A Look Back A Look Ahead - Seattle Foundation Services
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The document outlines Seattle Foundation's services, pricing, and investment options. It discusses moving from limited offerings and unclear impact to being responsive, having value-based pricing, and clearly communicating impact. Services include lifetime and legacy philanthropy as well as organizational services. Pricing is now based on usage and reduced for lifetime philanthropy. Investment options include short, intermediate, and long-term pools along a risk/return continuum.
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A Look Back A Look Ahead - Seattle Foundation Services
- 1. New Choices in Services, Pricing and Investments ALookBack,ALookAhead
- 2. Agenda WELCOME A LOOK BACK,A LOOKAHEAD | Tony Mestres INVESTMENT GOVERNANCE | SteveHill INVESTMENT PERFORMANCE | BrianCrawford CONVERSATION AND WHAT’SNEXT | Tony, Brian& Fidelma
- 4. 1billion in total investment in Greater Seattle since 1946 $100m 2015 Grants $100m Gifts $
- 6. As yourcommunityfoundation,we are a vocal andengagedleader incommunicating,conveningand catalyzingcollective actionthat positivelyimpactsthepeopleof GreaterSeattle. Deliveredthrougha systematicapproachofphilanthropic planningandexecution,our expert counselandsupportelevatesyour philanthropyfrom transactionalcheck writingto transformative socialinvestment. Our deepinsightandauthentic connectionto ourcommunitiesandnonprofit organizationsprovideproven, actionableapproachesto effectively guideyourphilanthropicinvestments. Asarespectedfiduciaryofourcommunity’s charitablefundsfor70years,Seattle Foundationprovidesprincipledoversight andinvestmentofyourphilanthropicassets tosupportyouinachievingyourlifetimeand legacygivinggoals. HEART SCIENCE the ofphilanthropy &
- 7. A Look Back… Limited Service Offerings Perceived As Costly Limited Investment Choices Unclear Community Impact
- 8. …A Look Ahead Responsive and Personalized Services Sharp, Value-based Pricing Broader Investment Options Communication of Impact & Leadership
- 10. Lifetime Philanthropy COMMUNITY PHILANTHROPYFUND Usingthestructureofadonoradvisedfund,and includingphilanthropicadvising,community insightsandjudiciousstewardshipofassets FAMILY FOUNDATION Engagingfamilymembersacross generations,providingadvisoryboard support andaccesstoexclusive multi-genresources Legacy Philanthropy BEQUESTS Createalastinglegacyto maximizetaxbenefitsandsupportthecausesand organizationsyoucareabout.Bequestsaregifts madethroughyourestateplan,whichcaninclude thetransferofvariousassettypes. PLANNEDGIVING Providingachanneltogivethrougha charitabletrust orotherlegalstructuretoaccomplishyour personalfinancial&philanthropicgoals OrganizationalPhilanthropy CORPORATE FOUNDATION Offering a giving fundstructuredto create a more strategic andstreamlined philanthropic program thataligns with yourbusiness goals AGENCYENDOWMENTS Providinga permanently endowed or quasi-endowed fundmanaged onbehalf of a nonprofitorganization Specialized Services GLOBAL GIVING Support forglobalcauses andgivingtonon- USbasedNGOs IMPACT INVESTING Investing capital forspecialprojects fromyourphilan- thropicfunds SCHOLARSHIP FUND Benefitingstudentsby givingtoascholarship fundthatalignswith your prioritiesandisdesigned toyourspecifications SUPPORTING ORGANIZATION Creatinga501(c)(3) entityaffiliated withSeattleFoundation withaseparategoverning boardofdirectors
