From OK to OMG: How to be an Extraordinary Planned Giving Professional

FROM O.K. TO OMG!
H O W T O B E A N E X T R A O R D I N A RY P L A N N E D
GIVING PROFESSIONAL

July 26, 2012 How to Be an Extraordinary Planned Giving Professional 1

KATHERINE SWANK, J.D., SENIOR CONSULTANT

Your Presenter:

• Target Analytics (Blackbaud) since 2007
• Author and Frequent Presenter on Planned Giving, Major Gifts,
Prospect Research and Industry Topics
• Member, State Bar of Arizona; Drake University Law School
• Over 20 years development officer and director, including
• National healthcare, public broadcasting, law school
• National Director of Planned Gifts $300M healthcare organization
• Lead manager, $20 MM Capital Campaign; raised over $215 MM in
career
• 12 years as affiliate faculty for Regis University’s Masters in Global
Nonprofit Leadership program


OUR AGENDA

Hallmarks of the “O.K.” Planned Giving Program

The Most Effective Strategy

Programs with the OMG! Factor

Analytic Planned Giving Profiles

Effective Marketing

Stewardship Worth Recognizing

Q&A


“O.K.” PLANNED GIVING PROGRAMS
Common elements and effective strategies for successful
planned giving programs


THREE “O.K.” ELEMENTS

Written Record- #1 Strategy
Goals & keeping • Personal
Objectives • Track against Outreach and
goals and Communi-
• Personal cation
activity objectives
• Program • Report on a
results regular basis


WRITTEN GOALS & OBJECTIVES


SETTING GOALS & OBJECTIVES

• goal [ gōl ] aim: something that somebody wants to achieve
- Visit in person …
- Call a minimum of …
- Close more than …
- Discover a additional …
• ob·jec·tive [ ob jéktiv ] based on facts: based on facts rather
than thoughts or opinions
- Increase by …
- Track …
- Analyze for …
- Identify at least …
- Report on the following schedule …


PERSONAL OUTREACH


EFFECTIVENESS RATES

• Face-to-face visits are, by far, the most effective way to
cultivate, close and steward planned gifts
• Mail produces the smallest results, is the most time-consuming
and is the most costly method

Effective Rate of
Activity
Contacts
Personal visits 30%
Phone Conversations 20%
Letter 5% - 10%
Newsletter < 1%


OUTREACH IS PROSPECT-CENTERED

Face-
to-face

Peer-
to- Phone
Peer
Prospect

Letter Email


DESIGNING EFFECTIVE OUTREACH

• Many reasons exist
• Some are legitimate, others are artificial
- Both are valid
• Examples:
- Loyalty milestone
- Recent gift
- “People like you”
- Invitation
- Follow-up from request for contact
- Follow-up from a previous meeting


THE PAYOFF IS MISSION FUNDING
• You have a large qualified pool of planned giving prospects
• Your ability to build relationships and solicit the appropriate planned
gift with these constituents is the key factor in realizing as much of
this potential as possible

Prospect Average Total 2% of Total
Pool Gift Amount Potential Potential

25% to 50%
of your $50,000 $250,000,000 $5,000,000
database

5,000 for example 100 People

NOTE: Does not represent any assumed period of time


REPORTING


WHAT TO REPORT & WHEN

• Monthly
- Personal and programmatic results
- To supervisor
• Quarterly
- Programmatic results
- To supervisor, organizational leaders including top development
personnel, top management, top volunteer leadership
- Summarize for all staff members
• Annually
- 1, 3, 5 and 10-year results and comparisons
- To planned gift “shareholders” and prospects


MONTHLY

• Year-to-date progress
- Calls
- Visits
- Expectancies identified
- Gifts closed
• This year-to-last year comparisons
• List of prospects/donors visited
• List of donors identified/gifts closed
• Other activities of importance


QUARTERLY

• Quarter-to-date progress
• This quarter-to-last year same quarter comparisons
• The “Story of a Planned Gift”
• Marketing results summarization
- # sent
- # returned
- # qualified leads
- # visits
• Leads initiated from others in the organization
• Summary of events held, upcoming events


