| 800.756.7483 Developing A Proactive Planned Giving Marketing Plan Timothy D. Logan, ACFRE National...

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Developing A Proactive Planned Giving Marketing Plan

Timothy D. Logan, ACFRENational Capital Gift Planning Council

May 13, 2010


Session Objectives

• Use the Annual Fund to identify the best/most qualified PG prospects in your data base– Using wealth information and PG scoring models

• Understand the benefits of proactive PG 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


PG Trends• Web• Wills/CGA’s comprise bulk of gifts

– CRT’s decreasing– Donor advised funds & family foundations

• (NPT: Krause and Mangone)

• Stand alone programs decline– Increased collaboration with major gifts

• Mass appeal marketing losing effectiveness• Special populations


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• Stewardship


The Development Gap


5 Steps to Close the Development Gap• Identify your best prospects• Develop Segments for Marketing• Implement a Marketing Program• Qualify Individual Donors• Develop Clusters

– Education/Stewardship– Cultivation/Solicitation path


Identifying Planned Giving Donor Prospects

Giving AnalysisEnhanced Data Scoring


Continuous Lifetime GivingThe Giving Lifecycle

Dove, et al, 2002.


Purpose of the Annual Fund

• 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 the total donor relationship


The Biggest Predictor…

• Major Gifts– Annual gift size is the single largest predicator

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?


Internal Data

• Demographic information• email address• Source of Name• Gift History/Cumulative Giving• LOTOF• Donor Interest

– Obtained actively or passively


External Data

• Age• Marital Status• # of Children• Education• Income• Stock/real estate holdings• email address


Types of Analysis• Giving Patterns

– RFM• Recency of Giving• Frequency• Money—Size of Gift

• Giving History--Loyalty– Length of time on the file (LOTOF)– Continuous Giving==Frequency over time

• High Affinity non-donors• Enhanced data selects


PG Affinity Indicators

• PG Society• Attended events, reunions• Board, past Board• Volunteer• Season tickets• Travel program (**)


Lifestage Annual Fund

• 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


Probability/Possibility

• Ability• Capacity• Data• Wallet

• Affinity• Propensity• Interest• Heart


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


Enhanced/Other Selects--Internal

• Multi-Newsletter responders• Upgrade/Downgrade

– Age, # gifts, LOTOF

• Title/Gender--Miss• Specific school/college, specific program• Donor loyalty scores• Volunteered email• Web hits


Donor Rating Scores

• Point System• Pyramid• Passion Index


Planned Giving Prospect Matrix

High $, 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

Lowc 2005 Timothy D. Logan, ACFRE


Developing a Proactive 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• Loyalty/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


PG Constituent Segmentation MatrixFew Gifts, High

Affinity

Former Faculty, Employees Grateful Patients

BoardAwardees

Many Gifts, High Affinity

Multiple Year GiversLegacy Society

Few Gifts, Low Affinity

AdvisorsPG Committee

Many Gifts, Low Affinity

Parents

Affinity

High

Low

HighNumber of Gifts

Low

c 2006 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


Identify the 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


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

grandchildren

Sagrestano, 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 indicated a concern about

income who have requested CGA information

• Donors who have included you in their estate plans and are over 80

• Donors who have a PG with another institution


Special Populations

• These are really clusters• Older, divorce, living together• Older females living together (sisters)• Gay/lesbian couples

– Lack of presence of children

• Boomers (now turning 60)– DINKS


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


Developing the Plan

• Market—Step 1• Message—Steps 2, 3,5• Media—Step 4, 6

• Market or Media Driven Planning– Age based– Gift Type based


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.



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



Step 7

Check for Message Integration


An Integrated Department

• Free Rider Opportunities• Your Annual Fund callers• 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


Train Your AF Callers

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

– What to listen for• Planned Giving Clues

– Personal– Financial– Lifestage


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: Message Integration


In Summary

1. Cultivating PG donors is rooted in AF/Direct Response

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

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


RuffaloCODY

Timothy D. Logan, ACFREVice President, Senior ConsultantPlanned Giving [email protected]

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