- 11. Specialized Services GLOBAL GIVING Support forglobalcauses andgivingtonon- USbasedNGOs IMPACT INVESTING Investing capital forspecialprojects fromyourphilan- thropicfunds SCHOLARSHIP FUND Benefitingstudentsby givingtoascholarship fundthatalignswith your prioritiesandisdesigned toyourspecifications SUPPORTING ORGANIZATION Creatinga501(c)(3) entityaffiliated withSeattleFoundation withaseparategoverning boardofdirectors Lifetime Philanthropy COMMUNITY PHILANTHROPYFUND Usingthestructureofadonoradvisedfund,and includingphilanthropicadvising,community insightsandjudiciousstewardshipofassets FAMILY FOUNDATION Engagingfamilymembersacross generations,providingadvisoryboard support andaccesstoexclusive multi-genresources Legacy Philanthropy BEQUESTS Createalastinglegacyto maximizetaxbenefitsandsupportthecausesand organizationsyoucareabout.Bequestsaregifts madethroughyourestateplan,whichcaninclude thetransferofvariousassettypes. PLANNEDGIVING Providingachanneltogivethrougha charitabletrust orotherlegalstructuretoaccomplishyour personalfinancial&philanthropicgoals OrganizationalPhilanthropy CORPORATE FOUNDATION Offering a giving fundstructuredto create a more strategic andstreamlined philanthropic program thataligns with yourbusiness goals AGENCYENDOWMENTS Providinga permanently endowed or quasi-endowed fundmanaged onbehalf of a nonprofitorganization Lifetime Philanthropy COMMUNITYPHILANTHROPYFUND Using the structure of a donor advised fund, and including philanthropic advising, community insights and judicious stewardship of assets FAMILYFOUNDATION Engaging family members across generations, providing advisory board support and access to exclusive multi-gen resources
- 12. Specialized Services GLOBAL GIVING Support forglobalcauses andgivingtonon- USbasedNGOs IMPACT INVESTING Investing capital forspecialprojects fromyourphilan- thropicfunds SCHOLARSHIP FUND Benefitingstudentsby givingtoascholarship fundthatalignswith your prioritiesandisdesigned toyourspecifications SUPPORTING ORGANIZATION Creatinga501(c)(3) entityaffiliated withSeattleFoundation withaseparategoverning boardofdirectors Lifetime Philanthropy COMMUNITY PHILANTHROPYFUND Usingthestructureofadonoradvisedfund,and includingphilanthropicadvising,community insightsandjudiciousstewardshipofassets FAMILY FOUNDATION Engagingfamilymembersacross generations,providingadvisoryboard support andaccesstoexclusive multi-genresources Legacy Philanthropy BEQUESTS Createalastinglegacyto maximizetaxbenefitsandsupportthecausesand organizationsyoucareabout.Bequestsaregifts madethroughyourestateplan,whichcaninclude thetransferofvariousassettypes. PLANNEDGIVING Providingachanneltogivethrougha charitabletrust orotherlegalstructuretoaccomplishyour personalfinancial&philanthropicgoals OrganizationalPhilanthropy CORPORATE FOUNDATION Offering a giving fundstructuredto create a more strategic andstreamlined philanthropic program thataligns with yourbusiness goals AGENCYENDOWMENTS Providinga permanently endowed or quasi-endowed fundmanaged onbehalf of a nonprofitorganization Legacy Philanthropy BEQUESTS Create a lasting legacy to maximize tax benefits and support the causes and organizations you care about. Bequests are gifts made through your estate plan, which can include the transfer of various asset types. PLANNEDGIVING Providing a channel to give through a charitable trust or other legal structure to accomplish your personal financial & philanthropic goals
- 13. Specialized Services GLOBAL GIVING Support forglobalcauses andgivingtonon- USbasedNGOs IMPACT INVESTING Investing capital forspecialprojects fromyourphilan- thropicfunds SCHOLARSHIP FUND Benefitingstudentsby givingtoascholarship fundthatalignswith your prioritiesandisdesigned toyourspecifications SUPPORTING ORGANIZATION Creatinga501(c)(3) entityaffiliated withSeattleFoundation withaseparategoverning boardofdirectors Lifetime Philanthropy COMMUNITY PHILANTHROPYFUND Usingthestructureofadonoradvisedfund,and includingphilanthropicadvising,community insightsandjudiciousstewardshipofassets FAMILY FOUNDATION Engagingfamilymembersacross generations,providingadvisoryboard support