Workshop 1 - January 8, 2013 Create a Jewish Legacy Kickoff Presented by: Bryan Clontz, CFP®, President Charitable Solutions, LLC

Agenda What Is Endowment and Why is it So Critical? What Are The Benefits Of CJL? How Is Endowment/Planned Giving/Bequest Fundraising Different Than Annual Or Capital Appeals? Bequest Data and Profiles Team Exercise: Endowment Case Statement Homework for Next Meeting

What is Endowment? Permanent Endowment (The Lock-Box) Funds where the principal is never spent – a spending policy (usually 5%) provides annual grants for operating or programs. Quasi Endowment (The Cookie Jar) Functions in the same way, but the principal may be invaded by some vote of the Board. Temporary Endowment (The Savings Account) Funds held with the likelihood of spending some or all of the principal at some point in time (capital reserve or operating reserve).

Why is Endowment So Critical? Capture Transfer of Wealth Charitable Competition Lowest Cost of Raising $ Long-Term Sustainability Donor Service Resources to Respond to Opportunities or Threats

What are the Benefits of CJL? Develop a culture of giving Train the next generation of “askers” and leaders Helps the donors craft a customized legacy Helps the entire Jewish community, not just one agency/synagogue/school – “Community Ask” Helps ensure the future of Jewish community institutions Helps train/coach agencies/schools to achieve endowment success Institutionalizes endowment concepts and requests into organization

How is Endowment/Planned Giving/Bequest Fundraising Different Than Annual/Capital Appeals? Building endowment is a proactive – not reactive process. To be successful, you must create a strong infrastructure, understand the donor’s perspective, and engage in conversations. Long term relationship vs. short term transaction Gift of assets vs. income Only 1 in 3 or 4 will ever tell you

Bequest Data and Profiles Approximately 6-8% of bequests include a charitable provision (NCPG 2003 Study), but 45% of $1M+ households have charitable bequests (B of A/Merrill Lynch 2010 Study) Approximately 20% of taxable estates include a charitable provision (IRS 2004 Estate Return Analysis) Only 45% of adult Americans have a will (2007 Harris Interactive/Martindale Hubbell) The average charitable bequest is $65,000 (NCPG Donor Profile) – CJL uses $50,000 if unknown Average living donor creates first charitable bequest at 58, final revision between Seven of the largest 10 gifts in 2009 were bequests

Team Exercise: Crafting an Endowment Case Statement What makes your organization unique? What are the values of your organization? Why does your organization need an Endowment? What would you do with Endowment money? Include how many clients/members you are serving and how many people your organization is touching with your services INSPIRE VISION, PASSION, URGENCY and DONOR SERVICE

Your last will and testament is your final teaching. What do you want it to say? Rabbi Mordechai Liebling

Develop Bequest/Endowment Case Statement Utilize CJL Staff Support/Materials, Marketing Package: Brochure, Declaration of Intent, Press Releases, CJL Website, Social Media (CJL Facebook and Twitter), and include logo, customize e-signature, etc. Begin List for Vetting Names Bring Case Statement to next meeting on February 20th Next Steps – Homework and CJL Support