1. Direct Response & Planned Giving 1 Direct Response and Planned Giving – Partners in Fundraising Geoffrey W. Peters President & CEO

2. Direct Response & Planned Giving 2 Direct Mail Direct Response TV Press Ads with URLs Articles that drive traffic Telemarketing Integrated Campaigns Billboards with URLs or 800 numbers Magazine Inserts Display Ads with URLs Direct Dialogue Door to Door Websites E-mail Interactive Special Event Marketing Examples of Direct Response Fundraising Channels

3. Direct Response & Planned Giving 3 There is no better way to identify new individual charitable donors than direct response. *AAFRC Annual Study Sources of Charitable Giving* Individuals 75% Corporations 5% Bequests 8% Foundations 12% Why Use Direct Response Fundraising?

4. Direct Response & Planned Giving 4 Raw data for major donor research High dollar prospecting Conversion to other campaigns (e.g. capital) Monthly donor Planned giving (bequests) Raising funds Branding Educating the public Use the donor pyramid for: Uses of Direct Response Fundraising

5. Direct Response & Planned Giving 5 This print ad appeared in the March 2004 issue of National Geographic. Notice: -The logo - The nonprofit’s name - The URL - The phone number - The message - The target audience - The call to action DR can drive traffic!

6. Direct Response & Planned Giving 6 Where can Direct Response Help? Bequests –Direct Mail, Telephone, Email and Websites but any form of reminder will work  Generally it is better NOT to ask for a reply! –In 2005, accounted for $23.15 billion to charities (6.7% of revenue from individuals) (Giving USA 2007) –5% of those who die leave a bequest compared to 85% who give in their lifetime. (Radcliff 2002)

7. Direct Response & Planned Giving 7 Other Types of Planned Gifts –Annuities (Investment)  Predominately Lead Generation so Direct Mail, Telemarketing, Magazine Inserts, Display Ads, and Websites all with a response mechanism so that an individual can close the sale –Life Insurance, stocks or appreciated property  Soft lead generation such as examples – sold by individuals –CRTs, CRUTs, etc.  Soft lead generation such as website calculators – sold by individuals Where can Direct Response Help?

8. Direct Response & Planned Giving 8 Typical “Value” Donor Pyramid Universe Prospects New Donors Renewed Donors Major Donors Planned Gifts

9. Direct Response & Planned Giving 9 Planned Giving Prospects are Everywhere! Universe Planned Gifts Planned Giving prospects can be identified by their loyalty, not necessarily the size of their gifts.

10. Direct Response & Planned Giving 10 New Direct Response Donors Loyal Direct Response Donors Planned Giving Donors Prospective Major Donors Large Gifts are Based on Capacity (Wealth) and Affinity (Loyalty). Discover through prospect research and cultivation. Bequests are Based on Affinity (Loyalty) not Capacity (Wealth). Discover by reminders and waiting.

11. Direct Response & Planned Giving 11 Where is the low hanging fruit? Approximately 80%-90% of deferred gifts are bequests Approximately 80% of bequests are unknown to the charity until after death Approximately 70%-80% of bequests come from direct mail (annual fund) donors Jessie James – “Why did I rob banks?... Because that’s where the money was!”

12. Direct Response & Planned Giving 12 Advantages & Disadvantages Bequest giving is great Very low cost of fundraising Not subject to vagaries of the economy Anyone can do it, not just the wealthy Does not require large staff or manpower Spray and pray Bequest giving is awful There is no immediate ROI Its hard to measure how you are doing Testing is impossible without a dependant variable Hard to qualify prospects and focus on them Deferred giving = Deferred gratification

13. Direct Response & Planned Giving 13 So how do I use DR for Bequests? Loyalty = Affinity Length of time on file (i.e. how long since first gift) Number of gifts since first gift Higher than average number of gifts per year 1/3 of those surveyed by Campbell said they hadn’t named a charity but were willing to do so Age = Proximity Age code overlay – final will usually made in 70s Absence of living children Recent death of spouse Do not segment out the prime prospects during the “quiet period” Only 4% of retirees have named a charity in their will but 51% say that no one has ever asked

14. Direct Response & Planned Giving 14 So how do I use DR for Bequests? Reminders everywhere –Mail a letter and brochure (closed face) to oldest and most loyal donors –Include reminders on reply devices –Include example story in your newsletter –Put sample will language on your website –Have a strong reason for continuing charity after death –Wills are typically created (or updated) at life events such as marriage, death of a partner, death of a child, retirement, etc

15. Direct Response & Planned Giving 15 So how do I use DR for Bequests? Messaging – Must be a reason for legacy –“The need will live on long after you are gone” –“You can leave a lasting legacy” –“This is an opportunity to give back” –“This is your opportunity to help others” –“We know you want our work to continue on” –Use as examples projects with long term needs or with long term impacts –Focus copy on why to leave legacy and only briefly on how to do so

16. Direct Response & Planned Giving 16 Advertisement

17. Direct Response & Planned Giving 17 Article in Regular Newsletter

18. Direct Response & Planned Giving 18 Donors can set example

19. Direct Response & Planned Giving 19 Planned Giving Newsletter

20. Direct Response & Planned Giving 20 Inserts in Thank You letters, brochures, tax receipt letters and elsewhere

21. Direct Response & Planned Giving 21 Pre-packaged Materials Available from multiple sources Brochures (pre-printed) “customized” for your organization Information is accurate and relatively clear Cost/thousand is reasonable Completely unnecessary for Bequests

22. Direct Response & Planned Giving 22 Separate Brochure Mailing Page 1

23. Direct Response & Planned Giving 23 Separate Brochure Mailing Page 2 Notice: No reply No phone No envelope No “are we in your will” Language to use

24. Direct Response & Planned Giving 24 Offer Benefits and Create Legacy Societies

25. Direct Response & Planned Giving 25 Annuity Mailings Need to make information easy to understand Generate leads to produce personalized plans Often a investment based decision for the donor and less a legacy based decision

26. Direct Response & Planned Giving 26 Present Financial benefits

27. Direct Response & Planned Giving 27 Collect Necessary Information

28. Direct Response & Planned Giving 28 Include “Personalized case” Base on age overlays, but don’t be explicit…

29. Direct Response & Planned Giving 29 Direct Response and Planned Giving – Partners in Fundraising Questions??? Thank You!* Geoffrey W. Peters President & CEO gpeters@cdrfg.com *Thanks to Lisa Maska and Tiffany Neil for their thoughts and examples!