Developing A Multichannel Planned Giving Marketing Plan

Timothy D. Logan, ACFRENovember 12, 2013

Session Objectives

• Identify the best/most qualified PG prospects in your data base– Using wealth information and PG scoring models

• Understand the importance of multichannel—proactive marketing

• Recognize the importance of using segmentation in PG Marketing

• Discuss the seven steps to develop an Integrated Planned Giving Marketing Plan

Planned Giving Marketing

Planned Giving in the Development Process

Your Objectives

• Immediate impact– More gifts– Accelerated gift income

• Long-term, increase program performance

The Second Donor Pyramid

AnnualGiving

MajorGiving

PlannedGiving

Planned G

iving

Planned Giving Marketing

• Identify prospects who are ready for Moves Management (Face to Face)

• Find prospects who are ready now

Three Stages of Planned Giving

• Marketing• Gift Planning

– What you need to know about PG to market PG

• Stewardship

Multichannel Integration

4 Steps for Multichannel Integration• Identify your best prospects• Develop Segments for Marketing• Implement a Marketing Program• Qualify Individual Donors

Identifying Planned Giving Donor Prospects

Giving AnalysisEnhanced Data Scoring

Continuous Lifetime GivingThe Giving Lifecycle

Dove, et al, 2002.

Purpose of Annual Giving

• Secure New Donors• Secure Annual Gifts• Upgrade Existing Donors• Identify Major and Planned Giving Prospects

Analyzing Annual Giving Behavior—File Analysis

• Measures of Affinity– Loyalty, Passion,– If it’s about building a relationship, how do we

measure the strength of that relationship?

• Measures of Ability– Wealth, Assets

• Need to look at total donor relationship

The Biggest Predictor…

• Major Gifts– Annual gift size is the single largest predictor of

future large gifts

• Planned Giving– Frequency of AF Giving is the single largest

predictor of Planned Gifts

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.)

• What data can we use to analyze the file?–Types of Analysis

Types of Analysis• Giving Patterns

– Number of Gifts• Over a specified period

– Length of time on the file (LOTOF)– Age– Gender

• more important for messaging than for selection

• RFM• High Affinity non-donors• Enhanced data selects

Donor Lifestage

• Donors go through a cycle• Identify and target older, lapsing Annual Fund

donors• Develop relationship with Institution• Begin Planned Gift Marketing• Annuitize Annual Fund Gift

Using Enhanced Data

Wealth InformationPG Scoring Models

Enhanced/Other Selects-External• Age• Wealth rating/Planned Giving indicators

– You can help make these pay off!• Recent death in household• Donors to other charities• Lack of presence of living children (**)

– James, 2008

• Birth of first grandchild– James, 2008

• Church Attendance– Rooney 2008

Donor Rating Scores

• Point System• Pyramid• Passion Index

Planned Giving Prospect MatrixHigh $, Low

Affinity

If we could only getthem to give us a

million (Bill Gates, Joan Kroc)

High $, High Affinity

You already know them. You have buildings

named after them.

Low $, Low Affinity

You don’t want to spend money on them

Low $, High Affinity

They want to know more

Wealth

High

Low

HighDonor Affinity/Philanthropic Intent

Low

c 2005 Timothy D. Logan, ACFRE

©Jerold Panas, Linzy & Partners

Developing a Multichannel Planned Giving Marketing Plan

Step 1

File Segmentation For Planned Giving

Self-Selected or Proactive?

• Proactive Marketing produces results and identifies more Planned Gifts.

The Most Important Factors• Age• Frequency of giving• Length of Time on file (LOTOF)• Recency of giving• Other key Touch Points

PG Segmentation Hierarchy

1. Multi-year/multi-givers cut by age2. Internal affinity scores

• Including Affinity Touch Points

3. PG scores4. Use wealth rating if appropriate for gift

©2009 Timothy D. Logan, ACFRE

What About Non-Donors?

• High affinity non-donors• Donor loyalty scores• Affinity indicators

– Based on Touch Points

Step 2

Which Type of Planned Gift?