ANNUAL

• Year-end results
- Activity
- Expectancies
- Revenue
- Marketing
• 1, 3, 5 & 10-year growth and comparisons
• Summarized trends
• Legacy Society listings
• Visuals and Stories
• Impact of Planned Gifts


USING NUMBERS THE RIGHT WAY

• Provide financial
information when it
makes sense
• Provides an
understandable
reason why you are
asking to be notified
• Use for thank-you,
prospecting and
stewardship


BRING YOUR REPORT TO LIFE


“I’M O.K.!” CHECKLIST

• #1 Strategy is personal outreach and communication
 Use visits, events and phone as primary contact vehicle
 Visit with a donor or prospect at least once a week

• 1, 3, 5 & 10-Year Written Goals & Objectives
 Personal activity benchmark and growth objectives
 Program results benchmark and growth objectives

• Record-keeping
 Data, trends, activity, expectancies, marketing, revenue and outreach you will track
 Date you will collect, purchase and append


EXTRAORDINARY PLANNED GIFT
CHARACTERISTICS


SIX ELEMENTS TO GET TO “OMG!”

Become Outreach Use Gift Flexible Establish
a is a Daily Data accept- Market- a Recog-
Planned Activity Effective ance ing Plan nition
Gift • Live your #1 -ly policies • 3-5 year and
Donor Strategy
• Save time in place plan Steward-
• Adequate
• Make your • Save • Written budget ship
money
own gift to
• Collect the
policies Program
Planned • Gifts you
Parenthood right data will accept • Equal in
• Include your • Use • Gifts you importance
other analytics will not to your
charities of • Market the accept major gift
importance right gift to stewardship
• Who says
the right components
“ok”?
people


BECOME A PLANNED GIFT DONOR


MAKE YOUR OWN GIFT COMMITMENT FIRST

• An expert on the • Bequest or codicil –

Planned gifts that you can
make with little or no cost:
When you make your own
legacy gift you become:

topic when making or
• An advocate for the updating your will
gift vehicle, not a add your charitable
solicitor gifts
• A like-minded friend • Beneficiary
to others who also designation for
make and consider • Retirement account
planned gifts • Life insurance
• A living example • Bank accounts
• A resource


D A I LY O U T R E A C H


YOU CAN’T DO PLANNED GIVING EVERY SO OFTEN

Prospect
Pool

Out-
reach

Closed
Gifts


EFFECTIVENESS RATES

• Track your activity for a full quarter or longer
• Calculate your own effectiveness rates

Effective Rate of
Activity
Contacts
Intentions/Closed Gifts ÷ #
Personal visits People Visited
Phone Conversations People Called but Not Visited

Letter Targeted Letters Sent
Newsletter Newsletters Mailed


HUMAN NATURE

• People give to people
• Studies show that planned gifts are larger when cultivation and
solicitation is done face-to-face
• The closer the relationship, the larger the planned gift
• Don’t discuss execution, discuss how people are improving
their lives
• Donors do not fund programs, they invest in results
• People want to give what they are asked for


SETTING YOUR PRIORITIES
Number of Donors
• If your goal is to uncover 25 existing, but unknown, legacy
donors in a year’s time
- That’s 1 every other week
- Does your current activity support this goal?

Average Gift Amount
• If your goal is to move the average planned gift amount to
$50,000
- What relationship needs to be in place to get this result?
- Do you have other legacy givers at this level?
- Look to the clues those donors provide


WORK WISELY

Phone Face-to-
Calls Face Visits


SIMPLE PLANNED GIVER PROFILES
B A S I C A P P L I C AT I O N S O F D ATA


SINGLE VARIABLE ANALYSIS

• Uses a single variable for descriptive purposes
• You are already using single variable analyses
• Averages, sum of values divided by observations
• Medians, the middle value
• Modes, most common value
• Ranges, from lowest to highest
• Why use them?
• Provides data for comparative purposes
• A simple methodology for understanding your database


AGE ANALYSIS: MAJOR GIFTS
• All major gift donors plotted by age for XYZ Organization
• This example may/may not be true for Planned Parenthood
• Plot for your own affiliate or nationally

