Developing A Proactive Planned Giving Marketing Plan

Timothy D. Logan, ACFRECASE Advanced PG Institute

Session Objectives

• Identifying the best/most qualified PG prospects in your data base– Analyzing annual giving behaviors

– Using wealth information and PG scoring models

– Using segmentation strategies

• Increasing reach of PG messages through piggy-backing

• Integration to ensure complementary messages

Your objectives

• Immediate impact– More gifts– Accelerated gift income

• Long-term, increase program performance

Planned Giving Marketing

Planned Giving in the Development Process

The Pyramid of Giving

DonorContact

DonorGrowth

DonorCommit

ment

AnnualGiving

MajorGiving

PlannedGiving

Investment

Involvement+Interest+

Information+Identification+

The Second Donor Pyramid

AnnualGiving

MajorGiving

PlannedGiving Planned G

iving

The “Second” Pyramid

• Identification

• Qualification

• Cultivation

• Education

• Stewardship

• Solicitation

Planned Giving Marketing

• Find prospects who are ready now

• Identify prospects who are ready for Moves Management (Face to Face)

The Development Gap

Analyzing Annual Giving Behavior

Purpose of the Annual Fund

• Secure New Donors

• Secure Annual Gifts

• Upgrade Existing Donors

• Identify Major and Planned Giving Prospects

Dove, et al. 2002.

Integrated Annual Fund Program

Finding leads is the easy part

• Annual Giving is the single largest predicator of future large gifts

• Frequency of AF Giving is the single largest predictor of Planned Gifts

• Total donor relationship

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.)

Internal Data

• Demographic information

• email address

• Source of Name

• Gift History/Cumulative Giving

• LOTOF

• Donor Interest– Obtained actively or passively

External Data

• Age

• Marital Status

• # of Children

• Education • Income

• Stock/real estate holdings

• email address

Types of Analysis

• FLAG

• RFM

• High Affinity non-donors

• Enhanced data selects

PG Affinity Indicators

• PG Society

• Attended events, reunions

• Board, past Board

• Volunteer

• Season tickets

• Travel program (**)

Dove, et al, 2002.

Continuous Lifetime GivingThe Giving Lifecycle

Using Enhanced Data

Wealth information

PG Scoring Models

Probability/Possibility

• Capacity• Likelihood• Data• Wallet

• Propensity• Affinity• Current Interest• Heart

Enhanced/Other Selects-External

• Age

• Wealth rating/Planned Giving indicators– You can help make these pay off!

• Recent death in household

• Donors to other charities

• Lack of presence of living children (**)

Enhanced/Other Selects--Internal

• Multi-Newsletter responders• Upgrade/Downgrade

– Age, # gifts, LOTOF

• Title/Gender--Miss• Specific school/college, specific program• Donor loyalty scores• Volunteered email• Web hits

Donor Rating Scores

• Point System

• Pyramid

Planned Giving Prospect Matrix

WealthHigh $, Low Affinity High $, High Affinity

High If we could only get them You already know themto give us a million You have buildings named(Bill Gates, Joan Kroc) after them.

Low $, Low Affinty Low $, High Affinity

LowYou don't want to spend They want to know moremoney on them

Low High

Donor Affinity/Philanthropic Intent

C 2005 Timothy D. Logan, ACFRE

Identifying New Prospects

We are really trying to find…

File Segmentation

For Planned Giving

Self-selected or Proactive?

Robert F. Sharpe, Jr.

The Later Years

Segmentation for Gifts

• Age based gifts– Bequest, CGA, Retirement assets

• Wealth based gifts– Trust, DAF

• Other/Combination– Life Estate, Insurance, Deferred CGA, PIF

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

PG Segmentation Model

Planned Giving Segmentation Model

F L A G R F MBequest 2 2 1 1 1 0CGA 2 1 2 0 1 0Trust 1 1 2 0 1 2DAF 1 1 1 0 0 1Retirement 2 2 2 1 1 0

0 Unimportant1 Moderately important2 Most important

c Timothy D. Logan, ACFRE 2005

PG Segmentation Hierarchy

1. Multi-year/multi-givers cut by age

2. Internal affinity scores

3. PG scores

4. Use wealth rating if appropriate for gift

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.

What about non-donors?

• High affinity non-donors

• Donor loyalty scores

• Affinity indicators

Lifestage Annual Fund

• New RuffaloCODY program

• Identify and target older, lapsing Annual Fund donors

• Develop relationship with Institution

• Begin Planned Gift Marketing

Message Integration

Marketing

• Direct Mail– Check box on reply card

• Newsletters

• Planned Gift Mailings

• Web

• Telephone

• E-mail

Continuum of Direct Response

FacetoFace

TelephoneCall

VideoTape

DirectMail

MassAds

INTERACTIVE NON-INTERACTIVE

PERSONALIZATION

TARGETING

PG Free Rider Opportunities

• Annual fund mailings

• Articles in Newsletters

• Ads in Alumni Magazine

• Web site

• Acknowledgements

• Travel Program

Free Rider Methods

• Brochure

• Seasonal Brochure

• Ads

• Buck slip/return card

• Donor Profiles/Testimonials

• Quizzes

The One thing

• The one hard and fast rule:

• Do not combine asks in one message

• OKAY to gather data– One or two quick screening questions

PG Trends

• Web• Wills/CGA’s comprise bulk of gifts

– CRT’s decreasing– Donor advised funds & family foundations

• (NPT: Krause and Mangone)

• Stand alone programs decline– Increased collaboration with major gifts

• Mass appeal marketing losing effectiveness

Developing the Plan

• Market• Methods• Message• Medium

– Market or Method Driven Planning– Tone of the Message– Message is the medium

Planned Giving Marketing Matrix

40's 50's 60's 70's 80's

Life Event First Will Investment Retirement Death of Spouse Change in ControlLife Stage Planning Earning Responsibility Security LegacyMessage Education Charitable Intent Financial Planning Affairs in Order Make a DifferencePlanned Gift Wills Bequests, CGAs Bequests, CGA's Wills, CGA's CGA'sWealth CLT CLT, Deferred CGA CRT's, Deferred CGA CRT's CRT's

C,2005 Timothy D. Logan, ACFRE

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

VI Bonus Points

1. Sprouting donors is rooted in AF

2. They’re old, you should talk to them!”– PG Donors –not another term for old or big

dollar donors

3. Go on—be a Tiger! Every PG prospect doesn’t raise their hand

VI Bonus Points

4. Family Marketing

5. Rating incoming students

6. Use the NASCAR Model• Are your drivers signing autographs• Let them test Planned Giving (with a CGA)

RuffaloCODY

Timothy D. Logan, ACFRE

Vice President, Senior Consultant

Planned Giving Services

800-756-7483

timothy.logan@ruffalocody.com