strategic stewardship for planned giving programs

May 23, 2012 Strategic Stewardship for Planned Giving Programs 1

A presentation from the “Cultivating Lifelong Donors: Stewardship and the Fundraising Pyramid” Series

STRATEGIC STEWARDSHIP FOR PLANNED GIVING PROGRAMS


• 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

• Stewardship’s Role in the Fundraising Continuum

• Planned Giving’s Unique Challenges to Stewardship

• Identifying the Planned Gift Donor

• Why Donors Give and Their Expectations of Us

• What’s in a Planned Giving Stewardship Plan?

• Examples

• Resources

• Q & A


Donor Cycle

Identification

Qualification

CultivationSolicitation

Stewardship

THE FUNDRAISING CONTINUUM

• Every donor travels through the Donor Cycle

• Same steps whether effort is annual, major or planned

- Different emphasis on different steps

- Changes by effort

• Regardless of the effort - stewardship of a gift and its donor is the foundation of the Donor Cycle

• Cannot move forward without stewardship


Not a unique issue to one organization over another

Planned gift donors are often

anonymous

Don’t know who they are until the end

of life

No legal requisite to

inform

Most planned gifts are made in revocable arrangements

Will or Trust

Life Insurance

Retire-ment Plans

Beneficiary Designation Form Gifts

PG’S UNIQUE CHALLENGES TO STEWARDSHIP


• Why does this happen?

- Many planned gift donors are conservative with their finances and with their information

• Do not feel wealthy, although some are very wealthy

• Do not want “undue” or “unwelcomed” attention

• Do not want their families, neighbors or strangers to see that they “have” money

• Do not like to discuss “money”

- Most donors don’t know that we are interested in finding out, or don’t understand why it’s important to tell

PG’S UNIQUE CHALLENGES TO STEWARDSHIP


HISTORICAL ACTIONS WE UNDERTAKE

We view stewardship as an “after the fact” activity

Therefore, we fail to recognize and steward planned gift donors

We end up “Thanking” the estate representative and not the donor

There is often no connection with the family of the donor

Ultimately, the donor’s loved ones lose connection with our organization


PROACTIVE STEWARDSHIP WE CAN PROVIDE

In reality, many of them already have!

We can steward them NOW, by assuming that the most likely suspects have already made a planned gift

We can meet the expectations donors have of our organization

We can be strategic by understanding why people give

We can pre-determine who are our most probable planned gift donors


• 50% of high net worth households have already made future charitable gifts to non-profit organizations

PLANNED GIFTS ARE, INDEED, OUT THERE!

The 2010 Study of High Net Worth Philanthropy, Bank of America Merrill Lynch


WHAT’S THE POTENTIAL PAY-OFF?

You may have more potential in planned gifts than in ANY other form of giving

Gifts1,000 100/year

for the next 10 years

25025/year


505/year


$70,000High Avg. U.S. $70,000,000 $17,500,000 $3,500,000

$35,000 Low Avg. U.S. $35,000,000 $8,750,000 $1,750,000

$10,000 $10,000,000 $2,500,000 $500,000

You’ll never reach this potential if you never make planned giving a top tier fundraising priority


• Target Analytics has studied planned gift donors for more than 2 decades

• Data is gathered from thousands of instances of planned gifts across all charitable sectors from organizations large, medium and small

• Consistent, but changing, pattern of characteristics

• Age, life stage and financially conservative habits define the planned gift donor in the U.S.

W HO MAKE S P L ANNE D G IF T S ?


Weights of Predictive Factors

Past Giving Pattern

Life Stage Factors

Financially Conservative Behavior

Smaller Household

Recent Mover

THE U.S. PLANNED GIVER PROFILE


Ages 30-39• 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

• Strategy: Introduce to planned gift concepts

Ages 40-49• Cash donors to

charity but may have lowered gift amounts

• 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

• Strategy: Bequests and Beneficiary Designation Form Gifts

Ages 50-59• 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• Strategy:

Bequests, Beneficiary Designation Form Gifts and Charitable Remainder Trusts

LIFE-STAGE GUIDES PLANNED GIVING STRATEGY

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

One-Size Does NOT Fit All


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• Strategy: Bequests,

Beneficiary Designation Form Gifts , Charitable Gift Annuities for Parents and Dependents and Deferred Charitable Gift Annuities

Ages 70 and Older• 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

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

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

LIFE-STAGE GUIDES PLANNED GIVING STRATEGY

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

One-Size Does NOT Fit All


Personal experiences with an organization

and firsthand observations

Volunteering or receipt of services

Personal connection to the organization

Organizational communications on %

of funding for programming vs.

administration

Giving is expected of them

HOW PEOPLE MAKE DONATION DECISIONS


Sound business practices

Timely receipt and acknowledgement

Not sharing their names with other

organizations

Full disclosure of financial statements by

the charity

Detailed information on effectiveness in

meeting goals and objectives

WHAT THEY EXPECT IN RETURN


T HE F OUNDAT ION OF A S T E WARDS HIP P ROGRAM

What does PBS do so well?