Major giving peaks
around age 55 and
declines dramatically by
age 85


AGE ANALYSIS: PLANNED GIFTS
• All planned gift donors plotted by age for XYZ Organization
• This example is normal for most organizations

Planned giving peaks
around age 68 and tends
to stay active even into
one’s 90s


CLUSTER ANALYSIS

• Grouping individuals of similar characteristics into respective
categories
• Way of taking a lot of data and grouping people into subsets in
a meaningful way
• Prizm, PersonicX, Niches are all pre-made cluster data
overlays you can purchase


CLUSTERS ON DATABASE

• Household level clusters
• http://www.equifax.com/consumer/marketing/en_us
• Group people by life stages - 26 Niches
• How to use:
• Append Equifax Niche Clusters to planned gift donors in
fundraising database
• Look at % of file that fell into each Niche
• For one particular client we found that 76% of bequest
intentions were in 7 Niches


EXAMPLE
Niche I – IRA Spenders
Average age: 67
Average income: $91,000
Children in home: No
Average home value: $146,000
Career: Retired
Interests: Golf; Mail responsive


GROUP BEQUEST DONORS

% of Bequest Donors in XYZ Organization’s Database
Niche E
All Other 8%
Niches Niche I
24% 9%

Niche M
14%

Niche X
16%
Niche N
12%
Niche Y Niche S
9% 8%


BEQUEST INTENTION CLUSTERS
Applications of cluster data

• Segment by known bequest intentions
• For example, 76% of bequest donors are described by 7 of the 26
clusters
• 29% of the non-bequest donors were also described by the same
7 clusters
• Concentrate on the prospects who are included in 1 of the 7
clusters for bequest cultivation and solicitation


BEQUEST INTENTION CLUSTERS
Further applications of cluster data
• Craft messages and images by cluster
• Use clusters to segment responders by channel:
• Direct mail
• Telephone
• Internet
• Email
• Personal solicitation


ADVANCED DATA
Complex Planned Giver Profiles
• Statistically validated profiles of planned givers by organization and by
a national view exist
• You may be ready to move to more sophisticated modeling when:
• National Model:
• You have the time and ability to focus at least 75% of your time to
meeting donors, making daily phone calls and can manage a
comprehensive marketing plan
• Will identify 25%-35% of your database as good prospects

• Customized to your Affiliate:
• You have identified several hundred planned gift donors on your
database
• Will identify 20%-30% of your database as high-match prospects


U S I N G E X T E R N A L D ATA F O R P L A N N E D
GIVING PROGRAMS


DATA IS ABUNDANT
Planned Giving Marketing:
Benchmarking and Beyond
2010 Bank of America -
Merrill Lynch Study of
High-Net-worth
Households
5-Year Historical
Report on
Planned Gifts at
XYZ Organization
Measuring the Performance Multiple Real
of Gift Planning Officers Properties
ACGA 2009 Survey of
Charitable Gift Annuities

Giving USA 2012
The Case for Gift Planning: Analyzing
the Cost to Raise a Planned Gift Dollar
HH Income

DATA USEFUL FOR PLANNED GIVING PROGRAMS

• # of years • Home • Gifts to other
Internal

External

Complex
giving ownership organizations
• Affiliation • Income • Evidence of
• # of • Real Estate conservative
relationships holdings financial
• Giving • Property in behavior
amount trust • Bequests/Charit
able Gift
• Age • Business Annuities
• Class Year ownership • Evidence of
• Major or • # of children aggressive
Degree • Community financial
• Volunteerism activism behavior
• Charitable
Remainder
Trusts


PLANNED GIVERS ARE GETTING YOUNGER

• Recent studies have confirmed that the most appropriate
audience for planned gift information is age 30-59
• The best ages to urge individuals to let you know about their
planned gift is age 60 and older
• Not everyone fits the mold though


