Market Exclusive Ancillary Services Request for Collaboration (RFC)

Invitation to Collaborate

An estimated $59 trillion will change hands from this generation to the younger generation over the next four decades through 2061, according to a widely reported study updated in 2014 by Boston College researchers Paul Schervish and John Havens. One hundred sixteen million American households will participate in the greatest wealth transfer in United States history, they claim.  That transfer is underway as you read this request for collaboration.[1] 

The understatement is that this is a lot of money.

How generosity is provided, raised, or transferred, and by whom, for what purpose, with what outcome and at what cost become very important questions that need to be addressed, especially for those who will ultimately want to give but just are not quite sure where that giving should be directed, managed, or advised.

The Generosity Exchange (hereinafter referred to as “Manager”) is an emerging national philanthropic resource management service offered by Cannon & Caius LLC, a strategic collaborations practice.  The Exchange is committed to assembling and deploying charitably-related resources that can and will make a measurable difference in the communities they benefit using the principles of preeminent generosity applied more impactfully. 

The Generosity Exchange is also being supported by:

Our newly established Generosity Institute (GI), a network of planned campus-centered study centers dedicated to understanding the transformational nature of certain gifts in targeted areas, which can and do have measurable outcomes for those they benefit and for those who make those gifts available to qualified worthy charities of choice;

Caius House, our citizenship practice which is deeply experienced in all facets of government relations, particularly at the federal level, and thus able to help influence a better way for solving pressing problems in participating hometowns around the nation; and,

Anglesey Point, our media practice which has developed a number of proprietary platforms that will, we believe, help influence the debate publicly about where best to deploy generosity in our neighborhoods and communities.

Coupled with these supporting services, our team of founding fellows and advisers have raised and managed billions of dollars during their careers, as professional fundraisers, wealth managers, tax attorneys, trust officers, registered investment advisors, as well as political, healthcare, sports, arts, corporate executives and more.

The Generosity Exchange has available a number of powerful tools that can help discerning philanthropists and their trusted advisors make generosity excellence happen, including, but not limited to: principal gifts, virtual trusts, program related investments, social impact funds, enterprise excellence evaluations, family offices, and more.

Because industry-defining generosity necessarily requires expert collaboration to succeed and flourish, we have attached this Request for Collaboration (RFC) to determine if you and your firm (hereinafter referred to as “Interested Party”) might be interested in co-delivering these emerging services through an ancillary services initiative through your firm and our organization.

As we expand our own philanthropic strategies, these ancillary services will be offered across the nation in market-exclusive territories based on state-by-state geographic boundaries.

We hope you will have an interest in joining our collaboration and look forward to discussing this proposal in greater detail at your earliest convenience.

Thank you for your consideration.

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Table of Contents

RFC DISCLAIMER

INFORMATION FOR INTERESTED COLLABORATORS

1          INTRODUCTION

            1.1       Generosity

            1.2       Philantropreneurs

            1.3       Motivation

            1.4       Cost-to-raise-a-dollar Ratios

            1.5       Traditional Charities

            1.6       Philanthropic Leaders

            1.7       Core Offering

            1.8       Protocols

            1.9       Cannon & Caius

            1.10     Key Philanthropic Platforms

            1.11     Activities

            1.12     Generosity Institute

2          INVITATION & SUBMISSION OF INTEREST

            2.1       Invitation to Express Interest

            2.2       RFC

            2.3       Deadline

            2.4       Technical

3          COLLABORATOR MARKETING FEES

            3.1       Marketing

            3.2       Market Exclusivity

            3.3       Contract

            3.4       Termination

            3.5       Workplan

            3.6       On-site Visits

4          OTHER FACTORS

            4.1       Factors

            4.2       Conference Calls

            4.3       Web Link

RFC Disclaimer

The information contained in this Request for Collaboration (RFC) document or subsequently provided to interested parties, whether verbally or in documentary form by or on behalf of the Generosity Exchange offered through Cannon & Caius LLC, or any of its employees or advisors, is provided to Interested Parties pursuant to the terms and conditions set forth in this RFC document and any other terms and conditions subject to which such information is being provided.

