Our Work with Professional Advisors

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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

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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

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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.

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How Individually Managed Fits In

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Growth in Individually Managed Funds

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

50000000

100000000

150000000

200000000

250000000

300000000

350000000

400000000

• Bullet information hereDonor

• May recommend an investment option

• May recommend an External Investment Advisor

• May recommend grants from the fund

Who Does What

• Bullet information hereExternal 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

• Bullet information hereFoundation 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

• Bullet information hereInvestment 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

• Bullet information hereBoard

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

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Initial Due Diligence

Request for Information Questionnaire

Review of Advisor’s SEC Filing

Investment Policy Statement signed by Advisor

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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

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Success

Individually Managed funds as

percentage of total asset size Average size of new funds

2000 20130%

10%

20%

30%

40%

50%

60%

% of assets in IM

% of assets in IM

2000 2013$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

Average New Fund Size

Average New Fund Size - excludes $104 million gift in 2013

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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

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How we do it

Meet one on one with advisors in community

Part of organizations –Georgia Planned Giving CouncilAtlanta Estate Planning CouncilGeorgia Society of CPAsGeorgia Financial Planning AssociationFinancial Services ProfessionalsAtlanta Bar, Georgia Bar

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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

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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

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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

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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

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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 donors86 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 2007175 A list and 1,822 B list professional advisors

7 % of A list professional advisors with personal funds at TCF1700 subscribers to PGDC website

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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)