Developing an Integrated Planned Giving Program

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Developing an Integrated Planned Giving Program

• Timothy D. Logan, ACFRE
• APRA International Conference

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Planned Giving Marketing

• Planned Giving in the Development Process

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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

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The Pyramid of Giving
Donor Commit ment
Investment
Planned Giving
Involvement Interest
Donor Growth
Major Giving
Information Identification
Donor Contact
Annual Giving
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The Pyramid of Giving
Planned Giving
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Major Giving
Percentage of Dollars
Annual Giving
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The Second Donor Pyramid
Planned Giving
Planned Giving
Major Giving
Annual Giving
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The Second Pyramid

• Identification
• Qualification
• Cultivation
• Education
• Stewardship
• Solicitation

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Integrated Annual Fund Program
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Planned Giving Essentials

• What you need to know to talk with donors

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Planned GiftsBenefits to Your Institution

• Established long-term relationship with the donor
• Provides future funds
• Encouraged donors to think about assets as
  potential gifts

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Planned GiftsBenefits to the Donor

• Opportunity to give
• Income tax deductions
• Incomefixed or variable
• Retirement income
• Reduction of capital gains tax
• Potential for increased income
• Asset management
• Pass an asset to an heir

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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)

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Planned Gifts

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

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Life Income Gifts

• Gift provides payment to donor during life
• Charitable Gift Annuity
• Charitable Remainder Trust
• Pooled Income Fund

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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)

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Three stages of Planned Giving

• Marketing
• Gift Planning
• Stewardship

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Marketing

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

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Planned Giving Marketing

• Find prospects who are ready now
• Identify prospects who are ready for Moves
  Management (Face to Face)

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PG Trends

• Web
• Wills/CGAs comprise bulk of gifts
• CRTs decreasing
• Donor advised funds family foundations
• (NPT Krause and Mangone)
• Stand alone programs decline
• Increased collaboration with major gifts
• Mass appeal marketing losing effectiveness

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Every Annual Fund Donor is a Planned Gift Prospect

• Every donorhas capacity to make a bequest
• Many donorshave capacity to fund a charitable
  gift annuity (CGA)
• Some donorscan also fund other gift instruments
  (charitable lead trust, charitable remainder
  trust, etc.)

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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

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Continuum of Direct Response
INTERACTIVE
NON-INTERACTIVE
Face to Face
Telephone Call
Video Tape
Direct Mail
Mass Ads
TARGETING
PERSONALIZATION
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Donor Pyramid with Direct Response Continuum
Face to Face
Telephone Call
Video Tape
Direct Mail
Mass Ads
Timothy D. Logan, ACFRE
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The Development Gap
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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

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Gift Planning

• Will commitment by mail or phone
• Collecting information for a CGA illustration

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Stewardship

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

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Identifying New Prospects
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File Segmentation

• For Planned Giving

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Self-selected or Proactive?
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The Later Years
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Finding leads is the easy part

• Annual Giving is the single largest predicator of
  future large gifts
• Total donor relationship
• High Affinity non-donors
• Age based/wealth based gifts
• Enhanced data selects

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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

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Gifts of Wealth

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

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Enhanced/Other Selects

• Internal
• Multi-Newsletter responders
• Upgrade/Downgrade
• Age, gifts, LOTOF
• Title/Gender--Miss
• Specific school/college, specific program
• Donor loyalty scores

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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 ()

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PG Affinity Indicators

• PG Society
• Attended events, reunions
• Board, past Board
• Volunteer
• Season tickets
• Travel program ()

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Planned Giving Prospect Matrix
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Who we dont 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.

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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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Continuous Lifetime GivingThe Giving Lifecycle
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Lifestage Annual Fund

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

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What about non-donors?

