Maintain Giving During Times of Economic Uncertainty

Welcome everyone and to today's webinar. I'm David the publishing director for family business magazine and I'll be your host. I hope that you and your families are all doing well. Many family businesses make charitable giving a core element of their values and their Community engagement a solid philanthropic strategy can benefit the business the family Legacy and the bond between Generations but philanthropic strategy can be tested during times of economic uncertainty which we are certainly in now and those uncertain times also bring with them a lot of community needs. So we're gonna talk about how to balance, you know being aware of what's going on on economically with maintaining your philanthropic strategy and we'll discuss how family businesses can establish and navigate and maintain this the the giving that they want to during Times Like These. So the goal today is to be as interactive as possible within the limitations of webinar technology. You may enter questions or comments as they occur to you using the question box, which is it's a A question box, which is underneath the video screen. We'll go for no more than 60 minutes today maybe less and we'll get to as many of your questions or comments as we can. And of course the slides you see here will be emailed to you following the webinar. We'll also have a replay of this available. So leading us in our discussion today are my colleagues from Vanguard charitable Colleen Cashman and Julian Franklin Colleen serves as Vanguard charitable senior manager of Premier Services and strategy and overseas a team of relationship managers who provide service to ultra high net worth philanthropist families and corporations. She's a graduate of the Mason gross School of the Arts at Rutgers and holds a chartered advisor in philanthropy designation from the American College of financial services. Julie and Franklin who's been with us before is a philanthropic development consultant and focuses on supporting Vanguard charitable's most generous individuals and families through personalized consultation and service prior to joining Vanguard charitable. He worked in corporate responsibility Corporate social responsibility at Aberdeen Asset Management. So welcome Colleen Julian Colleen turning this over to you to get us started. Thanks David. Good afternoon. I'm honored to be joining family business magazine today and I'll share that over the past eight years. I've had the privilege of working with hundreds of families at Vanguard shared ball. And so today. I look forward to sharing with you some insights and stories and best practices. Julian and I have worked together for several years now and I couldn't have asked for a better partner in today's discussion. Thanks so much Carly and I think we bring some interesting perspectives to the discussion today and David. It's great to be back in front of your audience. I think this will be the third year that we at Vanguard charitable have had the opportunity to speak to your readers. And I think that there is definitely a reason for this, you know, more and more individuals families corporate entities our understanding the value of long-term strategic philanthropic plans. So we certainly look forward to expanding on that concept and hopefully we give the audience some new tools and some new considerations when it comes to putting together a film Project strategy. Yeah, we have a lot to cover today. This is a really broad concept, but I want to acknowledge and recognize that that there's a lot uncertain at the moment. We're in an unprecedented economic climate inflation is at a 40 year high and volatility remains incredibly high in the financial markets. Every day we're learning of different disasters globally, whether they're natural or man-made and as a result the need in the charitable sector is absolutely greater than ever. But I will say that despite these challenges. We remain optimistic. Julian and I have the privilege every day to facilitate donations on behalf of our donors at the anchored ball. For instance. We've seen our donors leverage their fast and responsive accounts to Grant nearly 60 million to the Ukraine humanitarian crisis this year. And for many donors that was on top of their already established giving strategy. Right, I think change is constant. Right our world the businesses that we run our family Dynamics. They're always evolving and sometimes that they can change suddenly but really I think it's about keeping our core values thing. And that's the foundation. For example, really we wanted to touch with you you point today first. We'd like to talk about how you establish meeting plan, and we don't have one already. We definitely like to talk about how you might adjust the plan if you have already. How do you get creative? and certainly I can very applicable for this audience is how do you empower the Next Generation, you know utilizing plans to engage the Next Generation business and in times of uncertainty definitely natural question, if your plans are sustainable, it's also a time where many side really and paper and really That's right, Julian. So I'll ask us to go to the next slide so that before we can jump into the planning process. You just want to make sure that for those of you that aren't familiar with Vanguard charitable that we take a moment to set the table and share with you our impact to date and the role that we play in the nonprofit sector. So as as David mentioned Vanguard charitable's a public charity. We were founded in 1997 by the Vanguard group and our mission is is pure and simple it's to maximize. Are impact over time and to increase philanthropy and we do that by sponsoring donor advice funds. I'm really proud to say that we've granted nearly 15 billion since Inception and this December will be celebrating our 25th year anniversary. Yeah, 15 billion is pretty amazing. And I think you said it we're really proud of how we've been able to help our donors achieve that kind of impact. I think our plan is to certainly continue doing that for the next 25 years. If we move to the next slide we can talk a little bit about what a Donor advised fund is, you know, our organization has seen incredible growth year over year and so has giving my corporations giving by individuals and the giving USA annual report which indicated that giving by corporations Rose significantly in 2021, actually increasing by almost 24% and many family businesses are engaging