andaccesstoexclusive multi-genresources Legacy Philanthropy BEQUESTS Createalastinglegacyto maximizetaxbenefitsandsupportthecausesand organizationsyoucareabout.Bequestsaregifts madethroughyourestateplan,whichcaninclude thetransferofvariousassettypes. PLANNEDGIVING Providingachanneltogivethrougha charitabletrust orotherlegalstructuretoaccomplishyour personalfinancial&philanthropicgoals OrganizationalPhilanthropy CORPORATE FOUNDATION Offering a giving fundstructuredto create a more strategic andstreamlined philanthropic program thataligns with yourbusiness goals AGENCYENDOWMENTS Providinga permanently endowed or quasi-endowed fundmanaged onbehalf of a nonprofitorganization Organizational Philanthropy CORPORATEFOUNDATION Offering a giving fund structured to create a more strategic and streamlined philanthropic program that aligns with your business goals AGENCYENDOWMENTS Providing a permanently endowed or quasi-endowed fund managed on behalf of a nonprofit organization
- 14. Specialized Services GLOBAL GIVING Support forglobalcauses andgivingtonon- USbasedNGOs IMPACT INVESTING Investing capital forspecialprojects fromyourphilan- thropicfunds SCHOLARSHIP FUND Benefitingstudentsby givingtoascholarship fundthatalignswith your prioritiesandisdesigned toyourspecifications SUPPORTING ORGANIZATION Creatinga501(c)(3) entityaffiliated withSeattleFoundation withaseparategoverning boardofdirectors Lifetime Philanthropy COMMUNITY PHILANTHROPYFUND Usingthestructureofadonoradvisedfund,and includingphilanthropicadvising,community insightsandjudiciousstewardshipofassets FAMILY FOUNDATION Engagingfamilymembersacross generations,providingadvisoryboard support andaccesstoexclusive multi-genresources Legacy Philanthropy BEQUESTS Createalastinglegacyto maximizetaxbenefitsandsupportthecausesand organizationsyoucareabout.Bequestsaregifts madethroughyourestateplan,whichcaninclude thetransferofvariousassettypes. PLANNEDGIVING Providingachanneltogivethrougha charitabletrust orotherlegalstructuretoaccomplishyour personalfinancial&philanthropicgoals OrganizationalPhilanthropy CORPORATE FOUNDATION Offering a giving fundstructuredto create a more strategic andstreamlined philanthropic program thataligns with yourbusiness goals AGENCYENDOWMENTS Providinga permanently endowed or quasi-endowed fundmanaged onbehalf of a nonprofitorganization Specialized Services GLOBAL GIVING Support for global causes and giving to non-US based NGOs SCHOLARSHIP FUND Benefiting students by giving to a scholarship fund that aligns with your priorities and values and is designed to your specifications SUPPORTING ORGANIZATION Creating a 501(c)(3) entity affiliated with Seattle Foundation with a separate governing board of directors IMPACT INVESTING Investing capital for special projects from your philanthropic funds
- 15. Incubators & Accelerators Working with philanthropists, public sector and private sector partners to incubate community impact initiatives.
- 18. CompetitiveValue-basedPricing Based on service usage Reduced up to 33% for Lifetime Philanthropy Optional add-on specialized services Standardized minimum fund size COMMUNITY INVESTMENT FEE:
- 20. Investment Continuum Short-TermPool IntermediatePool Long-TermPools: Balanced • Index • Socially Responsible Investment Pool Growth Pool SHORT-TERM GIVING HORIZON lower risk | lower returns LONG-TERM GIVINGHORIZON higher risk | higher returns Cash Equities Investment Fee by Pool Option Investment Partners
Editor's Notes
- Welcome Thank you for coming; great turnout Pleased to see such strong interest in how that Foundation performed in 2015 and what we planned for 2016. Investment Briefing – One Dimension vs. All Dimension of SeaFdn relationship First product and service evolution for Seattle Foundation in a decade, maybe ever.
