pareto six steps to bequest success

Six steps to legacy success: Six steps to legacy success: Your complete legacy strategy Your complete legacy strategy Your complete legacy strategy Your complete legacy strategy

Christiana StergiouChristiana StergiouChristiana StergiouChristiana [email protected]@paretofundraising.com

f d i if d i iwww.paretofundraising.comwww.paretofundraising.com

© Pareto Fundraising 2008© Pareto Fundraising 2008

Christiana StergiouChristiana Stergiou


What do you want to learn?What do you want to learn?

© Pareto Fundraising 2008

Outcomes from this sessionOutcomes from this session


OneOne--page Bequest Strategic Planpage Bequest Strategic Plan


1 Bequest basics

1.The Big Picture

1. Bequest basics

2. Bequests in your FR mix

3. Six step strategy 2.Why major donor

programs usually fail

p gy

= one page strategic plan

4. Questions and discussiony3.Identifying

4.Communicating5.Asking

6. More communicating


A big thank you to...A big thank you to...


1 Bequest basics

1.The Big Picture

1. Bequest basics




p gy






What is a charitable bequest?What is a charitable bequest?


The most effective bequestThe most effective bequest


Bequests changing the worldBequests changing the world

INR 1,404,928,463

© Pareto Fundraising 2008© Pareto Fundraising 2008Source: BRW 2006

Average bequest value by yearAverage bequest value by year

$70,000 INR 2,452,249

$50 000

$60,000

$40,000

$50,000

$20,000

$30,000

$0

$10,000


$01996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07

What about here?What about here?


1 Bequest basics

1.The Big Picture

1. Bequest basics




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The big pictureThe big picture

Overall Fundraising StrategyOverall Fundraising Strategy

GovernmentGovernmentConsiderConsider

Corporate &Corporate &

ConsiderConsider

Associations Associations Trusts & Trusts &

foundationsfoundations

Corporate &Corporate &EventsEvents

Associations, Associations, groupsgroups

Individuals Individuals –– Long term growthLong term growth

Bequests / Bequests / Regular GivingRegular Giving

The Giving ConstituencyThe Giving Constituency

Bequests / Bequests / LegaciesLegacies Major DonorsMajor Donors Regular GivingRegular Giving


The Giving ConstituencyThe Giving Constituency

Long term growthLong term growthIndividual giving is currently the ONLY long term solution for growthg

IndividualsIndividuals ––

Donor care

Regular

Individuals Individuals Long term Long term

growthgrowthBequests

GivingMajor

DonorsMajor

Donors


Gross Gross income income by by yearyear

$160 000 000

$180,000,000

$200,000,000

$120,000,000

$140,000,000

$160,000,000

$80,000,000

$100,000,000

$40,000,000

$60,000,000

$0

$20,000,000

1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07


Bequest Community Direct Mail Event In Memoriam Internet Lottery Membership Merchandise Other RG Child Sponsorship F2F

What to invest…. What to invest…. It depends!It depends!


1 Bequest basics

1.The Big Picture

1. Bequest basics




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Step 1: The right donorsThe right donors


Acquiring the right donorsAcquiring the right donors


A numbers gameA numbers game


Criteria for most likelyCriteria for most likely

Board Past & Present& Present

StaffRegular Monthly Givers

DemographicDate of birthPostcode analysisSurvey responses

Pool of Supporters

Service Users

Occasional Givers Behavioural

y pContact details providedGenderTitleAddress type UsersGivers Behavioural

Length of involvementSupporter type

Recruitment sourceRegular giver

yp

VolunteersMembers Regular giverMembership

Type of service used


Most important: your supportersMost important: your supporters


Very important: ageVery important: age


Age analysisAge analysis

Age Bands of Bequestor Typesg q yp

12%

14%

16%

6%

8%

10%

12%

0%

2%

4%

6%

%15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90+

Confirmed Bequestor Intender 0-48 mths Mailable Only

NB: The graph above represents only those who have been classified with an age


(80% of bequestors and 20% of mailable 0-48 mths).

Criteria for most likelyCriteria for most likely

Demographics Behaviour Other Info

• Aged 50 to 64 yrsM M

• PAWS and Cash d ( ith hi h t

• Have acquired t t• Ms or Mrs

• Frankston area• Pet names on

donor (with high rate of cash donation)

• Purchase

pets as strays

database merchandise• High value•Possible to startPossible to start recruiting bequestors within 2 years of

t


support

St 2Step 2: Staff training

Step 1: The right donors

g

The right donors


Who are you?Who are you?


Why, not how!Why, not how!


