Words that Work: The phrases that encourage planned giving
Financial Planning Association of Minnesota
March 18, 2015
9:00 am – 10:00 am
Russell N. James III, J.D., PhD., CFP®
Texas Tech University
Results from 20 survey groups including nearly 10,000 total participants
collected during 2013and 2014 with one
goal:
To uncovering the messages and phrases that work to encourage planned giving
Philanthropy as synthetic family
Philanthropy is a SOCIAL act using the mechanisms of FAMILY bonding
Philanthropy uses family bonding mechanisms
• Charitable giving is rewarding (like receiving money)
• But uniquely involves oxytocin-rich social attachment brain regions (used in maternal and romantic love)
“donating to societal causes recruited two types of reward systems: the VTA–striatum mesolimbic network, which also was involved in pure monetary rewards, and the subgenualarea, which was specific for donations and plays key roles in social attachment and affiliative reward mechanisms in humans and other animals.” Moll, et al (2006) PNAS 103(42), p. 156234.
Increasing neuropeptide “oxytocin” – a family bonding hormone –increases giving
6Zak, P. J., Stanton, A. A., & Ahmadi, S. (2007). Oxytocin increases generosity in humans. PLoS ONE, 11, e1128
Philanthropy uses family bonding mechanisms
Human touch, when followed by a small gift, elevated oxytocin levels AND subsequent charitable giving
7
Morhenn, V. B., Park, J. W., Piper, E., Zak, P. J. (2008). Monetary sacrifice among strangers is mediated by endogenous oxytocin release after physical contact. Evolution and Human Behavior, 29, 375-383.
Philanthropy uses family bonding mechanisms
The strongest predictor of charitable bequest planning is childlessness
8James, R. N., III. (2009). Health, wealth, and charitable estate planning: A longitudinal examination of testamentary charitable giving plans. Nonprofit and Voluntary Sector Quarterly, 38(6), 1026-1043.
Charitable estate giving as“synthetic family”
9
Philanthropy is a “social act”
Charitable giving generated greater activation in brain reward centers (ventral
striatum) when observers were present
Izuma, K., Saito, D. N., & Sadato, N. (2010). Processing of the Incentive for Social Approval in the Ventral Striatum during Charitable Donation. Journal of Cognitive Neuroscience, 22 (4), 621-631.
10
Philanthropy is a “social act”
Hare, T.A., Camerer, C. F., Knoepfle, D. T., O’Doherty, J.P., and Rangel, A. (2010) Value Computations in Ventral Medial Prefrontal Cortex during Charitable Decision Making Incorporate Input from Regions Involved in Social Cognition, The Journal of Neuroscience, 30(2), 583–590.
Neural valuation integrates inputs
from social cognition regions
Having empathy
with another
Understanding another’s
perspective Anterior InsulaPosterior Superior Temporal Cortex
Charitable giving is predicted by neural
valuation
Ventral Medial Prefrontal Cortex
Philanthropy as synthetic family
Philanthropy is a SOCIAL act using the mechanisms of FAMILY bonding
Family words (simple language and life stories)
outperformformal words
(technical, contract, market terms)
Philanthropy is a SOCIAL act using the mechanisms of FAMILY bonding
Market Realm
(exchange)I engage in
transactions by formal contract
Market/ contract
norms do not
Social Realm(identity)I help people
because of who I am
Market Realm
(exchange)I engage in
transactions by formal contract
Social Realm(identity)I help people
because of who I am
Use family
language
Stories and
simple words
Avoid market
language
Formal, legal, or contract
terms
Would you say it in a normal conversation with your grandmother?
Make a gift
where you get an immediate tax deduction, still control the
investment of the assets and receive income from the
investments for the rest of your life with anything left over going to
charity at your death.
where you get an immediate tax deduction, still control the
investment of the assets and receive income from the
investments for the rest of your life with anything left over going to
charity at your death.
Make a transfer of assets
Different groups rate their interest after receiving different descriptions
Does it make much difference?
Describing a CRT
14%
54%
32%27%
53%
20%
Interested now Not now, but in future
Will never be interested
Transfer
GiftMake a giftwhere you get an immediate tax deduction, still control the investment of the assets and receive income from the investments for the rest of your life with anything left over going to charity at your death.
where you get an immediate tax deduction, still control the investment of the assets and receive income from the investments for the rest of your life with anything left over going to charity at your death.
