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Our Work with Professional Advisors

Our Work with Professional Advisors. In or Out. “There are only two options regarding commitment. You're either IN or you're OUT. There is no such thing as life in-between.” Pat Riley, Former NBA player, current president of the Miami Heat. Commitment and Trust.

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Our Work with Professional Advisors

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  1. Our Work with Professional Advisors

  2. In or Out “There are only two options regarding commitment. You're either IN or you're OUT. There is no such thing as life in-between.” Pat Riley, Former NBA player, current president of the Miami Heat

  3. Commitment and Trust Must have an Individually Managed Program – can’t take assets away from the advisor and must make it easy for advisor (one-sheets) Must have staffing – relationship managers for professional advisors Must relinquish control – they come to you – they drive the relationship with their client – sometimes we talk to the client extensively before they establish a fund – sometimes we find out who they are when we receive the DAF agreement Most come in last 5 weeks of the year

  4. Individually Managed Program Donors with a fund balance at the Center for Philanthropy Level (currently $250,000 or more) may recommend an external investment advisor to manage the assets of their funds. The Foundation retains the investment advisor so long as they are: • qualified • follow the Foundation’s investment policy • meet the Foundation’s due diligence criteria.

  5. How Individually Managed Fits In

  6. Growth in Individually Managed Funds

  7. Donor May recommend an investment option May recommend an External Investment Advisor May recommend grants from the fund Who Does What

  8. External Investment Advisor Acknowledges that the Foundation is the owner of the account and that they will take instructions only from the Foundation Invests according to “Prudent Investor” principles, including diversification Invests according to the Foundation’s IPS Provides the Foundation with statements, performance information, and responds to any other requests Who Does What

  9. Foundation Staff Approves investment advisors recommendation after completion of due diligence procedures Monitors compliance and performance of external investment advisors Reports fund performance to the Investment Committee at the investment option level Reports significant exceptions at the fund level to the Investment Committee Meets with Investment Advisors regularly and as needed Who Does What

  10. Investment Committee Terminates external investment advisors upon recommendation of foundation staff Recommends approval of the Investment Policy Statement (IPS) and all updates to the Board Approves the due diligence procedures to be performed by foundation staff Investment Committee delegates on-going fund monitoring to the Foundation Staff with the stipulation that significant outliers and noncompliance are to reported to the committee Who Does What

  11. Board The Board has the ultimate responsibility for: Prudent management of Foundation’s assets Establishing and modifying the IPS Who Does What Per the Foundation’s Governing documents The Board has constituted an Investment Committee and delegated to it certain responsibilities for investment management

  12. Initial Due Diligence Request for Information Questionnaire Review of Advisor’s SEC Filing Investment Policy Statement signed by Advisor

  13. Ongoing Due Diligence and Monitoring In person meetings with managers Review of performance Review of investment holdings Update of Request for Information Questionnaire Periodic review of investment advisor’s SEC Filing Periodic review of fees

  14. Success Individually Managed funds as percentage of total asset size Average size of new funds

  15. Why do they want to work with us? • Do not compete – we are a value added service for their clients • We are not a 1-800 number solution – assigned a Philanthropic Advisor (relationship manager) • Individually Managed Funds • Trustworthy • Respond ASAP • Resource for advisors • Refer to other resources

  16. How we do it • Meet one on one with advisors in community • Part of organizations – • Georgia Planned Giving Council • Atlanta Estate Planning Council • Georgia Society of CPAs • Georgia Financial Planning Association • Financial Services Professionals • Atlanta Bar, Georgia Bar

  17. How we do it • Firm Presentations • Speaking engagements • Reference Source • Planned Giving Design Center – licensee for GA • Special Programs • Leverage other events • Annual Meeting recognition for referrals • Professional Advisor Leadership Institute - PALI • Balser Symposium • Volunteer opportunities at TCF – Planned Giving Advisory Council

  18. Balser Symposium • Fund set up by a retired professional advisor to promote planned giving through collaboration between TCF, the Jewish Federation of Greater Atlanta and United Way of Greater Atlanta • Usually a morning event with two speakers on charitable planning • Sponsored/paid event with volunteer steering committee • 400 attendees

  19. PALI – Philanthropic Advisor Leadership Program • Begun in 2007 • Collaboration with Jewish Federation of Greater Atlanta • Every other year – competitive application process • Recently completed 4th class • Yearlong program about philanthropy – not technical • 20 participants per class – evenly divided amongst CPAs, estate planning attorneys, financial advisors, insurance professionals • Alumni program with 5 events per year

  20. CAP Program Gift Planning staff and 2 Philanthropic Advisors are obtaining their CAP designation CAP – Chartered Advisor on Philanthropy CAP develops the skills necessary to with with both donors and advisors and have a seat at the charitable planning table

  21. Outcomes 90% of new funds annually generated from donors referred by professional advisors 1750 # of individual and firm presentations executed by TCF staff over 12 years: 25% referring clients to TCF: 15%of those referrals turning into donors 86 individual financial advisors managing portfolios for 211 donor-advised funds 80 alumni from Professional Advisor Leadership Institute (PALI) 35%actively referring clients to TCF since 2007 175 A list and 1,822 B list professional advisors 7 %of A list professional advisors with personal funds at TCF 1700subscribers to PGDC website

  22. What are we seeing? Professional advisors setting up personal DAFs and planned gifts Professional advisors see us as the expert in charitable planning and nonprofits in the Atlanta metro area Professional advisors want to be associated with TCF and our programs Professional advisors see TCF as an added service they can provide their clients Professional advisors know that we will provide a high-level of personal service to their clients Continued growth in Individually Managed Funds Professional advisors prefer our DAF product over their corporate platforms (ie., Fidelity, Bank of America, Vanguard)

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