Southeastern Bible College Board Presentation
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Transcript of Southeastern Bible College Board Presentation
Southeastern Bible College09/22/2011
Capital v Cash
Public Se-curities
Private Stock
Real Estate Bonds Cash Equivalent
$1M : $2M
16.8 8.5 18.1 8.8 7.5
$5M : $10M
23.6 15.8 15.1 12.4 4.1
$10M+ 26.4 28.3 11 12.4 2.3
2.57.5
12.517.522.527.5
Millionaires' Five Largest Asset Classes
Perc
en
tag
e o
f N
et
wo
rth
Source: Estimates from MRI database and IRS data.Assets excluded: Equity in personal residence(s); corporate bonds; foreign bonds,; net value of life insurance; savings bonds; equity in motor vehicles; collectibles; and personal property.
Capital Allocation
Disposable Income
Disposable Income = Gross Income – Personal Taxes
ie. Consumption + Saving= Disposable Income
Discretionary Income
Gross income - Taxes - Necessities=Discretionary Incomeie. AGI – Lifestyle – Dependents=Discretionary Income
Cash v. Capital Cultivation
Mission
Human
Capacity
Financial
Edifying Short-term Support…Insuring Long-term
Sustainability…
SHORT-TERM DILEMMA:CULTIVATION OF HUMAN ENDOWMENT
2 Responsibilities of Advancement:
1,000 Donors 10%/yr=1,100 Donor Households
and/or1,000 Donors @$1,100/yr=$1,100,000 Support
Attrition Rate @20%/yr
1,000 Donors 20%/yr=800 Donors
and/or$1,000,000 Support=$800,000
LONG-TERM SOLUTION:CAPITALIZATION OF HUMAN ENDOWMENT
2 Opportunities for Advancement:
Gifts of Capital
and/or
Gifts of Estates
$10,000,000 Capital @10%=$1,000,000
Institution Individual
Addressing the Market Place
Institution
Giver
Fundraising
Qualified
Limited
Wants
Individual
Investor
Service
Everyone
Complete
Win-Win
Agenda
Approach
Audience
Access
Attitude
Ask
Protection
Problems
Property
Posterity
Providence
Perceived Needs
“Where the ‘odds’ are with you.”
Stick Figures, Boxes, and Arrows