Says “Thank You” Before and After Every Show


Donor recognition (stewardship) must become more than a response to a gift or gift notification received

A strategic tool for communicating with current and prospective donors• The methods and activities for

thanking are keys to enhanced giving

Think before you Thank• Plan• Create a comprehensive effort• Use all communication avenues

available to you

Institutionalize stewardship•Everyone

within the organization needs to be on board

•Every staff member should understand their role in passing along accountability to our donors

STEWARDSHIP

MAKE STEWARDSHIP AN INSTITUTIONAL PRIORITY


• Planned gifts are usually larger gifts

- Higher than lifetime annual giving

- Higher than average major gift

• Donor doesn’t see a distinction between today and the future

• Treat like a major donor now!

• Follow the same stewardship steps you use with important donors

STEWARDSHIP FOR PLANNED GIFT DONORS


• 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 of 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

• Invite these individuals to organizational events

• Strive to meet them in person

THE ROLE OF STEWARDSHIP


YOUR CURRENT POOL OF PLANNED GIFT DONORS – REACTIVE STEWARDSHIP

• Bequest gift• Trust gift• Life insurance gift• Retirement plan gift• Life-income arrangements• Gifts of real estate, stocks• Etc.

All people who notify you of a planned gift intention

• Phone Call• Letter• Special Invitations and

Organizational Reports• Annual Report with Honor Roll

of Donors• Access to Leadership• Etc.

Full stewardship activities


YOUR ENLARGED POOL – PROACTIVE STEWARDSHIP

• Everyone who requests planned giving information

• All board and committee members

• All professional-level staff members

• All employees of 10 years or longer

• Volunteers

Self-Identified Suspects

• Donors who have made gifts at any level for 10 or more years or have given your organization 25 or more gifts including recurring/monthly gifts

• All donors who have made single-year gifts of $10,000 or more

Engaged Suspects


STEWARDSHIP PROGRAM COMPONENTS

• Be grateful; say “thank you” in the most personal way possible• Use the least amount of template language necessary• Include language that is specific to the donor’s gift intention or

desired outcome• Speak from the heart

• Consider additional acknowledgement from key players• For example: a faculty member, VP of Programs, a student

Written Acknowledgement

• Voice-to-voice begins a relationship• Face-to-face cements the relationship

Spoken Acknowledgement


STEWARDSHIP PROGRAM COMPONENTS

• Share the impact of similar gifts that have been put to work• Donor stories• Testimonials

• Report impact of legacy program as a whole• 3 to 5 year information• Program’s longevity and growing “membership”

Reports and Communications

• Activities that denote their special status as an “insider”• Reports from the President, CEO, etc.• Tours, events• Telephone updates with the Dean, Director of Research, Program

Specialist

Access to Leadership


SAMPLE STEWARDSHIP COMPONENTS

New member welcome packets• Fulfill the expectations of donors• Sound business practices• Timely receipt and acknowledgement• Not sharing their names• Detailed information on effectiveness• Full disclosure of financial statements

Handwritten/Signed Cards• Birthday • Thanksgiving, Heart Month, etc.• Anniversary cards• Date of gift or notification

• Near graduation• Date of building dedication/naming

Recognition Gifts• May vary depending on

commitment size• Consider low- to no-cost gifts for

revocable gifts• Consider major gift level gifts for

irrevocable commitments

Annual event to recognize legacy donors, surviving family members, etc.• Consider folding this donor group

into your established donor events• Provides cross-marketing and

messaging the right people


SHARE THE IMPACT OF PLANNED GIFTS

• Provide financial information that shows impact

• Give donors a sense of “membership”

• Even if their membership is a secret

Programmatic Information is Important


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


OTHER STEWARDSHIP COMPONENTS

• Think about social media avenues

• Especially with younger planned gift donors

Use technology

• Every donor is unique

• Ask what they want

• Use coding in database to assist

Get Input

• Use any reason you can think of as an opportunity to start saying “Thank You”

Inquire early on

• Remember, the desire to be anonymous does not equate to lack of stewardship

Recognize EVERYONE


THINKING STRATEGICALLY

Engage the donor

immediately

Don’t mix messages; i.e.

a thank you with an

enclosed request for a

gift

Carve out a budget for

stewardship that includes

personal outreach

Keep your stewardship in

line with organizational

image

Determine what kind of involvement your planned giving donors want outside of making the

donation

Use current legacy donors

to convey message to

potential legacy donors

11 Stewardship Principles, Beyond Fundraising, Kay Sprinkle Grace


THINKING STRATEGICALLY

Nothing speaks more volumes than

a satisfied donor

Tie stewardship program to the

mission

Focus on intangible rather than tangible

benefits – turn donors into investors

Maintain stewardship even if

planned gifts donors/suspects decrease or stop

giving

Keep all donors in your database unless they tell you otherwise• This allows you to

track some efforts and results of your planned giving effort

Establish relationships

between donors and program staff

11 Stewardship Principles, Beyond Fundraising, Kay Sprinkle Grace


BONUS PRINCIPLE!

