direct response & planned giving 1 direct response and planned giving – partners in...

Direct Response & Planned Giving

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Direct Response and Planned Direct Response and Planned Giving – Partners in FundraisingGiving – Partners in Fundraising

Geoffrey W. PetersPresident & CEO


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• Direct Mail

• Direct Response TV

• Press Ads with URLs

• Articles that drive traffic

• Telemarketing

• Integrated Campaigns

• Billboards with URLs or 800 numbers

• Magazine Inserts

• Display Ads with URLs

• Direct Dialogue

• Door to Door

• Websites

• E-mail

• Interactive Special Event Marketing

Examples of Direct Response Fundraising Channels


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There is no better way to identify new individual charitable donors than direct response.*AAFRC Annual Study

Sources of Charitable Giving*

Individuals75%

Corporations5%

Bequests8%

Foundations12%

Why Use Direct Response Fundraising?


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Raw data for major donor researchHigh dollar prospecting Conversion to other campaigns (e.g. capital)

Monthly donorPlanned giving (bequests)

Raising fundsBrandingEducating the public

Use the donor pyramid for:

Uses of Direct Response Fundraising


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This print ad appearedin the March 2004 issue of

National Geographic.

Notice:-The logo- The nonprofit’s name- The URL- The phone number- The message- The target audience- The call to action

DR can drive traffic!


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Where can Direct Response Help?

• Bequests– Direct Mail, Telephone, Email and Websites

but any form of reminder will work Generally it is better NOT to ask for a reply!

– In 2005, accounted for $23.15 billion to charities (6.7% of revenue from individuals) (Giving USA 2007)

– 5% of those who die leave a bequest compared to 85% who give in their lifetime. (Radcliff 2002)


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• Other Types of Planned Gifts– Annuities (Investment)

Predominately Lead Generation so Direct Mail, Telemarketing, Magazine Inserts, Display Ads, and Websites all with a response mechanism so that an individual can close the sale

– Life Insurance, stocks or appreciated property Soft lead generation such as examples – sold by

individuals

– CRTs, CRUTs, etc. Soft lead generation such as website calculators –

sold by individuals

Where can Direct Response Help?


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Typical “Value” Donor Pyramid

UniverseUniverse

ProspectsProspects

New DonorsNew Donors

Renewed DonorsRenewed Donors

Major DonorsMajor Donors

Planned GiftsPlanned Gifts


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Planned Giving Prospects are Everywhere!

UniverseUniverse

Planned GiftsPlanned Gifts

Planned Giving prospects can be identified by their loyalty, not necessarily the size of their gifts.


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New Direct Response Donors

Loyal Direct Response Donors

Planned Giving DonorsProspective Major Donors

Large Gifts are Based on Capacity (Wealth) and Affinity (Loyalty). Discover through prospect research and cultivation.

Bequests are Based on Affinity (Loyalty) not Capacity (Wealth). Discover by reminders and waiting.


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Where is the low hanging fruit?

• Approximately 80%-90% of deferred gifts are bequests

• Approximately 80% of bequests are unknown to the charity until after death

• Approximately 70%-80% of bequests come from direct mail (annual fund) donors

Jessie James – “Why did I rob banks? . . . Because that’s where the money was!”


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Advantages & Disadvantages

Bequest giving is great

• Very low cost of fundraising

• Not subject to vagaries of the economy

• Anyone can do it, not just the wealthy

• Does not require large staff or manpower

• Spray and pray

Bequest giving is awful

• There is no immediate ROI• Its hard to measure how

you are doing• Testing is impossible

without a dependant variable

• Hard to qualify prospects and focus on them

• Deferred giving = Deferred gratification


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So how do I use DR for Bequests?Loyalty = Affinity

• Length of time on file (i.e. how long since first gift)

• Number of gifts since first gift

• Higher than average number of gifts per year

• 1/3 of those surveyed by Campbell said they hadn’t named a charity but were willing to do so

Age = Proximity• Age code overlay – final will

usually made in 70s

• Absence of living children

• Recent death of spouse

• Do not segment out the prime prospects during the “quiet period”

• Only 4% of retirees have named a charity in their will but 51% say that no one has ever asked


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So how do I use DR for Bequests?• Reminders everywhere

– Mail a letter and brochure (closed face) to oldest and most loyal donors

– Include reminders on reply devices– Include example story in your newsletter– Put sample will language on your website– Have a strong reason for continuing charity after death– Wills are typically created (or updated) at life events

such as marriage, death of a partner, death of a child, retirement, etc


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So how do I use DR for Bequests?• Messaging – Must be a reason for legacy

– “The need will live on long after you are gone”– “You can leave a lasting legacy”– “This is an opportunity to give back”– “This is your opportunity to help others”– “We know you want our work to continue on”– Use as examples projects with long term needs or

with long term impacts– Focus copy on why to leave legacy and only briefly

on how to do so


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Advertisement


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Article in Regular Newsletter


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Donors can set example


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Planned Giving Newsletter


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Inserts in Thank You letters, brochures, tax receipt letters and elsewhere


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Pre-packaged Materials

• Available from multiple sources

• Brochures (pre-printed) “customized” for your organization

• Information is accurate and relatively clear

• Cost/thousand is reasonable

• Completely unnecessary for Bequests


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Separate Brochure MailingPage 1


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Separate Brochure MailingPage 2

Notice:• No reply• No phone• No envelope• No “are we in your will”• Language to use


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Offer Benefitsand

Create Legacy Societies


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Annuity Mailings

• Need to make information easy to understand

• Generate leads to produce personalized plans

• Often a investment based decision for the donor and less a legacy based decision


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Present Financial benefits


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Collect Necessary Information


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Include “Personalized case”

Base on age overlays, but don’t be explicit…


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Direct Response and Planned Direct Response and Planned Giving – Partners in FundraisingGiving – Partners in Fundraising

Questions???Questions???

Thank You!*Thank You!*

Geoffrey W. PetersPresident & CEO

[email protected]

*Thanks to Lisa Maska and Tiffany Neil for their thoughts and examples!

direct response & planned giving 1 direct response and planned giving – partners in...

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