Week 1 Flashcards
Which Statement or statements below is (are) correct?
I. Total giving is about flat, adjusted for inflation
II. Giving today skews more and more to the wealthier donors
A) I Only
B) II Only
C) Both I or II
D) Neither I nor II
C) Both I or II
Both are true. You might conclude that we must work with the wealthy, if we are to increase giving - and you would be right. You might also conclude that we must work with everyday donors, if we are to increase giving and preserve the health of our communities. And you would be right again. CAPs work with both. Note that broad based giving is a leading indicator of the health of our democracy, must as voting is. It shows people care about each other and are willing to get engaged.
The discernment style is characterized by which of these?
I. Listening by the advisor for meaning, pattern, purpose
II. Controlling the interview to advance a sale or gift conceived in advance
A) I only
B) II only
C) Both I and II
D) Neither I nor II
A) I only
Discernment is a matter of asking questions, listening to answers, hearing the story behind the words, interpreting, embracing and extending that story and eliciting from the client or donor an “Aha” of shared understanding of the underlying pattern and purpose of the life. It not “selling” and not “telling”
The Trust Equation is computed as:
A) Credibility, Reliability, and Intimacy divided by Self-Orientation
B) Competence, Reasonableness, and intentionality, divided by Self Orientation
C) Coherence, Research, and Information divided by significance
D) Coherence, Reliability, and Intimacy, divided by speed
A) Credibility, Reliability, and Intimacy divided by Self-Orientation
Note that Self-Orientation (“What is in it for me”) undermines whatever other strengths an advisor might have. When the client or donor feels, “This person is credible, reliable, and a good person who knows me, but they are only looking for a sale or a gift” the trust equation yields a small number. When sales people and gift planners are first introduced to a consultative process, they say “Gee, how do I get paid? Gee, my boss does not manage me like that; I have to get a gift or sale today.” The point is that when the client or donor sees this on an advisor’s or solicitor’s face, the trust equation drops. This is not to say that every client is a prospect for a time-intensive process, but that a driving, short-term sales process or one or two interview gift solicitation processes may work at cross-purposes with building the trust needed for a larger gift or sale to emerge.
Below the line planning addresses which of these?
I. The why of the client’s plan
II. The how of the client’s plan
A) I only
B) II only
C) Both I and II
D) Neither I nor II
B) The how of the clients plan
Above the line is the why, below the line is the how (First goals, then strategies to accomplish them)
Which of these statements is (are) true of the “Core Team” as described by Fithians?
I. The Core Team has access to tax, legal and financial expertise, meets regularly with the client, and share information with each other.
II. One of more members of the Core Team may meet with outside experts on specialized issues, therefore forming a Virtual Team.
A) I only
B) II only
C) Both I and II
D) Neither I nor II
C) Both statements are true
The Discernment style works least well in which of the following markets?
A) Middle income, with limited assets
B) Affluent
C) Emerging Wealthy
D) Very Wealthy
A) Middle Income, with limited assets
The less money the client has, the shorter the process must be. The discernment style requires the most time and energy and talent. An advisor who works in this style must zero in on clients who have high income and/or high net wealth and who have the financial capacity to plan for ideals as well as for needs.
A discernment-based advisor will likely do the following:
I. Use open ended questions, followed by probing, closed ended question
II. Confirm understanding before moving ahead.
A) I only
B) II only
C) Both I and II
D) Neither I nor II
C) Both I and II
This is concise statement of a consultative process. Begin with open-ended questions to get the client talking about issues of importance to them, then guide the process to a clear, shared understanding by asking closed-ended, factual questions about what the client has said. Then, when the picture comes clear, play it back, and ask the client or donor to confirm or correct the shared understanding.
All of these are types of planning teams EXCEPT:
A) The Kitchen Table Team
B) Intentional Team
C) Virtual Team
D) Core Team
A) The Kitchen Table Team
The 4 types of teams are: De Facto Team Core Team Intentional Team Virtual Team
With Respect to advisors conducting philanthropic conversations, which statement or statements below is (are) true?
