transforming your annual fund finding planned giving donors timothy d. logan, acfre
TRANSCRIPT
Transforming Your Annual FundFinding Planned Giving Donors
Timothy D. Logan, ACFRE
Planned Giving Marketing
Planned Giving in the Development Process
The Planned Giving Market
• $40 Trillion in wealth transfer
• Revalidated 2 times
• Birth rates
• New NonProfit Times Study
• 2.4 million Americans die each year
The Pyramid of Giving
DonorContact
DonorGrowth
DonorCommit
ment
AnnualGiving
MajorGiving
PlannedGiving
Investment
Involvement+Interest+
Information+Identification+
The Pyramid of Giving
AnnualGiving
MajorGiving
PlannedGiving
60%
20%
20%
Percentage of Dollars
The Second Donor Pyramid
AnnualGiving
MajorGiving
PlannedGiving Planned G
iving
The “Second” Pyramid
• Identification
• Qualification
• Cultivation
• Education
• Stewardship
• Solicitation
Planned Giving Essentials
What you need to know to talk with donors
Planned Giving Alphabet Soup
Bequest
Property
Gifts that generate income for the donor
Simple Charitable Gift Annuity (CGA)
Charitable Remainder Trust (CRUT,CRAT)
Charitable Lead Trust (CLUT, CLAT)
Planned Gifts
• Bequest
• Charitable Gift Annuity
• Charitable Remainder Trust
• Life Estate Contract
• Charitable Lead Trust
• Life Insurance Policy
• Pooled Income Funds
Life Income Gifts
• Gift provides payment to donor during life– Charitable Gift Annuity– Charitable Remainder Trust– Pooled Income Fund
Three stages of Planned Giving
• Marketing
• Gift Planning
• Stewardship
Marketing
• Direct Mail– Check box on reply card
• Newsletters
• Planned Gift Mailings
• Web
• Telephone
Every Annual Fund Donor is a Planned Gift Prospect
• Every donor—has capacity to make a bequest
• Many donors—have capacity to fund a charitable gift annuity (CGA)
• Some donors—can also fund other gift instruments (charitable lead trust, charitable remainder trust, etc.)
Continuum of Direct Response
Faceto
Face
TelephoneCall
VideoTape
DirectMail
MassAds
INTERACTIVE NON-INTERACTIVE
PERSONALIZATION
TARGETING
Timothy D. Logan, ACFRE
Donor Pyramid with Direct Response Continuum
Face to Face
Mass Ads
Direct Mail
Video Tape
Telephone Call
The Development Gap
Integrated Planned Giving
• Apply direct response techniques to fill the gap– Two way communication
– More personal
– Measurable and repeatable
• Direct Response Moves Management– Every contact with the donor affects affinity
– Every contact should move the donor toward making a (Planned) gift
Dove, et al. 2002.
Integrated Annual Fund Program
Gift Planning
• Will commitment by mail or phone
• Collecting information for a CGA illustration
Stewardship
• Thank you calls
• Birthday cards/holiday cards
• Caller training– Legacy Society– Events on campus
File Segmentation
For Planned Giving
– Annual Giving is the single largest predicator of future large gifts
Finding leads is the easy part
• Enhanced data selects
• Flag (plus)
• High Affinity non-donors
• Total donor relationship
• Age based/wealth based gifts
Robert F. Sharpe, Jr.
The Later Years
Age Based Gifts
• FLAG• Frequency of giving
– Over a specified period
• Length of time on the file (LOTOF)• Age• Gender• Title • Recent death in household• Specific School or College
Gifts of Wealth
• Length of time on the file (LOTOF)• Largest one-time gift (LOTG)
• Total cumulative giving
• Wealth rating indicator
• Prospect research
Who we don’t want
• Anyone assigned to a gift officer
• Off the chart wealth
• Legacy Society Members*– * unless to discover the specifics of their gift
• Board Members, Development Committee, etc.
The One thing
• The one hard and fast rule:
• Do not combine asks in one message
Dove, et al, 2002.
Continuous Lifetime GivingThe Giving Lifecycle
Lifestage Annual Fund
• New RuffaloCODY program
• Identify and target older, lapsing Annual Fund donors
• Develop relationship with Institution
• Begin Planned Gift Marketing
Planned Giving CommentsLifestage
• Can’t help like I used to
• You send me too much mail
• I get too much mail asking for money
• Since spouse passed away, trying to “stay involved”
Probability/Possibility
• Capacity• Likelihood• Data• Wallet
• Propensity• Affinity• Current Interest• Heart
Planned Giving in the Annual Fund Call
Annual Fund vs Planned Giving
• Annual Fund• Call is transaction
oriented• Call follows script• Caller part of process• Solicitation done by
caller
• Planned Giving• Call is relationship
oriented• Script follows call• Caller visible• Solicitation done by
client
Caller Profile
• Gender
• Age
• Life Experience
• PG Knowledge
• Training
Train Your AF Callers
• Planned Giving Knowledge• Listen• Capturing comments
– What to listen for
• Planned Giving Clues– Financial– Lifestage
• Repeat and Ask
In the Will
• Thank you!
