Ch, Ch, Changes Turn and Face the Strain Megatrends Affecting Planned Giving

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Ch, Ch, ChangesTurn and Face the
StrainMegatrends Affecting Planned Giving
Cynthia W. Krause Wilson Krause
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Megatrend A large over-arching direction that
shapes our lives for a decade or more.
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Four Megatrends

• The Self-Directed Consumer
• For Profits The New Gift Planning Drivers?
• Geopolitics and Americas New Vulnerabilities
• The Convergence of Concentrating Wealth and
  Values-Based Planning

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The Self-Directed Consumer
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ubiquitous
Results 1 - 10 of about 8,975,000 for planned
giving. (0.37 seconds) gift planning
18,400,000 URLs
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ubiquitous
Results 1 - 10 of about 2,550,000 for gift
calculator 28 seconds
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ubiquitous
Results 1 - 10 of about 8,975,000 for planned
giving. (0.37 seconds) gift planning
18,400,000 URLs
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Traditional Marketing

• All charities reported
• declining response
• rates over the past
• decade in results to
• traditional marketing
• hard-copy newsletter,
• targeted direct mail,
• seminars, etc.

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More than ever, its about your mission
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Best Practices
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For Profits The New Gift Planning Drivers?

• From the Dark Side to Our Side

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Brief history of the for-profit community and
planned giving

• 1980s and early 1990s
• Mid-90s into new millennium
• Today

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Perspectives from traditional advisors and the
financial services industry
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The donor perspective
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Is everyone at the table? Should they be?
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Geopolitics and Americas New Vulnerabilities
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Ted Benna
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Life Expectancies.Good News!
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Uncertaintycan put gift commitments on hold
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HOPE is the antidote to fear
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The Convergence of Concentrating Wealth and
Values-Based Planning

• The richest 1 of Americans control more wealth
  than the combined wealth of the bottom 90...
• Between 1976 and 1998, the share of the nations
  private wealth held by the to 1 nearly doubled
  from 22 to about 40... 44 in 2005
• In 2000, just the top 1 of income earners
  totaled 17 of the gross income for the United
  States, a level not seen since the 1920s

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The net worth of U.S. households climbed to a
record high in the final quarter of last year,
boosted mostly by gains on stocks

• For all of last year, households' net worth
  rose by 7.4 percent, a slower pace than the 7.9
  percent increase registered in 2005.

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Billionaires Boom!!!

• There were now a record 946 billionaires in the
  world, up more than 150 from last year, with
  Forbes attributing the increase to a commodities
  boom, the march of technology and relative
  weakness of the US dollar.
• The list's total net worth grew 35 percent from
  last year to a staggering 3.5 trillion dollars

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Values Based Estate Planning
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the dawn of the Golden Age of Philanthropy?
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EMPTY NEST EGGS Inherit the Wind Theres Little
Else Left NYT 3/26/06
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the dawn of the Golden Age of Philanthropy?

• The top 2 of estates are worth over 782,000
• The next 3 are worth 326,000 to 782,000
• The next 5 are worth 244,600 to 326,000
• The next 40 are worth 52,200 to 244,000
• The next 20 are worth 2,600 to 52,000

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the dawn of the Golden Age of Philanthropy?

• The last 30 of estates are worth less than
  2,600.
• How much will charities receive from 90 of
  Americans who have estates less than 250K?
• WHERE ARE WE GOING TO HAVE TO FOCUS OUR
  RESOURCES??

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Principal Gifts

• What is a principal gift?
• Who is taking the lead?
• What can they tell us?

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Conclusions
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Special Thanks To Donna Bandelloni Mellon
Ronald A. Brown Princeton University Janice
Burrill Wells Fargo Bank Paul L. Comstock
Paul Comstock Partners Shari Fox University of
Michigan Mary Todd Hardeman Cincinnati Museum
Center Robert Harrison Georgetown
University Marjorie Houston Wheaton
College Tanya Howe Johnson National Committee
on Planned Giving Scott J. Kaspick Kaspick
Company Peter K. Kimball Harvard
University David E. Krause Parkland
Foundation Robert Lew Planning and Financial
Advisors Stephen P. Link Georgetown
University Scott R. Lumpkin University of
Denver Betsy Mangone The Denver Foundation King
McGlaughon - Wachovia Kathryn W. Miree Kathryn
W. Miree Associates Wallace Munro The Actors
Fund of America Darryl Ott Morgan Miller
Blair David Ratcliffe - Merrill Lynch Gregory A.
Schupra Comerica Robert F. Sharpe The Sharpe
Company William E. Sheehan Santa Clara
University Terry Simmons Thompson Knight,
LLP Teresa Smith - AARP Thomas W. Smith Vermont
Community Foundation Angie Sosdian The Nature
Conservancy Cindy Sterling - Washburn
McGoldrick Peter Ticconi Georgia Institute of
Technolgy Peter Witherell American Cancer
Society Kenneth M. Wolfe Colonial Williamsburg
Foundation Craig C. Wruck University of
Minnesota Medical Center Foundation Chris Yates
Stanford University Carol Yonack formerly Bank
of America now Wachovia And Ted Benna for his
Fabulous Adventure.