Make a transfer of assets
2014 Survey (A/B)1,101 Respondents
Make a gift
and in exchange receive a guaranteed lifetime income from
the charity.
and in exchange receive a guaranteed lifetime income from
the charity.
Enter into a contract with a charity where
you transfer your cash or property
Does it make much difference?
Describing a CGA
13%
44% 44%
29%
48%
23%
Interested now Not now, but in future
Will never be interested
Contract
Gift Make a gift and in exchange receive a guaranteed lifetime income from the charity
receive a guaranteed lifetime income from the charity
Enter into a contract with a charity where you transfer your cash or property and in exchange
2014 Survey (A/B)1,101 Respondents
Formal terms lower charitable interest
Interested Now
36%
22%
Will Never Be
Interested
14%
23%
2014 Survey, 1,417 Respondents, Group F/G
Get an immediate tax deduction and still receive income from your investments for the rest of
your life by making a gift where you control the investment of the assets, but anything left over
goes to charity at your death.
Get an immediate tax deduction and still receive income from your investments for the rest of
your life by making a gift
using a “Charitable Remainder Trust”
where you control the investment of the assets, but anything left over goes to charity at your
death.
Formal terms lower charitable interest
Interested Now
50%
23%
Will Never Be
Interested
8%
19%
2014 Survey, 1,418 Respondents, Group F/G
Receive a tax deduction and make a gift that pays you
income for life
Receive a tax deduction and make a gift that pays you
income for life
called a “Charitable Gift Annuity”
Formal terms lower charitable interest
Interested Now
26%
15%
Will Never Be
Interested
23%
30%
2014 Survey, 1,422 Respondents, Group F/G
Immediately receive a tax deduction for 70% of the value of a house or land by
making a charitable gift of the property, but keeping the right to use it for the
rest of your life.
Immediately receive a tax deduction for 70% of the value of a house or land by
making a charitable gift of the property,
using a “Remainder Interest Deed”
but keeping the right to use it for the rest of your life.
Interested Now
23%
12%
Will Never Be
Interested
12%
14%
2014 Survey, 1,246 Respondents, Groups D/E
Make a gift to charity in my will
Make a bequest gift to charity
Formal terms lower charitable interest
Drop in “Interested Now” with formal terms
Phrase Women Men 50+“bequest gift” -14.2% -7.3% -13.0%“Enter into a contract with a charity…”
-19.2% -11.8% -9.7%
“using a RemainderInterest Deed”
-12.6% -9.3% -7.4%
“called a Charitable Gift Annuity”
-25.6% -26.9% -20.1%
“using a Charitable Remainder Trust”
-12.9% -14.7% -10.2%
“Make a transfer of assets…”
-12.0% -12.8% -4.9%
Usefamily words
(simple language and life stories)
not formal words (technical, contract, market terms)
Philanthropy is a SOCIAL act using the mechanisms of FAMILY bonding
Philanthropy is a SOCIAL act using the mechanisms of FAMILY bonding
SOCIAL examples influence charitable
estate decisions
3,000 testators in the normal process of completing their wills were randomly assigned to one of three groups
Many of our customers like to leave money to
charity in their will. Are there any causes you’re
passionate about?
Would you like to leave any money to charity in your will?
No reference to charity
Cabinet Office Behavioural Insights Team (2013) Applying behavioural insights to charitable giving
5.0%
10.4%
15.4%
Charitable bequests are influenced by a simple social example
Charitable plans among
1,000 testators
Charitable plans among
1,000 testators
Charitable plans among
1,000 testators
Many of our customers like to leave money to
charity in their will. Are there any causes you’re
passionate about?
Would you like to leave any money to charity in your will?
No reference to charity
Cabinet Office Behavioural Insights Team (2013) Applying behavioural insights to charitable giving
The social example also increased the average amount of bequest gifts
Cabinet Office Behavioural Insights Team (2013) Applying behavioural insights to charitable giving
$5,610 $5,291
$11,333
No ask Simple Ask Social NormUsing £1=$1.70 exchange rate
Charitable plans among
1,000 testators
Charitable plans among
1,000 testators
Charitable plans among
1,000 testators
The social norm increased charitable bequest intentions
Interested Now
30%
23%
12%
Will Never Be
Interested
9%
12%
14%
2014 Survey, 1,866 Respondents, Groups D/E/LateG+H
Many people like to leave a gift to charity in their will. Are
there any causes you would support in this way?