• What is the donor’s interest/passion
• Do you have any specific areas of interest?
• What motivated you to make this gift?
• Have you made gifts like this to other charities?
Planned Giving CommentsPersonal
• Spouse is recently deceased
• Prospect in bad health
• Spouse in bad health
• Prospect is facing retirement
• Prospect is primary caregiver for spouse/relative
Planned Giving CommentsFinancial
• Mentions sale of assets (business)• Gives information about assets (stocks,
property)• Expresses concern about market• Has concerns about limited income• Is very knowledgeable about Life Income
Gifts• Mentions tax savings
Talking Planned Giving
• Mr/Mrs Donor, if you were able to do____and make a gift to _____ would you be interested in finding out how
• Mr/Mrs Donor, many gifts, like a CGA provide income for life and allow you to make a gift to ______. Would you like to find out…..
Working with the Planned Giving Office
• Provide name of Planned Giving Officer– Include in script– Callers provide to donors
• Transfer comments to Planned Gift Officer– Report back to callers
Progress Growth Chart
Development Stages
Beginning Advancing Integrating Who Inexperienced
Vendor Experienced Facilitator
Mature Strategist
What Product Orientation
Mission Orientation
Partnership Orientation
Techniques Sell Products/ raise money
Solicit contributions develop relationships
Match resources/ needs, involve total organization
Results Transfers Involvement Investment
Rosso
RuffaloCODY
Timothy D. Logan, ACFRE
Vice President, Senior Consultant
Planned Giving Services
800-756-7483
7 Bonus Points
1. PG Donors –not another term for old or big dollar donors
2. Sprouting donors is rooted in AF
3. Bank of America Ad
4. Experiences—unlock emotional experiences
7 Bonus Points
5. Specific Messages– Bequest, CGA, Insurance, Trusts
6. Effective use of Bequest Society
7. Type of Org
PG Trends
• Web
• Wills/CGA’s comprise bulk of gifts
• Stand alone programs decline
• Mass appeal marketing losing effectiveness
Using the Phone to Qualify Donors
Finding the Needle in the Haystack
RuffaloCODY Planned Giving Services
• Building the relationship– Identify Planned Giving donor prospects
• Annual Giving is the single largest predicator of future large gifts
• Use direct response file analysis
• Pre-call notification
RuffaloCODY Planned Giving Services
• Qualify prospects interest– Based on admissions recruitment– Meaningful call by specially trained, interested
callers– Gather important and useful information
• Gift discovery—Named, Planned to Name• Knowledge of Planned Giving• Appropriate follow-up• Passion for (making gift) to client
RuffaloCODY Planned Giving Services
• Cultivate donor interest
• RuffaloCODY DRPG Donor Matrix– Combines
• Data analysis
• Call results
– Provides accurate assessment of annual fund donors value as a Planned Giving prospect
RuffaloCODY Planned Giving Services
• Educate high potential planned giving prospects– Named/Planned to Name– Desires visit from client development staff– Additional information on planned giving– Additional information on institution
RuffaloCODY Planned Giving Services
• Stewardship—An on-going commitment
• RuffaloCODY committed to working with our clients to build lifetime relationships– Hot leads –directly to PG Officer– Warm leads—second call
RuffaloCODY Planned Giving Services
• Solicitation
• Done by client’s Planned Giving Staff
• Data Integrity
• Do not have to register
Does this really work
• Client builds the relationship
• Refusal rate
• Does not affect annual fund
• Length of call
Does this really work- part deux
• Success stories
• 250 new prospects and a house
• $500,000 in confirmed gifts at 9 cents cost
• We’ve been waiting for your call
• More bequests than last three years combined
• $455,000 in confirmed gifts at 2 cents cost
Results
• 8 out of 10 participate in survey
• 5% were quality Planned Giving Prospects
• Additional 27% requested educational materials
• 50% RuffaloCODY identified important other information about finances, advisors, etc.
Telephone Fund Raising
• Negative Attitude– Most of us measure telemarketing by the
attitudes and perceptions we personally hold about it
– Ken Burnett, Relationship Fund Raising
RuffaloCODY
Timothy D. Logan, ACFRE
Vice President, Senior Consultant
Planned Giving Services
800-756-7483