education: fall conference 2005

ADVISORS IN PHILANTHROPY
Fall Conference
Orlando, FL
September 27-28, 2005

NETWORKING: BEYOND GLADHANDING
Renata Rafferty
Palm Springs, CA

Networking is an exchange of information, which is the currency. It’s about telling people what you do and what you need. When networking you want to talk about what you do and what you want to do or where you want your business to go.

Key Questions: What do you do? Then ask immediately, “What is the biggest challenge in your business?”

The way you build the relationship is providing them info that is relevant, helpful or interesting to them.  Bringing value to the other person is essential.

Four Networking Situations

The Mixer:
* No real objective, not really serious maybe at the end of the day. Very informal. Find out who is going to be at the mixer. 
* The first few names given by the host are probably the most important.
* Figure out three people you want to have contact with at the mixer.
* Arrive early, easier to meet people as they enter.  
* Once they arrive, is the best time to meet them before they get in their clique.
* Exchange cards, you are not there to hustle them.
* Put notes on the back of the cards
* Label them A-B-C, A being very hot, B is some to keep in mind, C that is not useful in the present.
Note the date and function where you met that person

The Seminar/Workshop/Lecture:
* Most of the time the speaker is the person you want to network with
* Show up early to meet the speaker
* Exchange cards with the speaker
* Try to make a connection after the speaker after the event,
* Thank them and tell them something specific about their presentation.

A Meal Event:
* Find out in advance who’s going to be there
* Best events are where there is no assigned seating
* Do NOT put your things at a table, you choose where to sit.
* Do NOT arrive late
* The person you really want to meet, try to sit a person or two away from, not across the table.

An Audience Event / A Performance:
* Hard to meet the speaker usually a little larger.
* Never sit in the front, back, aisle rows
* You can be networking all around you if your in the middle

After the Event:
* Write a handwritten note to your “A” contacts!
It is a great gesture, as opposed to email.
* Best “B” contacts write a handwritten note
* For “C” contacts put them into contact mgr.

Next steps:
* Contact the “A” entire list once every 4-6 weeks via mail or email.  
* It can be an article, cartoon, book suggestion, or something that would be of help to that person.
* Use post it pads & make it personal!
* Contact all your “B’s” 8-12 weeks
* Keep aware of the “C’s” in order to hook up with one of your “A’s” as a currency

The currency of networking is INFORMATION and we are providing them information

Results:
You will establish with you’re “A” contacts credibility to ask them for information
or an opportunity to connect. Most people will respond due to the info you provided them. They will likely send you info back.

Do not view the person you are networking with as the endpoint but as an opportunity to meet more people. Mutually beneficial balanced relationship after a year.

PR STEPS TO GROWING A PROFITABLE BUSINESS
Marsha Friedman
Event Management Services, Inc.
Clearwater Beach, FL

PR Defined: "Public relations is a management function that establishes and maintains mutually beneficial relationships between an organization and the public on whom its success or failure depends."

For immediate credibility with the media, it helps to write a book. The media is always looking for experts to make comments on newsworthy issues. The book needs to be about your uniqueness and what you are passionate about. It is easy to hire a ghostwriter to do the actual writing.

You need to stay abreast of the news to see what stories tie into what you do.

Be a guest on a talk show. No travel involved. It's all done by telephone. The demographics of the talk radio audience fits our business. They are attentive, diverse, educated and affluent. Being a guest on Talk Radio gives you credibility.

Write "How To" articles. It's an easy way to get free publicity in publications.

Write letters to the editor for the Op-Ed page. You can comment on the news or express your point of view.

Create Photo Ops. Invite the media to attend your events. If they don't show up, take your own photos at your event to give to the media with your press release about the event.

ESSENCE MARKETING
Charlie Stuart
Orlando, FL

The "essence" of marketing is composed of two aspects:
1. Mastering of relationship in the direct marketing world.
2. Making sure you are what your marketing message claims you to be.

Essence Marketing starts with caring more about the client's best interest than you do your own.

It is a sustainable, compellingly different way to go to market.

The goal of Essence Marketing is for your clients, prospects & referral sources to think of you ...
* First
* Well
* Often

2 key elements that make Essence Marketing work:

1. Be Prepared!
* Have a system
* W.I.I.F.M
* Practice
* No surprises

List the top 10 questions you hear from a new prospect and rank order them. Then, answer these questions in your brochure.

2. Stay In Touch . . .
* Hand Written Notes - A powerful conveyance of "I care".
* Articles - "I saw this and thought of you" sent with articles out of non-industry publications.
* Essays - Articles you've written which were not published, but still have credence in the hands of the recipient.

PRIVATE FOUNDATIONS
Chris Infurchia, President
Foundation Source
Fairfield, CT

Pros of a Private Foundation:
* Income tax deduction up to 30% of AGI for cash, 20% for securities, with a five-year carryforward.
* Appreciated securities: donated at current value, no capital gains tax.
* Engages entire family in philanthropy.
* Can continue into perpetuity with family maintaining control.
* Can hold assets such as jewelry and art.
* Control over investment decisions.
* Control over governance: donor selects who will serve on the board, including family members.
* Can hire staff, including family members.
* Can pay directors and reimburse foundation related travel and other expenses.
* Ability to grant directly to individuals for hardship and emergency assistance.
* Allows donor to give a "gift certificate" to others who can make grants from the foundation.

Cons of a Private Foundation:
* Must make a 5% distribution each year.
* Excise tax on investment gains.
* Tax deduction limitations as a percentage of AGI are not as high as a Donor Advised Fund.
* Gifts of non-marketable assets, i.e., real estate, closely held stock, etc. are tax deductible at basis only.

For donors wishing to make initial contributions of less than $100,000 or total contributions of less than $500,000, they would be better served by a Donor Advised Fund.

