from ok to omg: how to be an extraordinary planned giving professional

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

FROM O.K. TO OMG!H O W TO B E A N E X T R A O R D I N A RY P L A N N E D G I V I N G P R O F E S S I O N A L


• 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

KATHERINE SWANK, J.D., SENIOR CONSULTANT

Your Presenter:


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 PROGRAMSCommon elements and effective strategies for successful planned giving programs


Written Goals & Objectives•Personal activity•Program results

Record-keeping•Track against

goals and objectives

•Report on a regular basis

#1 Strategy•Personal

Outreach and Communi-cation

THREE “O.K.” ELEMENTS


WR IT TE N G OA L S & O BJ E CT IV E S


• 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 …

SETTING GOALS & OBJECTIVES


P E RS ON A L OU T R E A C H


Activity

Personal visits

Phone Conversations

Letter

Newsletter

Effective Rate of Contacts

30%

20%

5% - 10%

< 1%

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


Prospect

Face-to-face

Phone

EmailLetter

Peer-to-

Peer

OUTREACH IS PROSPECT-CENTERED

Multi-channel


• 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

DESIGNING EFFECTIVE OUTREACH


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

NOTE: Does not represent any assumed period of time

Prospect Pool

25% to 50% of your

database

5,000 for example

Average Gift Amount

$50,000

Total Potential

$250,000,000

2% of Total Potential

$5,000,000

100 People


RE P O RT IN G


• 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

WHAT TO REPORT & WHEN


• 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

MONTHLY


• 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

QUARTERLY


• 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

ANNUAL


• 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

USING NUMBERS THE RIGHT WAY


BRING YOUR REPORT TO LIFE


“ I ’M O .K . ! ” C H E C K L IS T

• #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


Become a Planned Gift Donor•Make your own

gift to Planned Parenthood

•Include your other charities of importance

Outreach is a Daily Activity•Live your #1

Strategy

Use Data Effective-ly•Save time•Save money•Collect the right

data•Use analytics•Market the right

gift to the right people

Gift accept-ance policies in place•Written policies•Gifts you will

accept•Gifts you will

not accept•Who says “ok”?

Flexible Market-ing Plan•3-5 year plan•Adequate

budget

Establish a Recog-nition and Steward-ship Program•Equal in

importance to your major gift stewardship components

SIX ELEMENTS TO GET TO “OMG!”


BE C O ME A P L AN N E D G IF T D ON O R


When

you mak

e your own lega

cy gift you bec

ome:

• An expert on the topic

• An advocate for the gift vehicle, not a solicitor

• A like-minded friend to others who also make and consider planned gifts

• A living example• A resource Plan

ned gifts that you can mak

e with little

or no

cost:

• Bequest or codicil – when making or updating your will add your charitable gifts

• Beneficiary designation for • Retirement account• Life insurance• Bank accounts

MAKE YOUR OWN GIFT COMMITMENT FIRST


DA ILY O U T RE A CH


Closed Gifts

Out-reach

Prospe

ct Pool

YOU CAN’T DO PLANNED GIVING EVERY SO OFTEN


Activity

Personal visits

Phone Conversations

Letter

Newsletter

Effective Rate of Contacts

Intentions/Closed Gifts ÷ # People Visited

Intentions/Closed Gifts ÷ # People Called but Not Visited

Intentions/Closed Gifts ÷ # Targeted Letters Sent

Intentions/Closed Gifts ÷ # Newsletters Mailed

EFFECTIVENESS RATES

• Track your activity for a full quarter or longer

• Calculate your own effectiveness rates


• 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

HUMAN NATURE


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


Phone Calls

Face-to- Face Visits

WORK WISELY


S IM P L E P L A NN E D G IV E R P R OF IL E SB 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

http://www.equifax.com/consumer/marketing/en_us


EXAMPLE

Average age: 67Average income: $91,000Children in home: NoAverage home value: $146,000Career: RetiredInterests: Golf; Mail responsive

Niche I – IRA Spenders


Niche E8%

Niche I9%

Niche M14%

Niche N12%

Niche S8%

Niche Y9%

Niche X16%

All Other Niches

24%

% of Bequest Donors in XYZ Organization’s Database

GROUP BEQUEST DONORS


BEQUEST INTENTION CLUSTERS

• 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

Applications of cluster data


BEQUEST INTENTION CLUSTERS

• Craft messages and images by cluster• Use clusters to segment responders by channel:

• Direct mail• Telephone• Internet• Email• Personal solicitation

Further applications of cluster data


ADVANCED DATA

• 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

Complex Planned Giver Profiles


US IN G E X T E R N A L DATA F OR P LA N N E D GIV IN G P R OG RA M S


Liquid Assets

DATA IS ABUNDANT

Planned Giving in the

United States: A Survey of

Donors

Determinants of U.S. Donor Behavior: The Case for Bequests

Planned Giving Marketing: Benchmarking and Beyond

NPT National Survey to Determine # Wills with Charitable Provisions

The Case for Gift Planning: Analyzing the Cost to Raise a Planned Gift Dollar

Measuring the Performance of Gift Planning Officers ACGA 2009 Survey of

Charitable Gift Annuities

2010 Bank of America -Merrill Lynch Study of High-Net-worth Households

Stelter Insight Report: Gender Differences in Bequest Giving Giving USA 2012

Millennial Donors: A Study of Millennial Giving and Engagement HabitsPPP: Valuation

