Tax Effective Giving – making donations stretch further

Concern’s experience

Introduction

Concern

• Aid agency• Formed in 1968• Tax Campaign since 1995• Tax income reclaimed to date €22.8 million

Scope of today

Tax-effective giving

• Criteria for claiming• Tools for capturing & handling donor data • Tools for contacting donors• Handling & monitoring responses• Follow on donor communications

Criteria for Claiming

Steps involved

Mary Kenny - €250 to Concern in 2009 Lives in Dublin Works in a bank and pays higher rate tax 2010 Concern sends 2009 tax form for the €250 Mary signs it and returns it to Concern Concern submits claim to Revenue to reclaim the tax

Mary paid on the €250 Revenue sends Concern cheque for €174

Criteria for Claiming

Whose eligible? Gave €250+ within a tax year Individual Tax payer in Republic of Ireland PAYE taxpayers Claim at the higher 41%

or Claim at the standard 20% Ethiopia

Criteria for Claiming

Whose not eligible?

Self-Assessed– Claim on their own tax returns/self-assessment

form

Corporate– Claim as if it were a business expense

Additional Information

• Married couples

• OAP

• No upper limit

• Collected money

• Legacy donations

€250 donation

• Higher Rate Taxpayer

– Claim 69.5%• Donation of €250, claim back €174

Standard Rate Taxpayer

– Claim 25% Donation of €250, claim back €63

Capturing & handling data

Capturing & handling data

1. Capture contact details

2. Capture financial details

3. Capture tax related details

4. Prompt tax effective ask amounts

1. Contact Details

2. Financial Details

4. Tax Effective Amount

3. Tax details

Tools for contacting donors

2006 New Approach

Income

2003 – 2005 = €1.76m

2006 – 2009 = €3.7m

Response rate

2003-2005 = 37%

2006-2009 = 50%

Tools - Contacting Donors

Direct Mail Email Telemarketing Text Messaging Radio Online Response forms

Direct Mail

• Who are we talking to?

• What is our message to them?

• Why should they act?

• How should they respond?

Who are we talking to?

• Existing Concern donors only

• Their donations equate to €250 or more within a tax year

• They are PAYE tax payers only and pay ROI tax

• They are already predisposed to the Concern cause

• They are open to receiving communications from Concern

What is our message to them?

Strong message that will intrigue and interest the recipient

Simple straightforward style that quickly demonstrates how easy it is to give yet more money to Concern

Personal and friendly tone of voice

Immediate action needed to continue the work that Concern is already performing with the donations

Use AIDCA formula

AIDCA

• Attention - avoid being discarded

• Interest - start & continue reading

• Desire - want to help

• Conviction - reaffirm worthy of support

• Action - easy and immediate response

Concern’s Message

Sign it.

Send it.

Save lives.

Spend nothing.

Attention

• Personalised

• Unusual, exciting or colourful formats

• Relevant to person or intriguing

1. Attention

Interest

• What is it you want me to know?

• Telling the story and showing the need

– Using case studies– Facts and figures that

are understandable– Make interactive

(questions)

2. Interest

Desire

• Interest alone won’t lead to response

• Why should I help?– Demonstrate the need

3. Desire

Conviction

• Speak with confidence

• Will this donation make

any difference?– Use testimonials– Guarantees of cost-

effectiveness

4. Conviction

Action

• What do I have to do?

• Is it easy to do?

• Repeat the offer

• Overcome inertia

5. Action

Why should they act?

• It is at no extra cost to the donor

• It will provide extra funding

• It is simple - sign and send

How should they respond?

Response mechanism is vital – Tax form and envelope

Easy to read and understand

Easy to complete and donate/reply

Additional Contact Tools

Email Telemarketing Text Messaging Radio Online Response forms

Additional Contact Tools

Email

Telemarketing

Text Message

Additional Contact Tools

Radio

Online

Response forms

Response handling

Tax Administrator

All administration issues Cleans data Record all responses Submits claim Files all responses (audit/Revenue Inspection)

Follow up

E - Newsletters Newsletters

Follow up

Donor Appeals

Press

Recap

Ensure all donor details are captured and recorded

Ensure the donor selections factor in claim criteria

Ensure the contact tools used have a clear message with call to action

Ensure all details of the claim are correct before submitting

Give your donors an update on the total received

Thank You

Questions?