philanthropically and choosing to use a vehicle like a Donor advised fund as one of their core giving tools of choice again, either for that corporate philanthropy or even on the personal philanthropic side. So at Vanguard charitable, we administer these Donor advised funds or daf for short And for those that are unfamiliar with that concept A Donor advised fund is a flexible. It's cost-effective and attacks efficient charitable vehicle that allows donors to gift to nonprofit organizations and really leverage their impact over time and donors can contribute a variety of asset types into a Donor advised fund and claim an immediate charitable tax deduction in the year that the gift into the daf is made and from there dollars can excuse me donors can sort of allocate those dollars into an array of investment options in which to be in invested in the charitable vehicle and those proceeds can grow tax-free and all of that account growth is earmarked for charitable giving and with our program at Vanguard. Terrible. Our donors can send grants to qualifying 501c3 public Charities and Vanguard charitable handle all of the grants Administration, which allows donors to manage their Will giving from one convenient online account and the daps are often utilized as long-term charitable Vehicles as I think you'll see and donors often have the ability to pass on the account seeing it as a legacy vehicle and gifting the opportunity to give philanthropically to other family members or loved ones. But I think the next. Here is a bit of a survey and you to put up in David really before we jump to the survey. Can I ask you to kind of just briefly talk about some of the differences between a Donor advised fund and like a private foundation and what what some of the pros and cons are? Yeah, definitely. So, you know, the first thing I would say is there are different types of philanthropic vehicles that are great for different things. We work with donors who utilize different types of philanthropic vehicles at the same time donor advise funds and private foundations are similar. I'd say Donor advised funds are a bit more simplified than private foundations. The administrative capability of Donor advised funds really streamlines gifting gifting to you know, public Charities the ability to invest Vanguard charitable in particular in a particular sweet of Investments and private foundations have been around for a long time and are very well known vehicles, but I'd say donor advice funds are growing and popularity and the cost of Donor advised funds and less than a private Foundation but private foundations can sometimes be more flexible in the types of grants that they're sending out and the types of Investments that are held within the private. Station so I think they're you know two different vehicles that can be used for for two different, you know, philanthropic strategies in particular terrific. Thank you. Okay. Well now let's get to the question. I'm going to start this survey. We're gonna ask you everybody in the audience, please when you receive it just tell us a little bit about whether the current economic environment is having an impact on your decisions and ability to give and we will come back to this question in a few minutes with with the answers. So I'll come back when you're ready Julian and colleague. Thanks David. I'm so curious to see how how your audience is going to answer this question because year ends rapidly approaching and we're talking to many donors right now about their year-end plans because their traditionally aligned with tax benefits. However, tax effective philanthropy is not solely at December 31st decision particularly if you're involving a business. So we see many times that individuals are coming to us to maximize their philanthropy at all different times of the year, but it certainly most popular as we approach year end. And although we're not in a position to give tax advice here at Vanguard charitable. We do work with many advisors both tax investment and legal counsel to help families. Develop a plan that's best for them. I think that's a that's a great Point coming. You know, you said we're not tax advisors, but we definitely consider ourselves as partners in your charitable planning. And I think something that we've really worked hard to do is create some tools that donors can use to help, you know, make the best decisions for them when it comes to their philanthropic giving one that will point out is our tax calculator, which we definitely encourage folks on the call today to check out on public website. We've also got some other tools that will mention today in the webcast. Just want to add that too. Yeah, that's great Point Julian. I think about some other resources that are on the site are also there's a page that actually Compares giving Vehicles like David asked us so it gives you an overview of donor advice funds private Foundation different trust in a really clear way to digest the pros and cons of each vehicle. So certainly encourage people to check that out as well. Okay, let's get into the planning. So we're gonna spend a little bit of time talking about if you're just beginning your philanthropic journey and establishing a philanthropic strategy. And I always suggest to our new donors to take a moment and ask yourself a few questions. Why am I giving? What values have guided my business and how might they guide my philanthropic giving as well? I find that most family businesses. I've worked with are fueled by purpose and optimism. But it can be a really deeply personal question. Determining your core values is really important in understanding your motivations for giving today and in the future. So I think some of the most common things that I've heard from different families is that there is a real desire to give back after they've been the benefit of philanthropy whether it's a scholarship that they've received that really helped them on the right path. Or perhaps they're a grateful patient many people receive Health diagnosis and after having their their life turned around they feel compelled to continue to give back to the hospital or institution that is really helped them Rebound in their life. And then I think one of the other most common things is related to Legacy. Time and time again individuals come to us and share that they've witnessed their parents. And/or their grandparents dedicate their lives to a cause and as a result, it's ingrained in their way of life. So one of the tips that I would