This RFC document is not an Agreement and is not an offer or invitation to any party other than the party to whom it is specifically directed.  The purpose of this RFC document is to provide Interested Parties with information to assist in the formulation of their interest submission.  This RFC document does not purport to contain all the information each Interested Party may require. 

This RFC document may not be appropriate for all persons, and it is not possible for the Generosity Exchange, Cannon & Caius LLC, and their employees or advisors to consider the business objectives, financial situation and particular needs of each Interested Party.  Certain Interested Parties may have a better knowledge of the proposed assignment than others.  Each Interested Party should conduct its own investigations, studies and analysis, and should check the accuracy, reliability and completeness of the information in this RFC document and obtain independent advice/information from appropriate sources

The Ancillary Services Initiative, at all times with regard to all the references in this RFC, or any other Addendum attached thereto shall mean Manager.  Manager and their employees and advisors make no representation or warranty and shall incur no liability under any law, statute, rules or regulations as to the accuracy, reliability or completeness of the RFC document.

Manager on behalf of the Ancillary Services Initiative, may in its absolute discretion, but without being under any obligation to do so, update, amend or supplement the information in this RFC document at any time or stage in the process.

This RFC and the information contained herein are confidential and for use only by the person or entity to whom it is issued.  It may not be copied or distributed by the recipient to third parties (other than in confidence to the recipient’s professional advisor(s).  This RFC may not be disclosed publicly or otherwise in any format or forum whatsoever without the expressed written permission of Manager. 

The Manager stands ready, willing, and able to provide answers to questions from any Interested Party and welcomes the opportunity to be of service.

Information for Interested Parties

1.         Introduction

The Generosity Exchange is an emerging national philanthropic resource management service offered by Cannon & Caius LLC, a strategic collaborations consulting practice specializing in transformational philanthropy, academics, media and citizenship initiatives (for more information, please see www.cannonandcaius.com).  The Exchange is committed to assembling and deploying charitably-related resources that can and will make a measurable difference in the communities they benefit using the principles of industry standard-setting preeminent generosity applied more measurably and impactfully (for more information, please see www.cannonandcaius.com/generosity-exchange). 

Ancillary services are a rapidly growing discipline in professional practices, such as law firms, designed to:

·       Capture greater market share,

·       Inspire entrepreneurship,

·       Mitigate competition from multidisciplinary practices and other service providers,

·       Differentiate the practice in a targeted marketplace or industry,

·       Promote more price-competitive services from the practice,

·       Leverage and enhance the practice’s brand with viable value-added services,

·       Attract more qualified talent,

·       Encourage increased referrals, and

·       Generate deeper profits for practice shareholders.

1.1       True generosity, motivated by having broad transformational intent, is harder to come by than you would think.  But those who like to practice it are often referred to as being philanthropreneurs.

1.2       The Wall Street Journal is credited with coining the phrase, philanthropreneur, in 1999.  The New York Times defines a philanthropreneur as someone who wants to make profits but do good, too – an entrepreneurial philanthropist. [2]

1.3       When a philanthropreneur gives a dollar, they want to be able to get it back again eventually, so that they can give it away again one day.   They want to see charitable organizations run like solid businesses that can meet budgets, milestones and forecasts and more importantly, accomplish their missions transformationally.

1.4       A cost to raise a dollar, in the mind of a philanthropreneur – a best practices practioner – should not be anywhere near the 16% to 24% it is today.  There is no need for such high operating margins in today’s social media savvy marketplace.

1.5       The traditional charity market has precious little experience with either the giving or the getting that goes with entrepreneurial philanthropy – best practices philanthropy, if you will - even though Benjamin Franklin was among the earliest practioners of this great art known for its measurable and lasting generosity.

1.6       Andrew Carnegie, Henry Ford, Robert Wood Johnson, David Packard, and John D. Rockefeller, to name just a few, used their entrepreneurial philanthropy to leverage their private portfolios to better maximize the impact of their charities of choice.  In recent years, these iconic industrialists from the past have been joined by their modern counterparts:  Virgin’s Sir Richard Branson, Microsoft’s Bill & Melinda Gates, U2’s Bono, AOL’s Steve Case, Ebay’s Peter Omidyar and others.

