Direct Marketing for Planned Giving - Convio

2010 WASHINGTON NONPROFIT CONFERENCE January 28-29, 2010

Using the Science of Direct Marketing for Planned Giving Lead Generation, Cultivation and Close

Today’s Speakers:Steve Froehlich, Senior Director of Direct Response, ASPCA

Steve Froehlich has been with the American Society for the Prevention of Cruelty to Animals (ASPCA) since October 2005. Steve worked at Greenpeace from 2000-2003 as the manager of the monthly giving program. He has also worked for Sanctuary for Families, a domestic violence shelter, and the Brooklyn Historical Society. Steve’s fundraising career began in 1996 as a door-to-door canvasser and he believes this is the most important job any career fundraiser can hold. He currently serves on the Board of Directors for the Direct Marketing Fundraisers Association. Steve holds a BA in Women and Gender Studies from American University and a MPA in nonprofit financial management from New York University.

Phyllis Freedman, President, SmartGivingPhyllis Freedman is President of SmartGiving, an independent consultancy specializing in planned giving marketing and strategic fundraising. During the previous 25 years of her professional career, Phyllis held key positions in nonprofit management and fundraising, helping organizations operate and raise money more effectively and efficiently. Phyllis has served as the Executive Vice President and General Manager of Epsilon’s Fund Raising & Membership Services Group, Director of Development and subsequently Associate Executive Director of Paralyzed Veterans of America and as Chief Development Officer for Special Olympics International. She is currently a docent and provides pro bono fundraising assistance to the National Building Museum in Washington, DC, and also provides pro bono fundraising counsel to Triad Health Project, an AIDS service organization serving the Greensboro, High Point and Raleigh-Durham region of North Carolina. Previously, she served on the Board of Directors of Food & Friends and the Whitman-Walker Clinic, both Washington, DC area AIDS service organizations.

Moderator:Glen A. Beasley, Director, Direct Marketing, Arbor Day Foundation

Much of Glen’s 15+ years of Direct Marketing experience has been in the for profit world working for companies such as Harry and David, Musician’s Friend and Bowflex. Glen joined the Arbor Day Foundation in 2008 and has made a great connection with nonprofit fundraising, our industry’s close relationships and the genuine passion we all have for our causes. He is currently in charge of the Arbor Day Foundation’s direct mail program, e-mail and online membership and Planned Giving lead generation. Glen holds a degree in Marketing from Southern Oregon University.

Direct Marketing Association 2


Let’s not over think this – it is remarkably simple.Our goal as direct response fundraisers

should be to identify older donors who are likely to consider leaving a charitable

donation in their estate plans and to market our group’s Planned Giving information

while using basic reports to track the effectiveness of our efforts.

By following this guiding principle – the ASPCA substantially increased the number

of planned giving leads within just 18 months.

• After several years of aggressive RFM cuts to house file mailings, the ASPCA had been successful in improving the efficiency of individual mail campaigns by ignoring lower dollar and further lapsed donor segments.

• This strategy had been eliminating “unproductive” segments from our communication/solicitation stream… unfortunately this segmentation strategy was disproportionately excluding donors aged 70+ who had been giving smaller gifts under $10.

• As a result, we simply hadn’t been talking to our best planned giving prospects about the ASPCA’s work.


A problem of our own design


Age distribution of recent donors

This chart shows the ASPCA’s age distribution for new donors acquired through direct mail over the past two years. Even though this distribution is older than the web & DRTV, it still shows the gap we targeted for growth.

Target growth

• Total donors in the last 0-24 months

• Need more donors 70 years of age and older

• Focus on converting older donors to be “active & committed”• defined as 3+ gifts and MRC 0-24 months

• Find donors interested in being planned giving “Information Seekers”

• Identify donors who have already listed the ASPCA in their estate plans.