suggest is when you're engaging this self-reflection. Think about how to bring other people into the conversation. If you can identify overlapping areas that you want to make a commitment to it will better focus your philanthropic plan. And so I know that we'll be talking about engaging the Next Generation a little bit later, but it is really important to think about different voices different perspectives that can lead to a greater impact over time. Yeah, and I'm really glad that you mentioned impact coming because identifying the impact you want to make is a key part of the process and depending on the tool and the asset that you might be thinking about gifting families corporate entities have the potential to really amplify your impact in a number of ways so part of creating a philanthropic strategy involves identifying if there are any mechanisms or particular vehicles David, you know, you mentioned private foundations donor advise funds. There's other vehicles out there that might give you the best chance to achieve your unique goals and really, you know, I think Direct Cash gifts have been an interesting and popular way to support favorite causes, but you might think about other vehicles as well and that might give philanthropists great or flexibility increased impact over time and the ability to take advantage of tax efficiency certainly and not only Should donors consider how they might execute on that giving strategy What mechanisms they might use but also think about the asset type. So as mentioned donors have the ability to gift cash to charity certainly to Donor advised funds like Vanguard charitable appreciated assets such as publicly publicly traded stocks mutual funds ETFs. And as well as more non-traditional assets, like closely held business interest real estate real assets, you know, considering all of these asset types at your disposal is so important in planning to maximize in that So once the tool and the assets are identified you can then start developing your plan. And you know, you might want to determine the Cadence and amount of giving that works for you in your situations and your specific goals. And this is always important but even more so in light of the current economic environment and you know, we know that many people are unsure about how to establish or maintain a given strategy when there is so much uncertainty and we find it helpful to consider how much Charities are in need, you know evaluate what you can reasonably commit in the near term and what you ultimately want to be able to give in the long term and you know, you mentioned some resources Colleen our charitable planning guides and our resource center and our giving matters guide I think in particular may help you all better understand your motivations for giving and ensure that you make the street take the Strategic approach of making the most impact for you. Yeah, Julie and I would say that it's just really important to keep in mind that your plan is about progress. It's not about perfection and it likely will change over time. I think we all want to feel like we're going to hit our goals year over year, especially if you're applying your business practices to your philanthropic strategy. But know that just like you have to balance your budget every year and you have to shift priorities. You're likely going to do the same with your philanthropy and taking an agile approach to certainly welcome. David I'm curious. Do you have survey results for us? Hi, I'm indeed. We let's see. I'm gonna send these results to the audience, but I'll have to read them to you too. Yes, I'm giving more 28.7% Yes. I'm giving less thirteen point three percent. No, I'm giving the same 48.7% and the I'm not sure category is 13.3% So Those are our results for those of you who are seeing the results on your screen. You just press the X in the upper right corner, and you can remove that from your screen. How to how does that's good? How does this compare with what you find with your current clients? Well David, I'll comment first but I think that because we are a donor advice fund our our donors have the ability to give more we will show you some statistics related to that. But year over year we have seen donors increase their giving as a whole. But you know in my role working directly with families, I am hearing quite a bit that donors are are staying the course, but what might look different is the purpose of their granting. Hmm, perhaps they used to be really specific with the causes that they wanted to support. So whether it was the business school at a college or it was a particular program for an Arts organization. They're making the decision to go unrestricted. They know that the need is really great and they want to trust the leaders of those organizations to make the decision that's best for the funding that year. So I think that when giving the same it's incredible that donors can maintain their giving strategy and priorities but thinking about how to maximize the impact for the grantees and giving unrestricted as a really great way to do that. Definitely and I'll just add I think that these survey results are really encouraging, you know, just to see how much folks are looking to maintain maintain their giving during these uncertain times and those folks are looking to increase their giving and for those in the audience who are still trying to figure it out who aren't sure I think that that's okay as well. You know, you want to be deliberate in executing on your phone throughout the strategy and I think you know, you can take a variety of approaches there, but I think overall these survey results are amazing to see Well, let's dig in just a bit into that idea Colleen of adjusting the giving plan or adjusting that, you know going perhaps to unrestricted. How do those adjustments work within a daffod, you know Donor advised fund environment. How involved is the donor? How involved is there advisement? Great question. So our donors are able to recommend grants as one time grants as we call them. So with each particular request that they're making they have the ability to either restrict our unrestrict the grant so in real time. Our donors can make a decision to Pivot in their strategy and and send those recommendations our way. Now if it's an recurring gift that they have established with the organization with our partnership, then we'll work to basically amend any agreement that might exist to say, you know, we were previously committing funding for this