Fairlane Club
Registration:
Practical Track
Technical Track
3 sessions scheduled from
Preparing
for perpetuity: how to align investments, distributions, and goals within a
private foundation (Presenter: Brian Wodar)
A
foundation represents a powerful commitment to do charitable good. Our research
provides guidance for potential donors on:
·
Comparing the benefits of a
foundation with those of other charitable alternatives
·
Establishing a family philanthropic
legacy without compromising personal lifestyle
And
for directors and trustees, our research provides guidance on:
·
Identifying asset-allocation and
gifting policies that best match charitable objectives
·
Determining whether “perpetuity” is
a realistic goal
·
Managing the trade-offs among asset
growth and the amount and stability of distributions
Dimensioning
the power of a charitable remainder trust: how to optimize the trust’s term,
payout structure, and investing to the maximum benefit of all beneficiaries (Presenter:
Heather Tanguay)
Charitable
remainder trusts are an attractive vehicle for many wealthy families, but they
can be fraught with financial complexities. Our research demystifies the moving
parts of these trusts and provides new insights, some of which may challenge
conventional wisdom:
·
The highest allowable payout may not
result in the greatest long-term personal wealth
·
Higher equity allocations should
maximize wealth over time; but when combined with high payout, risk escalates
·
Municipal bonds generally produce
greater after-tax payouts, particularly in the early years
A
quantitative framework that assesses what assets to contribute, how to set the
payout rate, and which asset allocation to select is not only useful, but
imperative.
Developing
sound investment management and asset allocation policies for foundations and charities (Presenter:
Richard Meyers)
Fiduciaries of nonprofits,
foundations, and endowments have many responsibilities, but key among them are
defining an overall investment plan that serves the organization’s charitable
objectives, arriving at a prudent asset allocation that best supports these
goals, and determining what level of giving is sustainable without eroding the
real value of the portfolio. We will discuss how directors and trustees can set
investment objectives to create a sound investment plan. Among the questions
that we will explore are:
·
What is the best process for
selecting a combination of asset classes to limit a portfolio’s potential
short-term losses while generating long-term gains?
·
How do changes in asset allocation
affect the probability of meeting objectives?
·
What factors need to be weighed in
order to determine a sustainable level of distributions?
·
What is the impact of rebalancing
between asset classes and managing assets on long-term wealth?
Is it possible for a nonprofit organization
to achieve financial stability? If so,
what role does charitable gift planning play in the process? This discussion will explore ways for a
nonprofit organization to achieve financial stability and how raising funds
from the “other pocket” will help to secure its long-term financial
sustainability.
Given
the uncertainties of the capital markets and life’s twists and turns, retirees
want assurance that they’ll be able to maintain their lifestyle should they
decide to gift to charity during their lifetime. Planning is necessary to
negotiate the rough patches—whether measured in stock market downturns,
inflationary spikes, or sudden change in personal circumstances. We’ll
highlight the following to determine one’s gifting capacity and share a case
study:
·
How much you’ll need for a comfortable retirement
·
Why spending rate will drive all your other decisions
·
When to ratchet down your portfolio’s risk level with bonds
·
How “excess” capital creates an opportunity for gifting
Get ready for a philanthropic
revolution. The evolution of a revolution of more than 38 million
boom-generation women, the first of which turned age 60 as they made their 2006
New Year resolutions. According to statistical research, a member of the boom
-generation cohort peer group born between 1946 and 1964 will celebrate a 60th
birthday every seven seconds for the next 19 years. And over half of them are
women. Boom-generation women make up 51% of the 77 million boomers who
historians William Strauss and Neil Howe in their book “Generations” define as
a “generation with a common perceived membership and a common call to destiny.”
A common call to destiny magnified in the ‘60's Cultural Revolution and echoed
in Betty Freidan's writings and Bob Dylan's lyrics. A cultural revolution led
by impatient, passionate and defiant boomers who rallied as Dylan wailed “These
times are a-changing.”
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