Segmentation for Gifts• Age based gifts

– Bequest, CGA, Retirement assets

• Wealth based gifts– Trust, DAF

• Other/Combination– Life Estate, Insurance, Deferred CGA, PIF

Age Based Gifts• Well…..Age (55 to 80)• Other analyses based on direct mail RFM

analysis• Recency of giving (24 months)• Frequency of giving

– Over a specified period (70%)—Sagrestano

– Length of time on the file (LOTOF)• Average gift is NOT important• Title/Gender—(dearth of results data)

Gifts of Wealth

• Length of time on the file (LOTOF)• Largest one-time gift (LOTG)• Total cumulative giving• Wealth rating indicator• Prospect research

At What Age, Wealth?

Dove, et al. 2002.

Step 3

What is the Purpose of the Message?

Purpose of the Marketing Message

• Education• Top of Mind• Stewardship• Call to Action/Ask

Step 4

Choose the Marketing Media

PG Marketing Methods• Direct Mail• Newsletters• Web• Telephone• E-mail• Press Releases• Professional Networks• Donor Seminars• Face-to-face

Purpose of the MediumMarketing Channel• Direct Mail piece, postcard• Newsletter• Website• Email• Magazine• Telephone• Visits• Seminars, Events• Professional Networks

Purpose• Identify• Educate• Educate, Top of Mind• Identify• Top of Mind• Qualify, Call to Action• Qualify, Call to Action• Educate, Qualify• Educate, Identify, Top of Mind

Continuum of Direct Response

FacetoFace

TelephoneCall

VideoTape

DirectMail

MassAds

INTERACTIVE NON-INTERACTIVE

PERSONALIZATION

TARGETING

Step 5

Develop a Donor Centered Message

Donor Centered Messaging• Crafting your legacy• Unlock the value of your assets• Using your real estate creatively• Increase your retirement income• Providing income to your elderly parents• Paying for college for your children or

grandchildrenSagrestano, 2008

PG Donor Clusters

Adding the Donor’s Information

Cluster Marketing• Age• Planned giving readiness• Immediacy of Gifts• Comfort with legacy/death• Wealth• Existing Legacy Society Member• Board Members, Development Committee

members, etc.• Assigned to a gift officer

Cluster Examples• Named you in will, is not decision maker• Donors who have included you in their

estate plans and are over 80• Loyal donor who has high wealth• Donors who indicated a concern about

income who have requested CGA information

• Donors who have a PG with another institution

Cluster Messaging• Thank you’s• Birthday cards• Holiday Cards• Donor milestones• Program involved donors• Travel donors• Special planning/tax considerations

Step 6

Planning Your Strategy

Planned Giving Marketing Matrix

40's 50's 60's 70's 80's 90's

Life Event First Will Investment Retirement Death of Spouse Change in ControlLife Stage Planning Earning Responsibility Security LegacyTheme Education Charitable Intent Financial Planning Affairs in Order Make a DifferenceMessage Education Top of Mind Call to Action Call to Action Stewardship, EducationPlanned Gift Wills Bequests, CGAs Bequests, CGA's Wills, CGA's CGA'sWealth CLT CLT, Deferred CGA CRT's, Deferred CGA CRT's CRT'sAnnual Fund Involvement Growth AF Triage Cut-back Nondonor

C,2006 Timothy D. Logan, ACFRE

Planned Giving Marketing Plan Shell

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

DIRECT RESPONSE

CLUSTERS

EVENTS

FREE RIDERS

TRIPS/VISITS

Planned Giving Marketing PlanJan Feb Mar Apr May June July Aug Sep Oct Nov Dec

DIRECT RESPONSENewsletter NL CGA NL--Beq NL--IRA roll-overNL CoverMailings March Mailing<50 Will Planning NL CVR>50 Charitable Bequest NL CVR>50 +$ CRT NL CVR NLCVR>69.5 NL CVR IRA Roll-overHigh Freq Givers TM Qualification TM TM TMLapsed LSAF

CLUSTERSSociety Survey Event Homecoming TG NoteFinancial Advisors Email Email Email Email Email EmailNotes/Cards BD BD/VD BD BD BD BD BD BD BD BD BD TG BDDecision Makers Wills Seminar Homecoming

EVENTSWills Seminar Employee

FREE RIDERSMagazine/Newsltr AD AD AD AD

TRIPS/VISITS CASE Conf Southwest US NCPG--D.C.