Stewardship begins and ends with

personal outreach

Tweets

Texts

Face-to-face visitsPhone

Personal email


Activity

Personal visits

Telephone Conversations

Letter

Effective Rate of Contacts

30%

20%

5% - 10%

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


If your conversion rate from call attempts to completed calls is 4:1

You will need to attempt

576 calls per year

That’s equal to 12

calls per week

Or 2.4 calls every day

If your conversion rate from completed calls to appointment is 3:1

You will need to talk

to 144 people a

year to get 48 appoint-

ments

Example Goal: 48 personal meetings

4 per month x 12 months

FROM “OK” TO “OMG!”

Set aside a minimum of 30-minutes per day for these calls


• Close your door or reserve a meeting room

• Post a friendly note or door tag so that others will not disturb you

• Schedule phone-calling time as a meeting on your daily work calendar

• Choose differing times during the week

- Early morning, early afternoon, late afternoon, evening hours 2-3 nights a month

• Consider using an outline to get the conversation started

- Read the Blackbaud white paper: How to Talk with Donors about Planned Gifts

#1 PRIORITY

Purchase these door tags at www.askingmatters.com/store

http://www.blackbaud.com/files/resources/downloads/WhitePaper_TargetAnalytics_HowToTalkWithDonorsAboutPlannedGifts.pdf

http://www.askingmatters.com/store


SIMPLE SAMPLE PG PROGRAM STEWARDSHIP PLAN

Timing Stewardship Activity

January “Informal Annual Report” – letter describing annual accomplishments and impact on your constituency

February Phone calls to all known planned gift donors

April Annual Planned Giving recognition event

May School year-end “Thank You” letter and photo from a graduating student

June Phone calls to Loyalty Club members

July Annual Report and Donor Listing with hand-signed letter from President

August Update report(s) from Program Director, Dean, VP Research, etc.

October Invitation to Annual meeting

November Holiday Card (consider appropriate national holidays)

Ongoing Anniversary cards, birthday cards

Monthly New Legacy Society member packets

Weekly Visit with 1-2 members of the Legacy Society and/or Planned Gift Suspects


ACTIONS YOU CAN TAKE TODAY

Gather your materials

• Evaluate ALL of the materials you use for your planned giving program

- Use the checklist to ensure that you satisfy each component

• It’s okay to satisfy a component more than once

- Get onto other organizations’ planned giving mailing lists

• Steal great ideas – reject bad ones

Create a Gratitude Team and invite everyone to join

• Board, committees, volunteers, program staff, etc.

• Ask them 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!

Tomorrow


Are you meeting donor’s expectations?

• Acknowledge the gift in a very timely manner• For both current and planned gifts

• Thank the donor immediately• Write in a very personal style to show your sincere

appreciation

• Provide accountability on donations’ uses

• Report that the gift was set to work as intended

CHECKLIST


Are you meeting donor’s expectations?

• Provide assurance that the gift is having the desired effect

• Provide access to leadership

• Invite contact – create a two-way communication stream

• Provide “special friend” treatment

• Include additional information on what the organization is doing

CHECKLIST


Determine the # of actual and potential planned gift donors you have

Create a written plan with both reactive and proactive components

Include written, phone and in-person outreach

Dedicate a budget for stewardship activities

Be on a constant lookout for better ways

Get face-to-face as often as possible! It’s the best stewardship activity by far

NEXT STEPS


Real recognition [thus stewardship] is not something you do at certain intervals in your relationship with donors, nor is it a momentary thing. It is pervasive. [Stewardship] is between the lines in the newsletters

you write, it is in the tone of your voice, it is in the welcoming handshakes of the members of your

board. [Stewardship] is inseparable from the people who give it.

From Donor Centered Fundraising, Penelope Burk

THINK ABOUT STEWARDSHIP ALL THE TIME


CONTACT INFORMATION

Thank You!

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

843-670-7278 (Mountain Time Zone)

[email protected]

Twitter: @KatherineSwank

LinkedIn: http://www.linkedin.com/in/katherineswank

More about Target Analytics @

http://www.blackbaud.com/targetanalytics

mailto:[email protected]





RESOURCES

• Download the electronic copy of the book including the White Paper on this topic:

- Cultivating Lifelong Donors: Stewardship and the Fundraising Pyramid @ http://www.blackbaud.com/bb/desktopreference/boostgiving.aspx

• 2010 State of Nonprofit Industry Survey: Global Comparison

- http://www.blackbaud.com/files/resources/downloads/Research_SONI_GlobalComparisonUS.pdf

• Analyzing Your Planned Giving Program, PG Calc

- http://www.pgcalc.com/about/featuredarticleoctober10.htm

http://www.blackbaud.com/bb/desktopreference/boostgiving.aspx



http://www.blackbaud.com/files/resources/downloads/Research_SONI_GlobalComparisonUS.pdf

http://www.blackbaud.com/files/resources/downloads/Research_SONI_GlobalComparisonUS.pdf

http://www.pgcalc.com/about/featuredarticleoctober10.htm

http://www.pgcalc.com/about/featuredarticleoctober10.htm

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