Make a gift to charity in my will
Make a bequest gift to charity
New Survey
v.
Instead of testing question wording, now
testing impact of marketing messages for
40 national charities(4,560 participants)
Baseline BEQ GiveAmer Cancer Society 26.79 36.77The Red Cross 25.93 41.12ASPCA 24.18 33.77Habitat for Humanity 24.01 34.90Amer Heart Association 23.17 33.95Natl Cancer Coalition 22.56 34.54Breast Cancer Res Fnd 22.53 33.93Natl Breast Cancer Fnd 22.43 33.48The Amer Humane Assn 22.23 33.91The Alzheimer's Found 21.40 32.00Susan G. Komen Br Canc 21.39 29.22Dana Farber Cancer Inst 21.13 29.63American Diabetes Assn 20.84 32.54World Wildlife Fund 20.82 29.08Guide Dogs for the Blind 20.80 31.46The Alzheimer's Assn 20.80 31.86American Lung Assn 20.78 31.40MD Anderson Cancer Cr 20.59 30.53UNICEF 20.37 32.31The Salvation Army 19.98 31.44
Baseline BEQ GiveWildlife Conserv Soc 19.90 29.26Goodwill Industries 19.65 34.42Big Brothrs/Big Sisters 19.47 30.49The United Way 18.97 28.97Joslin Diabetes Center 18.91 29.18Canine Compan for In 18.90 29.67Fnd Fightng Blindness 18.77 28.37AIDS Project LA 17.71 25.64Prevent Blindss Amer 17.51 28.32San Fran AIDS Found 17.39 25.49Nat Audubon Society 17.33 24.24YMCA 17.16 28.12Boys and Girls Clubs 17.14 30.10Girl Scouts 16.71 31.27YWCA 16.21 24.42Amer Indian College F 15.97 22.33CARE 15.86 24.69Boy Scouts 14.51 23.56United Negro Coll Fnd 14.13 21.90Ducks Unlimited 13.60 19.49
Social NormsFormal Evidence
Information indicating that it is common for Americans
to leave 5% or 10% to charity. Sharing survey
results showing agreement with concept.
Spendthrift Heirs Formal Evidence
Statistics showing how rapidly heirs typically
spend inheritance from published academic
research
MessageGive-
BEQ GapGap50+
GapMale
GapFemale
None 10.2 14.0 7.7 11.7Spendthrift Heirs (Formal) 9.4 11.4 8.4 10.1Social Norms (Formal) 8.8 11.7 7.5 9.7Heirs + Social Norms 8.0 10.2 6.4 9.0
Family words (simple language and LIFE STORIES)
outperformformal words
(technical, contract, market terms)
Philanthropy is a SOCIAL act using the mechanisms of FAMILY bonding
SOCIAL examples influence charitable
estate decisions
“when discussing which charities they had chosen to remember, there
was a clear link with the life narratives of many respondents”
Life storiesSummarizing a series of interviews with planned
donors, Dr. Claire Routley wrote…
Charitable bequest decision making emphasizes “visualized
autobiography” brain regions
Contrast Brain RegionMNI co-ordinates
Peak p FWE
Clust-er p FWE
(1) Beq> Give Lingual Gyrus -2, -78, -2 .004 .000
Precuneus 26, -66, 42 .102 .009(2) Beq> Vol Lingual Gyrus 2, -80, -4 .007 .000
Precuneus 30, -66, 40 .180 .004
Precentral Gyrus -34, -3, 36 .397 .001(3) Beq> (Give+ Vol) Lingual Gyrus 0, -78, -4 .001 .000
Precuneus 26, -66, 42 .007 .001
James, R. N., III & O’Boyle, M. W. (2014). Charitable estate planning as visualized autobiography: An fMRI study of its neural correlates. Nonprofit and Voluntary Sector Quarterly, 43(2), 355-373.