I. The field has evolved in a good direction over the last ten years, with adviors increasingly committed to holding philanthropic conversations.
II. Advisor/client disconnects are still prevalent
A) I only
B) II only
C) Both I and II
D) Neither I nor II
C) Both I and II
Both are true. The majority of advisors say they hold these conversations and consider it a professional obligation. The majority say they initiate the conversations and ask good questions about meaning, vision, and purpose. Clients however, feel they initiate, and the advisors spend most of their time on tools and techniques.
As an advisor moves up from a subject matter expert to a subject matter expert with knowledge of an affiliated field, to a valuable resource, to a trust advisor, what happens to the breadth of the issues addressed and to the depth of the relationship?
I. Breadth of issues addressed decreases
II. Depth of relationship increases
A) I only
B) II only
C) Both I and II
D) Neither I nor II
B) The depth of the relationship increases.
The trusted advisor generally has a specific area of expertise, a core discipline, but they have learned a bit about affiliated fields and have breadth of vision regarding both human and technical areas. As the breadth of issues addressed by an advisor increases, so, too, does the depth of the client relationship. That is to say, clients generally have the deepest relationship with the advisor who is not only an expert in their seat at the table but who is also familiar with the other seats and with what can and should be expected of them. The trusted advisor sits next to the client and helps the client steer the team. In certain cases, the trusted advisor may be the only advisor in the room when the client makes the final decisions. And, at times, the trusted advisor may be the communication conduit for the other advisors, determining who has access and who does not.
Above the line planning addresses which of these?
A) the “why” of planning
B) the “how” of planning
C) The tools of planning
D) The cost of planning
A) the “Why” of planning
The planning done above the line gets at the client’s vision, values, hopes, dreams, aspirations, ideals, their conception of the better life in a better world. “For what purpose?” “Why?” Those are the sorts of questions addressed above the line. “Below the line” are considerations of how, with what tools and at what cost.
Above the line questions include which of these?
I. “What keeps you awake at night?”
II. “Who is the beneficiary of your IRA?”
A) I only
B) II only
C) Both I and II
D) Neither I nor II
A) “What keeps you awake at night?”
The open-ended questions about meaning, purpose, ideals, aspirations, ends in view, and larger concerns go above the line. Factual questions and tools and techniques go below the line.
With respect to giving trends, which statement or statements below is (are) true?
I. High-income earners ($500,000 or more) are giving far more than a decade or so ago.
II. Ordinary givers (income less than $100,000) are giving significantly less than a decade ago.
A) I only
B) II only
C) Both I and II
D) Neither I nor II
C) Both I and II
Both are true. Hence, in CAP, the emphasis is on “high-capacity donors” on those who can and will do more for others.
With respect to holding philanthropic conversations, according to a study by US Trust cited in this course, which statement or statements below is (are) true?
I. Advisors are holding these conversations more frequently now than 5 years ago.
II. Nearly all advisors consider it important to discuss giving with clients.
A) I only
B) II only
C) Both I and II
D) Neither I nor II
C) Both I and II.
Both statements are true. The field has been evolving in this direction over at least the last ten years. Increasingly, advisors say they know these conversations are needed. The great majority claim they are having them. Yet, the study by US Trust also reveals disconnects. The advisors think they lead with purpose, but clients think advisors lead with tools and techniques. Advisors think the conversation should primarily be about money (having enough for self and family). Clients think it should be primarily be about putting money to work in gifts that achieve impact through organizations to which the client feels connected.
Which of these is a good characterization of “the virtual planning team”?
I. It generally consists of members of the core team, including the most trusted advisor, with one or more additional specialist to address a special issue confronting the client.
II. It is generally created online, with limited or no face-to-face interaction.
A) I only
B) II only
C) Both I and II
D) Neither I nor II
A) It generally consists of members of the core team, including the most trusted advisor, with one or more additional specialist to address a special issue confronting the client.
The virtual planning team includes specialist who meet with one or more core team members to address particular issues.
