Developing A Proactive Planned
Giving Marketing Plan
Timothy D. Logan, ACFRE
National Capital Gift Planning Council
May 13, 2010
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Session Objectives
• Use the Annual Fund to identify the best/most
qualified PG prospects in your data base
– Using wealth information and PG scoring models
• Understand the benefits of proactive PG marketing
• Recognize the importance of using segmentation in
PG Marketing
• Discuss the seven steps to develop an Integrated
Planned Giving Marketing Plan
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Planned Giving Marketing
Planned Giving in the Development Process
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Your Objectives
• Immediate impact
– More gifts
– Accelerated gift income
• Long-term, increase program performance
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The Second Donor Pyramid
Planned
Giving
Major
Giving
Annual
Giving
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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
• Special populations
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Planned Giving Marketing
• Identify prospects who are ready for Moves
Management (Face to Face)
• Find prospects who are ready now
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Three Stages of Planned Giving
• Marketing
• Gift Planning
• Stewardship
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The Development Gap
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5 Steps to Close the Development Gap
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Identify your best prospects
Develop Segments for Marketing
Implement a Marketing Program
Qualify Individual Donors
Develop Clusters
– Education/Stewardship
– Cultivation/Solicitation path
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Identifying Planned Giving Donor
Prospects
Giving Analysis
Enhanced Data Scoring
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Continuous Lifetime Giving
The Giving Lifecycle
Dove, et al, 2002.
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Purpose of the Annual Fund
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Secure New Donors
Secure Annual Gifts
Upgrade Existing Donors
Identify Major and Planned Giving Prospects
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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 the total donor relationship
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The Biggest Predictor…
• Major Gifts
– Annual gift size is the single largest predicator
of future large gifts
• Planned Giving
– Frequency of AF Giving is the single largest
predictor of Planned Gifts
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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.)
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• What data can we use to analyze the file?
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Internal Data
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Demographic information
email address
Source of Name
Gift History/Cumulative Giving
LOTOF
Donor Interest
– Obtained actively or passively
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External Data
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Age
Marital Status
# of Children
Education
Income
Stock/real estate holdings
email address
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Types of Analysis
• Giving Patterns
– RFM
• Recency of Giving
• Frequency
• Money—Size of Gift
• Giving History--Loyalty
– Length of time on the file (LOTOF)
– Continuous Giving==Frequency over time
• High Affinity non-donors
• Enhanced data selects
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PG Affinity Indicators
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PG Society
Attended events, reunions
Board, past Board
Volunteer
Season tickets
Travel program (**)
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Lifestage Annual Fund
• 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
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Probability/Possibility
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Ability
Capacity
Data
Wallet
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Affinity
Propensity
Interest
Heart
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Using Enhanced Data
Wealth Information
PG Scoring Models
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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
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Enhanced/Other Selects--Internal
• Multi-Newsletter responders
• Upgrade/Downgrade
– Age, # gifts, LOTOF
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Title/Gender--Miss
Specific school/college, specific program
Donor loyalty scores
Volunteered email
Web hits
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Donor Rating Scores
• Point System
• Pyramid
• Passion Index
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Planned Giving Prospect Matrix
Wealth
High $, Low Affinity
High $, High Affinity
High
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
Low
c 2005 Timothy D. Logan, ACFRE
High
Donor Affinity/Philanthropic Intent
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Developing a Proactive Planned
Giving Marketing Plan
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Step 1
File Segmentation For Planned Giving
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Self-Selected or Proactive?
• Proactive Marketing
produces results and
identifies more
Planned Gifts.
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The Most Important Factors
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Age
Frequency of giving
Loyalty/Length of Time on file (LOTOF)
Recency of giving
Other key Touch Points
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PG Segmentation Hierarchy
1. Multi-year/multi-givers cut by age
2. Internal affinity scores
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Including Affinity Touch Points
3. PG scores
4. Use wealth rating if appropriate for gift
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PG Constituent Segmentation Matrix
Affinity
Few Gifts, High Affinity
Many Gifts, High Affinity
High
Former Faculty, Employees
Grateful Patients
Board
Awardees
Multiple Year Givers
Legacy Society
Few Gifts, Low Affinity
Many Gifts, Low Affinity
Advisors
PG Committee
Parents
Low
Low
High
Number of Gifts
c 2006 Timothy D. Logan, ACFRE
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What About Non-Donors?