With new images or pure text (no significant difference)
Deceased bequest donor life stories
MessageGive-Beq
GapGap50+
GapMale
GapFemale
None 10.2 14.0 7.7 11.7Spendthrift Heirs (Formal) 9.4 11.4 8.4 10.1Social Norms (Formal) 8.8 11.7 7.5 9.7Heirs + Social Norms 8.0 10.2 6.4 9.0Deceased Beq. Stories 6.7 7.5 4.4 7.5
With new images or pure text (no significant difference)
Living bequest donor life stories
E.g., “School janitor Lester Holmes died in 1992” becomes “School janitor Lester Holmes signed his will today”
MessageGive-Beq
GapGap50+
GapMale
GapFemale
None 10.2 14.0 7.7 11.7Spendthrift Heirs (Formal) 9.4 11.4 8.4 10.1Social Norms (Formal) 8.8 11.7 7.5 9.7Heirs + Social Norms 8.0 10.2 6.4 9.0Deceased Beq. Stories 6.7 7.5 4.4 7.5Living Bequest Stories 4.4 4.3 3.3 5.0
Largest improvement• Wildlife Conservation
Society• World Wildlife
Federation• Canine Companions
for Independence• Guide Dogs for the
Blind• Big Brothers / Big
Sisters of America
The stories featured gifts benefiting
wildlife, dogs,
and youth
and two unrepresented categories (symphony and hospital chapel)
The bequest donor concept helped all charities, but the story cause still mattered
With new images or pure text (no significant difference)
Effect of More Stories
1st 4 Stories: Janitor, pet groomer, carpenter, symphony patron
2nd 3 Stories: fisherman, coach, physician
MessageGive-Beq
GapGap50+
GapMale
GapFemale
None 10.2 14.0 7.7 11.7Deceased 1st 4 stories 6.8 7.5 5.5 7.6Deceased All 7 stories 6.6 7.5 5.4 7.4Mixed Dec/Liv 7 stories 6.0 7.2 5.0 6.6Living 1st 4 stories 4.8 5.7 3.9 5.4Living All 7 stories 4.1 2.5 3.0 4.7
• Tell as many life stories of living planned bequest donors in as many places as possible
• This helps to set a social norm by example using appropriate language
Philanthropy is a SOCIAL act using the mechanisms of FAMILY bonding
Bequests to friends and family (v. charitable bequests) more heavily involve brain regions of Emotion (mid/posterior cingulate cortex;
insula) and Memory (hippocampus)
Can a charitable bequest represent a loved one, and thereby connect with this
memory and emotion?
Philanthropy is a SOCIAL act using the mechanisms of FAMILY bonding
Female, 63 widowed
‘The reason I selected Help the Aged...it was after my mother died...And I just thought – she’d been in a care home for probably three or four years. And I just wanted to help the elderly...I’d also support things like Cancer Research, because people I’ve known have died...An animal charity as well, I had a couple of cats.’
Bequest charity representing loved ones
“‘[In my will I have a gift to] the Cancer Research. My father died of cancer and so I have supported them ever since he died.’
Male, 89 married (Routley, 2011, p. 220-221)
Since many charitable bequest gifts appear to be in honor of a loved one, what happens when we specifically ask about making a charitable bequest honoring a friend or family member?
Do you have a deceased friend or deceased family member who would have appreciated your support of an International relief organization such as CARE or UNICEF?