Great customer careGreat customer care


What What bequestorsbequestors wantwant

B tBequestors are significantly more d di i l tidemanding in relation to service quality (th “ l”(than “normal” supporters)

www charityfundraising orgwww.charityfundraising.org


Everyone is responsibleEveryone is responsible

M t Sh i R ltMystery Shopping Results

Handled call efficiently 25Handled call efficiently 25Handled call adequately 54Handled call – person not very 6Handled call person not very knowledgeable

6

Didn’t know where to pass call 12Didn t know where to pass call 12Didn’t return call 3


And the information they sent?And the information they sent?

56% of charities surveyed did not ask for a bequestask for a bequest in the information packs they sentpacks they sent


Step 3: Identifying

Step 2:

Identifying prospects

Step 2: Staff training

Step 1: The right donorsThe right donors


The Ultimate Bequest PlanThe Ultimate Bequest Plan

Confirmed Confirmed BequestorsBequestorsConfirmed Confirmed BequestorsBequestors

Intenders &Intenders &ConsiderersConsiderersIntenders &Intenders &ConsiderersConsiderers

Warm SurveyWarm SurveyWarm SurveyWarm Survey Bequest Bequest Bequest Bequest Cold Cold Cold Cold OtherOtherOtherOther OtherOther


Warm SurveyWarm SurveyWarm SurveyWarm Survey Direct MailDirect MailDirect MailDirect Mail SurveySurveySurveySurveyWarmWarmWarmWarm ColdCold

Bequest direct mailBequest direct mail


Remember the envelopeRemember the envelope


Surveys tick lots of boxesSurveys tick lots of boxes

Reveal the donor’s bequest intentionsq

Tell you the donor’s reasons for giving/what’s important to themg g p

Collect date of birth and other extra information

An opportunity for the donor to tell their own story

You have the opportunity to personalise comms with the information donor shares


ACF supporter surveyACF supporter survey


ROB: ACF WARM SURVEY ROB: ACF WARM SURVEY LETTER PLEASELETTER PLEASE

N t f fi d b t j t f• Not for a confirmed beqeustor, just for an ordinary donor

© Pareto Fundraising 2008© Pareto Fundraising 2008© Pareto Fundraising 2008

THETHE question:question:


ACF survey resultsACF survey results

Number Mailed 25,573

Gross Income INR 4,911,015

Net Income INR 2,020,262, ,

Surveys Returned 6,155

S R R t 24%*Survey Response Rate 24%*

Cash Response Rate 12%

Average Gift INR 1,673

*Target was an 8% response rate to the survey


Target was an 8% response rate to the survey

ACF survey bequest results ACF survey bequest results

TARGET ACTUAL

C fi d 125 496Confirmed 125 496 (340 new)

Intenders 250 473

Considerers 375 437

Uncovered ~INR 996,000,000in potential bequest income


p qEstimated average bequest INR 2,092,000

And year after year….And year after year….

20042004 20072007


And year after year….And year after year….

WARM SURVEY RESULTS 2004 2005 2006 2007RESULTS

Quantity Mailed 15,888 16,357 18,835 24,883

Response Rate % 17% 24% 26% 27%

Confirmed bequest 373 191 86 81Confirmed bequest 373 191 86 81

Intending n/a 560 232 522

Considering 1056 647 614 335


Step 4:

Step 3: Identifying

Conversion

St 2


Step 2: Staff training


g

The right donors



Send info packSend info pack

Confirmed Confirmed BequestorsBequestorsConfirmed Confirmed BequestorsBequestors Phone & ThankPhone & ThankIntenders &Intenders &

ConsiderersConsiderersIntenders &Intenders &ConsiderersConsiderers




The ultimate bequest packThe ultimate bequest pack


Rob: ACF bequest conversion Rob: ACF bequest conversion letter pleaseletter please


BreakBreakBreakBreak


ROB: Mission Australia ROB: Mission Australia bqbq pack pack photophoto


“As hard as it was, I refused to give up hope. I refused to believe my son was lost to drugs forever. Then we found Triple y g f f pCare Farm, a drug and alcohol centre run by Mission Australia, with its team of caring staff who provided us with the support we needed ”support we needed...

“... we realised we didn’t have a Will, so we made one. And I made sure we included Mission Australia right from the start.”


When it came to making a bequest, Dorothy saw it as a natural t i f th t h h b i i thextension of the support she has been giving over the years.

“The good people at Mission Australia do so many things to help so many people, it’s just a little thing I can do to try and help support their work.”



