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 +$ >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
[email protected]