Best prospects are those whose annual income is over $500,000 or have in excess of $1,000,000 in investable assets or $5,000,000 of Net Worth.

CURRENT DEVELOPMENTS IN CHARITABLE PLANNING
David Cahoon, JD
The Advanced Wealth Studies Institute, LLC
Sarasota, FL

CRT Spousal Waivers -
IRS Rev. Proc. 2005-24 now provides for enforcement of disqualification of CRTs where the surviving spouse elects against the estate, or in some states is allowed to elect against the estate. Grandfathering rules state that CRTs created and funded prior to 6/28/05 are still O.K. without a signed spousal waiver as long as the clients don't move and their state does not change its laws. David still believes that it is best to have the spouse sign a waiver now in case the state ever changes its rules or the client moves to a state that allows for election against the estate. The waiver needs to be signed and filed with the trustee within one year of the CRT's execution to be valid.

Annual Gift Exclusion -
Will go to $12,000 per beneficiary beginning 1/1/06.

A COMPENDIUM OF PLANNING PRINCIPLES
David Holaday, ChFC
Wealth Design Consultants, LLC
Carmel, IN

Setting Fees -
Based on:
* Your process (broad or narrow)
* Geographic
* Your reputation
* Value you can add
* Your confidence/experience
* Your opportunity cost
* Other revenue opportunities

Value You Can Add -
* Getting organized
* Getting clear on goals
* Evaluating relevance of existing plan elements
* Analyzing potential outcomes of current situation
* Observing areas that need attention
* Listing and discussing possible planning solutions
* Coordinating efforts of planning team to reach consensus on recommendations
* Making specific recommendations
* Providing documentation of specific recommendations
* Providing empirical analysis of potential outcome of recommendations
* Periodic review and management of plans

Typical Range of Fees -
* Family retreat and financial philosophy - $2,500 - $5,000
* Current analysis - $2,000 - $7,500
* Planning - $3,000 - $50,000
* Implementation - $0 - $10,000
* Management - $0 - $10,000

Questions for Gift vs. Tax -
* "Would a slight reduction in inheritance make a material difference in the personal happiness and fulfillment of each child and their family?"
* "Could the experience of participating in significant family philanthropy make a material difference in the personal happiness and fulfillment of each child and their family?"

Setting Client Expectations -
* Set out time frame parameters for the planning process
* Call regularly during process

Strategy Design Ideas -
* FLPs - Can still work despite Strangi case, but may not be able to promise "full control" by client being a General Partner. Expect an audit of FLPs.
* CRTs - Dave favors SCRUTs versus NIMCRUTs.
* CLATs - Usually zeroed out. Boost yield by using FLP for discounting.
* Sale of LPI to IDGT - Very popular. The note term usually goes for 9 years to use Federal MidTerm rate for interest assumption. Advantage over GRAT: lower hurdle rate and should not automatically fail if client dies before strategy is completed.
* Short Term GRATs - Use two year terms to get appreciated securities down to next generation.
* Premium Financing - Often illustrated, seldom implemented.
* T-CLAT - Fund with amount of estate that exceeds tax-free amount and only if assets are suitable (not IRA's,
* QPRT - Low interest rates hurt currently. Burns up some Unified Credit.
* Family Foundations - Use either DAF or Private Foundation. Supporting Orgs (Type III) are under IRS scrutiny.

Working with Other Advisors -
* Find out who is the client's single most relied upon advisor.
* Determine if you can work with their lawyer early in the engagement.
* Share your planning ideas sooner rather than later with advisory team.

Working with Charities -
* Bring them gifts from your client base.
* Volunteer professional design services without ever meeting the donor.
* Don't measure your success by how much you make from planning for donors.

STOCK MARKET PHILANTHROPY
6 Levels of Socially Responsible Investing
Renata Rafferty
Palm Springs, CA

Level One
Do no harm to causes that matter to you.
Example: If you have anti-abortion values, do not invest in companies who support abortion.

Level Two
Do no harm to mankind's general welfare.
Example: If you are Oprah Winfrey, you should probably not invest in Phillip Morris.

Level Three
Align your investing with companies whose values you respect.
Example: If you support women and children's causes, you should invest in companies that accommodate women who come in and out of the workplace and have great child care services on premises.

Level Four
Invest in funds whose philanthropic goals closely match yours.
Example: PAX World fund, Ariel Fund, Smith Barney Social Awareness Fund.

Level Five
Use your power as a shareholder for the greater good.
Use your proxy voting power to sway votes that have values components connected to them.

Level Six
Invest in charity - literally!
Invest in a local real estate project that provides housing for low income people and retail space for non-profit groups. Or, a Private Foundation could loan initial short term construction financing to a non-profit who can then obtain permanent financing via commercial financing once the building is completed and occupied, i.e., building a parochial school.

PANEL ON SOCIALLY RESPONSIBLE INVESTING
Drake Zimmerman, CFA
Howard "Rusty" Leonard, Stewardship Partners Investment Mgmt.
David McClellan, Calvert Funds

Three strategies for Socially Responsible Investing (SRI):

1. Screening - Including or excluding publicly traded securities based on social and/or environmental criteria.

2. Shareholder Advocacy - Actions investors take in the role as owners of corporations, including dialoguing with companies on issues of concern, as well as filing and voting proxy resolutions.

3. Community Investing - The flow of capital from investors to communities that are underserved by traditional financial services. It provides access to credit, equity, capital, and basic banking products for those who may not otherwise qualify for such services, e.g., inner city women.

Stewardship Partners -
Rusty Leonard gave a presentation on how his Separate Account management firm manages money according to Biblical principles.

Calvert Funds -
David McClellan gave a presentation on how Calvert Funds approach SRI with it's mutual funds.