Focus GroupsFocus Groups

Service visits &Tours


Phone Follow-UpPhone Follow-Up

Donor Care & Comms CycleDonor Care & Comms Cycle







When to callWhen to call


Don’t be afraid to callDon’t be afraid to call

You have:You have:PERMISSION to call

You have:a MORAL OBLIGATION to call


Purpose of the callPurpose of the call

Thank the supporter for their commitment to your organisation and intending/considering a bequestintending/considering a bequest

Update them on what that bequest will hi f i ti d iachieve for your organisation during

and after their lifetime

Help the relationship to move forward

The call must have an outcome


Some examples of outcomesSome examples of outcomes

No Change in Prospect Status, No Follow-Up Required

Moved to Intender UndefinedNo Follow-Up Required

No Change, Follow-Up Required

Intender Pecuniary

Confirmed Pecuniary

Confirmed ResiduaryN L A b t P t

Considerer

No Longer A bequest Prospect, Donated Cash

No Longer A bequest ProspectNo Longer A bequest Prospect,

Became a RGIntender Residuary

No Longer A bequest Prospect

Intender Undefined


Confirmed UndefinedIntender Residuary

How hard will you try...How hard will you try...

Six attempts t k t Sometimes

Different timesto speak to

the right person

Sometimes up to twenty

attempts

timesDifferent days

Saturdaysy


A bequest phone campaignA bequest phone campaign

Warm Supporter Survey

Cold Acquisition Surveyy

In-house bequest direct mail campaign


Outcome of bequest calls: No. % C fi d P i 5 0 84%Confirmed Pecuniary 5 0.84%

Confirmed Residuary 4 0.68%

Confirmed Undefined 48 8 11%Confirmed Undefined 48 8.11%

Total Confirmed 57 9.63%

Intending to leave a bequest 255 43.07%g q

Considering bequest 106 17.91%

No, not now 56 9.46%

No longer a bequest prospect 116 19.59%

Deceased 2 0.34%


Total Contacts 592 100%

The ultimate bequest planThe ultimate bequest plan












Yes, I have Yes, I have included a gift to included a gift to The Lost Dogs’ HomeThe Lost Dogs’ HomeThe Lost Dogs Home The Lost Dogs Home in my Will!in my Will!


Step 4:

Step 3: Identifying

Conversion

Step 5: Lif l

St 2


Life-long comms

& donor careStep 2: Staff training


g

The right donors



Donor Care & C C lDonor Care & C C l


Phone & ThankPhone & Thank

Comms CycleComms CycleService visits &

ToursService visits &

Tours



Send Thank youPack

Send Thank youPack Send info packSend info pack


PackPack

Phone & ThankPhone & ThankIntenders &Intenders &ConsiderersConsiderersIntenders &Intenders &ConsiderersConsiderers




ThankingThanking








Tours



Send Thank youPack



PackPack





Keep sending surveys...Keep sending surveys...

20062006

20072007


Keep sending appeals...Keep sending appeals...








Tours



Send Thank youPack



PackPack





Step 4:

Step 3: Identifying

ConversionStep 5:

Life long

Step 2:


Life-long comms

& donor careStep 2: Staff trainingStep 6:

M i


Measuringyour success

The right donors


Average bequest by year (AU$)Average bequest by year (AU$)

$70,000

INR 2,452,249

$50 000

$60,000

$40,000

$50,000

$20,000

$30,000

$0

$10,000


$01996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07

Future incomeFuture income

2500

2000

ThinkingIntend

1500

IntendConfirmed Over

INR1,002,340,425

1000

500


02004 2005 2006

Bequest penetration by charity Bequest penetration by charity (% of active cash donors)(% of active cash donors)

8 0%

(% of active cash donors)(% of active cash donors)

6.0%

7.0%

8.0%

4.0%

5.0%

1 0%

2.0%

3.0%

0.0%

1.0%


The Lost Dogs’ Home successThe Lost Dogs’ Home success

1500

1800

INR 400,000,000

INR 450,000,000Bequest income DM Bequest pledgers

1200INR 300,000,000

INR 350,000,000

900

INR 200,000,000

INR 250,000,000

300

600

INR 100,000,000

INR 150,000,000

0INR 0

INR 50,000,000

99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09*


99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09

1 Bequest basics

1.The Big Picture

1. Bequest basics




p gy






The perfect relationshipThe perfect relationship


1 Bequest basics

1.The Big Picture

1. Bequest basics




p gy






Thank youThank [email protected]


Pareto Fundraising exists to make the world a better place, by di th t f fit t ' it ld id texpanding the not-for-profit sector's capacity worldwide to

ensure as many beneficiaries are helped as possible.

We encourage you to share this document but do ask that should you decided to use any of the information in a presentation beyond your organisation that you first email us

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