1.7       A core offering of this RFC is crafted around using sophisticated philanthropic planning and distribution platforms to assist practice clients and prospective clients in their philanthropic endeavors that are market differentiating in nature.  One such tool is a program related investment.

1.7.1    Program Related Investments, or PRIs as they are sometimes called, are essentially philanthropic loans that can be provided to a qualified charity for a pre-determined period of time.

1.7.2    If properly structured, these philanthropic loans can be repaid and reused for another charitable purpose at a later date.

1.7.3    Program Related Investments require the support of experienced legal and tax experts to structure.

1.7.4    PRIs have been around since the days of Ben Franklin – in fact, PRIs were a favorite philanthropy tool for Franklin himself.

1.7.5    Because of their longevity, PRIs have fairly clear rules and procedures that have been memorialized in federal statutes governing their use and proper applicability, thus making them powerful instruments for modern-day philanthropreneurs.

1.7.6      Studies show that many, if not most family foundation and family office founders have become discouraged with their family foundations or family offices – major reasons cited include their family foundations/offices not impacting their causes significantly enough, they have seen their grants wasted, their children have resented the family foundation because it reduced their inheritance, and the children conflict over the family foundation’s management.

1.7.7     Philanthropy that transforms compelling and uniquely positioned charities is attractive to family foundations, family offices, and other wealthy donors.

1.7.8    Public/private partnerships tend to have greater initial trust among these potential donors because they are better regulated and more transparent than purely private charity initiatives.

1.7.9      Public charity requires a significant degree of government relations skill and relationships.

1.7.10    Ancillary services can and will serve as the knowledge base about the role nonprofits and philanthropy will have on the giving process, especially as unprecedented wealth and leadership is being transferred from one generation to another at a time when the public interest is more threatened than ever before.

1.8       The protocols in any Ancillary Services program are organized around enterprise excellence principles, including, but not limited to:

            1.8.1    Six Sigma/Lean.

            1.8.2    Malcolm Baldrige Quality Standards.

1.9       Cannon & Caius LLC, who is offering our Ancillary Services initiative is a privately-held consulting practice specializes in strategically advising high and ultra-high net worth clients on how best to leverage their philanthropic strategies through their private and public portfolios, sophisticated gifting tools and collaborative strategies.  Cannon & Caius’ Generosity Exchange prefers and recommends that all funds encouraged through our services be directly managed and custodied by participating Community Foundations in the markets in which those funds have been promoted.

1.9.1    Funds custodied by Community Foundations are independent of our strategic advisory services and thus better protected under best practice fiduciary standards

1.9.2.   Gifts, donations, and charitable investments might therefore be tax-deductible to qualified donors and private family foundations, if structured effectively.

1.9.3    The use of participating Community Foundations enables advisors and investors of all types (both fiduciary Boards and individuals) to optimize investment manager selection and performance monitoring with full transparency, objectivity, and free of conflicts of interest and other influences that have too often adversely affected investment performance.

1.9.4    The LLC structure is utilized by Cannon & Caius because it provides the most flexibility in properly structuring generosity that is supported through preeminent philanthropic tools as well as transformational public-private partnerships.

1.10     In addition to PRIs, other key philanthropic platforms available for use in Ancillary Services planning and execution include, but are not limited to:

1.10.1  Principal gifts and signature naming opportunities which are typically gifts $5 million and greater.    

1.10.2  Virtual trusts and endowments which permit charitable giving and professionally managed funds at significantly reduced and greatly more competitive cost-to-raise-a-dollar ratios.

1.10.3  Social Impact Funds which is a rapidly growing practice among professional service providers for segment giving impact.

1.10.4  Family Offices – attending to the every personal need of family members and/or network of friends and partners.

1.10.5  Enterprise Excellence Evaluations – processes made better through practice using Six Sigma Lean and Baldrige Quality Standards.

 1.10.6  Public-Private Partnerships – funding the growing gap between private commercial financing and governmental appropriations/grants.