C,2006 Timothy D. Logan, ACFRE

Planned Giving Marketing PlanAge Distribution

40 50 60 70 80

Jan NL--CGA NNL--CGA NL--CGA

Feb

Mar Will Planning Will Planning Charitable Bequest IRA Roll over IRA Roll overCLT CRT

AprMay

NL Bequest NL Bequest NL Bequest NL Bequest NL Bequestemessage

JunJulAugSepOctNovDec

C,2006 Timothy D. Logan, ACFRE

Step 7

Use Multichannel Messaging

An Integrated Department

• Free Rider Opportunities• Your Annual Fund/ Direct Mail message• Using the Phone• Your Major Gift Officers• Check your website

PG Free Rider Opportunities

• Annual fund mailings• Annual fund telephone program• Articles in Newsletters• Ads in Alumni Magazine• Web site• Acknowledgements• Travel Program

Free Rider Methods

• Brochure• Seasonal Brochure• Ads• Buck slip/return card• Donor Profiles/Testimonials• Quizzes

The One Thing

• The one hard and fast rule:• Do not combine asks in one message• OKAY to gather data

– One or two quick screening questions

OTHER DEVELOPMENT METHODS

The Annual Fund Value Thread• Build the bridge in your messaging.• “If I am a 60 year old with a $7 million estate

—I need to know my $7 million will be put to good use—or I will give it elsewhere.

They need to show me that they know me.”

From Kay Sprinkel

Calling Programs• Planned Giving Knowledge• Say “Thank You”• Capturing comments

– What to listen for• Planned Giving Clues

– Personal– Financial– Lifestage

Use the Phone to Qualify

• It is only through the phone that you can ultimately determine if the donor is qualified and motivated to consider a planned gift. – Do they have a will– Do they have a PG with other charities– Do they have children– Do they have passion for making a gift to you– Are they ready now?

Who is best to make the calls?1. The fundraiser that will ultimately be working

with that donor. Creates an opportunity to build rapport.

2. An employee of the organization that knows it, knows the fundraisers and can make the “handoff” once they determine the level of qualification and motivation

3. Outsource the calls to a third party telemarketing firm

From Gordon Smith, National Jewish MedicalCenter

Face to FaceThe MGO’s Role—PG Colombo

• Structure – How—outright, multi-year, asset with income back

• Assets– What—cash, securities, real estate, retirement, intellectual

property, business interest• Timing

– When—all now, some later, scheduled, deferred, at death• Motivation

– Why—charitable intent, taxes, legacy, project, position

Check Your Website

• Easy to Navigate?– What’s it called– How many clicks

• Here’s looking at you, kid!– Photo of you and your team

• Gift calculator

Steps to Develop Your Plan• Step 1: Identify/Segment• Step 2: What type of Planned Gift?• Step 3: Purpose of Message• Step 4: Choose Medium• Step 5: Develop a Donor Centered Message • Step 6: Message Strategy/Planning• Step 7: Use Multichannel Messaging

In Summary1. Cultivating PG donors is rooted in AF/Direct

ResponseCreate a loyalty giving club

2. Proactive Marketing is key--Every PG prospect doesn’t raise their hand

Use data analysis to select your PG donors

3. Take 7 steps to develop an Integrated Planned Giving Marketing Plan

Questions?

Timothy D. Logan, ACFRESr. Vice President, Sr. ConsultantRuffaloCODYPlanned Giving Services800-756-7483timothy.logan@ruffalocody.com