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 • • • • 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 • • • • 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 • • • • • 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 • • • • • 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 • • • • Education Top of Mind Stewardship Call to Action/Ask Step 4 Choose the Marketing Media PG Marketing Methods • • • • • • • • • Direct Mail Newsletters Web Telephone E-mail Press Releases Professional Networks Donor Seminars Face-to-face Purpose of the Medium Marketing Channel Purpose • • • • • • • • • • • • • • • • • • 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 • • • • • • 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 • • • • • • • 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 • • • • • • • 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 • • • • • Free Rider Opportunities Your Annual Fund/ Direct Mail message Using the Phone Your Major Gift Officers Check your website PG Free Rider Opportunities • • • • • • • Annual fund mailings Annual fund telephone program 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 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. – – – – – 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 • • • • • 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 timothy.logan@ruffalocody.com