1.10.7  Collaborative international and national initiatives utilizing for-profit & non-profit ventures.

                                1.10.8  Special Events – point of entry and donor stewardship opportunities.

1.10.9  Enhanced traditional fundraising – including major gifts, annual funds, grateful patient programs, etc.

1.10.10 Philanthropic marketing – increasing market awareness of these generosity initiatives.

1.11     Activities of the Generosity Exchange will be supplemented by the Generosity Institute (hereinafter referred to as “Project”).

1.11.1  The Generosity Institute is an academic and charitable industry think tank committed to analyzing these issues based on the real world experiences our team of fellows and advisors have amassed over many years of practicing the art of giving, getting and managing generosity

1.11.2  The Institute is designed to be supported by a network of campus-centered study centers (hereinafter referred to as “Centers”) dedicated to understanding the transformational nature of certain gifts in targeted areas, which can and do have measurable outcomes for those they benefit.

1.11.3  Our team of fellows and advisers and raised and managed billions of dollars during their careers, as professional fundraisers, wealth managers, tax attorneys, trust officers, registered investment advisors, as well as political, healthcare, sports, arts and corporate executives and more.

1.11.4  The Institute and its planned Centers can be funded through a number of the powerful tools outlined above that will also help our affiliated universities and colleges fund affiliated topic exclusive study centers without having to rely on tuition or government funding to make academic excellence happen.

1.11.5  The Institute becomes a natural potential partner/client of any affiliated Ancillary Services program.

1.12     The Generosity Institute has several key products that will soon be released through its programs to assist people working or attempting to work with or through philanthropy, including:

1.12.1  A comprehensive book & study guide, Generosity:  Giving, Getting & Managing Philanthropy Preeminently.

1.12.2  A self-assessment guide for nonprofit organizations and wealthy philanthropists based on Six Sigma Lean and Malcolm Baldrige Quality Standards.

1.12.3  A collegiate lesson plan including signature courses offered for classroom and online instruction on:  Political Philanthropy & The Legislative Process, and Introduction to Preeminent Philanthropy, for example, among others.

1.12.4    Social media tools such as a Generosity app.

1.12.5    Other philanthropic marketing tools are contemplated.

2.         Invitation & Submission of Interest

            2.1       Invitation to Express Interest

2.1.1    Interested Parties are invited to submit a note of interest for a role as a collaborator for an Ancillary Services Initiative in select but exclusive targeted markets in the United States where appropriate.

2.1.1.1 Projects are based and co-managed on the concept of pari passu as stipulated in the approved collaboration letter.

2.1.2    The operating principles of the Ancillary Services Initiative are dedicated to several key elements that are considered by the Manager to be critical to successful Ancillary Services and preeminent generosity:

2.1.2.1  All philanthropic activities of an Ancillary Services Initiative must be transformational in their impact and transparent to each and every participant.

2.1.2.2 All outcomes are measurable in their impact and obvious those the philanthropic activities of any Ancillary Services Initiative are intended to serve.

2.1.2.3  The operations of the Ancillary Services Initiative be highly collaborative in nature and involve as many targeted participants as possible and appropriate across the for-profit as well as not-for-profit community.

2.1.2.4 The services offered by and through the Ancillary Services Initiative are based on evidenced-based principles where possible.

2.1.2.5  Our operations be conducted at industry best practices or surpassing levels with the highest, uncompromising commitment to ethics in professional practices.

2.1.2.6  Each approved Ancillary Services Initiative will be 100% owned by the sponsoring professional law practice.

2.1.2.7  A 60 basis points management fee shall be paid periodically to the professional practices firm from net revenues generated by the Ancillary Services Initiative for the year in which it occurs.

2.1.2.8 A 20 basis points management fee shall be paid periodically to the Generosity Exchange from net revenues generated by Ancillary Services Initiative for the year in which it occurs.

2.1.2.9   Potential services fee structure fully disclosed to clients and/or potential clients (firm services share and ancillary service advisory share only, other fees for services such as attorney fees, contracts and document generation, and investment advisor fees not applicable to ancillary services program).

2.1.2.10 Potential revenue streams as illustrated below for firm and for manager, respectively: