Planned Giving Direct Marketing using a Call Program

MPGC Conference November 2009

Laurel Hardgrove, Director, Ridgeview FoundationDoug Stasek, Vice President, Ridgeview Foundation

In this session, we will share:Why the time is right to ask for planned giftsTwo case studies where a call program was used to

direct market planned giving2008 at Ridgeview Foundation in Waconia1998 at London Health Sciences in Canada

The resultsThe learningsDiscussion regarding how this information might

benefit you and your organization

Let us get to know you ……Sectors RepresentedYears of ExperienceSize of Planned Giving Program

Why the Time is Right to ask for Planned Gifts …..Intergenerational Wealth Transfer—Study at Boston

College and Cornell University revealed that:$41 trillion to $135 trillion dollars in the next 50 years$6 trillion to $25 trillion dollars in charitable bequests

Decima Research—7% of Canadians will support a charity through their will or estate plan. If charities ask for a planned gift, the response increases to 34%

Stelter and Selzer & Company Inc.—90% of Americans currently make annual gifts, 7% have made planned gifts. Potential for an additional 10% to make planned gifts

Why use a Call Program?Quest to find the most effective way to build

relationships with Ridgeview Foundation donorsWe wanted a dialogue with our donors, and a better

rate of response than direct mail We tested a pool of Annual Fund donors who had

“lapsed”—not given for at least 2 years and as long as 5 years back—to refresh their support

We also wanted to ask some of our loyal, frequent donors to consider a Legacy gift to support Ridgeview

Ridgeview Foundation’s ContextSmall, 109 bed hospital in west metroYoung Foundation with start up planned giving program

and 12 confirmed planned gift commitmentsFoundation in $30 million capital campaignDuring the campaign, some donors had given for the first

timeTiming: October and November 2008Regionalized database, focused on donor retentionPremier programs—Emergency, Cardiology and Cath

Lab, Birthing Center, Orthopedic and Joint Replacement, Cancer Care, Hospice and Home Care

Ridgeview Foundation’s ExperienceThe Legacy Call Program focused on Annual Fund

donors2300 donors who had made 3 gifts in the last five years

were selectedThe letter, signed by our hospital CEO, asked donors to

consider a Legacy gift to benefit Ridgeview Medical Center

The mail package included the CEO signed letter, a bequest confirmation form, and a response envelope

Follow up and ResultsIn follow up calling, we made contact with 909

donors--3.9% or 35 donors said they either had or will make a planned gift to Ridgeview. Three have already sent in their Bequest Confirmation Form.

A further 16 said they would consider making a planned gift, and an additional 40 are very warm prospects for a future planned gift.

A total of 91 donors and interested prospects emerged from this calling—a 10% response!

Investment in the CallersImportant to spend time training Callers to speak on

the Foundation’s and Hospital’s behalfARIA Call Center from St. Cloud 5 Callers came and toured the hospital, ate lunch in

the cafeteria, met the CEOTrained on Ridgeview’s premier programs, Annual

Fund, Planned Giving overviewImportant to empower our front line of

communication to speak with our donors!

London Health’s ExperienceLondon Health Sciences, large teaching hospital in Canada (1000

beds), was the “beta site” for Legacy Leaders in 1998Young Foundation, thousands of grateful patients each month, yet

only 30 confirmed planned gift commitmentsNot as much incentive in Canada for planned gifts—ie. no estate taxFoundation in $104 million capital campaignDuring the Campaign, some donors had given for the first timeMail/Phone program aimed at annual donors to the foundationTiming: Spring 1998Premier programs—Emergency, Cardiac, Transplants, NICU,

Orthopedic and Joint Replacement, Regional Cancer Care

Follow up and ResultsDonor selection criteria:

Annual donors who have made 3 gifts over the last 5 yearsSpecial event attendees – 2 or 3 events over the last 3 yearsHospital volunteer for at least a yearCumulative giving of over $1000

In house call center and group of callersMail package included physician signed letter, customized brochure,

bequest confirmation form, and reply envelopeEnd result—495 new donors pledging over $11.7 million!

Donor Groups Called with varying Response Rates                  

 

 Selection Criteria:

 Number in the category:

 Response Rate:

 Annual donors--3 gifts in last 5 years

 8600

 6.3%

 Special Event Attendees

 69

 7.3%

 Hospital Volunteers

 280

 8.6%

 Leadership Donors of $1000

 1200

 10.2%

Selection Criteria:

Number in the Category:

Response Rate:

Age BreakdownAge Annual Donor

(Pool: 10,000)

Planned Giving Donors

(Pool: 495)

99 years plus .05% 0%

89 to 98 years 1.3% 1.64%

79 to 88 years 9.7% 14.7%

69 to 78 years 28.5% 33.8%

59 to 68 years 21.8% 17.6%

49 to 58 years 16.6% 15.2%

39 to 48 years 13.5% 12.5%

29 to 38 years 8.1% 4.4%

19 to 28 years .2% .2%

100% 100%

LHSF Call Program Donors by Age

Age Data from Stelter Research75% of annual fund donors ages 40 to 55 have not

been approached by a charity to consider a planned gift!

“Annual donors have already demonstrated that they believe in a charity’s mission. They just need to be asked to give differently, and now is the perfect time to initiate that conversation.”

Results ….. Years later …..Hundreds of confirmed planned giving donors at

London Health Sciences FoundationAfter 9 years, $1.7 million in realized cash gifts from

the original 1998 calling, average $60,000 bequestThe honor of planned giving—3 families with

undocumented planned gifts who came forward

Lessons LearnedWe have to get asking!Build relationships after the call, stress recognition

and your Legacy giving club Record every prospect and donor comment in the

donor databaseFor this program to be truly effective, collaboration

with Annual Fund colleaguesThe Call Program contacts prospects who wouldn’t

otherwise be visited—”the lost prospects”

We want your thoughts and feedback ….

What conclusions do you draw from this?How do you see applying this information to your

organization?Questions?

George Bernard Shawon “Leaving a Legacy”

“I am of the opinion that my life belongs to the community, and as long as I live, it is my privilege to do for it whatever I can. I want to be thoroughly used up when I die, for the harder I work, the more I live. Life is no ‘brief candle’ to me. It is a sort of splendid torch which I have got hold of for a moment, and I want to make it burn as brightly as possible before handing it on to future generations.”