Building For The Future Endowments and Planned Gifts

Building For The Future: Endowments and Planned Gifts January 13, 2017 Presentation for the Firefighter’s Charities Convention Calvin Fong Director, Donor Services Rob Gagliano Estate Officer, Donor Services Linda Morgan Manager, Donor Services

Vancouver Foundation Snapshot in Time… 1943 – Established with a gift of $1, 000 Today– Over 1, 800 endowment funds - > $1. 1 billion held under management - > Over $1 billion granted since 1943 2016 – $48 million in donations ($22 million from estates) - Established 78 new funds - $43 million granted last year

Agenda • Endowments § What is an endowment? § Why start an endowment? § How to start an endowment § Vancouver Foundation’s services • Charitable gifts • Fundraising fundamentals • Panel discussion

Endowments

What is an endowment? • Capital sum held and invested for the long-term • Income only distributed for specific purposes or general use • Can be permanent or allow for encroachment on capital • Can be self-managed or managed by another charity

Why start an endowment? • Provides steady funding when donations are down • Sense of permanence and stability for donors • Prudent use of surplus funds or reserves

Starting an endowment on your own • Decide how much you can, or should, endow • Large, unexpected gifts provide an opportunity • Decide on the terms § Will you restrict the use of the income? § Will you allow for access to capital by future boards? • Seek professional advice on investing and accounting

Community Foundations • Many community foundations offer endowment services to charities • 191 community foundations in Canada • 53 community foundations in BC • Take a look at what your local community foundation can offer

Endowments with Vancouver Foundation • Prudent investment, long term growth • Investment Committee oversees 12 Investment Managers • Low fees: 1. 15% • Distribution rate approximately 4% • Donor Services

Umbrella of services • • Investment expertise Accounting and legal Tax filing Donation and grant processing Personalized donation page Can receive complex assets American donors

Charitable Gifts

Gifts of securities (stocks, bonds, etc. ) • Donor transfers publicly-traded stocks or bonds to a charity’s brokerage account • Charity issues tax receipt to donor for value of shares on day they were received • Charity sells the shares and collects the cash • Donor benefits from tax receipt and any capital gain on donated shares is eliminated

Gifts of life insurance • By beneficiary designation § Donor updates form with Life Insurance company § Upon the donor’s passing, charity submits claim § Charity receives death benefit, issues tax receipt to the Estate • By ownership transfer § Charity becomes the policy owner § Donor pays annual premium, charity issues tax receipt for the amount paid each year § Upon donor’s passing, no tax receipt

Gifts in Wills • Most common form planned legacy giving • Higher values than average lifetime gift • Can be a % of estate (residual), specific amount or property, contingent gift • Easy for donors to understand

Gifts in Wills – What should I know? • Receiving a will gift can be complicated • Should know the rights and responsibilities of being a beneficiary • Should have a basic understanding of estate administration process • May face potential legal issues and challenges

Estate Administration Services • Receive planned legacy gifts to your endowment fund • Vancouver Foundation is the named beneficiary but acts like a trustee for your endowment fund • We handle all administrative and legal obligations • Timely and full receipt of the planned gift

Fundraising Fundamentals

Annual giving • Who is in charge of fundraising? • Budget • Annual fundraising goal $ • Build list of supporters & prospects • Use a contact management system

Annual giving • • • Sources of revenue Create an annual Communications plan Stewardship plan Grow network – ongoing Fundraising is a team sport Vancouver Foundation grants

Planned giving • Has leadership decided that planned giving is a priority? • Start an endowment – on your own or with help of a community foundation • Begin with closest, most loyal supporters and volunteers • Decide who should make the ask

Planned giving • Communications – newsletters, emails, etc. • Website – basic information for key audiences • Highlight successes – tell stories • Steward existing legacy donors

Apply for a Vancouver Foundation grant • Field of Interest grants • Focus on social innovation • Three types of grants: § Develop: up to $10 K § Test: up to $75 k for 3 years § Grow: up to $50 k for 3 years • Online eligibility quiz

Panel Discussion Ask us anything!

Thank you! Calvin Fong Director, Donor Services Rob Gagliano Estate Officer, Donor Services Linda Morgan Manager, Donor Services