1© 2009 tom ahern | ahern communications, ink. | bequest marketing
TRANSCRIPT
1© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing 2
How to MarketCharitable Bequests
A special presentation for organizations with endowments at the Rhode Island Foundation
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing 3
Where are we now?(urgent ~ start today)
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“It is in the fourth quarter now. Birth rates dropped 25% in the U.S. between 1925 and 1935. This segment of the population is now age 68 to 78. In other words, the population who will be leaving bequests is about to start a DOWNWARD trend that will not reverse until 2017.” -- Robert Sharpe
Source: quoted by Mal Warwick, March 2004
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing 5
Translation...Time’s running out on some of
your best prospects.
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But there’s a rub...
It won’t “just happen.”
Source: Russell N. James III, University of Georgia, March 2009
“For those who think the generational transfer will automatically flood their organizations with resources, it’s time to think again. Without putting in the hard work of generating these planned gifts, 90% of donor mortality will simply result in lost current giving.”
7© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing 8
Translation...It’s totally up to you.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing 9
Repeat after me...“If I do nothing now, my
organization loses forever a once-in-a-generation
opportunity.”
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UK: Good at bequest marketing. USA: Stinky.In the U.K., legacy gifts account for 29% of total annual giving … vs. below 10 % in the U.S.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing 11
“Planned giving.”Insider talk.
“Bequests.”Everyday talk.
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Caution...Industry jargon is self-
defeating and a MAJOR barrier to understanding.
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“Some say bequests constitute at least 80% of so-called planned gifts; others say 90% or more…”
Source: Mal Warwick, March 2004
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Planned giving?
Bequests.
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Key tip from Richard Radcliffe
Write like you’re writing to your mum
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Relax.It’s easy money.
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Most U.S. donors (more than 90%) are happy to consider putting a charitable gift in their wills ... yet few (under 10%) have done so.
Source book: Iceberg Philanthropy (2007)
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Who gives?
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Facts from researcher Richard Radcliffe
• Women leave 78% of the legacies
• Most are NOT wealthy
• Legacy makers have a history of giving
You already know the people most likely to make a bequest. They’re your loyal donors, the ones who give year after year.
20© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
There is a core group “of mostly retired donors who although cash poor (and thus they belong to the lowest income category) are actually asset rich.” They are an important market for bequests.
Source: James and Sharpe, via Adrian Sargeant, 2009
21© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
The millionaires next door
• Helene Whitlock Alley, the $100 donor who bequeathed $7.3 million to a diabetes group
• “Homeless man leaves $4 million estate” -- Richard Leroy Walters, did his stock trades over phone at a senior center
• Jean Preston, librarian, amassed an $8 million estate
Source: Marc A. Pitman, Fundraising Coach
22© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
Source: Adrian Sargeant - Jen Shang; ID, Death & Bequest Giving, Sept. 2008
“What psychologists refer to as ‘self-grieving’ or grieving for the loss of oneself is common with the elderly as they begin to experience a number of physical difficulties and limitations. (Shaffer 1970). It is interesting to note that individuals attempt to compensate for these losses by searching for new sources of self-esteem, an ego need that could clearly be borne in mind by charities soliciting gifts from this age group.”
23© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
4 major vectors:(1) loyal donors(2) childless(3) no grandkids(4) not rich
24© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
Of current donors over age 50...
– 50% of those WITHOUT offspring left a charitable bequest.
– When grandchildren appear, grandparents drop charities from their wills.
– Only 9.8 % of those with grandchildren left a charitable bequest.
Source: Russell N. James III, University of Georgia, March 2009
25© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
During bad economic times, bequests can be especially attractive to avid supporters on reduced incomes…
26© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
Can’t afford a gift to your favorite charity this year?
Make a charitable bequest.
27© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Ground Zero:Board commitment
Rationale:If your board won’t support your organization, why should anyone
else?
29© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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~ Step One ~Start a legacy society
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You can’t thank them when they’re dead.
Thank them abundantly now.
And make them feel special.
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~ Step Two ~Write a 1-page letter to donors who have given
for 5 or more years
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Strangers are not going to leave you their money, mostly.
Letter says, in essence...Thank you. You can support us in many ways. And when the time is right, please consider a gift in your will. (Include contact information and sample language.)
34© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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The Rich Fox opt-out letter – part 1:
Thanks donors for their lifetime support and explains the organization’s need for bequests and charitable remainder trusts. The letter reminds prospects that many people don’t like to think about writing a will and thus, despite their best intentions, don’t adequately ensure that their wishes are carried out.
