Using the Phone to Find Planned Giving Donors in Your Annual Fund

1. Using the Phone to Find Planned Giving Donors in Your Annual Fund Timothy D. Logan, ACFRE

2. Planned Giving Marketing Planned Giving in the Development Process

3. The Planned Giving Market • $40 Trillion in wealth transfer • Revalidated 2 times • Birth rates • New NonProfit Times Study • 2.4 million Americans die each year

4. Planned GiftsBenefits to Your Institution • Established long-term relationship with the donor • Provides future funds • Encouraged donors to think about assets as potential gifts

5. Planned GiftsBenefits to the Donor • Opportunity to give • Income tax deductions • Income—fixed or variable • Retirement income • Reduction of capital gains tax • Potential for increased income • Asset management • Pass an asset to an heir

6. The Pyramid of Giving Donor Commit ment Investment Planned Giving Involvement+ Interest+ Donor Growth Major Giving Information+ Identification+ Donor Contact Annual Giving

8. The Pyramid of Giving Planned Giving 60% 20% Major Giving Percentage of Dollars Annual Giving 20%

9. The Second Donor Pyramid Planned Giving Planned Giving Major Giving Annual Giving

10. The “Second” Pyramid • Identification • Qualification • Cultivation • Education • Stewardship • Solicitation

11. Integrated Annual Fund Program

12. Three stages of Planned Giving • Marketing • Gift Planning • Stewardship

13. 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.)

14. Marketing • Direct Mail • Check box on reply card • Newsletters • Planned Gift Mailings • Web • Telephone • E-mail

15. Ladder of Effectiveness • Person to Person • Personal letter with phone follow-up • Personal phone call with follow-up letter • Personal letter • Personal phone call • Fund raising benefit • Telemarketing • Impersonal letter/direct mail • Door-to-door • Product sales • Media Advertising

16. Continuum of Direct Response INTERACTIVE NON-INTERACTIVE Face to Face Telephone Call Video Tape Direct Mail Mass Ads TARGETING PERSONALIZATION

17. Donor Pyramid with Direct Response Continuum Face to Face Telephone Call VideoTape Direct Mail Mass Ads Timothy D. Logan, ACFRE

18. The Development Gap

19. Integrated Planned Giving • Apply direct response techniques to fill the gap • Two way communication • More personal • Measurable and repeatable • Direct Response Moves Management • Every contact with the donor affects affinity • Every contact should move the donor toward making a (Planned) gift

20. Gift Planning • Will commitment by mail or phone • Collecting information for a CGA illustration

21. Planned Giving Essentials What you need to know to talk with donors

22. Planned Giving Alphabet Soup Bequest Property Gifts that generate income for the donor Simple Charitable Gift Annuity (CGA) Charitable Remainder Trust (CRUT,CRAT) Charitable Lead Trust (CLUT, CLAT)

23. Planned Gifts • Bequest • Charitable Gift Annuity • Charitable Remainder Trust • Life Estate Contract • Charitable Lead Trust • Life Insurance Policy • Pooled Income Funds

24. Bequests • Bequests • Specific • Residuary • Contingency • Trusts • Family • Living • Vs. Annuity or Unitrust

25. Life Income Gifts • Gift provides payment to donor during life • Charitable Gift Annuity • Charitable Remainder Trust • Pooled Income Fund

26. Charitable Gift Annuities • Guaranteed payment for life • Rates recommended by ACGA • Institution to retain one-half of gift • Single or dual life • Donor’s age is key factor • Never quote rates • Adds two years to a donor’s life

27. Trusts • Remainder Trusts • Charity keeps the remainder • Annuity trust (CRAT) vs Unitrust (CRUT) • Lead Trusts • Charity receives interest for a period of years • Annuity trust (CLAT) vs Unitrust (CLUT)

28. Stewardship • Thank you calls • Birthday cards/holiday cards • Caller training • Legacy Society • Events on campus

29. Using the Phone to Qualify Donors Finding the Needle in the Haystack

30. Finding leads is the easy part • Enhanced data selects • Flag (plus) • High Affinity non-donors • Total donor relationship • Age based/wealth based gifts

31. RuffaloCODY Planned Giving Services • Building the relationship • Identify Planned Giving donor prospects • Annual Giving is the single largest predicator of future large gifts • Use direct response file analysis • Pre-call FLAG data analysis • Frequency, LOTOF, Age, Gender • Select donors to call • Pre-call notification card

32. The Later Years

33. 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

34. Age Based Gifts • FLAG (plus) • Title • Recent death in household • Specific School or College

35. Gifts of Wealth • Length of time on the file (LOTOF) • Largest one-time gift (LOTG) • Total cumulative giving • Wealth rating indicator • Prospect research

36. Continuous Lifetime GivingThe Giving Lifecycle

37. Lifestage Annual Fund • New RuffaloCODY program • Identify and target older, lapsing Annual Fund donors • Develop relationship with Institution • Begin Planned Gift Marketing

38. 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.

39. RuffaloCODY Planned Giving Services • Qualify prospects interest • Based on admissions recruitment • Meaningful call by specially trained, interested callers • Gather important and useful information • Gift discovery—Named, Planned to Name • Knowledge of Planned Giving • Appropriate follow-up • Passion for (making gift) to client

40. The One thing • The one hard and fast rule: • Do not combine asks in one message

41. RuffaloCODY Planned Giving Services • Cultivate donor interest • RuffaloCODY DRPG Donor Matrix • Combines • Data analysis • Call results • Provides accurate assessment of annual fund donors value as a Planned Giving prospect

42. RuffaloCODY Planned Giving Services • Educate high potential planned giving prospects • Named/Planned to Name • Desires visit from client development staff • Additional information on planned giving • Additional information on institution

43. RuffaloCODY Planned Giving Services • Stewardship—An on-going commitment • RuffaloCODY committed to working with our clients to build lifetime relationships • Hot leads –directly to PG Officer • Warm leads—second call

44. RuffaloCODY Planned Giving Services • Solicitation • Done by client’s Planned Giving Staff • Data Integrity • Do not have to register

45. Capacity Likelihood Data Wallet Propensity Affinity Current Interest Heart Probability/Possibility

46. Does this really work • Client builds the relationship • Refusal rate • Does not affect annual fund • Length of call

47. Does this really work- part deux • Success stories • 250 new prospects and a house • $500,000 in confirmed gifts at 9 cents cost • We’ve been waiting for your call • More bequests than last three years combined • $455,000 in confirmed gifts at 2 cents cost

48. Results • 8 out of 10 participate in survey • 5% were quality Planned Giving Prospects • Additional 27% requested educational materials • 50% RuffaloCODY identified important other information about finances, advisors, etc.

49. Planned Giving in the Annual Fund Call

50. Annual Fund Call is transaction oriented Call follows script Caller part of process Solicitation done by caller Planned Giving Call is relationship oriented Script follows call Caller visible Solicitation done by client Annual Fund vs Planned Giving