particular area of let's say cancer research but instead we're going to remove restrictions so that you can utilize these funding this funding at your discretion. So it just depends if there is an agreement in place that might need to be altered but that's the beauty of a donor advice fund is that traditionally the majority of our grants are going out as one time in the moment recommendations and the donors are in the driver seat to say here's here's how I'd like this grant to go out and we do see unrestricted support as really something that is top of mind over the past few years. It's a really good point and I'll just add to that David. I think this idea of trust-based philanthropy where our donors are saying. Hey, we trust in the nonprofits. They know how to best utilize the capital that's granted to them is something that I think we certainly encourage but you know, as I said, our donors are doing more often. So this idea of unrestricted gifting is really having our donors show those known profits that they trust what they're doing. It was nonprofits of the experts and they're the ones that know how to really make impact, you know in their given cause area and the work that we're doing on the ground. Fair enough good. Okay. Well, I will come off screen for a little while here and I guess we'll go on to the next slide. Yeah, right. And so we've certainly given some guidance on how you might go about starting to formulate a philanthropic strategy, but we recognize that for those of you with an existing giving strategy. You might be reevaluating, you know, how and when and what you're giving in light of these this current economic environment and we like to start by reminding those of you with the donor advise fund or with another charitable vehicle that you've already earmarked funds for charitable giving and this is one of the powerful benefits of utilizing and giving vehicle allowing you to be both long-term with your strategy while at the same time having the flexibility to respond to changing and unforeseen charitable needs for, you know evolving priorities as well. Yeah, Jolene. So as we said, you know, there's likely going to be a time where you need to evolve your strategy. And well, we think that inflation will likely peak in the near future. I think we're going to be living in inflationary times for a number of years to come. So in order to maintain your commitment to giving you might need to think creatively we did talk about unrestricting your gift which certainly is a way to meet Charities where they're at in their time of need. But you might also think about how you communicate that to the organizations that typically count on your support. When I was a fundraiser, I found it incredibly valuable when a donor would actually pick up the phone or email me and let me know that their plans were shifting. Whether they were giving more or giving less it showed that they really cared about our work and that we could continue the conversation with them. And I think it was also inspiring for the donor that was calling me because I was able to give them real time updates on how we were being great stewards of their funds and the things that we were prioritizing in times of multiple shifting priorities. And I'll share an example with you because I recently had a conversation with one of our donors who inherited a donor advice fund from their parents a few years ago. And use their words they were humbled by the opportunity to give back and continue their parents Legacy. They had witnessed them from the time they were young give their time and their money to organizations. So when the transfer of wealth occurred they decided to stay the course, they knew what was important to their parents and they wanted to continue to make them proud and continue in the tradition of giving But recently their Community was affected by a hurricane and that was when they fully realized the benefits of having a charitable account in this case a donor advice fund. They decided to have a family discussion and their strategy the way they decided to Pivot was to front load several years worth of donations to the Charities that they typically support because they knew they had an incredible need now and they were uniquely positioned to do that. They felt confident that their parents would have likely taken a similar approach if they were still here. And I just thought that was really powerful because many people don't recognize the ability to get creative and the position that they're in to make such an impact when the charitable sector has great need. And then I'll share one more example all the way the Vancouver charitable has decided to think about amplifying our own impact for our donors. And that's where the tool that is really gaining popularity with people that are interested in Impact investing. So it's it's a tool called a recoverable Grant. And I'm going to get a little bit technical to give you the explanation of it. So bear with me but a recoverable Grant is an opportunity to provide grantees with immediate and flexible funding that they wouldn't be able to launch a program without. And the key thing about the recoverable nature is that there is an opportunity that the grantee might be able to return recover recycle the grant dollars to be used for future philanthropic activities. So I'll give you an actual example of a recoverable Grant because I think it'll be helpful to put it in context. But this was with UNICEF and I know UNICEF is likely a household name. I think we can all remember fundraising for Unicef and schools when we were little but UNICEF found themselves in the position where they have the ability to pre-finance covid vaccines. And they had the networks and pipeline to distribute them quickly in the pandemic. But one of the challenges with fundraising is that many times you'll receive pledges for a particular program, but there is a time lag from when you're actually receiving those pledges. And for Unicef they had to act quick in order to purchase the vaccines. So they went out to their donor base which included Vanguard charitable with the concept of recoverable Grant to their Bridge fund. And so we were able to deploy quick Capital that gave them the financing they needed to purchase. And as they collect pledges over time, there is the potential that they would recycle those dollars back to their donors so that they could make additional grants either two UNICEF or to the Charities of their choice. So I think the bottom