transforming your annual fund finding planned giving donors timothy d. logan, acfre

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

• E-mail

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

timothy.logan@ruffalocody.com

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

timothy.logan@ruffalocody.com