Also tested for living friend or family memberAlzheimer’s The Alzheimer's Association, The Alzheimer's Foundation
Diabetes Joslin Diabetes Center, The American Diabetes Association
Wild Birds Preservation National Audubon Society, Ducks Unlimited
Wildlife World Wildlife Fund, Wildlife Conservation Society
Minority College Fund United Negro College Fund, American Indian College Fund
Blindness related nonprofit Foundation Fighting Blindness, Prevent Blindness America
Youth-related charitable Girl Scouts, Boy Scouts, YMCA, YWCA, Big Brothers / Big Sisters of America, Boys and Girls Clubs of America
AIDS research and care San Francisco AIDS Foundation, AIDS Project Los Angeles
Animal welfareAmerican Society for Prevention of Cruelty to Animals, The American Humane Association
International relief UNICEF, Care
Cancer research American Cancer Society, National Cancer Coalition, M.D. Anderson Cancer Center, Dana Farber Cancer Institute
Guide dogsGuide Dogs for the Blind, Canine Companions for Independence
Breast cancer researchBreast Cancer Research Foundation, National Breast Cancer Foundation, Susan G. Komen Breast Cancer Foundation
If so, please state your relationship to them and write at least 25 words describing their interest in or connection with this cause.If you signed a will in the next 3 months, what is the likelihood you might leave a BEQUEST gift honoring a living [deceased] friend or family member to _____
Testing the tribute bequest
Change in charitable bequest intention for those with family/friend connection
Total Age 50+ Male FemaleMemorial reminder +14.0 +14.0 +13.5 +14.0Living reminder +9.2 +9.3 +7.7 +9.9
Connection reminder + tribute bequest offer
increases interest
Average share with family/friend connections to each cause
Total Age 50+ Male FemaleMemorial reminder 22.1% 27.1% 19.5% 23.6%Living reminder 34.2% 36.1% 30.4% 36.6%
Change in charitable bequest intention for those with family/friend connection
Total Age 50+ Male FemaleMemorial reminder
+11.7 +12.2 +11.0 +12.1
Memorial reminder(after othermessages)
+15.0 +14.0 +15.3 +14.8
Living reminder
+9.4 +11.3 +6.4 +10.0
Living reminder (after other messages)
+9.2 +9.1 +7.9 +9.9
Connection reminder + tribute bequest offer can be “stacked” with other bequest messages
Giving – Tribute Bequest
TotalAge 50+ Male Female
Memorial reminder(after living/ deceasedstories)
-4.2 -1.7 -6.5 -3.1
Living reminder (after living/ deceasedstories)
-3.3 -2.3 -2.4 -3.7
Donor stories + tribute reminder eliminates giving-bequest gap for those with friend/family connections
DONOR STORY
TRIBUTE REMINDER
DONOR STORY
DONOR STORY
Memorial LivingDiabetes 16.9 Wild birds 12.8Alzheimer’s 16.0 Diabetes 12.7AIDS 14.1 AIDS 11.4Minority college fund 14.0 Alzheimer’s 11.2
Cancer 12.6 Int’l relief 10.4Breast canc. 11.7 Blindness 10.3Wild birds 11.1 Pets 9.5Int’l relief 10.9 Cancer 9.4Pets 10.6 Guide dogs 9.3Blindness 10.2 Breast canc. 8.6
Guide dogs 9.2 Minority college fund 7.4
Youth 7.7 Wildlife 6.1Wildlife 7.1 Youth 5.2
ImpactChange in charitable bequest intention for
those with family/friend connection
FrequencyLikelihood of reporting a family or friend
connection with the cause
Memorial LivingCancer 46% Pets 56%Breast canc. 39% Breast canc. 54%Alzheimer’s 29% Cancer 49%Diabetes 28% Wildlife 41%Pets 28% Diabetes 38%Wildlife 18% Youth 37%Guide dogs 15% Alzheimer’s 30%Youth 15% Guide dogs 23%Int’l relief 14% Wild birds 18%
AIDS 11% Minority college fund 18%
Wild birds 10% AIDS 17%Blindness 9% Int’l relief 16%Minority college fund 8% Blindness 15%
Impact and frequency vary with cause
Tribute bequests are more attractive for ascendants, less for descendants or friends
Family/friend words associated with relative interest in a tribute bequest(ranked by strength of correlation)
Positive Non-significant Negativegrandmother +7.5 dad girl -12.8family +3.5 children boy -13.7mother +2.4 uncle kids -8.4aunt +2.6 sister girls -12.1grandfather +2.7 mom friends -3.5husband +3.6 wife boys -11.6
cousin brother -6.4parents daughter -6.1son child -5.8father friend -1.4
Positive significant factor in a multivariate regression with all words
Simple language and starting with honor
Interested Now
32%
23%
13%
Will Never Be
Interested
11%
17%
21%
2014 Survey, 1,961 Respondents, Groups Y/B/H
Honor a family member by making a tribute gift to charity in my will
Honor a friend or family member by making a memorial gift to
charity in my last will & testament
Make a bequest gift to charity in my last will & testament in honor of a friend or family member who was
passionate about the charity's work
Simple implementationsSamples courtesy of Phyllis
Freedman, President of SmartGiving and
“The Planned Giving Blogger”
to “honor a friend or family member by making a memorial gift to charity in my last will & testament”
In a 2014 survey,
1 in 4 increased their intention to leave a charitable bequest when given the option
• Ask about family/friend connections
• Share the option of honoring a family member by making a tribute gift to charity in the will
Philanthropy is a SOCIAL act using the mechanisms of FAMILY bonding
Social Desirability
Bias
Philanthropy is a SOCIAL act using the mechanisms of FAMILY bonding
The motivational effects of tax
benefits are clear when measured
directly
People are unlikely to report giving as motivated by personal benefits like tax deductions
Interested Now
50%
33%
31%
Will Never Be
Interested
8%
14%
20%
2014 Survey, 1,904 Respondents, Groups D/E/F
Receive a tax deduction and make a
gift that pays you income for life.