The 5 bucket strategy


Nov. 2008 Jun. 2009 Jan. 2010 % Growth

0‐24 donor count 990,919 1,093,387 1,199,575 21.06%

70+; HPC $5+;MRC 0‐60 mos. 165,611 220,681 ‐100.00%

70+; 3+ gifts; MRC 0‐24 mos. 96,458 106,295 ‐100.00%

Information seekers 6,379 8,499 9,330 46.26%

Legacy Society members 701 1,225 1,605 129.29%

Tracking growth in the buckets

• Different strategies have driven each of the segments shown here.• As our size grew, appends helped identify older donors we already had.• Our goal is for “active & committed” to keep pace with full file growth.


Sample “Legacy Society” mailing


Category DescriptionMonth

Ending Apr 30, 2009

Month Ending Dec 31, 2009

Growth%

increase

IN WILL Reverse of house reply devices 1175 1601 426 36%3 effort mailing done in 2008 57 572/09 PG Appeal: told we're in their will 96 218 122 127%Has already named ASPCA in Estate Plan 80 82 2 3%Z: UNIQUE DONOR TOTAL 1177 1605 428 36%

TAX INFO REQUEST 3 effort mailing done in 2008 83 85Reverse of house reply devices 4985 5381 396 8%Tel/Int Request for Gift Annuity Propsl 22 22Z: UNIQUE DONOR TOTAL 5042 5458 416 8%

WILL INFO REQUEST 3 effort mailing done in 2008 64 64Interest in leaving ASPCA in Estate 27 27 0 0%Reverse of house reply devices 8305 9096 791 10%Will Info Requests from Tel, web, other 24 129 105 438%Legacy Society Info Seekers 108 218 110 102%Z: UNIQUE DONOR TOTAL 8404 9330 926 11%

Tracking the sources of info-seekers and in-will notifications

• Finding best house mailings to use for our 70+ “carry strategy” in order to maximize conversion to “Active and committed”

• Break-out of different “Info-Seeker” strategies to calculate cost per lead… and also to track eventual conversion to gift by pathway used to first identify the lead.

• Develop better conversion of “Info-Seekers” to identifies and confirmed Legacy Society members.

• Assign “Planned Giving Revenue Receivable” back to the acquisition channel and source


Remaining challenges…

QUESTIONS?

Steve FroehlichSenior Director, Direct Response, ASPCADirect line: [email protected]


What works in planned giving marketing


Start with a Plan!

• Of PG Society members surveyed, only 60% report working from a plan!

• Apply the same discipline to PG marketing as you do to DM– Goals and objectives– Communication matrix– Production Schedules


Rules to Live By

• Follow basic DM principles– Personalization & customization

• Write & Design with this audience in mind• Remember these are major donor prospects• PG marketing is lead generation activity (for the most

part)– Evaluate based on final outcome not just initial response

• Be careful about testing—response rates are very low making statistical validity problematic


15

Jargon/technical terms

Copy heavy

Text only

Generic

Information-burdened

Donor-friendly language

Readable/white space

Photos of donors/cause

Mission-filled

Response-enhancing

Write & Design with the Audience in Mind

2010 Washington Nonprofit Conference 16

BEFORE AFTER


Incorporate Calls to Action


Be yourself!


Reply Card for Prospects


Customized Reply Card for Legacy Society Members


Evolution of a Package


Test of “Trusted Expert” copy vs “Rate Table”


Latest Version Combines the Two


Results of New Postcard

Charitable Gift Annuities 2009 2010 % Change

# of CGA Proposals Requested 17 25 +47%

# of CGAs in Cultivation/Open 9 17 +89%

# of CGAs Closed 2 4 +100%

Current CGA Portfolio $30,000 $55,000 +83%


Brochure vs Newsletter for Lead Generation


Exception to the Rule

Enclosed is my gift of $_______


Exception to the Rule

Other winning tests


QUESTIONS?

[email protected](http://plannedgivingblogger.wordpress.com)


Direct Marketing for Planned Giving - Convio

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