Developing A Proactive Planned Giving Marketing Plan

1. Developing A Proactive Planned Giving Marketing Plan Timothy D. Logan, ACFRE CASE Advanced PG Institute

3. 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

4. Your objectives • Immediate impact • More gifts • Accelerated gift income • Long-term, increase program performance

5. Planned Giving Marketing Planned Giving in the Development Process

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 Second Donor Pyramid Planned Giving Planned Giving Major Giving Annual Giving

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

10. Planned Giving Marketing • Find prospects who are ready now • Identify prospects who are ready for Moves Management (Face to Face)

11. The Development Gap

12. Analyzing Annual Giving Behavior

13. Purpose of the Annual Fund • Secure New Donors • Secure Annual Gifts • Upgrade Existing Donors • Identify Major and Planned Giving Prospects

14. Integrated Annual Fund Program

16. 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

17. 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.)

18. Internal Data • Demographic information • email address • Source of Name • Gift History/Cumulative Giving • LOTOF • Donor Interest • Obtained actively or passively

19. External Data • Age • Marital Status • # of Children • Education  • Income • Stock/real estate holdings • email address

20. Types of Analysis • FLAG • RFM • High Affinity non-donors • Enhanced data selects

21. PG Affinity Indicators • PG Society • Attended events, reunions • Board, past Board • Volunteer • Season tickets • Travel program (**)

22. Continuous Lifetime GivingThe Giving Lifecycle

23. Using Enhanced Data Wealth information PG Scoring Models

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

25. 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 (**)

26. 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

27. Donor Rating Scores • Point System • Pyramid

28. Planned Giving Prospect Matrix

29. Identifying New Prospects

30. We are really trying to find…

31. File Segmentation For Planned Giving

32. Self-selected or Proactive?

33. The Later Years

34. Segmentation for Gifts • Age based gifts • Bequest, CGA, Retirement assets • Wealth based gifts • Trust, DAF • Other/Combination • Life Estate, Insurance, Deferred CGA, PIF

35. 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

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

37. PG Segmentation Model

38. PG Segmentation Hierarchy • Multi-year/multi-givers cut by age • Internal affinity scores • PG scores • Use wealth rating if appropriate for gift

39. 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.

40. What about non-donors? • High affinity non-donors • Donor loyalty scores • Affinity indicators

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

42. Message Integration

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

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

45. PG Free Rider Opportunities • Annual fund mailings • Articles in Newsletters • Ads in Alumni Magazine • Web site • Acknowledgements • Travel Program

46. Free Rider Methods • Brochure • Seasonal Brochure • Ads • Buck slip/return card • Donor Profiles/Testimonials • Quizzes

47. 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

48. 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

49. Developing the Plan • Market • Methods • Message • Medium • Market or Method Driven Planning • Tone of the Message • Message is the medium

50. Planned Giving Marketing Matrix