A dozen Phoenix-area Jewish organizations are well on the way to ensuring a stable financial future for themselves and the Valley Jewish community in general thanks to a partnership between a local and a national foundation.
In February the Jewish Community Foundation of Greater Phoenix in partnership with the Harold Grinspoon Foundation’s Life & Legacy program began training legacy teams for 12 community partners (see list next page). Life & Legacy National Director Arlene Schiff has conducted four training sessions for the teams, which range in size from four to 10 members. Legacy teams have learned how to have conversations with potential donors about committing to end-of-life legacy gifts. They began those solicitations in May.
“The JCF’s 12 community partners have made great progress towards securing the future of your Jewish community,” says Arlene. “A year ago, the word legacy wasn’t in most of your Jewish organizational vocabulary. A year ago, the lay leaders and professionals from the participating organizations might not have known each other, let alone worked together on behalf of the entire community. A year ago, the idea of growing endowments and planning for the Phoenix Jewish community’s future was something everyone knew they should be doing, but other things were taking precedence.”
At the end of September, the community partners had secured 114 commitments from 79 donors with a total estimated value of $11,970,300, according to JCF Life & Legacy Program Director Rachel Rabinovich. Of those 114 commitments, 56 gifts are valued at $10,649,632. Each partner organization has an initial goal of securing 25 commitments by April 30, 2016. Those who meet the goal each receive a $10,000 incentive grant from the two partner foundations.
“In my experience that is amazing progress in a short amount of time, and I am confident each of the participating organizations will meet or exceed their legacy goals and be on much stronger footing because of it,” says Arlene.
JCF President and CEO Richard Kasper likewise is pleased by the early results. As these future gifts are received, the funds will be added to the respective agencies’ endowment funds at the foundation. Endowment funds are invested to grow over time. JCF’s policy is to distribute 5% of the fund to the beneficiary agency each year, independent of that year’s actual investment return. Based on what he calls the accurate or even conservative estimates of the committed future gifts, he says: “In only four months, our partner agencies have secured legacy gifts that would translate to $600,000 in annual giving, year in and year out.”
The initial results are especially impressive since “for the majority this is a first-time effort to raise endowments,” according to Rachel. A few partners already had legacy societies and got off to a quick start, while others needed more time to create a case statement and legacy plan before having legacy conversations. Seven of the organizations already have reached 33% of their goal for the first year.
Before solicitations began, each partner gave the foundation a prospect list. If an organization appeared on two or three lists, Rachel talked to the organizations about working together to approach the person. For those on four or more lists, Rachel contacted the individuals and asked them how they would like to be approached.
Regardless of which agency makes the presentation, each potential donor has the option to make legacy commitments to the other community partners. Every donor receives a list of all 12 partners and can check off as many as they wish to include in their legacy plan.
“We are witnessing our partner agencies collaborate for their mutual financial benefit in ways previously unseen in our community,” says Richard.
That cooperation is apparent in the experience of Pardes Jewish Day School, which has already received commitments for 14 legacy gifts. Pardes Director of Development Tami Adelman says that the Pardes legacy team has had some donors either check off additional organizations for gifts or have asked to also meet with other legacy teams.
“We are pleased to be working as a community,” says Tami. “Organizations accepted into the program are working together instead of against each other.
“It has been a true gift that the Jewish foundation and the Grinspoon Foundation have come forward with the tools we need to start a comprehensive endowment program,” Tami adds. Even as a seasoned development professional, she has learned important skills at each training and says ideas from other organizations have been very helpful.
In addition to the partners working together, Richard says he is also pleased by the prospect of changing the culture of giving in Jewish Phoenix.
“We are talking about changing the culture of Jewish giving in our community,” he says.
“When you are working toward a cultural shift, you don’t expect that change to come overnight. … At the same time, the program’s initial results are evidence that our message is resonating with the community, so I am confident we are on the right path.”
Arlene says that cultural shift is occurring on a national level.
She reports that in 2012 Harold Grinspoon knew the country was in the midst of a $59 trillion transfer of wealth, and that hospitals, universities, colleges and arts organizations had been securing legacy commitments for years. That winter he asked, “Can Jewish communities be motivated to become proactive in encouraging widespread legacy giving?”
“Three years later we can answer with a resounding YES as the Life & Legacy program expands across the country,” says Arlene. Life & Legacy now works with 29 Jewish communities and 13 Hillel campus affiliates. As of June 30, 2015, Life & Legacy-trained legacy teams had secured more than 5,800 legacy commitments with an estimated value of $224 million in future gifts to the Jewish community.
“To date more than $16 million in gifts have been received, helping the recipient organizations build their endowments and secure their future,” Arlene says. “As planned, Life & Legacy is on track to achieve its goal of integrating legacy giving into the philanthropic culture of the North American Jewish community.”
