Three steps to making a transformational donation
By Whittier Trust
A major gift to a university, hospital, museum, or other well-known institution can be a transformative undertaking for both you and the intended recipient. Perhaps you’re considering a substantial sum for an organization you already support, or maybe you have no prior relationship at all. Either way, you might be asking questions such as: How do I identify and evaluate the best institution or project for this milestone donation? In terms of structure and timing, how do I maximize my philanthropic impact, legacy, and bottom line?
“As part of Whittier Trust’s multigenerational wealth services, our philanthropic services team helps cut through the complexities of giving at every level, including negotiating a once-in-a-lifetime gift,” says Whittier Trust Vice President and Client Advisor Gregg Millward. “It’s a multistep process where having trusted advisors at your side can make all the difference.”
Step 1: Identifying Possible Grantees for your Gift
The reason we often hear of major gifts to higher education, medical facilities, museums, and other large institutions is not just because these places are beloved and in the public eye. It’s because they have the resources to capitalize on philanthropy at that scale.
“If you’re a major donor who’s looking to give $10 million or more, many nonprofit organizations simply won’t be able to steward that gift effectively,” Millward says. “They’re just not set up in terms of infrastructure, talent, and strategic framework.”
Many philanthropists partner with a local “anchor institution” because of the positive role that place has played in their own lives or their community. Anchor institutions facilitate large-scale community engagement and social cohesion. Many are also uniquely positioned for cutting-edge research initiatives and for incubating technological innovation that drives the economy. Their preeminence means they have the greatest capacity to significantly move the needle.
Step 2: Navigating the System
Providing funding doesn’t mean you always get to call the shots, however. Structuring the gift terms with an established institution can be daunting, and often, as soon as word of a potential major gift gets out, every fiefdom within a university or hospital tries to steer the donor to their particular area.
“At Whittier, we want to help you dream big,” Millward says. “While you concentrate on your highest aspirations, we’ll make sure you get to the right people, cut through the bureaucracy, narrow options down to the best opportunities, and have real conversations about what the gift will accomplish.”
If you enjoy interacting with advancement staff, then your Whittier team will be with you at the table. If not, we’ll serve as your facilitators. We won’t allow somebody else to guide the conversation in a direction that doesn’t align with your vision. We’ll vet each proposal to make sure it thoroughly executes your goals, putting safeguards in place in case those goals (such as a new building or research initiative) are impeded in any way.
If requested, we can also protect your anonymity as stewards of the gift. On the other hand, for those who may be interested in naming opportunities, we’ll ensure appropriate recognition on the building, plaza, program, endowed chair, or other area supported through your gift.
Step 3: Structuring the Donation
When you’re a Whittier client, we understand your full balance sheet and all the moving pieces in your life, both now and in the future. This multifaceted relationship allows us to structure your gift in a way that makes the most sense for your portfolio and your family’s lifestyle.
“Of course, recipients generally appreciate receiving support as promptly as possible,” says Millward. “At the same time, our focus is on finding the right balance among cash flow, tax considerations, and your broader philanthropic goals.”
Often a major gift will be designed as a pledge for a large amount to be paid in installments over time. The institution will have their own boilerplate language from which your Whittier team will embark on mutual agreement planning. We might want to use a Donor Advised Fund (DAF), gifts of stock or real estate, or a qualified charitable distribution to fulfill some of these pledge requirements. Other possibilities are charitable remainder trusts or a direct transfer from an IRA. It might also be a bequest where the nonprofit or university has the advantage of booking the gift now, but the funds are delivered later.
“This is when it really helps having an experienced team beside you with your global balance sheet in mind,” Millward says. “Whittier Trust understands the disciplined execution required to achieve your philanthropic vision with optimal terms and secure your legacy. We look forward to celebrating your achievement and the faithful stewardship of your gift of a lifetime.”
—————–
Gregg Millward is a Vice President and Client Advisor in Whittier Trust’s Pasadena office, providing a full range of wealth management, family office and trust services to affluent individuals and families.