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Planned Giving ProfilesKNOW THY DONOR
Lawrence C. Henze, JD, Analytics Architect , Blackbaud Target Analytics®
Katherine Swank, JD, Principal Analytics Consultant, Blackbaud Target Analytics®
Lawrence C. Henze
@Blackbaud @KatherineSwank
Katherine SwankSENIOR ANALYTICS ARCHITECT & PRINCIPAL
CONSULTANTPRINCIPAL ANALYTICS CONSULTANT
Organizations need to work smarter and target outreach efforts and campaigns
to those most likely to donate. Predictive analytics can identify with a
high degree of accuracy which prospects are most likely to give.
BIZTECH
Conversation Flow
Planned gift insights
Building a legacy program
Understand who makes planned gifts
Communications & marketing
Effective and insightful analysis & reporting
The average age of someone who makes their first charitable bequest commitment is
40-50
Get to know your most loyal donors, personally…they
ultimately become your bestplanned gift donor prospects
33% of
Americans are willing to consider a
charitable bequest
A few interesting facts to consider when building a legacy gift fundraising program
Those without children are slightly more likely to make a planned gift than those with, and their average
planned gift is larger
Women are more
likely to give a bequest to religious, health, human services, and environmental organizations than men
Survey…Let’s learn more about your programs
Building a Legacy Program
IT TAKES COMMITMENT!
A Gift of a Lifetime
Nurtured through a consistent, long-term effort that builds engagement and delivers stewardship
Requires patience and long-term funding
Accepts the reality that this is often the major gift for a donor
Nonprofits need to be able to predict the future of funding for their
organization. And it’s not only possible, it’s accessible using advanced analytics.
USING PREDICTIVE ANALYTICS TO MAXIMIZE FUNDRAISING CAMPAIGN ROI – B. LAND
Don’t Chase Surprises
You will occasionally receive legacy gifts from individuals who do not have a known relationship with your institution
It’s a welcome surprise
Chasing surprises is not the basis of a successful program
Put first things first and second things are thrown in.
Put second things first and you lose both first and second things.
C.S. LEWIS
Keep Secondary Strategies in Their Place
Legacy Giving
Philanthropy & Political Giving
Gives to several organizations & make
contributions to campaigns, parties
Generational Behavior
Legacy gift behavior varies from
generation-to-generation
Fiscal Conservatism
Interest in conservation of
assets and income
Giving to Your Organization
Loyal, consistent, low-end giving
Planned Giving Donor Model
Loyal donors
Fiscally conservative
Political contributors
Charitable givers
Live in smaller households
Where Do Legacy Donors Originate?
Typically low-level annual gift or membership commitment
Retention and planned giving are positively correlated
Typical solicitation strategies are likely to sustain this low-level commitment
Principal Giving $50,000 - $500,000+
Major Giving $10,000 -$50,000+
Mid-Level Giving $1,000 - $10,000
Annual Gifts < $1,000
Planned Giving
Planned Giving
Planned Giving
Planned Giving
Questions Already?
We’re here to help you think about new things in comfortable ways…
…and old things in new ways
We love questions!
Marketing Around Legacy Gifts
Keep it simple
Emphasize the why of giving and not the
how
Why… is mission-fulfillment oriented
Once an individual demonstrates interest,
the how may be communicated
Above Everything…
Do not over-solicit
Tradition is not a sufficient reason to
continue this practice
Provide plenty of love instead
OrganizationType
Database Size
Prospects at
$50,000+
Planned Giving
Prospects
Animal Welfare
130,0007,6005.8%
22,10017%
Voluntary HealthOrganizations
958,00024,9002.6%
71,1007.4%
Environmental 6.6 million72,6001.1%
540,0008.2%
AVERAGE BEQUEST IS $50,000
How Many Are There?
Planned gift prospects and
their potential revenue may
easily outnumber current
major gift prospects and
outpace potential revenue
Cohort Group Count% Major Gift
Prospects
All Major Gift Prospects 2,489 100.0%
Major Gift-Only
Prospects466 18.7%
Dual Major & Planned
Gift Prospects2,023 81.3%
If Not Now, Then Venn?
Prospects with both tendencies offermultiple options
Planned gift prospects
Major gift prospects
Revenue Potential for Planned Gifts
PLANNED GIVING POTENTIAL FOR OUR ANIMAL WELFARE ORGANIZATION RESULT
Total # Constituents in Database 130,000
# of Identified Planned Gift Prospects in Database 22,100
Low-End # of Current Potential Planned Gift Donors ( Prospects x 8% ÷ 3) 589
High-End # of Current Potential Planned Gift Donors (Prospects x 33% ÷ 3) 2,431
X $50,000 Assumed Average Gift = Low-End Potential Planned Gift Revenue Over Time $29,450,000
X $50,000 Assumed Average Gift = High-End Potential Planned Gift Revenue Over Time $121,550,000
The Baby Boomer generation may give more than $1 TRILLION in planned gifts over the next
three decades – we’ve used a conversion rate of 3% - 11% of the total prospect pool
Calculation adapted from Michael Rosen’s formula, Donor-Centered Planned Gift Marketing
“Are you consistently engaging your future $50,000+ donors multiple times & ways throughout the year?”
