Your One-Page Guaranteed*-to-Work LegacyProgram (*Guaranteed-to-Work if You Have

GoodDonors and You Execute the Plan withCopy, Stories and Design)

Sean TrinerSean.triner@paretofundraising.com

Welcome

Commercial in confidence ©ParetoFundraising 2012

A bit about Sean Triner

About me

The Best Legacy….Strategy

Ever?Why Bother?

Why Bother?

• Long-term income• Financial sustainability• Important part of a diversified fundraising

strategy• The ability to do even more good work• What else?

Mal Warwick defines opportunity cost as

“The number you would have raised – if only you had done things right!”

Opportunity cost

Opportunity cost

Medium bequest program

€2.9 million

(.5% x €29k)

Hot bequest program

€ 8.7 million

(1.5% x €29k)

Mild (or no) bequest program

€580,000 future bequest income

(0.1% x NZ €29k)

Imagine.

You have 20,000 people who donate, or have donated in the past ten years.

Average bequest of just €25,000 (just!)

Opportunity cost

Medium bequest program

€2.5 million

(.5% x €25k)

Hot bequest program

€ 7.5 million

(1.5% x €25k)

Mild (or no) bequest program

€500,000 future bequest income

(0.1% x €25k)

Your current income and investment

Not investing – properly – in bequests is just plain stupid.

But most charities don’t invest enough……and most fundraisers aren’t stupid.

So…. Why don’t we invest enough?

The Best Legacy….Strategy

Ever?

Commercial in confidence ©ParetoFundraising 2012

Option 3:Your

one-page bequest strategy

Three bequest strategies

Visitation

This planNone

Doesn’t

work

The most cost effective traditional fundraising program. Expect ROI of 20-50:1.Relies on individual staff sales skill and staff retention: major donor type skillsets.

The most cost effective fundraising program ever. Beats visitation BUT visitation is still brilliant, so do both. Expect ROI of 50-200:1.Relies on project management, follows a formula. Low staff costs, higher direct costs (mail, phone). Safer in that it doesn’t rely on key staff – any direct marketeer can do it. Needs specialist copy & scripting.

Pledged Bequest rateof loyal (5+ gifts), $50+ Active cash donors (by Charity)

18

0

20,000

40,000

60,000

80,000

100,000

120,000

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

LDH

RSPC

A Q

LDBu

sh H

erita

ge ACF

IHC

UN

ICEF

NZ

Gui

de D

ogs V

ICM

ary

Pott

erG

reen

peac

e N

ZW

WF

NZ

RSPC

A SA

CCN

SWPe

ter M

acW

WF

AURF

DS

SEAm

nest

yCB

MI

Alfr

edH

eart

AU

Lepr

osy

M.

Oxf

am A

UBe

rry

StM

SF A

UBa

ker I

DI

TCCQ

LDCB

MI N

ZRN

ZFB

OXF

AM

NZ

RFD

S VI

CSt

arsh

ipM

ater

Fdn

CCIA

Visi

onH

abita

tCH

WLi

fefli

ght

CPA

Envi

ronm

ent V

icRF

DS

WA

SED

ASt

roke

PSEC

Yoor

alla

YOTS

Inde

pend

ence

Cath

olic

M.

A4U

NH

CRRe

d Cr

oss

AUSu

rf L

SSt

arlig

htH

RCSC

HFM

ake

a W

ish

Wor

ld V

isio

n

Confirmed BQ % Loyal DonorsPFBM10_Analysis_ALL_v2.xlsm

Charities with plans like this one, visitation and >3 years

Visitation strategy charities, usually bequest/major donor people

NO bequest marketing, or new

Charity names hidden under here, sorry.

Discuss your strategies….

What about your legacies

Data

ANALYTICAL- Your Growth- Your donor

Behaviour-Used for targeting

ENVIRONMENTAL- How much is given

- Growth- Competition

PERSONAL- Transactions

- Legacy status- Pet name

STRATEGIC DATA

- informs

TECHNICAL DATA

- used

Facts not

anecdote!Bench-

marking

Bequests / Legacies

Major Donors Regular Giving

Cash Donors

All Supporters

Government

Trusts & FoundationsCorporate &Events

Associations & Groups

The Big Picture

Individuals

Organisations

Focus Groups

FocusGroupsI

• Stone and Stone Focus Group

Focus Groups

FocusGroupsI

For actually marketing bequests!

Start with some data

Start with some data

Source of contributions

PARETO FUNDRAISINGBENCHMARKING

INDIVIDUAL GIVING: TRENDS REPORT 2012

© 2012

2012 Members

Likely bequestors…

Average legacyby year, excluding gifts below

$1k

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

$0 $10 $20 $30 $40 $50 $60 $70Thousands

Average Bequest AmountPFBM9_IncomeSummary_v1.xls1m6

Yea

r

$50

$46

$50

$49

$58

$59

$53

$56

$56

$53

Pledged legacy rateby year of first gift

0.6%Expect longer term donors to be morelikely to put you in their will:

0.5%

••

They have been asked more times.They are committed supporters.

0.4%

0.3%

0.2%

0.1%

0.0%

PFBM9_Analysis_ALL_v5.xlsm

17

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

• They are older.• They have been asked more t• They are committed supporte

Pledged legacy rateby recency of cash gift (months)

1.0%

0.9%

0.8%

0.7%

0.6%

0.5%

0.4%

0.3%

0.2%

0.1%

0.0%0-12 13-24 25-36 37-48 49-60 61-72 73-84 85+

PFBM9_Analysis_ALL_v5.xlsm

18

Recency of cash gift also correlates withlikelihood to be a legacy pledger

Pledged legacy rateby number of cash gifts

3.0%Number of previous cash gifts correlatesstrongly with intention to legacy

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%10+ 9 8 7 6 5 4 3 2 1

PFBM9_Analysis_ALL_v5.xlsm

19

Pledged legacy rateby Value of highest cash gift

7.0% 3,500

6.0% 3,000

5.0% 2,500

4.0% 2,000

3.0% 1,500

2.0% 1,000

1.0% 500

0.0% 0

Conf BQ Penetration No. of Conf BQPFBM9_Analysis_ALL_v5.xl2sm0

Pledged legacyby type of support

rate

4.0%Donors who support more in life intend tosupport more in death, with the absolute3.5%

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

PFBM9_Analys is _ALL_v5.xls m

21

exception of face to face recruited donors.

