How to Identify and Market Planned Gifts

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Planned gift donors have unique characteristics that set them apart from other types of donors. Knowing who to market and what messages are most effective for them strengthens your skills and benefits your organization by using resources more efficiently. Organizations large or small, and of any type: education, medical, human services, will benefit and gain greater knowledge on donor research.

Presentation conceived, researched, written and delivered by Katherine Swank, J.D., 2013. Original title and some content used by permission from Lawrence Henze, J.D.

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  • Here are your specific results. You have several pools of planned gift prospects. Some prospects may be in more than one category. That’s fine. It means that they may be receptive to making more than one kind of planned gift to you. If each of them made a planned gift to this organization at the U.S. average amount, their total planned gift potential to you is staggering, as you can see by the figures in the second column.What if you could focus your time, talent and daily attention to just 5% of your prospect pool over the next 3 to 7 or 10 years. The average potential revenue for this group of people would still be extraordinary.Your commitment to reach out on a one-by-one basis using voice and in-person tactics is the difference between creating a transformative planned giving program and a weak one.
  • Planned gift donors and prospects deserve the same opportunities to engage with your organization’s leadership, donors and staff as other donors do. Create events that mix your donor constituencies so that they interact, share their stories and commitment with you, as well as make new friends and learn about the organization from an “insider’s” point of view.
  • Stelter Company recently conducted a survey to determine the ages at which planned gift creation is most prevalent. The results provide us valuable guidelines for separating our prospect pool by age and by message.A link to the report is provided on the Resources for Planned Gifts slide later in this section.
  • Every two years Bank of America/Merrill Lynch surveys high-net worth households in the U.S. about their charitable giving patterns. As you can see, nearly half of all of these households have indicated that they already have a bequest to at least one charitable organization in place. Many of them also have another planned gift in place through one of the remaining vehicles. In income overlay, in conjunction with your PGL scores, may help you determine who best to reach out to when seeking to uncover established planned gifts. Target Analytics, as well as other vendors, have data points available to help you with grouping your best prospects by income. If you’d like to learn more about our Echelon Power Segments or Income360, your account executive will be happy to assist you.
  • Annual household income of $200,000+ and/or household net worth of $1 million+ (excluding the value of primary residence)95.4%gave to non-profit organizations in 2011Compares to 65% of the entire US PopulationDonate an average of 8.4% and a median of 3.1% of household incomeThis is lessthan 2007 and 2009 responsesOver the next 3-5 years, about half plan to keep their contributions the same and about a quarter plan to increase contribution levelsCorrelation between volunteering and givingThe more an individual volunteered, the more they gaveNearly ½ make philanthropic decisions with their spouse/partnerand 1/3 involve children in their giving
  • Your development team may already be collecting, evaluating and using data for major gifts. Much of the same data is useful for your planned giving program as well.Here is a list of data points that can help you segment your planned gift prospect pool for effective prioritization and outreach as well as to better understand appropriate messages and visuals that might be right for your marketing. Age allows you to segment your planned giving prospect pool into manageable groups of individuals who are likely at similar life stages. Target market the right message, to the right people, at the right time. For younger prospects your message will likely urge them to consider making or considering a planned gift to your organization. For older prospects your message is more likely a request to be informed of a planned gift already in existence that benefits the organization. AgeFinder is available from Target Analytics.Household income allows you to further segment your prospect pool for short-term results. Remember, 50% of affluent households ($200,000 annual income) have already created planned gifts. Affluent households with good planned giving likelihood scores should be at or near the top of your activity plans for personal outreach. Establish a relationship and eventually ask if they have or would consider creating a planned gift to benefit your organization. Income360™ provides annual household income estimates up to $2 million. Real Estate values are easy to find and provide a window into asset portfolio size. Primary residence is often 20%-30% of a person’s total asset portfolio. WealthPoint® screenings can be executed through your Blackbaud software and online with a subscription to www.WealthPointOnline.com. Individuals with net worth over $1.5 million often own at least one additional property beyond their primary residence. Prospects with multiple property holdings may wish to learn how their additional property could be turned into an income in the future through a gift annuity or a charitable remainder trust. Not all organizations are willing to fund gift annuities with property – so find out what your organization’s policy is before marketing real estate for gift annuities. WealthPoint® screenings can be executed through your Blackbaud software and online with a subscription to www.WealthPointOnline.com. Echelon™ Power Segments are modeled estimates of liquid or investable assets boiled down into an easy to understand score between 1 and 18. Provides age estimate, income estimate and liquid asset estimate in a single score. Provides the ability to segment your prospect pool for targeted marketing and personal outreach. Target Analytics is the only vendor of Echelon™ Power Segments to nonprofit organizations. Cluster codes such as Equifax’s Niches provide detailed information on 26 groups of people throughout the U.S. with similar characteristics such as age, income, home values, children living at home, education levels, hobbies and interests and whether they are receptive to mail or not. Cluster codes can be further segmented into over 100 sub-groups for further refinement. All-inclusive-codes are useful in multiple ways but do not replace other important data points such as exact age and income.