- Our plan is to give you time for lunch and conversation Around 12:15, we will begin our program which has four parts: I will present the value proposition and services portfolio Steve Hill, our Investment Committee Chair, will follow with an overview of our investment governance Brian Crawford, (title) Colonial Consulting, will talk about our new investment options and report on 2015’s performance Then, Fidelma McGinn, our Vice President of Philanthropic Services will join Brian and me for a short Q&A. For now, please enjoy your lunch.
- Some of you joined us in November when we unveiled the new Seattle Foundation, including our positive community impact strategy which is embodied in what we call “The Heart and Science of Philanthropy.” We pride ourselves as champions of the heart and practitioners of the science of strategy philanthropy. Seattle Foundation’s mission is to ignite powerful, rewarding philanthropy to make Greater Seattle a stronger, more vibrant community for all. Proud partner with more than 1,200 philanthropists, hundreds of professional advisors and nearly 2000 nonprofit organizations in carrying out this mission
- Every member of Seattle Foundation’s team has a constant and passionate focus on the positive impact we, our philanthropists and our partners, have on the community around us. This young man is exemplary of that and has been impacted by JazzED, an amazing organization that does…..nonprofit music education program…….. While that impact is our north star, our discussion today really focuses specifically on our value proposition to philanthropists and professional advisor partners, as well as our investment performance and strategy. I wanted to tell you that because I didn’t want you to think I missed the plot. Through our partnership with thousands of organizations and philanthropists for the past 70 years, we’ve now invested $1 billion in our community. Early gifts from Seattle Foundation supported development of Swedish Hospital and the construction of Overlake Hospital on the Eastside – today we invest in significant efforts across our healthy community framework (list elements) Last year, we granted $100 million including $16 million through GiveBIG and secured $100 million in new gifts to the foundation– which represents a tripling of our annual new gifts growth rate, giving us confidence that we are on the right path in truly living our mission and serving philanthropists and all our partners.
- Over the last year or two as we carefully considered the changes we might make, we worked hard to carefully listen to feedback from across the community. We consistently heard a number of critical questions that have helped inform some of the evolutions you see us making. We heard questions like: At this momentous time for the Seattle region, what role could Seattle Foundation have as a leader in our community? What is the benefit of my working with Seattle Foundation versus other commercial options? How should I think about your fees and what I get for that price? How can Seattle Foundation work with professional advisors more effectively? What impact is Seattle Foundation having? How can Seattle Foundation be more relevant to the next generation of philanthropists who highly value data, have interest in impact investing and care about our local community and our global community. The new choices in services, pricing and investments are the result of what we’ve heard from our partners. The feedback centered on many themes…. Heard a great deal of respect for SeaFdn and our impact in the community Heard from philanthropists that they were less clear on the value of our services and how to maximize the benefit of their partnerships with us. Heard about the great opportunity there is for us to be a leader in community, at this momentous time for our region. This feedback and much more shaped the changes we are sharing today and the value we offer through “The Heart and Science of Philanthropy.”
- I almost never read slides, but the words here were carefully chosen to clearly communicate Seattle Foundation’s value in our community. Powerful Civic Leadership As your community foundation, we are a vocal and engaged leader in communicating, convening and catalyzing collective action that positively impacts the people of Greater Seattle. Effective Philanthropic Advising Delivered through a systematic approach of philanthropic planning and execution, our expert counsel and support elevates your philanthropy from transactional check writing to transformative social investment. Deep Community Insight Our deep insight and authentic connection to our communities and nonprofit organizations provide proven, actionable approaches to effectively guide your philanthropic investments. Judicious Stewardship of Assets As a respected fiduciary of our community’s charitable funds for 70 years, Seattle Foundation provides principled oversight and investment of your philanthropic assets to support you in achieving your lifetime and legacy giving goals.
