Week 8 Flashcards
Specialized planning for a CFP may involve such topics as education funding, divorce, elder care, disability, terminal illness, nontraditional families, job change and job loss, and dependents with special needs. Which of the issues below is also included in the CFP list of special issues?
I. Monetary windfalls
II. Philanthropy
A) I only
B) II only
C) Both I and II
D) Neither I nor II
A) I only
Philanthropy is a blind spot for most financial planners.
A good discovery/agreement conversation for a philanthropic client or donor should include which of these?
I. Where do you want impact?
II. When do you want to have an impact?
A) I only
B) II only
C) Both I and II
D) Neither I nor II
C) Both I and II
A good gift planner can elicit answers. A good financial planner can quantify how best to get it done while also meeting other client goals. That is what happened with outstanding success for all concerned in the Fitzsimmons case. A small donor became a huge donor through goal clarification, quantification of strategies, and due concern for impact now, later, at death, and beyond death.
A saying among consultative sales trainers is this: “Prescription before diagnosis is malpractice.” Which of the processes below would be “malpractice” by that definition?
I. 1) Establish and define that advisor-client relationship, 2) determine goals and gather data, 3) analyze and evaluate the data, 4) develop and present a plan, 5) implement the plan, 6) monitor the plan
II. 1) Intuit the client or donor’s needs, 2) run gift or sales concept, 3) make appointments, 4) present concept, 5) close or ask, 6) answer objections and close
A) I only
B) II only
C) Both I and II
D) Neither I nor II
B) II only
In comparison to A, the steps in B would seem like malpractice to an advisor. Or if not malpractice per se, a “sales-driven” approach that a planner feels they have risen above And so the planner/advisor sees the gift officer as a product-pusher or tool-slinger who should be kept at bay. A nonprofit CAP cannot use the process in response I, but can learn to interface effectively with those who do. Moreover, a nonprofit CAP can certainly use a process that brings with questions designed to elicit information and goals, rather going into a first meeting with a concept of case to be pitched.
All of these are included among the seven major planning areas addressed by CFPs, EXCEPT:
A) Risk management and insurance planning
B) Income tax planning
C) Retirement planning
D) Information technology audit
D) Information technology audit
Planning for technology needs is not a major area of CFPs.
All of these shortfalls or gaps can be determined by projecting the client’s financial situation forward with financial planning software, EXCEPT:
A) Gap between desired social impact and likely result of gift
B) Gap in money needed at retirement
C) Gap in money needed by survivors at death of breadwinner
D) Gap between money needed at disability and actual income, if disabled
A) Gap between desired social impact and likely result of gift
A financial plan looks at the gaps between a client’s personal goals and current and projected financial situation. The gap between a client’s philanthropic aspirations actually accomplished are not generally discussed by financial or estate planners.
As taught in CAP, what would a good discovery/agreement interview accomplish?
I. Planner and client/donor agree on relevant facts as to the clients/donor’s finances and current legal documents
II. Planner and client/donor become clear as to goals, dreams, and aspirations.
A) I only
B) II only
C) Both I and II
D) Neither I nor II
C) Both I and II
Both are correct
According to Nancy Klein,
I. In almost any setting, the best help we can be is to create the conditions for people to generate their own finest thinking.
II. Interruptions serve a valuable purpose in stimulating thinking.
A) I only
B) II only
C) Both I and II
D) Neither I nor II
A) I only
Interruptions disturb the flow of thinking and can greatly hinder a person’s ability to generate meaningful thoughts on a topic.
In the Burns family of Three Generations of Philanthropists, all of these are friction points EXCEPT:
A) Political views
B) Geographic locations
C) Shared living quarters
D) Judgments about each other
C) Shared living quarters
None of them are living in a common house.
In the CFP process and worldview, each of these is among the major issue areas, EXCEPT
A) Risk management and insurance planning
B) Income tax planning
C) Retirement planning
D) Charitable planning
D) Charitable planning
What do the Fithians mean by “financial independence”?
A) The income and assets needed to provide financial security for life.
B) Enough money to provide for self and family.
C) Wealth needed to provide for self, family and social impact
D) Wealth needed to perpetuate a family dynasty for 100 years.
A) The income and assets needed to provide financial security for life.