  • Successful planned giving programs have calendared activities as well. As with any task, if it’s not a priority on your calendar, it’s not a priority. The plan should, at a minimum contain 4 elements:Activities that you will undertake to inform, cultivate and solicit planned gifts on behalf of the organizationGoals for each activity, such as 20 confirmed bequest intentions by year’s end, and 60 face-to-face visits, etc.A timeline of milestones or checkpoints to keep you on track as well as a clear deadlineIntermittent reports (at least quarterly) that inform and engage your key stakeholders in the planned giving program. These include both internal reports, such as % to goal and expectancies uncovered, as well as, external reports to your constituents that keep them informed of the impact of legacy gifts as well as the number of people who have set them up, etc.
  • While it’s important to get on the phone and out of the office, the amount of time you spend on those activities related directly to your success. In order to determine how much time you must devote to phone calls and appointments, use something like this to track and measure your efforts.This example is a real one. One of my colleagues who spent her career as a planned giving officer and manager used these ratios as her guide to meeting her personal goals. And it worked! She raised over $215 million in legacy gifts over her career. You can too! You just have to get started.
  • My colleague attributed her success to a simple door sign. One that says “Please Do Not Disturb”. Just as you would expect everyone to allow you give your speech at the Gala without interrupting, you should also expect them to respect your phone calling time with prospects. You can buy these door tags online and pass them out to your development team members. If you have cubes and not doors, be creative! I saw one office that strung yellow “Do Not Cross this Line” tape across their cubicle entry way as a signal. You can also get permission to use someone else’s office that is not in or is at lunch or reserve a conference room for an hour a day, etc.
  • This example appeals to young alumni or young constituents of the organization. Financial sophistication interests people of all ages and thoughtful but not-yet-affluent donors can make a meaningful gift today that has a chance to grow, often tremendously, in the future.This example follows the key marketing concepts already noted: The message is simple and easy to read The message does not use any technical language The message does not promote a specific gift amount, allowing each reader to fit the message into his or her own financial goals for the organization
  • This example is an excellent one. It appeals to prospects of all ages, genders and financial ability. Any donor can see herself or himself in this example. The key marketing concepts are important to note: The message is simple and easy to read The visual impact has both an emotional one and one of satisfaction in seeing how a legacy gift can help one or more people The message does not use any technical language and allows the potential donor to envision how he or she might be able to make Sarah’s dream a reality
  • How to Identify and Market Planned Gifts

    1. 1. Katherine Swank, J.D.Planned Giving ConsultantAvailable @ www.slideshare.net/kswank
    2. 2. Name Katherine Swank, J.D.TitleSenior Fundraising ConsultantTarget Analytics, a division of Blackbaud, Inc.DevelopmentBackground• Health, Public Broadcasting, Higher Education• Raised over $200 millionInterestingFacts• Past president, Colorado Planned GivingRoundtable• Affiliate faculty, Regis University’s Masters inGlobal Nonprofit Leadership program• Member, Partners for Philanthropic PlanningPublications &Presentations:• www.npENGAGE.com fundraising blog• Creating a Legacy: Building a Planned GivingProgram from the Ground Up @www.blackbaud.com/resources• Presentations @ www.slideshare.net/kswank
    3. 3. • Facts about Planned Gifts• Planned Giving Profiles• Setting Your Goals• Simple Marketing Ideas that Work• Identification & Marketing Checklist• Resources & Contact Information
    4. 4. A Little Bit ofKnowledge