USE LIFE STAGES TO GUIDE MARKETING
Age is One of the Most Important Data Points

• 59% say they will • Cash donors to • Are current cash
Ages 30-39

Ages 40-49

Ages 50-59
make a planned charity but may donors to charity
gift have lowered • Are less inclined
• Main reason they amount to consider a
have not done so • Also say they will planned gift at this
is because they make a planned life stage
haven’t been gift but that they • Paying off debt
asked to do it haven’t been • Thinking of the
• Ethnic minorities asked to do it grandchildren
are more • Consider 5-10% of • Marketing:
abundant in this their estate an Bequests,
group of future appropriate gift Beneficiary
planned givers level Designation
• Marketing: • Marketing: Form Gifts and
Introduce to Bequests and Charitable
planned gift Beneficiary Remainder
concepts Designation Trusts
Form Gifts

* Stelter Donor Insight Report: Age Differences in Planned Giving, 2009


USE LIFE STAGES TO GUIDE MARKETING
Age is One of the Most Important Data Points

• Are current cash donors to • Income is at its lowest

Ages 70 and Older
Ages 60-69

charity • Have received an inheritance
• May have received an and plan on leaving one
inheritance • Least likely to change their
• Are familiar with the term estate plans or include a new
“planned giving” charity in existing plans
• More likely to leave estate to • More likely to leave estate to
family and friends family and friends
• Marketing: Bequests, • Marketing: Beneficiary
Beneficiary Designation Designation Form Gifts,
Form Gifts , Charitable Gift Immediate Charitable Gift
Annuities for Parents and Annuities and Contingent
Dependents and Deferred Gifts
Charitable Gift Annuities • Urge this group to notify
you of their planned gift, if
one exists

* Stelter Donor Insight Report: Age Differences in Planned Giving, 2009


G I F T A C C E P TA N C E P O L I C I E S


WHY YOU NEED GIFT ACCEPTANCE POLICIES

Simplify Guide Lead donor
Limit risk
acceptance marketing discussion


KEEP POLICIES CURRENT AND AVAILABLE

Review annually

• Know your organization’s objectives
• Provide them to your leaders both paid and volunteer

Make them easily available

• Publish your gift acceptance policies on your website
• In your annual report
• As a report from the President or Executive Director

Create a “Ways to Give Document”

• Single-page summary of your policies


USE YOUR POLICIES TO GUIDE MARKETING

• Focus on promoting the gifts
from which you expect to
receive the highest return
- Maximize your chances for
success
- Target-market to your most
likely prospect segments


D E S I G N A M A R K E T I N G P L A N T H AT W O R K S
FOR YOU


PLANNED GIVING MARKETING RECOMMENDATIONS

• Your marketing program should be consistent over a period of
years
- Localize your plan
- Don’t expect others to know your needs
• Marketing your desire to receive planned gifts can be on-
going, with or without dedicated staff in place
- Marketing plants a seed; people act on this information
when they are at specific life stages
- Do not expect immediate results; patience is a virtue
- Both planned gift and major gift officers can reach out
personally to ensure your top prospects are all
cultivated and solicited


PLANNED GIVING MARKETING RECOMMENDATIONS

Marketing informs, educates and motivates planned giving
prospects who you cannot reach out to personally

Create a comprehensive marketing program that uses all of
the organization’s communication avenues available

• Newsletters, Annual Report, Web site, Piggyback on annual giving
vehicles where available

Use targeted mailings or publications that promote planned
giving opportunities to your top prospect pool

• Personalized letter, Planned giving newsletter, Personalized e-
blast, Planned giving web content


DONOR STORIES

• Are among the most effective
marketing tactics for garnering
planned gift leads
• Create interest and appeal
• Tell simple stories, capture
hearts
• A few sentences can be
powerful
• Make it personal

Focus on Your
Message
More examples can be found at
www.leavealegacy.org


ASSESS MARKETING FOR THE RIGHT AUDIENCE

• What segment(s) does
this marketing piece
appeal to?
• What result are you
seeking from it?
• Does it meet the
objectives of your
program?
• Are prospects
responding to it?
• What actual results do
you have?