line is is that there's a lot of opportunity to think creatively in times of uncertainty whether you're exploring a new tool like a recoverable Grant or you're just reaching out to Partners and experts in the sector to say, how can I make my dollars go further? Where's the immediate need? And how can I respond to that? And we're seeing our donors do that in such a tremendous way. Yeah, I think you're right Colleen. It's definitely an opportune time to be creative with the different giving tools you've got available to you. You mentioned recoverable grants, you know, we we've been working on some tools and resources such as our nonprofit a visualizer or Navi which our donors and anyone can actually use to find organizations that are working within covid relief find demographics that are most in need at that time. We have a new iteration of that focused on hunger and homelessness. So our donors are getting creative and we're helping them do that in a variety of ways. So during uncertain Economic Times, you might want to consider the wide range of assets that you might hold as well and determine which might make the most sense to gift tax efficiency standpoint. We encourage our donors to not only be creative and how their gifting but also in considering what they get, right and as mentioned after gifts are popular, Work was supporting Charities. You can certainly claim a deduction with cash gifts. There's some added benefits with appreciated assets, you know, like we mentioned before this idea of publicly traded stocks mutual fund shares, you know donors have the ability to claim the fair market value of an appreciated asset for tax purposes while also foregoing capital gains taxes on a transfer to charity. So we always recommend that folks consult with the tax professional but considering these tax implications for non-cash gifts and often benefit the donor and leverage more impact over time, which I think is really going to benefit those charities in the long run and what might be a particular interest for this audience is the viability of donating what we call complex assets or alternative assets directly to charity or directly to a vehicle like a donor advice fund and more and more of our donors, especially business owners. Are asking about the benefits and potential for gifting these kinds of assets. These complex assets are not publicly traded, you know shares of privately held business, for example, you know could be tax efficient in a viable asset to gift often these kinds of assets have experienced substantial appreciation over time and may make sense to give from a charitable reduction standpoint and most of all could certainly allow donors to enhance the funds that are available for gifting. So again, we always recommend Consulting with an advisor or tax professional to help you understand and consider the viability of different asset types, but we think it's important to at least be aware of these kinds of assets and other potential for impact. and so with that come here questions on this the you know, this the what other kinds of complex assets are there that could be that could be donated in this particular case you mentioned shares of a privately held company, but are there other types? Yeah, so I'd say shares of privately held businesses are a pretty popular option when it comes to complex asset gifts. I mentioned real estate real assets restricted stock is also sometimes an asset that can be gifted to charity. I think there's a wide variety of complex asset types that are out there and you'd be surprised at what you can gift to charity. You know, we take a number of different asset types in house. There are a number of different providers that are out there that's specialized in accepting and taking in and tax substantiating donors for these complex assets. You know, I'll say over the last couple of years. We've also gotten interest from donors in contributing assets like cryptocurrency Bitcoin. I know has been a volatile asset of recent recently, but you know cryptocurrency is also something that we've heard of folks gifting and there is the ability to give that gift. That tax efficiently as well. So again, I would say keep an open mind is a lot of different assets out there. We've named just a few but always Consulting with the tax professionals going to be the best best decision initially. That's a good question. What's interesting is you know, obviously we have the Patagonia example that just seems to be coming up about the idea of so patagonia's owner basically is transferring the entire business over to charity. So not just shares and that which is very interesting approach. It'll remain a b core benefit Corps, but will now benefit Charities designated, how how Common are assets share asset donations. Now are they increasing in commonality are have you seen them grow? Yeah, you know I'd say we at Vanguard charitables the interest more and more every year and I think that it's a knowledge Gap. You know, I think that a lot of folks may have these kinds of assets but we're not aware that they could gift them to charity. They weren't aware of the tax benefits for gifting these kinds of assets. I'd say, you know, our donors are certainly giving cash. Our donors are probably giving appreciated publicly traded assets the most but in terms of these complex assets, we see more and more every year. So I would expect you know more donors to be coming to us with this interest and accepting these kinds of assets more and more. So I only see it growing over time. I would assume as Patagonia executes on this it will increase interest because of just simply this year's size of that. So definitely do you see a time? This may be beyond your ability to answer but where you could take the s*** the 100% of the shares of an operating business and keep it operating and just have the just like Patagonia is doing and have the fun the proceeds. Go to a Donor advised fund. Yeah, that's a that's a really interesting model. And it's definitely a novel model. I haven't seen many businesses doing. You know, it's I'd say we at Vanguard charitable, you know are probably equipped to dealing with more straightforward complex assets and closely held business interests. But you know, I would say with that sort of longer-term hold there are providers that that are out there that can do that and I think Patagonia is probably setting, you know, an example for many of the businesses out there. So there are a lot of creative ways to think about leveraging