bill tedesco [email protected] 410.670.7880 how to identify planned giving prospects on your...

Bill Tedesco [email protected] www.donorsearch.net 410.670.7880

How to Identify Planned Giving Prospects on Your Giving ListPresented by Bill Tedesco, CEO & Managing Partner of DonorSearch

http://www.donorsearch.net/


Why Planned Giving?• Steady Increase in Planned Gifts• Giving by bequests increased

by 8.7% between 2012 and 2013• Largest increase of any

giving source in 2013 (Giving USA 2014)

• Dollars given by bequests more than doubled in the 20 years between 1991 and 2011 (Giving USA 2012)

Giving USA 2014: The Annual Report on Philanthropy for the Year 2013



Why Planned Giving?

• Excellent Return on Investment• AFP estimates 25 cents to raise

a dollar• MarketSmart research has found

1 cent to raise a dollar

Inside the Mind of the Planned Giving Donor, MarketSmart, 2013



Why Planned Giving?

• Research Suggests Future Growth in Legacy Giving• Aging Population• Population Growth• More Educated Populace• Increase in Childlessness




What Moves People to Make a Bequest?

• Considering a charitable bequest activates two parts of the brain• Lingual gyrus• Part of the visual system• Contributes to dreaming

• Precuneus• Visual imagery• Memories• Looking at yourself from the

third person perspectiveInside the Mind of the Planned Giving Donor, MarketSmart, 2013




• When legacy gifts are discussed, mortality is recognized and causes• Alignment and

activation• Avoidance





• What causes people to break through avoidance?• Changes in life circumstances

or• A person’s feelings about their

own “autobiographical heroism” is ignited• What is my life story?• How do I want to be

remembered?• How does your mission align

with mine?




How Can Nonprofits Apply This?• Nonprofits must inspire donors to think about their• Symbolic Immortality• How will you help the donor continue on after

death?• Autobiographical Heroism• How will you help the donor be perceived after

death?• Visualized Autobiography• How can you help the donor see

their life from a third party’s perspective?




Identifying Prospects Who Feel Aligned to Your Mission

• DonorSearch previously offered the Planned Giving Likelihood to identify those likely to make planned gifts based on• Age• Relationship• Wealth indicators

• Recently created a new algorithm and back-tested the model.



The Most Predictive Planned Giving Factor?

RELATIONSHIP



Identifying Planned Giving Prospects

• Our new algorithm determined relationship was the most predictive variable.

• When wealth and age was included, the model became less predictive.



Identifying Planned Giving ProspectsResults below from test of 84,0000+ records with 351 known legacy donors.

• Categories:• 300-270• 269-240• 239-210• 209-180• 179-140• 139-100

• Base score of 0 (PGL not run)

• Categories:• 1• 2• 3• 4• 5• 6

• Base score of 0 (Not considered loyal)

Age, Relationship & Wealth

Relationship Only



Identifying Planned Giving ProspectsResults below from test of 84,0000+ records with 351 known legacy donors.

• Categories:• 300-270 – 2.62% legacy donors• 269-240 – 0.826% legacy donors• 239-210 – 0.326% legacy donors• 209-180 – 0.522% legacy donors• 179-140 – 0.153% legacy donors• 139-100 – 0.084% legacy donors

• Missed 121 legacy donors

• Categories:• 1 – 7.37% legacy donors• 2 – 5.937% legacy donors• 3 – 1.655% legacy donors• 4 – 1.016% legacy donors• 5 – 0.385% legacy donors• 6 – 1.908% legacy donors

• Missed 75 legacy donors


Relationship Only





Relationship OnlyPGL Score # of

Legacy Donors Identified

Total Donors Identified

Predictive Strength

300-270

54 2,054 2.62

269-240

82 9,931 0.826

239-210

48 14,741 0.326

209-180

31 5,941 0.522

179-140

14 9,152 0.153

139-100

1 1,193 0.084

Unrated

121 41,851 0.291

Rated 230 42,782 0.537

PGID Score

# of Legacy Donors Identified

Total Donors Identified

Predictive strength

1 32 434 7.37

2 70 1,179 5.937

3 48 2,901 1.655

4 19 1,870 1.016

5 16 4,147 0.386

6 91 4,769 1.908

Unrated

75 69,333 0.108

Rated 276 15,300 1.803



How Do We Identify a Strong Relationship?

