Developing A Multichannel Planned
Giving Marketing Plan
Timothy D. Logan, ACFRE
November 12, 2013
Session Objectives
• Identify the best/most qualified PG prospects in
your data base
– Using wealth information and PG scoring models
• Understand the importance of multichannel—
proactive marketing
• Recognize the importance of using segmentation
in PG Marketing
• Discuss the seven steps to develop an Integrated
Planned Giving Marketing Plan
Planned Giving Marketing
Planned Giving in the Development Process
Your Objectives
• Immediate impact
– More gifts
– Accelerated gift income
• Long-term, increase program performance
The Second Donor Pyramid
Planned
Giving
Major
Giving
Annual
Giving
Planned Giving Marketing
• Identify prospects who are ready for Moves
Management (Face to Face)
• Find prospects who are ready now
Three Stages of Planned Giving
• Marketing
• Gift Planning
– What you need to know about PG to market PG
• Stewardship
Multichannel Integration
4 Steps for Multichannel Integration
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Identify your best prospects
Develop Segments for Marketing
Implement a Marketing Program
Qualify Individual Donors
Identifying Planned Giving Donor
Prospects
Giving Analysis
Enhanced Data Scoring
Continuous Lifetime Giving
The Giving Lifecycle
Dove, et al, 2002.
Purpose of Annual Giving
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Secure New Donors
Secure Annual Gifts
Upgrade Existing Donors
Identify Major and Planned Giving Prospects
Analyzing Annual Giving Behavior—
File Analysis
• Measures of Affinity
– Loyalty, Passion,
– If it’s about building a relationship, how do we
measure the strength of that relationship?
• Measures of Ability
– Wealth, Assets
• Need to look at total donor relationship
The Biggest Predictor…
• Major Gifts
– Annual gift size is the single largest predictor of
future large gifts
• Planned Giving
– Frequency of AF Giving is the single largest
predictor of Planned Gifts
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.)
• What data can we use to analyze
the file?
–Types of Analysis
Types of Analysis
• Giving Patterns
– Number of Gifts
• Over a specified period
– Length of time on the file (LOTOF)
– Age
– Gender
• more important for messaging than for selection
• RFM
• High Affinity non-donors
• Enhanced data selects
Donor Lifestage
• Donors go through a cycle
• Identify and target older, lapsing Annual Fund
donors
• Develop relationship with Institution
• Begin Planned Gift Marketing
• Annuitize Annual Fund Gift
Using Enhanced Data
Wealth Information
PG Scoring Models
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 (**)
– James, 2008
• Birth of first grandchild
– James, 2008
• Church Attendance
– Rooney 2008
Donor Rating Scores
• Point System
• Pyramid
• Passion Index
Planned Giving Prospect Matrix
Wealth
High
Low
High $, Low Affinity
High $, High Affinity
If we could only get
them to give us a million
(Bill Gates, Joan Kroc)
You already know them.
You have buildings
named after them.
Low $, Low Affinity
Low $, High Affinity
You don’t want to
spend money on them
They want to know more
Low
High
Donor Affinity/Philanthropic Intent
c 2005 Timothy D. Logan, ACFRE
©Jerold Panas, Linzy &
Partners
Developing a Multichannel Planned
Giving Marketing Plan
Step 1
File Segmentation For Planned Giving
Self-Selected or Proactive?
• Proactive Marketing
produces results and
identifies more
Planned Gifts.
The Most Important Factors
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Age
Frequency of giving
Length of Time on file (LOTOF)
Recency of giving
Other key Touch Points
PG Segmentation Hierarchy
1. Multi-year/multi-givers cut by age
2. Internal affinity scores
•
Including Affinity Touch Points
3. PG scores
4. Use wealth rating if appropriate for gift
©2009 Timothy D. Logan, ACFRE
What About Non-Donors?
• High affinity non-donors
• Donor loyalty scores
• Affinity indicators
– Based on Touch Points
Step 2
Which Type of Planned Gift?