    5. 5. LoyalDonorsDonorsProspectsSuspectsDevelopmentGoal• Maximizedonor “LifetimeValue”• Upgradedonors tohigher levelgiving• Engage entry-level givingand convertprospects intodonors• Identifyprospects foracquisitionMajor Donors |Planned GiftDonors |Those who doBoth
    6. 6.  More people are likely to give you a major gift at the endof life than during their lifetime This means, you may have more dollar potential inplanned giving than current major giving There are tremendous planned giving opportunitieswithin your constituent base Why people give planned gifts They want to do something special They care greatly about your organization The gift type fits their financial lifestyle
    7. 7. % of ProspectPoolBequests: 95%Annuities: 4%CRTs: 1%Average GiftAmount$30,000$60,000$250,000Potential in 100Donors$2,850,000$240,000$250,000• Admit it! You have a LARGE QUALIFIED POOL of planned givingprospects• Your ability to BUILD RELATIONSHIPS and solicit the appropriateplanned gift with these constituents is the KEY FACTOR inrealizing as much of this potential as possibleNOTE: Does not represent any assumed period of time
    8. 8.  Create events thatprovide access toleadership andmission elements Replicate thoseevents in areaswithconcentrations ofhigh scoringprospects Provide multipleand frequentopportunities toget face-to-face ONCE A YEAR IS NOTEFFECTIVE
    9. 9. PlannedGivingProfiles
    10. 10. AnnualDonors• Loyaltytrumpsgift sizeas apredictor• Consider60% ofthe timeas“loyal”RecurringBehavior• Otherloyaltypoints:• Membership• Volunteerism• TicketbuyingMajorDonors• Considerplannedgift as anaddt’lgift
    11. 11. • As likely to make a planned giftat age 30 as at 100• Likelihood peaks in early 60sand then begins to decline• Recent statistically validatedstudy confirms
    12. 12. Ages30-39• 59% say they WILL MAKE A PLANNED GIFT• Main reason they have not done so isbecause they HAVEN’T BEEN ASKED TO DO IT• Ethnic minorities are more abundant in thisgroup of future planned givers• Educate and inform about Bequests &Beneficiary Designation Form Gifts* Stelter Donor Insight Report: Age Differences in Planned Giving, 2009Ask Them to Consider MakingPlanned Gifts
    13. 13. Ages40-49• Cash donors, but may have lowered amount• Say they WILL MAKE A PLANNED GIFT but thatthey HAVEN’T BEEN ASKED TO DO IT• Say 5-10% OF THEIR ESTATE is anappropriate gift level• Educate and inform about Bequests &Beneficiary Designation Form Gifts* Stelter Donor Insight Report: Age Differences in Planned Giving, 2009Ask Them to Consider MakingPlanned Gifts
    14. 14. Ages50-59• Are current cash donors to charity• Are LESS INCLINED to consider a plannedgift at this life stage• Paying off debt and thinking of thegrandchildren• Market Bequests, BeneficiaryDesignation Form Gifts & CharitableRemainder Trusts, as well as Annuitiesfor Parents* Stelter Donor Insight Report: Age Differences in Planned Giving, 2009Ask Them to Consider MakingPlanned Gifts
    15. 15. Ages60-69• Are current cash donors to charity• May have received an inheritance• Familiar with the term “planned giving”• MORE LIKELY TO LEAVE ESTATE TO FAMILYAND FRIENDS• Market Bequests, BeneficiaryDesignations, Charitable Gift Annuitiesfor Parents/Dependents & DeferredCharitable Gift AnnuitiesAsk Them to Inform you of aPlanned Gift Already in Place* Stelter Donor Insight Report: Age Differences in Planned Giving, 2009
    16. 16. Ages70+• Income is at its lowest• Received an inheritance & plan on leavingone• LEAST LIKELY TO CHANGE THEIR ESTATEPLANS; MORE LIKELY TO LEAVE ESTATE TOFAMILY AND FRIENDS• Market Beneficiary Designation FormGifts, Immediate Charitable GiftAnnuities and Contingent Gifts* Stelter Donor Insight Report: Age Differences in Planned Giving, 2009Ask Them to Inform you of aPlanned Gift Already in Place
    17. 17. Loyaldonors,loweramountsMid-to-uppermiddleincomeMobile;may havemovedrecentlyCharitablyinclinedVolunteersMost active atestateplanning:Early 40s toMid 50s
    18. 18. RetiredAre or wereloyaldonors, atvery lowamountsCharitablyinclinedMobile;may havemovedrecentlyFrequentlysingle(widowedfemales)Primary agegroup:mid-70s andolder
    19. 19. Wealthy orveryaffluentLess loyaldonorHigher giftlevelsCharitablyinclinedHavefinancialcounselPrimary agegroup:Mid-50s to 70