Make a gift that pays you income for life and
receive a tax deduction.
Make a gift that pays you income for life.
Mentioning tax deductions increases charitable interest
Interested Now
26%
12%
11%
Will Never Be
Interested
23%
33%
42%
2014 Survey, 1,826 Respondents, Groups F/B/D
Immediately receive a tax deduction for 70% of the valueof a house or land by making a charitable gift of the property, but
keeping the RIGHT TO USE it for the rest of your life.
Make a charitable gift of either a house or land, but keep the RIGHT TO USE for the rest of your life and immediately
receive a tax deduction for 70% of the value of the property.
Make a charitable gift of either a house or land, but keep the RIGHT TO USE it
for the rest of your life.
Mentioning tax deductions increases charitable interest
InterestedNow
28%
27%
21%
Will Never Be
Interested
17%
20%
25%
2014 Survey, 1,782 Respondents, Groups E/A/C
Get an immediate tax deduction by making a gift where you still control the
investment of the assets, and receive income from the investments for the rest of
your life with anything left over going to charity at your death.
Make a gift where you get an immediate tax deduction, still
control the investment of the assets and receive income from the investments for the rest of your life with anything left over going
to charity at your death.
Make a gift where you still control the investment of the assets, and receive income from the investments for the rest of your life
with anything left over going to charity at your death.
Mentioning tax deductions increases charitable interest
Interested Now
50%
31%
Will Never Be
Interested
8%
20%
2014 Nov. Survey, 1,006 Respondents, Groups X/Y
Avoid capital gains tax by making a gift of
stocks or bonds to a charity.
Make a gift of stocks or bonds to charity.
Mentioning tax avoidance increases charitable interest
Philanthropy is a SOCIAL act using the mechanisms of FAMILY bonding
Social Desirability Bias It is good to note benefits, but don’t identify personal benefits as the motivation
People who join the legacy society make a “second gift” because
their example can influence others to make the same commitment.
People join the legacy society so that everyone will know how philanthropic
they are.
• Regardless of terminology or packaging, estate planning is planning for one’s own death.
• It is a strong reminder of the reality of one’s own mortality.
• Experimental research has identified consistent reactions to mortality reminders.
Distract: I’m too busy to
think about that right now
Differentiate: It doesn’t
apply to me now because I (exercise, have good cholesterol, don’t smoke…)
Deny: These worries are
overstated
Delay: I definitely plan to
think about this… later
Depart: I am going to stay
away from that reminder
Forms of Avoidance
Seminar Tonight:
Estate Planning
What you see
Seminar Tonight:
Your Upcoming Death
What the subconscious sees
Communicating ObliquelyPersonal mortality topics are
subconsciously aversive to most people. Wrap them in other topics to sidestep the
initial avoidance response.
A common theme in several successful approaches to introducing planned giving
Stories from the frontlines
• Charity projects• Stories of
planned donors who fund it
Charitable Estate Planning
The Oblique SeminarYou “just happen” to communicate about planned
giving in the context of something else
Christians and the Law• Religious liberties• Stewardship /
estate planning
Tax-smart giving• Current giving tips• Planned giving tips
“Since you’re thinking about ways to protect yourself and your identity, why not think about ways to protect your estate, as well?” We ended with an abbreviated seminar on how to be sure your estate is in order (with appropriate charitable bequests in place).”-Barbara Diehl, Journal of Gift Planning, 2006
Identity theft?
4 S1. Story
2. Story
3. Story
4. Shut up
So, what’s new at Texas Tech?