Beyond donors…

International Journal of Nonprofit and Voluntary Sector Marketing 2009

Help the Aged

The €5 crazy cat lady…?

Are you budgeting for 2051?

Face to face don’t make good bequestors

Summary – best prospects

• Age - 60+• Giving history

– Loyalty - how long have they been given– Frequency - how often – Recency - how long ago– Value - how much (can indicate value)– Tenure (a special measure)

Who do you have you can go to?

Sowing the seeds for bequests• Who are your future bequestors? Are you acquiring the right donors?– DM mail/telephone donor acquisition– Non face-to-face regular givers

• Build donor loyalty – Amazing customer service– Relaying the impact of the donor’s support

Let’s start with

marketing and touch

points

General bequest marketing• Building a culture of bequests• Including bequests in more of what you do• Getting people ‘used’ to the idea• “Touchpoints”

– Newsletters– PSs on receipt letters/ bequest inserts– Talking about bq at functions & events

Newsletter articles

Other parts of your bequest marketing toolkit

Your website

Now for prospecting

and lead generation

Let’s look at surveys in more detail…

Survey Follow up

When asking about monthly gifts too

RG = monthly giving

Other bequest lead generation ideas

• Bequest letter (with phone followup)• Show-and-tell functions that ask for a bequest (with phone followup)• Inserts - brochures, bookmarks, postcards - in mailings (with measurable call to action)• Add a PS with a measureable call to action on letters from time to time• What else?

Following through and closing the

deal

Woody Allen said“80% of

success is turning up”

80 % of bequest success is in the follow up

Your bequest “pack”• Ask for a bequest• Answer key questions

– Why is it so important that the donor puts you in his/her Will?

– What will the donors bequest achieve?• Tell stories

– Bequestor testimonials– Beneficiary stories (case studies)

• Provide useful information– Suggested wording– Types of bequest (promote residuary/percentage bequests)– Encourage people to contact you

• Thank– Thank for past support – Thank for considering a bequest

Want to see one?

Who do you have you can go to?

Your bequest “pack”• Ask for a bequest• Answer key questions

– Why is it so important that the donor puts you in his/her Will?

– What will the donors bequest achieve?• Tell stories

– Bequestor testimonials– Beneficiary stories (case studies)

Let’s watch a video

• Write down the techniques you think are being used

Building ongoing donor loyalty

Building donor loyalty• Thank people for their bequest (including donor care letters)• Invite to thank you/show-and-tell functions• Keep mailing them appeals unless they ask you to stop (don’t quarantine your bequest donors)• What else can you do that is special?

• Johnny the Bagger

Measuring your Success

Please don’t speed legacy income up.

Wait.

Measure pledges.

Set your targets!

Underperforming < 1% of loyal (5+ gifts) €30+, active cash donors

Best is 10-18% of loyal (5+ gifts) €30 +, active cash donors

Your target? 5% or higher of loyal (5+ gifts) €30 +, active cash donors

Use the Phone

Phone campaign reporting (from DM or survey followup)

Outcome of bequest calls: No. %

Confirmed Bequest - set amount 5 0.84%

Confirmed Bequest - residuary/percentage

4 0.68%

Confirmed Bequest - type unknown 48 8.11%

Total Confirmed 57 9.63%

Intending to make a bequest 255 43.07%

Considering a bequest 106 17.91%

Not interested at the moment 56 9.46%

Not interested in bequests at all 116 19.59%

Deceased 2 0.34%

Total Contacts 592 100.00%

Keep going:Confirmed bequests per year

Estimated value of NEW confirmed

Measuring touchpoints• # of bequest stories in newsletters• # of letters where bequests are promoted (but not the main purpose of the letter)• # of letters where donors are directly asked for a bequest (sole purpose of the letter)• # of PSs on thank you letters...• What else?

Example bequest comms planMonth/Year Activity

January/February 2013 Newsletter bequest article

February 2013 Annual supporter survey

February/March 2013 Bequest follow-up from survey (phone)

April/May 2013 Newsletter bequest article

May/June/July Tax appeal receipts - Bequest PS on receipt letter

- including small bequest item (for donors who

have given for 2 years or more)

July 2013 Donor Care Letter - including thanking donors

who have made a bequest, as well as

encouraging those who might consider a

bequest - include a bequest bookmark

July/August 2013 Newsletter bequest article

October/November 2013 Newsletter bequest article

2014 Include a bequest direct mail letter (with phone

followup) in the 2014 comms plan - Perhaps in

August/Sept)

Phone conversations

Key indicators of high performing bequest program

• A strong culture of bequests throughout the whole organisation• Regular bequest asks, particularly through donor surveys• A stable ongoing bequest program with a genuine strategy and adequate budget• High levels of donor loyalty

Modelling

Bequests

‘Classic’ donorsDirect mail, phone andlottery

Regular givers – direct mail, phone, DRTV

Regular givers – F2F

Child Sponsors – DRTV, F2F

Make sure you keep getting older donors!!!

Demographic chart

Older is better

Thanks a million!

Let’s make sure YOUR plan works…

Legacy pack - example