1. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net How to Identify Planned Giving Prospects on Your Giving List Presented by Bill Tedesco, CEO & Managing Partner of DonorSearch

2. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.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

3. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net 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

4. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net Why Planned Giving? Research Suggests Future Growth in Legacy Giving Aging Population Population Growth More Educated Populace Increase in Childlessness Inside the Mind of the Planned Giving Donor, MarketSmart, 2013

5. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net 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 perspective Inside the Mind of the Planned Giving Donor, MarketSmart, 2013

6. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net What Moves People to Make a Bequest? When legacy gifts are discussed, mortality is recognized and causes Alignment and activation Avoidance Inside the Mind of the Planned Giving Donor, MarketSmart, 2013

7. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net What Moves People to Make a Bequest? 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? Inside the Mind of the Planned Giving Donor, MarketSmart, 2013

8. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net 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? Inside the Mind of the Planned Giving Donor, MarketSmart, 2013

9. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net 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.

10. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net The Most Predictive Planned Giving Factor? RELATIONS HIP

11. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net 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.

12. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net Identifying Planned Giving Prospects Results 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

13. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net Identifying Planned Giving Prospects Results 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 Age, Relationship & Wealth Relationship Only

14. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net Identifying Planned Giving Prospects Age, Relationship & Wealth Relationship Only PGL Score# of Legacy Donors Identified Total Donors Identified Predictive Strength 300-270542,0542.62 269-240829,9310.826 239-2104814,7410.326 209-180315,9410.522 179-140149,1520.153 139-10011,1930.084 Unrated12141,8510.291 Rated23042,7820.537 PGID Score # of Legacy Donors Identified Total Donors Identified Predictive strength 1324347.37 2701,1795.937 3482,9011.655 4191,8701.016 5164,1470.386 6914,7691.908 Unrated7569,3330.108 Rated27615,3001.803

15. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net 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

16. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net 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.

17. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net PGID Loyal Prospects as a Percentage of the Total Donor File PGID RatingCount PGID10 PGID2468 PGID31087 PGID4996 PGID52053 PGID627

18. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net Identifying Planned Giving Prospects 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.

19. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net 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.” DSRati ng1234567All DS1-10160303223326713002319 DS1-20133630790434592 DS1-302755581271726994 DS1-4045127 273515562133 DS1-5069187151329416892429 DS20351011072101 DS301513743979081062418081 All04681087996205301201816649

20. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net “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

21. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net 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.

22. Bill Tedesco  info@donorsearch.net  www.donorsearch.net  410.670.7880www.donorsearch.net Thank You! Visit www.donorsearch.net or call 410-670-7880 for more information on Planned Giving Identification.www.donorsearch.net Visit www.imarketsmart.com for a free copy of Inside the Mind of the Planned Giving Donor.www.imarketsmart.com