assets for impact over time and who knows we might get somebody asking us about that but undoubtedly, there will be more creative ways to leverage the value and high value assets for charitable impact over time. So we'll see I'm sure coming up more and more often. Yeah, it's fantastic and I I'll be interested to hear as more people approach you with that. You know what the what the results might be Colleen you talked about recoverable grants and this question came in. How does this work? If you're not if you're not dealing with UNICEF can any Grantee do a recoverable what what are the mechanics of it? Great question. So it really depends on the infrastructure of a nonprofit. Certainly. I don't think that this is going to be a tool that smaller localized, you know, volunteer based organizations would Implement. So I think that it will be something that is really driven by our our large nonprofits in the sector, but But we can go to them with the concept. So if a donor comes to us with with an opportunity that they like to pursue we always take a consultative approach to find out if this is something that that would be a burden to the organization because that's the opposite impact that we're looking for. Right? We want them. The nonprofits to be able to deploy their capital and have it go to the communities that need it. So if they're having to build a You know an accounting system to track a recoverable grant that likely wouldn't be in the best intentions for anyone but I do think that it is a concept many organizations are beginning to explore. We do have some details on our website where you can actually see some of the other organizations one of them that comes to mind is Habitat for Humanity. So they help first time home buyers secure low interest rate loans below market rate loans. And so one of the recoverable grants is focused there which is really appealing to people right now with interest rates where they are so you can explore some different organizations on our website, but certainly there's an organization that we partner with that is an expert in the field. So people can connect with us and we can get them some more details. Thank you. Okay. Well, we'll take you to the the next slide then and I'll get out of the way for a bit. Perfect. Thanks David. So I think this graphic here is a really good example of how Vanguard charitables donors and stepped in during these times of uncertainty and Vanguard charitable and the Harris poll recently conducted some research around giving Trends in the US but giving Trend specific to disaster relief and the research found that nearly 65% of donors gave to a charity that they never donated to before nearly half of those donors doing so in reaction to a recent local National or Global disaster and we continue to see what feels like a never-ending cycle of natural disasters right military conflict social unrest so much as afflicting communities across the world and having the ability to respond in real time and often in the face of this uncertainty, you know, donors are really employing a philanthropic vehicle like a Donor advised fund. To act to send grants and folks that are using these vehicles can do some really amazing things. In terms of the chart here this really illustrates some of our giving Trends over the last few years and I think it really shows that how despite unforeseen crises. Our donors have been able to respond to the short term needs of these nonprofits and hard hit communities and still maintaining a long term vision for their philanthropy. And the last four years have felt pretty unprecedented in terms of the number and magnitude of crises a very various forms, you know, you can see that in 2019 our donors deployed more than a hundred and forty thousand grants totaling 1.3 billion dollars in 2020 our donor sent an incredible amount of support for covid Relief many of those donors utilizing that non-profit Aid visualizer that we mentioned earlier in 2020. Our donors are sending grants for social issues in full totaling 1.7 billion dollars in 2021. They deployed more than 200, Grants for nearly two billion dollars to over 50,000 unique organizations and then through September of this year. The giving from our accounts has really grown substantially, and we've gifted nearly as much as we did in 2019 already this year. So not only has the giving from our accounts grown, but I think this graphic illustrates how grants have been deployed in real time and you can see the increased Grant activity that corresponds with specific disasters, you know, each of the last several years and so far this year. I think Colleen you mentioned our donors have issued more than 60 million dollars for you Ukraine relief and you can see here on this timeline that's spike in gifting towards the beginning of 22 2022 specifically much of that for you. You create relief and more recently. Obviously, we've all heard of the devastating impact of Ian hurricane in you know, that impact is still being felt and assessed but you know, I'm sure our donors will jump into action and adjust they're giving budgets to direct grants to release their as well. Thanks, Julian. This slide is just so powerful to me. It really speaks to how our donors can lean on the power and flexibility and convenience of the giving tool and it's incredible to see the response increase significantly year over year. So one of the the things that you mentioned that I just want to give another highlight to the survey that we ran which I found so interesting was that the poll found that Millennials are giving five times more money than Baby Boomers when it comes to disaster relief. And that 42% of Millennials that gave to charity in the past 12 months were really interested in understanding how their dollars were making an impact. The shows that the younger generation is eager to be philanthropists, but they're also eager for data. This is the the world that we live in that people want to understand the how their dollars are really making a difference and whether or not they need to think differently or pivot in their strategy. So let's go to the next slide which will focus on how to empower and engage the Next Generation. I think that what we've learned in our CF Banker charitable is that when you look at philanthropy through a long-term holistic lens, it really becomes easier to engage the younger generation in your mission. It's a way to reaffirm and reflect on your family's values and share your passions that will encourage