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Developing A Proactive Planned Giving Marketing Plan
Timothy D. Logan, ACFRECASE Advanced PG Institute
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
Your objectives
• Immediate impact– More gifts– Accelerated gift income
• Long-term, increase program performance
Planned Giving Marketing
Planned Giving in the Development Process
The Pyramid of Giving
DonorContact
DonorGrowth
DonorCommit
ment
AnnualGiving
MajorGiving
PlannedGiving
Investment
Involvement+Interest+
Information+Identification+
The Second Donor Pyramid
AnnualGiving
MajorGiving
PlannedGiving Planned G
iving
The “Second” Pyramid
• Identification
• Qualification
• Cultivation
• Education
• Stewardship
• Solicitation
Planned Giving Marketing
• Find prospects who are ready now
• Identify prospects who are ready for Moves Management (Face to Face)
The Development Gap
Analyzing Annual Giving Behavior
Purpose of the Annual Fund
• Secure New Donors
• Secure Annual Gifts
• Upgrade Existing Donors
• Identify Major and Planned Giving Prospects
Dove, et al. 2002.
Integrated Annual Fund Program
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
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.)
Internal Data
• Demographic information
• email address
• Source of Name
• Gift History/Cumulative Giving
• LOTOF
• Donor Interest– Obtained actively or passively
External Data
• Age
• Marital Status
• # of Children
• Education • Income
• Stock/real estate holdings
• email address
Types of Analysis
• FLAG
• RFM
• High Affinity non-donors
• Enhanced data selects
PG Affinity Indicators
• PG Society
• Attended events, reunions
• Board, past Board
• Volunteer
• Season tickets
• Travel program (**)
Dove, et al, 2002.
Continuous Lifetime GivingThe Giving Lifecycle
Using Enhanced Data
Wealth information
PG Scoring Models
Probability/Possibility
• Capacity• Likelihood• Data• Wallet
• Propensity• Affinity• Current Interest• Heart
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 (**)
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
Donor Rating Scores
• Point System
• Pyramid
Planned Giving Prospect Matrix
WealthHigh $, Low Affinity High $, High Affinity
High If we could only get them You already know themto give us a million You have buildings named(Bill Gates, Joan Kroc) after them.
Low $, Low Affinty Low $, High Affinity
LowYou don't want to spend They want to know moremoney on them
Low High
Donor Affinity/Philanthropic Intent
C 2005 Timothy D. Logan, ACFRE
Identifying New Prospects
We are really trying to find…
File Segmentation
For Planned Giving
Self-selected or Proactive?
Robert F. Sharpe, Jr.
The Later Years
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
• 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
Gifts of Wealth
• Length of time on the file (LOTOF)• Largest one-time gift (LOTG)
• Total cumulative giving
• Wealth rating indicator
• Prospect research
PG Segmentation Model
Planned Giving Segmentation Model
F L A G R F MBequest 2 2 1 1 1 0CGA 2 1 2 0 1 0Trust 1 1 2 0 1 2DAF 1 1 1 0 0 1Retirement 2 2 2 1 1 0
0 Unimportant1 Moderately important2 Most important
c Timothy D. Logan, ACFRE 2005
PG Segmentation Hierarchy
1. Multi-year/multi-givers cut by age
2. Internal affinity scores
3. PG scores
4. Use wealth rating if appropriate for gift
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.
What about non-donors?
• High affinity non-donors
• Donor loyalty scores
• Affinity indicators
Lifestage Annual Fund
• New RuffaloCODY program
• Identify and target older, lapsing Annual Fund donors
• Develop relationship with Institution
• Begin Planned Gift Marketing
Message Integration
Marketing
• Direct Mail– Check box on reply card
• Newsletters
• Planned Gift Mailings
• Web
• Telephone
Continuum of Direct Response
FacetoFace
TelephoneCall
VideoTape
DirectMail
MassAds
INTERACTIVE NON-INTERACTIVE
PERSONALIZATION
TARGETING
PG Free Rider Opportunities
• Annual fund mailings
• 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
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
Developing the Plan
• Market• Methods• Message• Medium
– Market or Method Driven Planning– Tone of the Message– Message is the medium
Planned Giving Marketing Matrix
40's 50's 60's 70's 80's
Life Event First Will Investment Retirement Death of Spouse Change in ControlLife Stage Planning Earning Responsibility Security LegacyMessage Education Charitable Intent Financial Planning Affairs in Order Make a DifferencePlanned Gift Wills Bequests, CGAs Bequests, CGA's Wills, CGA's CGA'sWealth CLT CLT, Deferred CGA CRT's, Deferred CGA CRT's CRT's
C,2005 Timothy D. Logan, ACFRE
Progress Growth Chart
Development Stages
Beginning Advancing Integrating Who Inexperienced
Vendor Experienced Facilitator
Mature Strategist
What Product Orientation
Mission Orientation
Partnership Orientation
Techniques Sell Products/ raise money
Solicit contributions develop relationships
Match resources/ needs, involve total organization
Results Transfers Involvement Investment
Rosso
VI Bonus Points
1. Sprouting donors is rooted in AF
2. They’re old, you should talk to them!”– PG Donors –not another term for old or big
dollar donors
3. Go on—be a Tiger! Every PG prospect doesn’t raise their hand
VI Bonus Points
4. Family Marketing
5. Rating incoming students
6. Use the NASCAR Model• Are your drivers signing autographs• Let them test Planned Giving (with a CGA)
RuffaloCODY
Timothy D. Logan, ACFRE
Vice President, Senior Consultant
Planned Giving Services
800-756-7483