- However, we learned that we weren’t being as effective as we could be in defining and expressing that value. We had: Limited Service Offerings Uncompetitive Pricing Few Investment Choices Unclear Community Impact We are proud of the impact Seattle Foundation has had and the approach we have taken in the past, but these are critical and changing times where the needs of our communities, our philanthropists, and our partners have evolved. And we are evolving with them.
- We look ahead with a fresh perspective on our role in the philanthropic landscape here in Greater Seattle. Today, we introduce: Responsive and Personalized Services We are meeting philanthropists where they are, recognizing the needs of a self-directed philanthropist are different than those of a multi-generational family. Sharp, Value-Based Pricing As many of the business people in this room know, the judgment of price is a function of the judgment of value and we worked hard to align those in our new services portfolio. Broader Investment Options Philanthropists are on different timelines for their giving and have different tolerance for risk, so we’re adding new investment options. Communication of Impact & Leadership Seattle Foundation is leaning forward and having increasingly powerful impact in critical areas from education achievement to economic inclusion and vibrant communities. We’re taking many steps to lean in and be a stronger voice for equity and opportunity.
- I’ll start by outlining our services –
- There are four categories of service available to philanthropists from Seattle Foundation. (List them) Across these four categories, we offer 10 specific and targeted services, 4 of which (specialized services) are add-on options to your core service choice. You’ll be able to select – and pay for – the level of service you need, based on your philanthropic goals and strategies. Let’s briefly walk through each category.
- Lifetime Philanthropy – for those who wish to “do their giving while they are living” We offer the Community Philanthropy Fund For philanthropists who want an efficient channel for their philanthropy This is a streamlined, straightforward Donor Advised Fund. Includes a personal Philanthropic Advisor, access to our community knowledge and judicious stewardship of assets and fund administration. Family Foundation Recognizing there are philanthropists who seek a deeper level of consulting around family philanthropy and multi-generational engagement, we developed the Family Foundation with expanded services in these areas.
- We are honored that many families who partner with Seattle Foundation for their lifetime giving trust us to steward their charitable assets through their estate plans. Legacy Giving includes both bequests and planned gifts, such as charitable remainder trusts and charitable lead trusts. We currently have more than $100 million in documented bequests to Seattle Foundation, a number that grows each year, as well as indications of another $100 million in additional bequests. Our expert gift planning and legal team are a valuable resource to advisors and partners in exploring the most impactful and tax-wise giving channels. I will also note that across lifetime and legacy philanthropy, Seattle Foundation is increasingly known as an organization that can work with philanthropists and their advisors on complex and nonstandard scenarios.
- Organizational philanthropy serves our partners in the business and nonprofit sectors. We manage 15 corporate foundations across all sectors These philanthropically minded companies include startups such as publicly-traded Tableau Software to family-run businesses like Taco Time NW, now being led by the fourth generation of the Tonkin family. We support these companies in aligning their philanthropic programs with their overall mission and strategy. For our nonprofit partners, we manager 65 agency funds and are very proud to manage the almost $150 million endowment of United Way of King County. An arrangement conceived of by Bill Gates, Sr., this endowment allows United Way to invest 100% of donations into the community. The relationship as a trusted steward of philanthropic assets is yet another way – beyond that of a grantmaker – that we support nonprofits.
- Under Specialized Services, we offer four unique opportunities for philanthropic investment: Global Giving: Support global philanthropic investment through US-based nonprofits and non-US NGOs. Very proud of our partnership with Seattle International Foundation Impact Investing: Impact investing refers to investments made into organizations with the intention to generate a measurable, beneficial social or environmental impact, alongside a financial return. Seattle Foundation has made impact investing a first-class citizen of our services portfolio. Excited to increase our capacity to support impact investing through partnerships with Threshold Group and Canopy. Scholarship Funds: We manage nearly 50 scholarship funds and award $1 million a year Supporting Organization: A supporting organization is similar to an operating foundation which, while its own 501(c)3, also receives support through its ties to Seattle Foundation.