SIMPLE MESSAGES WORK

• Keep the message simple
• Do not use technical language
• It’s about why the legacy was
made
• Not how the gift was made
• Nor the amount of the gift

Key Marketing
Concepts


TARGET PROSPECTS WITH A PERSONAL LETTER

• Speak to one person
• Use your experience or a donor’s
• Ask a surviving family member
• Ask service recipients for quotes
• Discuss:
• Why legacy giving is important
• What the legacy gift will do
• Ask for a response
• Ask the reader to do something
• Always provide a reply device

How to Write a
Personal
Letter

HOW TO GET MORE RESPONSES

• Make the request for
information simple and
unintimidating
• Use professional photo
• Give direct contact
information
• Include your name, title and
direct phone number
• Collect prospect information
and gift notifications
• Do not require specific gift
information at this point

Give Donors
a Reason to
Contact You

ORGANIZATIONAL PUBLICATIONS
• Get the same “place” each time
• Use the same “ad” in multiple
publications for consistency in MONTHLY PUBLICATION
messaging
Create a Few
Standard Pieces

BACK COVER OF QUARTERLY NEWSLETTER • Seek dedicated
“internal inventory” so
that you know the
printing schedule and
can plan your marketing
Use Available
Publications

ACTIONS YOU CAN TAKE TODAY
Gather your materials
• Review the quality and quantity of return replies or
requests for information that each produced
• Take at look at the most successful ones to determine the
motivators you used, the visuals you included, the story
you told
• Use these pieces again to verify their effectiveness
• Get on other organizations’ mailing lists and e-blast lists
- Find examples that move you

Create a Gratitude Team and invite everyone to join
• Board, committees, volunteers, program staff, etc.
• Ask them to bring in planned giving pieces, mark them up and also to make
“Thank you” calls to your highest rated planned gift prospects – you’ll engage and
inform your insiders about planned gifts while they help you reach out!


D E S I G N A M A R K E T I N G P L A N T H AT W O R K S
FOR YOU


THE ROLE OF STEWARDSHIP

• If you consciously seek to steward loyal donors at lower gift
amounts on a consistent basis you will already be cultivating
your most likely pool planned giving prospects
• Consider establishing a loyalty giving club, i.e. 10 years of
giving, etc.
- Don’t be too literal - consecutive year requirements may bypass
great prospects
- Look at donors who give more than half of the time, for instance 6
out of 10 years


GOALS OF PROACTIVE STEWARDSHIP

Provide a
Welcome
safe Identify Grow your
Legacy
environment more major current
Givers to
to come gift donors relationship
the Family
forward

Imagine the results!


LEGACY SOCIETIES

• People don’t join recognition
societies for the recognition
• They join to be part of
something bigger

Why People
Join


PUBLIC RECOGNITION AND STEWARDSHIP
• Offer recognition that is appropriate
for each donor
• Thank you listings and Donor Stories
• Some donors want to be anonymous
or “almost anonymous”
• Others want more

Show the Impact
of Planned Gifts


“ O M G ! I ’ M E X T R A O R D I N A RY ! ” C H E C K L I S T
• Make your own planned gift to Planned Parenthood
• Daily Contact; 3-5 visits a week
 85% activities support getting out of the office

• Collect, Purchase and Analyze Data
• Gift acceptance policies in place
 Written policies
 Annual review; easily distributed

• 3 – 5 Year Marketing Plan
 Using all communication avenue available to you
 Marketing the right gift to the right people

• Strong Recognition and Stewardship Program
 Recognize the planned givers are the major givers; their timing is the only
difference


SUMMARY & QUESTIONS

Review your planned giving program for the 3
“OK!” elements

Plan daily written, phone and in-person outreach

Determine your planned gift prospect pool

Plan to incorporate additional elements that
transform you to “OMG!”

Establish a consistent and comprehensive
marketing plan

Use stewardship to urge and motivate your “silent
planned givers”


CONTACT INFORMATION

Thank You!

Katherine Swank, J.D.
Blackbaud, Inc. (Target Analytics group)
2000 Daniel Island Drive
Charleston, SC 29492
(Katherine is located in Denver, CO)

843-670-7278 (Mountain Time Zone)
katherine.swank@blackbaud.com
Twitter: @KatherineSwank
LinkedIn: http://www.linkedin.com/in/katherineswank
More about Target Analytics @
http://www.blackbaud.com/targetanalytics


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