1. … new coach …
2. … new building …
3. Oh, and Mary Smith did a neat thing. Did you know Mary? She graduated two years before you... No? Well, Mary signed a new will that one day will endow a permanent scholarship for financial planning students.
Concept from Jeff Comfort,
Oregon State University
The Oblique Conversation
The Oblique Survey
Many friends of [charity] like to receive a tax deduction by making a gift that pays them income for life. Rate your level of interest in making this type of gift. □ Will never be interested □ Not today, but some day □ Somewhat interested □ Definitely interested
In the middle of an 8-10 question survey of opinions about the organization… Many people like to leave a gift to
[charity] in their will because they want to continue to support [cause]. If you signed a will in the next three months, what is the likelihood that you might leave a gift to [charity]? □ None □ Somewhat Unlikely □ Somewhat Likely □ Very Likely □ Definitely
or
The Oblique Focus GroupBigelow & Kolmerten (Journal of Gift
Planning, 2008) set up a donor focus group “about why no one seems willing to learn about planned giving by attending workshops …The participants, in order to give advice about workshops on planned giving, had to ask questions about CRTs and CGAs…Thus, like scientists who discover a cure unexpectedly, we had inadvertently found our answer where we least expected it: the best venue to teach people about planned giving was not a workshop or a seminar but a focus group.”
The Oblique “Will Kit”Many friends of ABCCharity love our new publication “Making your giving cheaper, easier, and smarter.” Check the box for your free copy.
Planned giving brochure• Giving (and repurchasing) appreciated stock [saves capital gain tax]
• Naming ABCCharity as a retirement account beneficiary [saves income taxes for heirs]
• Why your will probably controls nothing [TODs and titling]
• Honor a family member with a memorial gift to charity in your will
• Get rid of your government will [Intestacy]
• Gift annuities, etc…• How to get free, zero-pressure help from ABCcharity
NowYesI don’t
want to think
about it
Motivate action with non-death-related reasons
Present information
wrapped in a non-death-
relatedpackage
NowYesI don’t
want to think
about it
Later
Our campaign to reach 100
planned bequest ends in 3 months,
won’t you consider joining these others?
Left Out of Group
NowYesI don’t
want to think
about it
Later
We have a matching grant that will pay
10% of planned bequests (up to
$10,000 per donor) signed before November 1
No Match
NowYesI don’t
want to think
about it
Later
The §7520 rates went up. If you don’t sign the
remainder interest deed in the next 30
days, your deduction may drop.
Lower Deduction
NowYesI don’t
want to think
about it
Later
The §7520 rates went down. If you
don’t fund the CRT/CGA in the next
30 days, your deduction may drop.
Lower Deduction
I commit to complete an estate plan with a gift to (organization)within 6 months
□ Yes□ No□ Already
Completed
Pledge and follow-up
“To show a strong leadership
commitment in this planned
giving push, we want to announce
100% board participation by the fall banquet.
Can we count you in?”
NowYesI don’t
want to think
about it
Later
We really appreciate your commitment to
make this bequest gift. Can I check back
in a month to see how the planning process is going?
Violating “Pledge”
NowYesI don’t
want to think
about it
Motivate action with non-death-related reasons
Present information
wrapped in a non-death-
relatedpackage
Difference in older (50+) v. all respondents
Questions
I Will Never Be Interested
DefinitelyInterested
Now
All gift of cash +0.1% +2.4%
All bequest gift +8.5% +0.6%All tribute bequest +10.1% -0.2%
All TOD +13.2% -0.2%All donor advised fund +13.9% -0.2%All gift of stocks/bonds +14.3% +0.0%All retained life estate +15.9% -0.9%
All CGA +16.8% -2.3%All CRT +25.2% -1.9%
A larger share of older adults are decidedly resistant to bequest
giving and planned giving
Older adults are initially more resistant to bequest giving but more responsive to
bequest marketing
0
2
4
6
8
10
12
14G
ive
-Be
qu
est
Gap
All
50+
Older adults are initially more resistant to
bequest giving but are more responsive to
bequest giving marketing
{ { { {{ { {
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Change in charitable bequest intention for those with family/friend connection