• Number of Gifts• 15+ gifts – very

loyal• 8-10 gifts –

moderate loyalty• 1-7 gifts – low

loyalty• Consistency• Number of

consecutive years



Sample PGID Results• We reviewed 16,649

for an unnamed organization.

• Prospects are classified with PGID Loyalty Ratings of 1 through 6, with 1 being the most likely to respond to planned giving marketing.

• 4,631 prospects were rated with a PGID score of 1-6.



PGID Loyal Prospects as a Percentage of the Total Donor File

PGID Rating Count

PGID1 0

PGID2 468

PGID3 1087

PGID4 996

PGID5 2053

PGID6 27

10.11%

23.47%

21.51%

44.33%

0.58%

All Loyals

PGID 1PGID 2PGID 3PGID 4PGID 5PGID 6




• The assumption that age alone will help you identify good prospects is false.

• The chart to the right shows the distribution of donors by generation and PGID ranking.

• While age alone is not a good indicator, it is an important marker for understanding donor motivation.

Depre

ssio

n Er

a191

2-19

21

Wor

ld W

ar II C

ohor

t 192

2-19

27

Post W

ar C

ohor

t 192

8-19

45

Early

Bab

y Boo

mer

s (ol

der)

1946

-195

4

Late

Bab

y Boo

mer

s (yo

unge

r) 19

55-1

964

Gener

atio

n X 1

965-

1976

Millen

nial

s 197

7-19

84

Great

Rec

essio

n

0

200

400

600

800

1000

1200

1400

PGID- 6

PGID- 5

PGID- 4

PGID- 3

PGID- 2

PGID- 1



DS Scores for All PGID Ranked Donors• After donors are assigned a PGID rank,

DonorSearch applies a DS Score to each of the ranked donors based on criteria found in external databases.

• DS1-1 indicates people who have made gifts of $5,000 or more to other nonprofits.

• DS1-2 and DS1-3 are indicators of significant and extraordinary wealth.

• DS1-4 and 1-5 are prospects who display an increased likelihood to make above average gifts to your annual fund.

• DS2 and DS3 are individuals with little external information and are usually considered unremarkable prospects. When coupled with a high PGID score, these are considered excellent prospects for “Gifts Anyone Can Afford.”

DSRating 1 2 3 4 5 6 7 All

DS1-1 0 160 303 223 326 7 1300 2319

DS1-2 0 13 36 30 79 0 434 592

DS1-3 0 27 55 58 127 1 726 994

DS1-4 0 45 127 127 273 5 1556 2133

DS1-5 0 69 187 151 329 4 1689 2429

DS2 0 3 5 10 11 0 72 101

DS3 0 151 374 397 908 10 6241 8081

All 0 468 1087 996 2053 01201

81664

9



“Super Donors”• Donors with high DS

Ratings and high PGID scores are considered super donors because of their• Consistency and loyalty• Propensity to be

philanthropic• Capacity based on

wealth 12

3

0

50

100

150

200

250

300

350

DS1-1

DS1-2

DS1-3

0

160

303

0 13 36

027

55

DS1-1DS1-2DS1-3



Conclusion• Planned giving is a smart

fundraising investment.• High ROI• Increase in giving

• Create PG communications that speak to• Symbolic Immortality• Autobiographical Heroism• Visualized Autobiography

• Identify prospects based on relationship with your nonprofit.



Thank You!• Visit www.donorsearch.net or call 410-670-7880 for more

information on Planned Giving Identification.• Visit www.imarketsmart.com for a free copy of Inside the

Mind of the Planned Giving Donor.



http://www.imarketsmart.com/

bill tedesco [email protected] 410.670.7880 how to identify planned giving prospects on your...

Documents

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giving list

giving source

planned giftsgiving

charitable bequest

legacy gifts