Standards of

Charitable Planned

Gifts

Guidelines for

Reporting and Counting Charitable

Gifts

5-Year Historical Report on

Planned Gifts at XYZ Organization

Age

HH Income

Niches

Multiple Real Properties

Presence of Children in the HH

Insider Status Company Ownership


Internal

• # of years giving

• Affiliation• # of

relationships• Giving

amount• Age• Class Year• Major or

Degree• Volunteerism E

xternal

• Home ownership

• Income• Real Estate

holdings• Property in

trust• Business

ownership• # of children• Community

activism Complex

• Gifts to other organizations

• Evidence of conservative financial behavior• Bequests/

Charitable Gift Annuities

• Evidence of aggressive financial behavior• Charitable

Remainder Trusts

DATA USEFUL FOR PLANNED GIVING PROGRAMS


• 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

PLANNED GIVERS ARE GETTING YOUNGER


Ages 3

0-39

• 59% say they will make a planned gift

• Main reason they have not done so is because they haven’t been asked to do it

• Ethnic minorities are more abundant in this group of future planned givers

• Marketing: Introduce to planned gift concepts

Ages 4

0-49

• Cash donors to charity but may have lowered amount

• Also say they will make a planned gift but that they haven’t been asked to do it

• Consider 5-10% of their estate an appropriate gift level

• Marketing: Bequests and Beneficiary Designation Form Gifts

Ages 5

0-59

• Are current cash donors to charity

• Are less inclined to consider a planned gift at this life stage

• Paying off debt• Thinking of the

grandchildren• Marketing:

Bequests, Beneficiary Designation Form Gifts and Charitable Remainder Trusts

USE LIFE STAGES TO GUIDE MARKETING

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

Age is One of the Most Important Data Points


Ages

60-69

• Are current cash donors to charity

• May have received an inheritance

• Are familiar with the term “planned giving”

• More likely to leave estate to family and friends

• Marketing: Bequests, Beneficiary Designation Form Gifts , Charitable Gift Annuities for Parents and Dependents and Deferred Charitable Gift Annuities Ag

es 70 an

d Ol

der• Income is at its lowest• Have received an inheritance

and plan on leaving one• Least likely to change their

estate plans or include a new charity in existing plans

• More likely to leave estate to family and friends

• Marketing: Beneficiary Designation Form Gifts, Immediate Charitable Gift Annuities and Contingent Gifts

• Urge this group to notify you of their planned gift, if one exists

USE LIFE STAGES TO GUIDE MARKETING

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

Age is One of the Most Important Data Points


GIF T AC CE P TA N CE P O L IC IE S


Limit risk Simplify acceptance

Guide marketing

Lead donor discussion

WHY YOU NEED GIFT ACCEPTANCE POLICIES


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

Review annually

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

Make them easily available

• Single-page summary of your policies

Create a “Ways to Give Document”

KEEP POLICIES CURRENT AND AVAILABLE


US E Y O UR P OL IC IE S TO G UID E M A RK E T IN G

• 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


DE S IG N A M AR K E TIN G P L A N T H AT W O RK S FO R Y O U


• 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

PLANNED GIVING MARKETING RECOMMENDATIONS


More examples can be found at www.leavealegacy.org

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

http://www.leavealegacy.org/


• 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?

ASSESS MARKETING FOR THE RIGHT AUDIENCE


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


• 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

TARGET PROSPECTS WITH 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 pointGive Donors a Reason to Contact You


ORGANIZATIONAL PUBLICATIONS

BACK COVER OF QUARTERLY NEWSLETTER

MONTHLY PUBLICATION

• Seek dedicated “internal inventory” so that you know the printing schedule and can plan your marketing

Use Available Publications

• Get the same “place” each time• Use the same “ad” in multiple

publications for consistency in messaging

Create a Few Standard Pieces


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!


DE S IG N A M AR K E TIN G P L A N T H AT W O RK S FO R Y O U


• 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

THE ROLE OF STEWARDSHIP


Welcome Legacy

Givers to the Family

Provide a safe

environment to come forward

Identify more major gift donors

Grow your current

relationship

GOALS OF PROACTIVE STEWARDSHIP

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


“ OM G ! I ’M E X T RA O RD INA RY ! ” C HE C K LIS 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


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”

SUMMARY & QUESTIONS


CONTACT INFORMATION

Thank You!

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

843-670-7278 (Mountain Time Zone)[email protected] Twitter: @KatherineSwankLinkedIn: http://www.linkedin.com/in/katherineswank More about Target Analytics @http://www.blackbaud.com/targetanalytics

mailto:[email protected]

http://www.blackbaud.com/targetanalytics



from ok to omg: how to be an extraordinary planned giving professional

Education