others to develop and pursue their own charitable Passions. One of the best things that I piece of advice that I give to many of the families that I work with is to volunteer together. So engaging in a philanthropic activity is incredibly effective and passing down your values through actions and not just words. And I think that this is a wonderful tool for that businesses and corporations to employ as well. If you're Gathering your employees together for a day of volunteering it not only helps to deepen relationships and trust with your employees, but it can foster culture of giving back. So we've seen that not only giving your your funds your Capital to charity makes a difference but thinking about how you contribute your time and contribute your resources and bring other Generations again, whether it's family members or emerging leaders in your business. It Fosters the culture of giving back in a really organic way. And I think David recently family business magazine published in article. I think it was this weeks ago that's highlighting the power of community engagement and it's important to the business entity and the business is key stakeholders. And what was really interesting about that article was the incorporation of this idea of values right Founders who often came from modest means they're looking to instill values that made them and their business successful right looking to instead and still those values within younger and generations and the importance of giving back and instilling that value, you know, really has you know, when when younger Generations perhaps have been raised in a different socio-economic environment given the success of the family business and wealth accumulation over time keeping those values consistent as a key goal for family businesses and Ears and leaders of those businesses. So engaging with these Generations early and often as I think you said Colleen, you know in this idea of philanthropic giving can help carry on both a family and business Legacy that lasts and you know, a recent example that I can give is working with a family business that was looking to step up there philanthropy and I was working with the third gen of that family in setting up a donor advice fund and kind of thinking through how that how that business might execute on its philanthropy. So I've seen sort of businesses look to the younger generation in many regards to sort of that Millennial cohort to lead the philanthropic giving for the business itself and utilizing something like a Donor advised fund a phone dropping vehicle is a great way to do that. So I certainly want to give give that example Scheduling up. Oh, please. Thanks David. I'll add just one one other tip that I have when you talk about the value of giving ironically that is the name of our podcast that we created about two years ago, and I'm not sure if we have anyone in the audience that is a podcast Enthusiast, but I've been really, you know, getting my parents into listening to podcasts and I've heard other families tell me that they've utilize the podcast to Thomas replicate a book club, so they're sharing the podcast with their family members or their their colleagues and thought Partners to have a conversation about what What they're hearing whether it's an organization that we've brought on as a special guest for the podcast or we're talking about, you know, our recoverable grants offer or our investment offer and how that maximizes your philanthropy. It's a way to engage in expert and really just cultivate a conversation with those that you're looking to leave your legacy with. You may have pointed some answers to this question. But as you're engaging and empowering the Next Generation what what happens if the two generations don't really see eye to eye on values and causes what what are some ways in which families can kind of navigate that do you find that to be something that you're seeing a lot or you know, where what the parents want is different from what the children want. Family Dynamics certainly can have their highs and lows at time. So I I don't think it's uncommon to at times. Not a great on your focus and your core values, but I think that comes to the the early steps that we outlined of self-reflection. What is impacted you in your life and many times when you're talking to the different Generations? They will comment on some early early insights that have really left a mark on their life and their values whether it was. you know going together to Sponsor a family around the holidays and talking about others that are less fortunate whether it was you know, so many families tell us that they sit around the table at Thanksgiving and that's really the the Catalyst for coming together and talking about the ways that their family might give back again, whether it's with their time or their money. So trying to really get back to those fundamentals, you know, grandparents have huge influence on both generations to say, you know, what would grandma do what would grandpa do with if you were still here leading this conversation and they tend to find common ground when they can really take it back to the basics. But when in doubt pulling a partner pull in an expert get it a third party to join the conversation and help to facilitate some dialogue because outside perspective can make a difference and then I'll just I'll just add to that coming. It's a great point, I think. Another thing that we often encourage, and we've mentioned a giving guide. Several times in our today is this idea of not just thinking about what your values are and where you might find common ground, but actually write it down. You know actually having a document that you can refer back to where folks can speak openly and get their ideas down, you know oftentimes, I think that's solidifies a plan in many regards. But like you said Colleen, I think you often find common ground when you really get your ideas down and can reflect back on them over time. So that's something that we would also encourage. Colleen there was a question that came in. So let's give another chance to pitch that podcast. What's the name of the podcast? And where is it available? It is available wherever you get your podcast, so I know that I typically just listen right from my iPhone, but I think it's on Spotify and a few other platforms, but it's called the value of giving and go to our website. Thank our charitable.org and you can find it under the resource section as well. Excellent. Okay, I'll