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
• Well…..Age (55 to 80)
• Other analyses based on direct mail RFM
analysis
• Recency of giving (24 months)
• Frequency of giving
– Over a specified period (70%)—Sagrestano
– Length of time on the file (LOTOF)
• Average gift is NOT important
• Title/Gender—(dearth of results data)
Gifts of Wealth
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Length of time on the file (LOTOF)
Largest one-time gift (LOTG)
Total cumulative giving
Wealth rating indicator
Prospect research
At What Age, Wealth?
Dove, et al. 2002.
Step 3
What is the Purpose of the Message?
Purpose of the Marketing Message
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Education
Top of Mind
Stewardship
Call to Action/Ask
Step 4
Choose the Marketing Media
PG Marketing Methods
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Direct Mail
Newsletters
Web
Telephone
E-mail
Press Releases
Professional Networks
Donor Seminars
Face-to-face
Purpose of the Medium
Marketing Channel
Purpose
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Direct Mail piece, postcard
Newsletter
Website
Email
Magazine
Telephone
Visits
Seminars, Events
Professional Networks
Identify
Educate
Educate, Top of Mind
Identify
Top of Mind
Qualify, Call to Action
Qualify, Call to Action
Educate, Qualify
Educate, Identify, Top of Mind
Continuum of Direct Response
INTERACTIVE
Face
to
Face
Telephone
Call
NON-INTERACTIVE
Video
Tape
Direct
Mail
Mass
Ads
TARGETING
PERSONALIZATION
Step 5
Develop a Donor Centered Message
Donor Centered Messaging
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Crafting your legacy
Unlock the value of your assets
Using your real estate creatively
Increase your retirement income
Providing income to your elderly parents
Paying for college for your children or
grandchildren
Sagrestano, 2008
PG Donor Clusters
Adding the Donor’s Information
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Cluster Marketing
Age
Planned giving readiness
Immediacy of Gifts
Comfort with legacy/death
Wealth
Existing Legacy Society Member
Board Members, Development Committee
members, etc.
• Assigned to a gift officer
Cluster Examples
• Named you in will, is not decision maker
• Donors who have included you in their
estate plans and are over 80
• Loyal donor who has high wealth
• Donors who indicated a concern about
income who have requested CGA
information
• Donors who have a PG with another
institution
Cluster Messaging
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Thank you’s
Birthday cards
Holiday Cards
Donor milestones
Program involved donors
Travel donors
Special planning/tax considerations
Step 6
Planning Your Strategy
Planned Giving Marketing Matrix
Life Event
Life Stage
Theme
Message
Planned Gift
Wealth
Annual Fund
40's
50's
60's
70's
80's
First Will
Planning
Education
Education
Wills
CLT
Involvement
Investment
Earning
Charitable Intent
Top of Mind
Bequests, CGAs
CLT, Deferred CGA
Growth
Retirement
Responsibility
Financial Planning
Call to Action
Bequests, CGA's
CRT's, Deferred CGA
AF Triage
Death of Spouse
Security
Affairs in Order
Call to Action
Wills, CGA's
CRT's
Cut-back
Change in Control
Legacy
Make a Difference
Stewardship, Education
CGA's
CRT's
Nondonor
C,2006 Timothy D. Logan, ACFRE
90's
Planned Giving Marketing Plan Shell
Jan
DIRECT RESPONSE
CLUSTERS
EVENTS
FREE RIDERS
TRIPS/VISITS
Feb
Mar
Apr
May
June
July
Aug
Sep
Oct
Nov
Dec
Planned Giving Marketing Plan
Jan
DIRECT RESPONSE
Newsletter
NL CGA
NL Cover
Mailings
<50
>50
>50 +$
>69.5
NL CVR
High Freq Givers
Lapsed
CLUSTERS
Society
Financial Advisors
Notes/Cards
Decision Makers
Survey
Email
BD
Feb
Mar
Apr
March Mailing
Will Planning
Charitable Bequest
CRT
IRA Roll-over
TM Qualification TM
TM
May
June
July
Aug
Sep
NL--Beq
NL--IRA roll-over
NL CVR
NL CVR
NL CVR
NLCVR
Oct
Nov
Dec
BD
TG Note
Email
BD TG
BD
TM
LSAF
Event
BD/VD
Wills Seminar
Email
BD
BD
Email
BD
BD
Email
BD
BD
Homecoming
Email
BD
Homecoming
EVENTS
Wills Seminar
FREE RIDERS
Magazine/Newsltr
AD
TRIPS/VISITS
CASE Conf
C,2006 Timothy D. Logan, ACFRE
Employee
AD
Southwest US
AD
AD
NCPG--D.C.