    20. 20.  Nearly half of wealthy families have alreadymade future charitable gifts to non-profitorganizations Annual income of $200,000+The 2010 Study of High Net Worth Philanthropy, Bank of America Merrill Lynch,
    21. 21. Over 6millionhouseholds$200,000 annualhousehold income95% donateVolunteer16% inherited theirfortunes47% are business ownersAvg. 61 years old
    22. 22. AdditionalData Pointsfor PlannedGivingProgramsAgeHouseholdIncomeReal EstateValue(s)№ ofPropertiesInvestableAssetsClusterCodes
    23. 23. Setting YourGoals
    24. 24.  Many organizations consider planned givingto be a second-tier strategy Extremely passive solicitation methods Appeals are broad-based and require arequest for more information Expectations are unreasonably low <1% response rate to planned giving mailings
    25. 25.  Face-to-face visits are by far the most effectiveway to close planned giftsActivity% of Contactsto GiftsPersonal visits (face to face) 30%Personal Telephone Conversations 20%Mail/Phone contact by a vendorservice5% - 10%Mass Mail Marketing (newsletters,postcards, etc.)<1%
    26. 26. Face to facemeetingsare firstpriorityRankprospectsegmentsCatch-allmarketing islowestpriorityRegularlyscheduledphone calls
    27. 27. Five-Year Cultivation/Solicitation PlanSegment#ProspectsMarketingTechniqueConversionRateAverageGift$PotentialYearofExecutionBoard Members 25 Face to Face 50% $50,000 $625,000 Yr 1Past Board 100 Face to Face 30% $25,000 $750,000 Yr 2-3Professional Staff 10 Face to Face 50% $20,000 $100,000 Yr 1Long-termEmployees10 Face to Face 25% $10,000 $25,000 Yr 2$10,000+ Single Gift 50 Face to Face 30% $50,000 $750,000 Yr 3Stocks/Mutual Funds 25 Face to Face 30% $50,000 $375,000 Yr 425 Gifts or more 500 Mail/Phone 20% $10,000 $1,000,000 Yr 1-510-Yr Donors 300 Mail/Phone 20% $10,000 $600,000 Yr 1-5Other Top Prospects 750 Mail <1% $10,000 $75,000 Yr 1-5
    28. 28. When youmake yourown legacygift youbecome:Anexperton thetopicAnadvocate- not asolicitorA like-mindedfriendA livingexampleAresource
    29. 29. Goal to Personally Solicit Prospects Over a Two-Year Period# of Positions with PlannedGiving Fundraising Duties1 2-3 4 or more# Prospects to Visit/Solicit100 or1/week300 or3/week500 or5/weekHigh National Average Gift(U.S.) $70,000$7,000,000 $21,000,000 $35,000,000Low (U.S.) National AverageGift (Canada) $35,000$3,500,000 $10,500,000 $17,500,000$10,000 Average Gift $1,000,000 $3,000,000 $5,000,000$5,000 Average Gift $500,000 $1,500,000 $2,500,000
    30. 30. DetermineActivitySet a Goal forthe ActivityEstablish aTimeline andDeadline DateReport yourActivity andOutcomes• REVIEW AND REVISE AT LEAST ANNUALLY; add sophistication of activities andgoals as the program ages• REPORT YOUR PROGRESS to leadership- MONTHLY, at minimum to Development managers- QUARTERLY, to Organizational Leadership and Volunteer Leadership- Report detailed results EACH FISCAL YEAR-END
    31. 31. If your CONVERSION RATE from call attempts to completed calls is 5:1You will needto attempt1,200 callsper yearThat’s equalto 23 callsper weekOr 5 callsevery dayIf your CONVERSION RATE from completed calls toappointment is 4:1You will needto talk to 240people a yearto get 60appoint-mentsExample Goal: 20 confirmed bequestintentions this year through PERSONALCONTACTYou will need to meetwith a minimum of 60prospects per year5 per month x 12 monthsSet aside a minimum of 1 hour per day to make prospect/donor calls
    32. 32. • CLOSE YOUR DOOR or reserve ameeting room• Post a friendly note or DOOR TAG sothat others will not disturb youPurchase door tags at www.askingmatters.com/store
    33. 33. PlannedGivingMarketing
    34. 34. More examples can be found atwww.leavealegacy.org• Are among the MOST EFFECTIVEMARKETING TACTICS for garneringplanned gift leads• Create interest and appeal• Tell SIMPLE STORIES, capturehearts• A few sentences can be powerful• Make it PERSONALFocus on YourMission
    35. 35. • “Join me” testimonials• Cohort examples• Simple messages• Giving back• Making a difference• Helping othersKnow youraudience
    36. 36. • Simple and to the point• Free of technical language• It’s about why the legacy wasmade• Not how the gift was made• Nor the amount of the giftKey MarketingConceptsRead more about compellingplanned gift marketing.