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The Rich Fox opt-out letter – part 2:
Stresses that it is not a request for another contribution and then introduces the concept of the legacy program. The letter explains that donors needn’t indicate the amount of money they intend to leave the organization, merely that they should indicate that they intend to participate in the program. An enclosed enrollment form also includes an opt-out box for prospects to declare they’re not interested.
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The Rich Fox opt-out letter – part 3:
Explains that as soon as the organization receives a donor’s enrollment form, his or her name will be inscribed immediately in a place of honor at the institution and will be published prominently among the organization’s donors, to help motivate others to follow the example.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing 38
The Rich Fox opt-out letter – part 4:
Points out, finally, that the legacy program is so important to the organization’s future that a representative will call to explain the program and answer questions – but only if donors do not return the enrollment form to indicate whether or not they’ll participate.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing 39
Wise words from P.T. Barnum, Connecticut native son,
philanthropist, political reformer
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#1 reason people don’t make a charitable bequest?
“It never occurred to me.”
41© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
Calendar for bequest mktg. to donors
Jan-Dec
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Monthly e-mailed news w/ bequest reminder
Annual bequest reminder letterItem in print donor newsletterAnnual legacy society meetingSpring solicitation w/ bequest reminderItem in print donor newsletterFall solicitation w/ bequest reminderItem in print donor newsletterYear-end solicitation w/ bequest reminderItem in print donor newsletter
42© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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~ Step Three ~Never say die.
Inform. Remind. Repeat.
Please remember ___ in your will.
At the bottom of every letter.
Print it on your stationery.
44© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
45© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Leave a legacy that will help others for years to come. A gift to the Canadian Cancer Society in your Will is a simple and powerful way to join the fight against cancer. For more information about how your gift can be arranged and how it will be used, please call 1-888-939-3333 or visit us at www.cancer.ca.
Appears as a footer on every email.
47© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Good tip from Richard Radcliffe
Every year send an annual review to every legacy pledger, summarizing your organization’s accomplishments and accounts.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing 49
Good tip from Richard Radcliffe
On page 1 explain key accomplishments. On page 2 have a story illustrating a key accomplishment. On page 3 talk about cost efficiency.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing 50
Good tip from Richard Radcliffe
Make it easy to get in touch via the website. DON’T have a click button labeled "legacies." DO have a button labeled, "Do you want to protect our future?" Change the message every three months.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing 51
Good tips from Richard Radcliffe
Have a legacy page in your newsletter -- just don't call it that.
ALSO: Every newsletter should have a lawyer column with answers to questions.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing 52
Results vary.
Patience is a virtue.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing 53
“It takes an average of seven years for a gift planning program to mature to the point where planned gifts are materializing, and it takes three to five qualified prospects to secure one planned gift.”
Larry Stelter’s new book
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing 54
How to talk about death.(Just don’t.)
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Key tip from Richard Radcliffe
Be joyful about bequests. They are “life driven,
death activated.”
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing 56
Talk about the importance of bequests
to the organization.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing 57
Source: Royal National Lifeboat Institution
Dear Supporter,
I'd like to share some thoughts with you. I am sure you are aware that the RNLI is funded totally by voluntary contributions and that legacies are our largest source of income. We are concerned about future legacy income and it seems sensible to talk about our concerns with our regular RNLI supporters as early, and with as much candour, as possible.
58© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Talk about the lasting name recognition.
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What are you selling?
Immortality, a bit.
61© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Talk about how big the gift will become over
time, if endowed.
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Over 50 years,
a $20,000 bequest will grow
to $368,000+ in principal
and make $300,000+ in grants.Rhode Island Foundation calculation
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing 64
Over 50 years,
a $100,000 bequest will grow
to $1,488,000+ in principal
and make $518,000+ in grants.New York Community Trust calculation
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing 65
Mention ease: “All it takes is a quick phone call to your lawyer, to add a charitable
gift to your will.”
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Inertiais your enemy.
Repetitionis your friend.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing 68
Good tip from Richard Radcliffe
Hold an annual general meeting for your organization as a way of meeting prospects. Hold it at 11 AM. Provide a light lunch. Have someone stand up and say the vision statement, then give the annual review.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing 69
How do prospects identify themselves? They respond to
offers.
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Successful campaign in the New Yorker and the New York Times.
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Just for you...Lots of free
tips and samples:www.aherncomm.com