The Fithians suggest that before a client becomes optimally generous, they must see that there is “enough” for financial security for the donor’s own life. Then, the family may want to plan for an inheritance. Beyond that, there may be abundance to direct to social goals. Not all families follow this process, but the Fithian’ insights ring true to many financial planners and are a good predictor of the behavior of many donors. (business like)
What, generally, is meant by “implementation” in the planning process?
A) Moving forward to put in place the tools and techniques that client has chosen from those discussed and projected by the planner
B) Mentoring heirs in their future roles
C) Achieving a satisfying life for the client through engagement with causes
D) Putting into motion those flows of love, money, leadership, and energy that will move the needle on a specific cause of interest to the client.
A) Moving forward to put in place the tools and techniques that client has chosen from those discussed and projected by the planner
Where, in the financial planning process, is it best to elicit a shared dream with the client as to outcomes for self, family, and society?
A) Discovery/agreement phase
B) Implementation
C) After a foundation or donor advised fund has been established
D) Whenever the advisor wants to place a tool or technique
A) Discovery/agreement phase
The goals for philanthropic impact, along with the goals for the client and family, should be set prior to choosing tools and strategies.
“Commit to asking more and better questions. Pause and absorb the answers. Embrace a beginner’s mind. Hear without listening for a solution. Let time stand still… In the final hours, human connection is all that matters. That is legacy.” Scott Fithian wrote that. Which quotation or quotations below say or says much the same as what Scott says?
I. “When someone is thinking around us, much of the quality of what we are hearing will be our effect on them.” (Nancy Kline)
II. “Listen with mindfulness, so that your thoughts and emotions pass like clouds across the sky.” (Patricia Angus)
A) I only
B) II only
C) Both I and II
D) Neither I nor II
C) Both I and II
Both are true. Many authors in this course, including those cited above plus Carl Rogers, Otto Sharmer, Tracy Gary, H. Peter Karnoff, and Parker Palmer, make similar points about the importance of reflective silence in enabling a client or donor to reach their own discernment, or moment of clarity. We accompany the client, we do not really guide. Often, the best we can do “above the line,” is to create an open space for them to think without being judged. Such silence, Carl Rogers says, is formative of the very personality of the one heard. Otto Sharmer calls it “generative.” The Fithians following Paul Schervish, who was following St. Ignatius Loyola, call it “discernment.” Tracy Gary talks of “accompaniment” and “inspiration.” H. Peter Karoff speaks of “The long distance call” that enters a gracious silence. Parker Palmer invokes “circles of trust” in which each participant speaks into the silence at the center of the circle without presuming to respond to, interpret, or judge what is said by anyone else.
In giving tips on listening well, Carl Rogers said each of these things, EXCEPT:
A) To accept others, I must accept myself
B) I must be willing to open a channel to the other’s private world in all its strangeness
C) What is most personal in the other is also the most general
D) To grow or be healed, the patient must hear and accept an appropriate diagnosis
D) To grow or be healed, the patient must hear and accept an appropriate diagnosis
Rogers did what is called “nondirective therapy.” He was slow, to give a diagnosis, because he believed in the human potential to heal ourselves. He believed that , if a person had the open ear of an empathetic listener, the person would heal himself or herself without a formal diagnosis and prescription. We don’t have to be talked into our better self: in Roger’s view, we are always growing towards it as best we can.
Carl Rogers wrote, “I have found it of enormous value when I can permit myself to understand another person.” In teasing out the meaning of his remark, each of the statements below is appropriate, EXCEPT
A) In understanding others, it is we, ourselves, who are often the biggest hindrance
B) We could understand other more often, if only we would relax our defenses against understanding them
C) Often, what others need from us is not a solution or recommendation, but simply to be heard and understood
D) To understand others is to realize how much alike we all are
D) To understand others is to realize how much alike we all are
Rogers actually suggests that when we permit ourselves to understand another, the other may emerge as “strange.” Each of us is unique. Our ways of seeing the world and relating our stories may be as strange as a work of art, as much darkness and shadow as light. Perhaps we resist understanding others sometimes because when we do, we see just how different they are, and how along in their world, as we perhaps are sometimes alone in out own. By listening and hearing empathetically, we build a link from their world to a shared understanding.
