Using the Phone to Find Planned Giving Donors in Your Annual

FundTimothy D. Logan, ACFRE

Planned Giving Marketing

Planned Giving in the Development Process

The Planned Giving Market

• $40 Trillion in wealth transfer

• Revalidated 2 times

• Birth rates

• New NonProfit Times Study

• 2.4 million Americans die each year

Planned GiftsBenefits to Your Institution

• Established long-term relationship with the donor

• Provides future funds

• Encouraged donors to think about assets as potential gifts

Planned GiftsBenefits to the Donor

• Opportunity to give• Income tax deductions• Income—fixed or variable• Retirement income• Reduction of capital gains tax• Potential for increased income• Asset management• Pass an asset to an heir

The Pyramid of Giving

DonorContact

DonorGrowth

DonorCommit

ment

AnnualGiving

MajorGiving

PlannedGiving

Investment

Involvement+Interest+

Information+Identification+

The Pyramid of Giving

AnnualGiving

MajorGiving

PlannedGiving

60%

20%

20%

Percentage of Dollars

The Second Donor Pyramid

AnnualGiving

MajorGiving

PlannedGiving Planned G

iving

The “Second” Pyramid

• Identification

• Qualification

• Cultivation

• Education

• Stewardship

• Solicitation

Dove, et al. 2002.

Integrated Annual Fund Program

Three stages of Planned Giving

• Marketing

• Gift Planning

• Stewardship

Every Annual Fund Donor is a Planned Gift Prospect

• Every donor—has capacity to make a bequest

• Many donors—have capacity to fund a charitable gift annuity (CGA)

• Some donors—can also fund other gift instruments (charitable lead trust, charitable remainder trust, etc.)

Marketing

• Direct Mail– Check box on reply card

• Newsletters

• Planned Gift Mailings

• Web

• Telephone

• E-mail

Ladder of Effectiveness

• Person to Person• Personal letter with phone follow-up• Personal phone call with follow-up letter• Personal letter• Personal phone call• Fund raising benefit• Telemarketing• Impersonal letter/direct mail• Door-to-door• Product sales• Media Advertising

Continuum of Direct Response

Faceto

Face

TelephoneCall

VideoTape

DirectMail

MassAds

INTERACTIVE NON-INTERACTIVE

PERSONALIZATION

TARGETING

Timothy D. Logan, ACFRE

Donor Pyramid with Direct Response Continuum

Face to Face

Mass Ads

Direct Mail

Video Tape

Telephone Call

The Development Gap

Integrated Planned Giving

• Apply direct response techniques to fill the gap– Two way communication

– More personal

– Measurable and repeatable

• Direct Response Moves Management– Every contact with the donor affects affinity

– Every contact should move the donor toward making a (Planned) gift

Gift Planning

• Will commitment by mail or phone

• Collecting information for a CGA illustration

Planned Giving Essentials

What you need to know to talk with donors

Planned Giving Alphabet Soup

Bequest

Property

Gifts that generate income for the donor

Simple Charitable Gift Annuity (CGA)

Charitable Remainder Trust (CRUT,CRAT)

Charitable Lead Trust (CLUT, CLAT)

Planned Gifts

• Bequest

• Charitable Gift Annuity

• Charitable Remainder Trust

• Life Estate Contract

• Charitable Lead Trust

• Life Insurance Policy

• Pooled Income Funds

Bequests

• Bequests– Specific– Residuary– Contingency

• Trusts– Family– Living– Vs. Annuity or Unitrust

Life Income Gifts

• Gift provides payment to donor during life– Charitable Gift Annuity– Charitable Remainder Trust– Pooled Income Fund

Charitable Gift Annuities

• Guaranteed payment for life

• Rates recommended by ACGA– Institution to retain one-half of gift

• Single or dual life

• Donor’s age is key factor

• Never quote rates

• Adds two years to a donor’s life

Trusts

• Remainder Trusts– Charity keeps the remainder– Annuity trust (CRAT) vs Unitrust (CRUT)

• Lead Trusts– Charity receives interest for a period of years– Annuity trust (CLAT) vs Unitrust (CLUT)

Stewardship

• Thank you calls

• Birthday cards/holiday cards

• Caller training– Legacy Society– Events on campus

Using the Phone to Qualify Donors

Finding the Needle in the Haystack

Finding leads is the easy part

• Enhanced data selects

• Flag (plus)

• High Affinity non-donors

• Total donor relationship

• Age based/wealth based gifts

RuffaloCODY Planned Giving Services

• Building the relationship– Identify Planned Giving donor prospects

• Annual Giving is the single largest predicator of future large gifts

• Use direct response file analysis

• Pre-call FLAG data analysis– Frequency, LOTOF, Age, Gender

• Select donors to call

• Pre-call notification card

Robert F. Sharpe, Jr.

