39,896 $191,896 $856, $856,838 $272,000 $120,000 $68,590 $51,410 $203,410 $1,060, $1,060,248 $272,000 $120,000 $56,385 $63,615 $215,615 $1,275, $1,275,863 $272,000 $120,000 $43,448 $76,552 $228,552 $1,504, $1,504,415 $272,000 $120,000 $29,735 $90,265 $242,265 $1,746, $1,746,680 $272,000 $120,000 $15,199 $104,801 $256,801 $2,003,481

43 Trade In = Larger Endowment

44 Private Sample Sale

45 Lease = Limited Time Project

46 Limited Partnership = Matching Grant Anonymous alumnus pledges challenge grant: challenges Centre alumni to reclaim No. 1

47 Layaway Plan = Down Payment Locks Bequest Price

48 Private Equity Fund = Family Endowment

49 Reverse Mortgage = Gift Annuity Proceeds + Bequest Method to Calculate Value of Remaining Principal of Annuities: Column J refers to final remaining principal in a given year The chart on Page 2 is calculated as follows: Column D (Year End Principal) = Column A (Beginning Principal) +Column B [Deemed Earnings*] Column C [Distribution] Column H (Year End Principal) = Column E (Beginning Principal) +Column E [Deemed Earnings*] Column F [Distribution] = Column I is calculated as follows: A (Gift Annuity One) + E (Gift Annuity Two) Column J calculated as follows: D (Gift Annuity One) + H (Gift Annuity Two) = J *The earnings included in the formula are based on the historic rate of return for ACWIS gift annuity account. The rate of earnings for purposes of this Agreement shall be fixed in amount and shall not be subject to revision. In some cases the dollar amounts have been rounded. Should D/K establish additional charitable gift annuities with the ACWIS, and if he designates that those annuities be used for the purposes set forth in the Agreement, then the remaining principal of those annuities as of his death, will be calculated in accordance with the same assumptions and earnings rate applicable to Gift Annuity One and Gift annuity Two, and the testamentary pledge of D/K of $5,000, referred to in Section 1(a) of the Agreement, shall, in addition to any offsets because of the remaining principal balance of Gift Annuity One and Gift Annuity Two, be further reduced, dollar for dollar, by the remaining principal value of such additional gift annuities existing as of his death. As and when such additional gift annuities are established, the Table of Principal Values attached hereto shall be revised to encompass the additional gift annuity. At the point in any given year that D/K should die, the remaining principal will be valued as of the year end principal for the year in which death occurred (Column J) notwithstanding that all distributions for such year have not been made as of D/K s death. William D. Samers

50 Professional Estate Planning = Lead Trust/Remainder Trust

51 ETFs = General Funds Repackaged

52 After the Gift

53 Take Home

54 Staff Stanley Baumblatt Eva Bilick Rebecca Blake Samantha Claster Ali Fedder Stacy Ferber Veronica Fischmann Inna Galperin Shira Hudson Minal Jain Chong Kim Livia Kutsher Lyndsie Levine William Samers Diane Scherer Tami Smith Meredith Streit

55 William D. Samers Vice President Planned Giving & Endowments UJA-Federation of New York 130 East 59th Street - Rm 1061 New York, NY Phone: Fax: samersw@ujafedny.org William D. Samers