    37. 37. • Speak to ONE PERSON• Discuss:• Why legacy giving isimportant• WHAT THE LEGACY GIFT WILL DO• Ask for a response• Ask the reader to DO SOMETHING• Always provide a REPLY DEVICEHow to Write aPersonal Letter
    38. 38.  Plays an INCREASINGLY IMPORTANTROLE in planned gift marketing People are INSPIRED BY OTHERS Provides a connection with a real-life planned giving donor Incorporates personalartifacts and photos that bringthe donor story to lifeA few nice examples can be found atMiniMatters.comRead more on choosing donors to spotlight atProspectResearch.com
    39. 39.  Probably numerous organizational publications that maybe used to promote planned giving Donor recognition Loyalty giving clubs Donor stories and testimonials important Do not try to accomplish too much with each publication Consider different versions by audience type Targeted issues will boost interest and response
    40. 40. Checklists
    41. 41. Age Overlay• Segment yourprospect poolinto groups ofindividuals whoare at SIMILARLIFE STAGES• Target market theRIGHT MESSAGE,to the rightpeople, at theright timeHouseholdIncome Estimate• AFFLUENTHOUSEHOLDS withgood plannedgiving likelihoodscores should beat or near the topof your activityplans forPERSONALOUTREACHReal EstateValues & MultipleProperties• Primary home isoften 20%-30%of total estate• Owners withMULTIPLEPROPERTIESmight beinterested IN LIFEINCOMEARRANGEMENTS
    42. 42. Public AssetSummaries• Households withNET WORTH over$1.5 MM oftenown at least ONEADDITIONALPROPERTY• Turning ASSETINTO INCOMEthrough a giftannuity or acharitableremainder trustmay be ofinterestLiquid orInvestable AssetEstimates• Segment yourprospect pool fortargeted marketingand PERSONALOUTREACH• TARGET MARKETthe right giftamount, to the rightpeople, at the righttimeCluster Codes• Groups peoplethroughout the U.S.with SIMILARCHARACTERISTICSsuch as age,income, homevalues, childrenliving at home,education levels,hobbies andinterests andwhether they arereceptive to mail ornot
    43. 43.  Planned giving is a Tier 1 emphasis Know your planned giving prospects By type of giving vehicle Using or purchasing data Integrated campaign includes face-to-face, phone, targetedand mass market activity Donor relations recognizes loyalty Investigated all communication streams available to theorganization Marketing materials emphasize emotion and commitmentand mission
    44. 44.  How many legacy donors does it take to give$1,000,000? A person a week, leaving you $70,000 as a final giftbecomes $7,280,000 in just two yearsHow many people did your developmentteam talk to last year about making aplanned gift?15 $70,000 $1.05 M
    45. 45. • Blackbaud Whitepapers on planned giving, including Howto Talk with Donors about Planned Gifts by KatherineSwank, J.D. and How the Right Marketing Strategies CanEnhance Your Planned Giving Program by Lawrence C.Henze, J.D.• Stelter Donor Insight Report: Age Differences in PlannedGiving, Stelter CompanyArticlesandStudies:• The Power of Legacy and Planned Gifts by KevinJohnson whose sensible advice can get your teamstarted and get results sooner than you think.• How To Talk To Anyone About Anything! by Jill Spiegelhelps you master simple, effective ways to connect withanyone, including 9 ways to start a positive conversationand converse intelligently on any subject.Books:
    46. 46. Thank You!Katherine Swank, J.D. (Denver, CO)843-670-7278katherine.swank@blackbaud.comTwitter: @KatherineSwankLinkedIn: http://www.linkedin.com/in/katherineswankSlideShare: http://www.slideshare.net/kswank
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