The Later Years

Age Based Gifts

• FLAG• Frequency of giving

– Over a specified period

• Length of time on the file (LOTOF)• Age• Gender• Title • Recent death in household• Specific School or College

Age Based Gifts

• FLAG (plus)

• Title

• Recent death in household

• Specific School or College

Gifts of Wealth

• Length of time on the file (LOTOF)• Largest one-time gift (LOTG)

• Total cumulative giving

• Wealth rating indicator

• Prospect research

Dove, et al, 2002.

Continuous Lifetime GivingThe Giving Lifecycle

Lifestage Annual Fund

• New RuffaloCODY program

• Identify and target older, lapsing Annual Fund donors

• Develop relationship with Institution

• Begin Planned Gift Marketing

Who we don’t want

• Anyone assigned to a gift officer

• Off the chart wealth

• Legacy Society Members*– * unless to discover the specifics of their gift

• Board Members, Development Committee, etc.

RuffaloCODY Planned Giving Services

• Qualify prospects interest– Based on admissions recruitment– Meaningful call by specially trained, interested

callers– Gather important and useful information

• Gift discovery—Named, Planned to Name• Knowledge of Planned Giving• Appropriate follow-up• Passion for (making gift) to client

The One thing

• The one hard and fast rule:

• Do not combine asks in one message

RuffaloCODY Planned Giving Services

• Cultivate donor interest

• RuffaloCODY DRPG Donor Matrix– Combines

• Data analysis

• Call results

– Provides accurate assessment of annual fund donors value as a Planned Giving prospect

RuffaloCODY Planned Giving Services

• Educate high potential planned giving prospects– Named/Planned to Name– Desires visit from client development staff– Additional information on planned giving– Additional information on institution

RuffaloCODY Planned Giving Services

• Stewardship—An on-going commitment

• RuffaloCODY committed to working with our clients to build lifetime relationships– Hot leads –directly to PG Officer– Warm leads—second call

RuffaloCODY Planned Giving Services

• Solicitation

• Done by client’s Planned Giving Staff

• Data Integrity

• Do not have to register

Probability/Possibility

• Capacity• Likelihood• Data• Wallet

• Propensity• Affinity• Current Interest• Heart

Does this really work

• Client builds the relationship

• Refusal rate

• Does not affect annual fund

• Length of call

Does this really work- part deux

• Success stories

• 250 new prospects and a house

• $500,000 in confirmed gifts at 9 cents cost

• We’ve been waiting for your call

• More bequests than last three years combined

• $455,000 in confirmed gifts at 2 cents cost

Results

• 8 out of 10 participate in survey

• 5% were quality Planned Giving Prospects

• Additional 27% requested educational materials

• 50% RuffaloCODY identified important other information about finances, advisors, etc.

Planned Giving in the Annual Fund Call

Annual Fund vs Planned Giving

• Annual Fund• Call is transaction

oriented• Call follows script• Caller part of process• Solicitation done by

caller

• Planned Giving• Call is relationship

oriented• Script follows call• Caller visible• Solicitation done by

client

Caller Profile

• Gender

• Age

• Life Experience

• PG Knowledge

• Training

Train Your AF Callers

• Planned Giving Knowledge• Listen• Capturing comments

– What to listen for

• Planned Giving Clues– Financial– Lifestage

• Repeat and Ask

In the Will

• Thank you!

• What is the donor’s interest/passion

• Do you have any specific areas of interest?

• What motivated you to make this gift?

• Have you made gifts like this to other charities?

Planned Giving CommentsPersonal

• Spouse is recently deceased

• Prospect in bad health

• Spouse in bad health

• Prospect is facing retirement

• Prospect is primary caregiver for spouse/relative

Planned Giving CommentsFinancial

• Mentions sale of assets (business)• Gives information about assets (stocks,

property)• Expresses concern about market• Has concerns about limited income• Is very knowledgeable about Life Income

Gifts• Mentions tax savings

Talking Planned Giving

• Mr/Mrs Donor, if you were able to do____and make a gift to _____ would you be interested in finding out how

• Mr/Mrs Donor, many gifts, like a CGA provide income for life and allow you to make a gift to ______. Would you like to find out…..

Working with the Planned Giving Office

• Provide name of Planned Giving Officer– Include in script– Callers provide to donors

• Transfer comments to Planned Gift Officer– Report back to callers

Planned Giving CommentsLifestage

• Can’t help like I used to

• You send me too much mail

• I get too much mail asking for money

• Since spouse passed away, trying to “stay involved”

Progress Growth Chart

Development Stages

Beginning Advancing Integrating Who Inexperienced

Vendor Experienced Facilitator

Mature Strategist

What Product Orientation

Mission Orientation

Partnership Orientation

Techniques Sell Products/ raise money

Solicit contributions develop relationships

Match resources/ needs, involve total organization

Results Transfers Involvement Investment

Rosso

Telephone Fund Raising

• Negative Attitude– Most of us measure telemarketing by the

attitudes and perceptions we personally hold about it

– Ken Burnett, Relationship Fund Raising

RuffaloCODY

Timothy D. Logan, ACFRE

Vice President, Senior Consultant

Planned Giving Services

800-756-7483

timothy.logan@ruffalocody.com