Total Age 50+Memorial reminder +13.97 +13.96Living reminder +9.22 +9.33
Older adults initially more resistant to tribute bequest concept (survey #1) but more
responsive to tribute bequest reminder (#2)
Average share with family/friend connections to each cause
Total Age 50+Memorial reminder 22.1% 27.1%Living reminder 34.2% 36.1%
Will Never Be Interested
All 50+All tribute bequest 20.3% 30.4%
All giftof cash
Allbequest
gift
Alltribute
bequestAll TOD
Alldonor
advisedfund
All giftof
stocks/bonds
All lifeestate
All CGA All CRT
Female v Male 7.6% 0.5% 0.0% -1.8% -2.8% -4.2% -4.5% -4.9% -5.7%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
Fem
ale
-M
ale
Dif
fere
nce
in
pe
rce
nta
ge "
inte
rest
ed
no
w"
Women have relatively higher interest in cash gifts, equal for bequest gifts, lower for
other planned giving
“Leave a legacy” not helpful
Interested Now
22%
26%
Will Never Be
Interested
14%
12%
2014 Survey, 1,072 Respondents, Group G-early/C
Leave a legacy gift to charity in my last will &
testament
Make a gift to charity in my last will & testament
“Continue my support” had flat results
2014 Survey, 2,223 Respondents, Group H-early/C (unspecified), G/H (specific dollar or percentage),
Continue my support of my favorite charities
through a gift in my last will & testament
v. Make a gift to charity in my last will & testament
Slight decreasefor unspecified
bequest.
Slight increasefor specific
dollar or percentage of
estate bequest.
“Continue their support” helped social norm
2014 Fall Survey, 1008 Respondents,
Interested Now
35%
32%
Will Never Be
Interested
6%
8%
Many people like to leave a gift to charity in their will because they want to
continue to support their favorite charities. Are there any causes you would support
in this way?
Many people like to leave a gift to charity in their will. Are there any causes you would
support in this way?
Any special phrasing for bank
account or retirement
account transfer-on-death
beneficiary designations?
2014 Survey, 2,214 Respondents, Groups G/H/D
Slight improvement with a percentage option
Interested Now
14.4%
14.0%
11.6%
Will Never Be
Interested
24.1%
29.0%
25.6%
Make a gift by naming a charity as a transfer-on-death beneficiary
for some percentage of a bank account or retirement account.
Make a gift by naming a charity as a transfer-on-death beneficiary
for 10% of a bank account or retirement account.
Make a gift by naming a charity as a transfer-on-death beneficiary on a
bank account or retirement account.
Interested Now
12%
12%
Will Never Be
Interested
26%
26%
2014 Survey, 1,246 Respondents, Groups D/E
Make a gift by naming a charity as a transfer-on-death beneficiary on a bank account
or retirement account.
Leave a gift by naming a charity as a transfer-on-death beneficiary on a bank account
or retirement account.
“Make a gift” or “Leave a gift” no difference
Interested Now
12%
9%
Will Never Be
Interested
26%
31%
2014 Survey, 1,203 Respondents, Groups D/C
Make a gift by naming a charity as a transfer-on-death beneficiary on a bank account or retirement
account.
Make a bequest gift by naming a charity as a
beneficiary on a bank account or retirement
account.
Don’t use “Bequest”
Are people more responsive to
leaving a percentage of the estate, a specific dollar amount, or
unspecified?
Interested Now
26%
21%
15%
Will Never Be
Interested
12%
14%
28%
2014 Survey, Groups C(606)/H(855)/H(855)
Make a gift to charity in my last will & testament.
Make a gift to charity of a specific dollar amount in
my last will & testament.
Make a gift to charity of a percentage of my estate
in my last will & testament.
Unspecified > dollar amount > percentage gift
• Use family words (stories and simple words) not formal words
• Use social examples/norms• Tell life stories of planned bequest
donors • Talk about benefits – in the right way• Ask about family/friend connections to
the cause and give the option of a tribute gift in the will
• Communicate obliquely (use non-death-related packaging)
• Keep communicating to older donors
Philanthropy as synthetic
family: a SOCIAL act using the
mechanisms of FAMILY bonding
Questions & Answers
FPA MN Coordinator:Bonnie Stanley
Financial Planning Association of MN3900 Main Street N.E.
Columbia Heights, MN [email protected]
763-781-1212
INSTRUCTOR:Russell N. James III, J.D., PhD., CFP®
Texas Tech University MS 1210
Lubbock, Texas 79409
806-787-5931
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