Every nonprofit has Middle Class Millionaires actively involved in and supporting the organization. Do you know who they are? Harold Pinkham will help you discover how to leverage your board and volunteers to help you find, motivate, and inspire these “under the radar” prospects.

1. Finding Your Middle
Class Millionaires:
Who Are They and
How Can You Reach Them?
12/18/14
1pm Eastern
The presentation will begin shortly.

2. Before We Get Started
3
This presentation is being recorded!
The recording and slides will be emailed to you
later this afternoon.
Please chat in any questions for our guest.
We will answer them in the formal Q&A session
at the end of the presentation.

3. 3

4. Our Presenters:
Harold Pinkham:
Principal & Co-Founder, ActivateLegacy
Ron Ware:
Principal & Co-Founder, ActivateLegacy,
President & Personal Legacy Advisor, Wealth Impact Partners

5. Think Different!

6. Meet Bob – a Middle Class
Millionaire:
• Actively involved with Organization for 30+
years, served past 10 years on Executive
Board
• Loves Organization!!
• Children greatly benefited from the
Organization
• Program guy, not a fundraiser
• Annually gave $200

7. What About Bob?
• Not on anybody’s radar for a major gift.
• About to retire and attended an Estate
Planning workshop we hosted to
members/donors of organization.
• Bob and his wife met with CFP/Legacy
Advisor because they were concerned
they didn’t have enough for retirement.

8. Bob & His Wife discovered:
•They were going to have “excess
wealth” which they didn’t plan to spend
on themselves or want to give to their
children.
•They discovered they could
create/provide legacy gift that would
reflect their deepest values.

9. Four Months Later…..
They announced that they plan to leave
the Organization over $1,000,000!!!

10. How did this happen??

11. The Millionaire Next Door:
A landmark book by
Thomas Stanley & William Danko

12. Who are they?
• They don’t look like millionaires.
• They don’t dress like millionaires.
• They don’t eat like millionaires.
• They don’t act like millionaires.

13. The Millionaires in Your
Organization:
• Two-thirds are self-employed.
• Only one in five is retired.
• 57 years old; married with three
children.
• Almost never divorced.
• Spouse is equally or more frugal
• Serious budgeters.

14. The Millionaires in Your
Organization:
• 97% are homeowners.
• 50% have lived in the same house for
more than 20 years.
• Most live in middle-class
neighborhoods.
• Their homes valued around $320K.

15. Millionaire Spending Habits:
Frugal, Frugal, Frugal!
• 50% would never spend over $350 for a
suit.
• 50% would never spend over $140 for a
watch.
• Most hold Visa/MasterCard instead of
American Express.

16. Millionaire automobiles:
• 81% purchased their vehicles outright.
• 59% spent under $35K for their vehicle.
• Only 23% own new vehicles.
• Most autos are over 4 years old.
• F-150, Explorer, top choice.

17. Millionaire Businesses:
• Self-employed: They make up less than
20% of the work force, but account for
66% of all millionaires.
• “Dull normal” businesses: welding
contractor, farmer, plumber, HVAC,
dentist, accountant, pest controller, etc.

18. Millionaire Businesses:
• Cash Poor: much of their realized income is
invested in assets that tend to appreciate in
value without generating realized income
(i.e. 20% home equity, 20% retirement, 20%
business)
• Self-employed: 75% are entrepreneurs; others
are professionals (accountants, lawyers,
doctors, etc.)

19. Millionaire Businesses:
• 91% never received, as a gift, as much
as $1 of the ownership of their
business.
• Less than 20% will turn their
businesses over to their children.

20. The Millionaire Entrepreneur:
• Most will require planning to unlock
assets for philanthropy.
• Only 3% have plans in place.
• Few are prospected by nonprofits.
• They are the core business of many
financial advisors.

21. Millionaire Net Worth:
• Of the 8.4 Millionaire families in US only
6% have net assets worth over $10
Million.
• Average $3.7 million.
• Typical $1.5 million (median).

22. Most Don’t Consider Themselves….
Wealthy!
With Assets between $1 – 5 Million
UBS Wealth Management Study

23. Assets Over $5 Million
With Net Assets over $5 Million
UBS Wealth Management Study

24. Millionaires’ Biggest
Concerns:
What Keeps Them Up At Night?
• Running out of money – 88.3%
• Rising medical costs – retirees experience a
much higher rate of inflation due to medical
costs.
• Living longer – average lifespan continues to
increase.

25. Millionaires’ Biggest
Concerns:
1. Heirs – 79%
2. Medical costs – 77%
3. Retirement income – 71%
4. Kids/Grandkids education – 48%
5. Being sued – 47%
6. Losing job/business – 40%
7. Personal security – 28%
8. Parents’ care – 28%
• 9. Gifts to Charity – 27%
Prince & Associate Survey

26. Summary:
• Over 8.4 million Millionaires in U.S.
• Over 13 million are worth $500K -
$999K.
• Most don’t think they’re wealthy.
• Few have done little, if any, financial
planning.