Steps to Building a Legacy Giving Program
Look Inside Your Database
Analyze the characteristics of legacy donors you have…
…look at donors with long records of giving, particularly small amounts
Follow the progress of monthly donors
Create a descriptive / intuitivemodel of donor engagement
Identify actions that indicate engagement
+1 point for every category that is achieved
Larger result = greater engagement
Data you may have for a descriptive profile
o Age / Gender
o Location / Affiliation / Interest
o Type of planned gift
o Source of first donation
o Number of gifts to you
o Average number of years donating
o Average donation amount
o Lifetime giving amount
o Number of events attended
o Number of years donor on file prior to gift notification
o Percent of gifts that had a prior notification
o Number of years donor on file prior to notification of gift
o Number of years donor on file prior to receiving planned gift distribution
o Number of months / years receiving planned giving materials prior to notification or gift
o Number of face-to-face visits prior to notification or gift
Do MoreIn ResearchPoint, search for certain characteristics which may be correlated with legacy giving
o Multiple real property holdings
o Income-producing property
o Property in trust
o Insider security holdings & options
o Business ownership
…and, of course, use the Internet
Predictive Donor Analytics
PLANNED GIVING MODELING
MAJOR GIVING MODELING
ANNUAL GIVING MODELING
AFFLUENCE SCORING
You look like
you have a
question…
“Solicitation is a component of stewardship, engagement and
cultivation; not vice-versa.”
Setting the Stage for Legacy Gifts
Communication
Is it time to get your communication stream in order?
ASK: How often? Who? What? Which channels? Print? Phone? Digital? Social media?
DevelopmentMembershipSpecial eventsStewardship
InformationNationalVolunteeringOther
Strategize Your Engagement Activity
Samples of all communications
Gather all stakeholders
Look for duplicity
Communications by affiliation or
donation level
Engagement Communication Calendar
Constituency Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Board Board Email Board Email Board EmailBoard Email
Board Email Board Email Board Email Board EmailBoard Email
Board EmailBoard Email
Board Email
Major Donors &Prospects
Field Trip Invitation
PG Newsletter
eMagazine
Weekly Advocacy
Action email
ExecutiveSummary
Impact Postcard
Annual Phone Call
non-donors
Executive Summary
Field Trip Invitation
Annual Report Listing
Executive Summary
emailImpact
Postcard
Event Invitation
Look-forward
piece
Exec.Summary
Mid-Level Donors & Prospects Impact
Postcard
Weekly Advocacy Actions
LegislativeUpdate
Webinar Invitation
Conference Call Invite
Weekly Advocacy
Action email
PG Newsletter
Event Invitation
Impact Postcard
PG Newsletter
Annual Report
Conference Call Invite
Holiday Card
Impact Postcard
Planned Giving Donor & Prospects
Annual Fund Donors & Prospects
Tax slip
Weekly Advocacy
Action email
eMagazine
Weekly Advocacy
Actionemail
Weekly Advocacy
Actionemail
eMagazine
Weekly Advocacy
Actionemail
Weekly Advocacy
Action email Weekly Advocacy
Action email
eMagazine
Weekly Advocacy
Action email
Thank You Postcard
Weekly Advocacy
Actionemail
Weekly Advocacy
Action email
Cultivation letter
Cultivation letter
Annual Report
Lite
You can achieve simplicity in the design of effective charts, graphs and tables by
remembering three fundamental principles: restrain, reduce, emphasize.
GARR REYNOLDS, PRESENTATION ZEN DESIGN
Results Reporting Everyone Should be Doing
Appeal coding provides basic feedback like # or % responses
Cadenced marketing provides more opportunities to those who are most likely to respond – fewer to those with questionable propensity
Advanced tracking focuses you & the marketing dollar on learning who replies to what and how valuable each cohort segment is to the organization’s future revenue stream
Basic tracking – a MUST…
Cadenced marketing – produces higher ROI
Advanced tracking –provides your AHA! moment
Reporting Planned Giving ROI to Those Who Count
Number of identified prospects
Contact plan with prospects
Marketing tests & results
Responsiveness metrics
Planned gift intentions
Distributed gift information
Visual Planned Giving Reports for Those Who Count
Reports can show how well one letter performed
compared to another to ensure increased activity…
Number of responses
…or to understand who responds to what marketing
…as well as, explain the value planned gift opportunities have
on different relationships
…and ultimately prove the value of the program!
Series1 Series2
85%
Show Progress - Not Just Numbers
85% of planned gift
prospects have a current gift
14 of our 22 gifts over $100,000 were from
planned gifts
Marketing responses increased 3-fold with our
planned gift test letter
1 2 3
“The true meaning of life is to plant trees, under whose shade you do not expect to sit.”
NELSON HENDERSON –PassItOn.com
To learn more about what was included in this discussion, visit:
24 Planned Giving Terms You Should Know
Planned Giving Strategy Tips
Six Queries to Transform Your Planned Giving Team Forever!
Balancing The Value Of Your Planned Gift Prospect Pool With Your Marketing Dollar
Calculating ROI for Planned Gift Marketing
Using Predictive Donor Profiles, Wealth, and Asset Screenings to Identify PG Prospects
Sign up for free membership to the Target Analytics Community to access some of these resources