Planned Giving Marketing Plan
Age Distribution
40
50
Jan
60
NL--CGA
70
NNL--CGA
80
NL--CGA
Feb
Mar
Will Planning Will Planning Charitable Bequest IRA Roll over IRA Roll over
CLT
CRT
Apr
May
NL Bequest
emessage
NL Bequest
Jun
Jul
Aug
Sep
Oct
Nov
Dec
C,2006 Timothy D. Logan, ACFRE
NL Bequest
NL Bequest NL Bequest
Step 7
Use Multichannel Messaging
An Integrated Department
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Free Rider Opportunities
Your Annual Fund/ Direct Mail message
Using the Phone
Your Major Gift Officers
Check your website
PG Free Rider Opportunities
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Annual fund mailings
Annual fund telephone program
Articles in Newsletters
Ads in Alumni Magazine
Web site
Acknowledgements
Travel Program
Free Rider Methods
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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
OTHER DEVELOPMENT METHODS
The Annual Fund Value Thread
• Build the bridge in your messaging.
• “If I am a 60 year old with a $7 million
estate—I need to know my $7 million will be
put to good use—or I will give it elsewhere.
They need to show me that they know me.”
From Kay Sprinkel
Calling Programs
• Planned Giving Knowledge
• Say “Thank You”
• Capturing comments
– What to listen for
• Planned Giving Clues
– Personal
– Financial
– Lifestage
Use the Phone to Qualify
• It is only through the phone that you can ultimately
determine if the donor is qualified and motivated to
consider a planned gift.
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Do they have a will
Do they have a PG with other charities
Do they have children
Do they have passion for making a gift to you
Are they ready now?
Who is best to make the calls?
1. The fundraiser that will ultimately be working
with that donor. Creates an opportunity to build
rapport.
2. An employee of the organization that knows it,
knows the fundraisers and can make the
“handoff” once they determine the level of
qualification and motivation
3. Outsource the calls to a third party
telemarketing firm
From Gordon Smith, National Jewish MedicalCenter
Face to Face
The MGO’s Role—PG Colombo
• Structure
– How—outright, multi-year, asset with income back
• Assets
– What—cash, securities, real estate, retirement, intellectual
property, business interest
• Timing
– When—all now, some later, scheduled, deferred, at death
• Motivation
– Why—charitable intent, taxes, legacy, project, position
Check Your Website
• Easy to Navigate?
– What’s it called
– How many clicks
• Here’s looking at you, kid!
– Photo of you and your team
• Gift calculator
Steps to Develop Your Plan
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Step 1: Identify/Segment
Step 2: What type of Planned Gift?
Step 3: Purpose of Message
Step 4: Choose Medium
Step 5: Develop a Donor Centered
Message
• Step 6: Message Strategy/Planning
• Step 7: Use Multichannel Messaging
In Summary
1. Cultivating PG donors is rooted in AF/Direct
Response
Create a loyalty giving club
2. Proactive Marketing is key--Every PG
prospect doesn’t raise their hand
Use data analysis to select your PG donors
3. Take 7 steps to develop an Integrated
Planned Giving Marketing Plan
Questions?
Timothy D. Logan, ACFRE
Sr. Vice President, Sr. Consultant
RuffaloCODY
Planned Giving Services
800-756-7483
[email protected]
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Developing a Multichannel Planned Giving Marketing Plan