27. So what’s an organization
do to?

28. A New Approach…
“The Excess Wealth Conversation”
With Your Donors

29. Every gift begins with…..
a conversation.
But getting a gift from a MCM requires a much
different conversation

30. MCM Donor’s are looking for…
• Financial Clarity and Confidence with their
future.
• Privacy as they discover their true capacity.
• To be inspired not confused.

31. The Excess Wealth Conversation is…
a focus on Donors needs first!

32. It is…
• holistic, deeply personal, and authentic
conversation.
• thoughtful conversation exploring a donor’s
philanthropic intent.

33. It is…..
• strategic approach to assessing a donor’s financial
capacity and philanthropy intentions.
• an invitation to plan at a new, exciting, and deeper
level: If you knew you could, wouldn’t you?

34. What it is not….
• It is not focused on your organization’s
needs.
• It is not an ask for a gift
• It is not guided or conducted by staff.

35. It is not…
• focused on tactics (i.e. Charitable Gift
Annuities, CRTs, etc.)
• an advisor selling a financial product.
• a solicitation for business.

36. Case Study:
The Man who couldn’t pronounce
Philanthropy.

37. As an Organization…
• Focus on donor concerns, become Donor-
Centric!
• Create a Philanthropic Advisory Council (PAC)
to help donors begin the philanthropy
conversation
• Use your PAC to provide valuable educational
resources that address their concerns.
• Demonstrate leadership/Show them that you
care about their issues!

38. Create Your Planned Giving…
Dream Team!

39. Create a Philanthropic
Advisory Council (PAC)
• 25-40% of most nonprofit supporters work in
the financial industry.
• These are the attorneys; accountants; financial
planners; insurance professionals; bankers,
investment bankers; etc. connected to your
organization.
• Recruit and train them to help your
organization.

40. Have them:
• Help produce educational events and
materials that inspire your Middle Class
Millionaire donors
• Help create a Gift Planning “culture” within
your organization.

41. Leverage their expertise to
address donor concerns:
• Estate Planning
• Small Business Exit Strategy
• Elder Law/Medicaid Planning
• Health & Long Term Care Insurance
• Retirement Income Planning
• Asset Protection

42. As a result, you generate:
• Appreciation and trust from donors who feel
valued and understood by your Organization.
• Significant follow-up conversations among
donors and PAC members.
• Interest in Gift Planning strategies and
opportunities as donors seek to create impact
through your Organization’s work.
WIN → WIN → WIN

43. Growing Trends:
Nonprofit staff’s involvement in helping donors
to make charitable decisions:
2006: 41%
Today: 29%
More and more donors are consulting with
their legal/financial professionals first.
Bank of America Study of Affluent Families

44. Growing Trends:
Percent of donors who learned about giving/
philanthropy options from a financial advisor:
1994: 4%
2008: 28%
NCPG Task Force Study, The Future of Charitable Gift Planning.

45. Growing Trends:
Sources of Charitable Advice
Accountant: 67.5%
Attorney: 40.8%
Financial Planner: 38.8%
Nonprofit Fundraiser: 24.1%
University of Indiana Study

46. However, before you begin:
Be Aware!

47. Who initiates the charitable
gift conversation?
CPA’s & Wealth Advisors – Only 5.7%
Attorneys – Only 6.3%
Donors/Clients – 94%
Source: Bank of America/Merrill Lynch

48. How do donors/clients feel
about this?
Only 21% are satisfied with Advisors!
Why?
• The Tax Lead: Donors motivated to give to reduce taxes.
Advisors: 46%, Donors: only 10%
• Donors were frustrated they had to initiate the philanthropic
conversation. (34% open to idea if brought up by Advisor. 43% if
Advisor shares own plans)
• Advisors focused on the technical; did not discuss personal or
social values.
Source: Bank of America Study & The Philanthropic Initiative

49. The typical approach
to planning:
The Planning Horizon
Why?
_____________________________________
How?
80% of time spent on How (tactical)
20% spent on Why (dreams/social values/concerns)
RESULT:
75% of clients/donors don’t take action!

50. Something to think about …

51. The transfer of wealth
is coming!
Expected wealth transfer 2007-2061:
Over $59 Trillion
Amount directed to Nonprofits/Charities:
Over $6.3 Trillion
Boston College Center on Wealth and Philanthropy:

52. Who currently has the wealth:
Share of Wealth
• Silent/Greatest Generation: 53%
• Baby Boomers: 38% (Youngest is now 50 years old)

53. Are You Ready?

54. Questions?

55. About ActivateLegacy
Grow Legacy Gifts
The 7-Step System & Tools

56. ActivateLegacy Resources:
• Webinars
• ½ Day & Full Day Training Workshops
• For Executive Boards – begin to build the culture
• For Financial Experts – create and implement your
Philanthropic Advisory Council
• Our Signature Donor Presentations –
inform and inspire
• Grow Legacy Gifts System – materials,
coaching, and consulting

57. Our Next Free Webinar:
“The Excess Wealth Conversation”
(The Art of Unlocking Exponential Gifts from the Middle-Class Millionaire)
January 28th - 2:00 PM
Register at:
http://activatelegacy.com/webinars/

58. Thank You!
www.activatelegacy.com

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