get out of your hair. We have eight minutes to go. I know we got a couple more things to talk about. Yep, just a couple more things. And if you could go ahead and move to the next slide David sort of continuing on with this idea of impact and I think this slide here in this visual really illustrates the power of a philanthropic vehicle like a donor advise fund and you know, in terms of thinking about a donor advice fund is a long term vehicle. You want to consider how might you leverage investing how much you amplify impact over time right and keep in mind you want to be thinking about how you execute on your personal philanthropy or your corporate philanthropy both now and in the future and even consider what your plan might be beyond your lifetime, right? So what kind of charitable impact a single 500,000 donation into a deaf make over 20 years. So this example here assumes that 500,000 has been invested with an investment allocation 80% stocks and 20% Bonds, this particular account is renting 5% of these assets every year to various Charities and it assumes a return of 8% growth the darker green portion of this graph represents that the changing account balance over that 20 year period the lighter green portion of the graph represents the additional Grant dollars that the Investments of generated over time and in this particular example, the single single 500,000 contribution yielded over five million dollars in shirtle Impact over the longer term. So each philanthropic strategy May incorporate different granting plans different investment allocations, but consider the long-term potential of this example how might you know your long-term plan. Effect the incorporation of other of younger Generations into a business or a family's long-term. So what is your family or business is giving look like 20 years from now what might leave for future Generations when it comes to philanthropic capital or hunt you involved in now in order to respond to allocate those care assets down the line. I think on our next slide we have a list of resources. And that we certainly encourage folks to folks to look at. Yes, I know that we are running up against time. But I will I will leave you with. One final suggestion of you know, whether you're starting your philanthropic strategy or you're looking to maintain it and get creative with the resources that you have. It's really important to to think of your strategy like you would with any business plan. Be purposeful set goals think of your time Horizon and make sure that you're challenging yourself to drive for results and whatever that means to you personally to you your family do what aligns with your core values. So we have a ton of resources on our website as you see here many of them. We've we've discussed already, but I encourage you to think as Julian said, you know, sometimes just writing it down putting pen to paper. Really allows you to be more reflective and thoughtful in the approach that you want to take for short-term and long-term giving. Excellent. Well that actually ties in wonderfully to to the question that I've been holding on to here because you were talking about writing the plan down. But how important do you find it for families to create giving mission statements or having having in you said write it down but really the full strategic plan and and what kind of examples of missions have you seen or straight strategic plans in short. Yeah, I can add my perspective there. So I think that having a mission statement is a great exercise. If you're choosing a private Foundation, you likely, you know, that will be a requirement when you think about your funding areas, but with the donor advice fund you have the flexibility to create a plan create a mission statement and and allow it to be flexible and evolved over time. But particularly tying it back to the question. You asked before around what if the generations aren't aligned. It's a challenges you to really find common ground and it can be brought. So perhaps the focus of a family's mission is that they want to impact their the Philadelphia area to Foster arts and culture. In the area, it can be extremely broad. You know, maybe one person is is a modern art Enthusiast and the other one is, you know wants to support the orchestra. Well you you can do both and they're both really crucial to the the Arts world of any City and but you can be more specific. I think we find that if organizations have incredible wealth and they're receiving a lot of inquiries from nonprofit can be overwhelming for people. So developing specific interest interest areas and really diving into those details help them to just be more strategic with their time and their requests and their relationships that they're building with nonprofits. So it's a personal decision, but it is an exercise that can be really valuable and how you maximize your time and resources. Julian any thoughts on that? No, I think that I think that's exactly right, you know the idea of getting it down understanding what your your strategy is going to be allows you to be more focused and I folks it get a lot of solicitations from nonprofits too having a mission statement and understanding where you're giving is intended to go also sometimes allows you to say no, you know allows you to say I have this earmarked for a particular gift or even allows you to budget. So, you know how much you might want to get to on, you know, unsolicited requests and so forth. So that's what I had there. Fantastic. Well, it's been a real pleasure having both of you on today's webinar. It's been very very informative and I thank you very much for the time and effort that you put into this. I'd also like to thank our audience for being with us today. It's always great to have you join us for a webinar, and as I noted a copy of this presentation will be emailed to you soon. We'll have a replay of the webinar available so that you can share this with family members and just as a note we will be exploring more issues related to Legacy and family Dynamics at our upcoming transitions fall conference out in Marina, Del Rey, California. It's next month, November 2 through 4. I hope you'll join us if you have the chance. We're really pleased to be back in person. Again, if you have any questions about this topic or any other topics, please feel free to reach out to me at family business magazine. And with that. I wish everyone a wonderful day. We'll see webinar

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