• High affinity non-donors
• Donor loyalty scores
• Affinity indicators
– Based on Touch Points
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Step 2
Which Type of Planned Gift?
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Segmentation for Gifts
• Age based gifts
– Bequest, CGA, Retirement assets
• Wealth based gifts
– Trust, DAF
• Other/Combination
– Life Estate, Insurance, Deferred CGA, PIF
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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)
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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
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At What Age, Wealth?
Dove, et al. 2002.
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Step 3
What is the Purpose of the Message?
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Purpose of the Marketing Message
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Education
Top of Mind
Stewardship
Call to Action/Ask
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Step 4
Choose the Marketing Media
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PG Marketing Methods
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Direct Mail
Newsletters
Web
Telephone
E-mail
Press Releases
Professional Networks
Donor Seminars
Face-to-face
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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
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Continuum of Direct Response
INTERACTIVE
Face
to
Face
Telephone
Call
NON-INTERACTIVE
Video
Tape
Direct
Mail
Mass
Ads
TARGETING
PERSONALIZATION
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Step 5
Develop a Donor Centered Message
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Identify the 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
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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
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PG Donor Clusters
Adding the Donor’s Information
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Cluster Marketing
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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
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Cluster Examples
• Named you in will, is not decision maker
• Donors who indicated a concern about
income who have requested CGA
information
• Donors who have included you in their
estate plans and are over 80
• Donors who have a PG with another
institution
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Special Populations
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These are really clusters
Older, divorce, living together
Older females living together (sisters)
Gay/lesbian couples
– Lack of presence of children
• Boomers (now turning 60)
– DINKS
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Cluster Messaging
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Thank you’s
Birthday cards
Holiday Cards
Donor milestones
Program involved donors
Travel donors
Special planning/tax considerations
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Step 6
Planning Your Strategy
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Developing the Plan
• Market—Step 1
• Message—Steps 2, 3,5
• Media—Step 4, 6
• Market or Media Driven Planning
– Age based
– Gift Type based
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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
90'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
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Planned Giving Marketing Plan Shell
Jan
Feb
Mar
Apr
May
June
July
Aug
Sep
Oct
Nov
Dec
DIRECT RESPONSE
CLUSTERS
EVENTS
FREE RIDERS
TRIPS/VISITS
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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
Employee
AD
Southwest US
AD
AD
NCPG--D.C.
C,2006 Timothy D. Logan, ACFRE
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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
NL Bequest
NL Bequest NL Bequest
Jun
Jul
Aug
Sep
Oct
Nov
Dec
C,2006 Timothy D. Logan, ACFRE
www.ruffalocody.com | 800.756.7483
Step 7
Check for Message Integration
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An Integrated Department
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Free Rider Opportunities
Your Annual Fund callers
Your Major Gift Officers
Check your website
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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
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Free Rider Methods
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Brochure
Seasonal Brochure
Ads
Buck slip/return card
Donor Profiles/Testimonials
Quizzes
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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
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Train Your AF Callers
• Planned Giving Knowledge
• Say “Thank You”
• Capturing comments
– What to listen for
• Planned Giving Clues
– Personal
– Financial
– Lifestage
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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
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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
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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: Message Integration
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In Summary
1. Cultivating PG donors is rooted in AF/Direct
Response
2. Proactive Marketing is key--Every PG
prospect doesn’t raise their hand
3. Take 7 steps to develop an Integrated
Planned Giving Marketing Plan
www.ruffalocody.com | 800.756.7483
RuffaloCODY
Timothy D. Logan, ACFRE
Vice President, Senior Consultant
Planned Giving Services
800-756-7483
timothy.logan@ruffalocody.com
www.ruffalocody.com | 800.756.7483