- Beyond our four categories of service, I wanted to make sure that we also call out our role as a critical incubator and accelerator of collective impact efforts in our region. What you see are some of those efforts that we are particularly proud of, all of which had their genesis here at Seattle Foundation. We serve as fiscal sponsors for many organizations, including Skill Up and Yesler Community Collaborative. We incubated our philanthropic partners, Washington Women’s Foundation and Social Venture Partners, as well as many nonprofits including The Roadmap Project. I’m very excited we will incubate the Seattle Region Partnership, a public/private sector effort to align existing economic development, workforce development and education efforts to increase middle-income jobs. All of these services are embedded with our value proposition: Powerful civic leadership, effective philanthropic advising, deep community insight, and judicious stewardship of assets.
- I’d like to spend a minute talking about fees.
- Simplify – Over the past year, I’ve learned there are two points of view on our fee. Some philanthropists, including some in this room, view their fee as investment in the community. This point of view recognizes the community foundation’s leadership role as a catalyst, convener and communicator on issues of community need. Some philanthropists view their fee as an administrative cost. We want to honor both points of view and be competitive in the marketplace, while recognizing Seattle Foundation’s unique value proposition and our differentiation as one of the largest public charities in the state of Washington, rather than a commercial enterprise.
- Our new pricing is specified in the packet of materials you’ll leave with today and I’d like to share these highlights. Our Community Investment Fee: Is based on service usage Reduces pricing up to 33 percent for Lifetime Philanthropy services Has optional add-on specialized services Standardizes minimum fund size
- Investment options are another element of your partnership with Seattle Foundation. We’ve studied our investment options and costs a great deal over the last year, under the guidance of Steve Hill, Chair of our Investment Committee. What’s become clear to us is that Seattle Foundation needs to offer investment choices that match your goals and preferences, and are competitive with the offerings of other financial firms. Further, increasing the diversity of our investment choices is essential to prudent risk management for the Foundation, as we seek to support our individual philanthropists, who have plans and goals for these funds.
- Short/Bullet We will now offer investment choices across the risk-return continuum, not just the Balanced Pool, which is designed for investment of a long-term endowment. You’ll now have more choices, including a Socially Responsible Investing Pool and a passively managed Index Pool. Brian Crawford will shortly walk you through each of the six pools now available. I’ll note that investment management fees will now vary, based on the pool chosen. We will meet with each of the philanthropists and nonprofits we work with over the course of the next few months to determine the best investment pool for you. Finally, we appreciate that many of you prefer a holistic approach to your investment management and want your charitable funds invested under the same oversight as your other assets. We welcome the opportunity to engage your manager as a Seattle Foundation Investment Partner for your fund.
- Advisors from nearly 20 firms are Investment Partners with Seattle Foundation and these partnerships are extremely beneficial. This is a sampling of our current partners, some of which manage multiple funds in partnership with us. Susan Peterson, our new Director of Philanthropic Partnerships, is a former Wealth Manager and Estate Planning Attorney and she recognizes the significance of these advisor-client relationships. I encourage you to talk to Susan to explore if this is a good option for you or one of your clients.
- I’m very excited about what we’ve presented to you so far today. All of these changes started with you and your feedback and I thank all of you who were willing to spend time with me and us over the last year to shape these new services, our new pricing model and our new investment choices. This work has been invigorating for our team for many reasons and at the heart of it has been our strong belief that Seattle Foundation will become a stronger, more valued philanthropic partner in our shared goal of making Greater Seattle a stronger, more vibrant community for all. Now, I’m very pleased to welcome Steve Hill, Chair of our Investment Committee, to move us into the financial performance topics of our presentation.