• High affinity non-donors
• Donor loyalty scores
• Affinity indicators

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Using the Phone to Qualify Donors

• Finding the Needle in the Haystack

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Probability/Possibility

• Capacity
• Likelihood
• Data
• Wallet

• Propensity
• Affinity
• Current Interest
• Heart

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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 notification

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RuffaloCODY Planned Giving Services

• Qualify prospects interest
• Based on admissions recruitment
• Meaningful call by specially trained, interested
  callers
• Leading the Waltzeasing in and out of
  conversations
• Gather important and useful information
• Gift discoveryNamed, Planned to Name
• Knowledge of Planned Giving
• Appropriate follow-up
• Passion for (making gift) to client

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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

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Planned Giving Answer Report
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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

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RuffaloCODY Planned Giving Services

• StewardshipAn on-going commitment
• RuffaloCODY committed to working with our clients
  to build lifetime relationships
• Hot leads directly to PG Officer
• Warm leadssecond call
• Not interestedallow (help) your prospects to be
  comfortable rejecting you (caller)

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RuffaloCODY Planned Giving Services

• Solicitation
• Done by clients Planned Giving Staff
• Data Integrity
• Do not have to register

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Does this really work

• Client builds the relationship
• Refusal rate
• Does not affect annual fund
• Length of call

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Does this really work- part deux

• Success stories
• 250 new prospects and a house
• 500,000 in confirmed gifts at 9 cents cost
• Weve been waiting for your call
• More bequests than last three years combined
• 455,000 in confirmed gifts at 2 cents cost

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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.

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Planned Giving in the Annual Fund Call
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Annual Fund vs Planned Giving

• Annual Fund
• Transaction oriented
• Call follows script
• Caller part of process
• Solicitation done by caller/mail piece

• Planned Giving
• Relationship oriented
• Script follows call
• Caller visible
• Solicitation done by client/person

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Caller Profile

• Gender
• Age
• Life Experience
• PG Knowledge
• Training

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Train Your AF Callers

• Planned Giving Knowledge
• Listen
• Capturing comments
• What to listen for
• Planned Giving Clues
• Financial
• Lifestage
• Repeat and Ask

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In the Will

• Thank you!
• What is the donors interest/passion
• Do you have any specific areas of interest?
• What motivated you to make this gift?
• Have you made gifts like this to other charities?

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Planned Giving CommentsPersonal

• Spouse is recently deceased
• Prospect in bad health
• Spouse in bad health
• Prospect is facing retirement
• Prospect is primary caregiver for spouse/relative

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Planned Giving CommentsFinancial

• Mentions sale of assets (business)
• Gives information about assets (stocks, property)
• Expresses concern about market
• Has concerns about limited income
• Is very knowledgeable about Life Income Gifts
• Mentions tax savings

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Planned Giving CommentsLifestage

• Cant help like I used to
• You send me too much mail
• I get too much mail asking for money
• Since spouse passed away, trying to stay
  involved

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Talking Planned Giving

• Mr./Mrs. Donor, if you were able to do____and
  make a gift to _____ would you be interested in
  finding out how
• Mr./Mrs. Donor, many gifts, like a CGA provide
  income for life and allow you to make a gift to
  ______. Would you like to find out..

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Benefits of Integrated Program

• Level of Planned Giving sophistication
• Uncovering clues
• Introducing Planned Giving to prospects
• Working with the Planned Giving office
• Overcoming donor fears
• Understanding why not is the essence of gift
  planning

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Working with the Planned Giving Office

• Provide name of Planned Giving Officer
• Include in script
• Callers provide to donors
• Transfer comments to Planned Gift Officer
• Report back to callers

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Planned Giving Colombo

• Structure
• Howoutright, multi-year, asset with income back
• Assets
• Whatcash, securities, real estate, retirement,
  intellectual property, business interest
• Timing
• Whenall now, some later, scheduled, deferred, at
  death
• Motivation
• Whycharitable intent, taxes, legacy, project,
  position

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Progress Growth Chart
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Integrated Annual Fund Program
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Planned Giving Marketing Matrix
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7 Bonus Points

• Theyre old, you should talk to them!
• PG Donors not another term for old or big dollar
  donors
• Sprouting donors is rooted in AF
• Good Soup Simmers
• Bank of America ad
• We are the warm up act
• unlock emotional experiences

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7 Bonus Points

• Specific Messages
• Bequest, CGA, Insurance, Trusts
• Effective use of Bequest Society
• Type of Org

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Telephone Fund Raising

• Negative Attitude
• Most of us measure telemarketing by the attitudes
  and perceptions we personally hold about it
• Ken Burnett, Relationship Fund Raising

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RuffaloCODY

• Timothy D. Logan, ACFRE
• Vice President, Senior Consultant
• Planned Giving Services
• 800-756-7483
• timothy.logan_at_ruffalocody.com