2. www.ruffalocody.com | 800.756.7483 Developing A Proactive Planned Giving Marketing Plan Timothy D. Logan, ACFRE National Capital Gift Planning Council May 13, 2010

3. www.ruffalocody.com | 800.756.7483 Session Objectives Use the Annual Fund to identify the best/most qualified PG prospects in your data base – Using wealth information and PG scoring models Understand the benefits of proactive PG marketing Recognize the importance of using segmentation in PG Marketing Discuss the seven steps to develop an Integrated Planned Giving Marketing Plan

4. www.ruffalocody.com | 800.756.7483 Planned Giving Marketing Planned Giving in the Development Process

5. www.ruffalocody.com | 800.756.7483 Your Objectives Immediate impact – More gifts – Accelerated gift income Long-term, increase program performance

6. www.ruffalocody.com | 800.756.7483 The Second Donor Pyramid Annual Giving Major Giving Planned Giving Planned Giving

7. www.ruffalocody.com | 800.756.7483 PG Trends Web Wills/CGA’s comprise bulk of gifts – CRT’s decreasing – Donor advised funds & family foundations (NPT: Krause and Mangone) Stand alone programs decline – Increased collaboration with major gifts Mass appeal marketing losing effectiveness Special populations

8. www.ruffalocody.com | 800.756.7483 Planned Giving Marketing Identify prospects who are ready for Moves Management (Face to Face) Find prospects who are ready now

9. www.ruffalocody.com | 800.756.7483 Three Stages of Planned Giving Marketing Gift Planning Stewardship

10. www.ruffalocody.com | 800.756.7483 The Development Gap

11. www.ruffalocody.com | 800.756.7483 5 Steps to Close the Development Gap Identify your best prospects Develop Segments for Marketing Implement a Marketing Program Qualify Individual Donors Develop Clusters – Education/Stewardship – Cultivation/Solicitation path

12. www.ruffalocody.com | 800.756.7483 Identifying Planned Giving Donor Prospects Giving Analysis Enhanced Data Scoring

13. www.ruffalocody.com | 800.756.7483 Continuous Lifetime Giving The Giving Lifecycle Dove, et al, 2002.

14. www.ruffalocody.com | 800.756.7483 Purpose of the Annual Fund Secure New Donors Secure Annual Gifts Upgrade Existing Donors Identify Major and Planned Giving Prospects

15. www.ruffalocody.com | 800.756.7483 Analyzing Annual Giving Behavior—File Analysis Measures of Affinity – Loyalty, Passion, – If it’s about building a relationship, how do we measure the strength of that relationship? Measures of Ability – Wealth, Assets Need to look at the total donor relationship

16. www.ruffalocody.com | 800.756.7483 The Biggest Predictor… Major Gifts – Annual gift size is the single largest predicator of future large gifts Planned Giving – Frequency of AF Giving is the single largest predictor of Planned Gifts

17. www.ruffalocody.com | 800.756.7483 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.)

18. www.ruffalocody.com | 800.756.7483 What data can we use to analyze the file?

19. www.ruffalocody.com | 800.756.7483 Internal Data Demographic information email address Source of Name Gift History/Cumulative Giving LOTOF Donor Interest – Obtained actively or passively

20. www.ruffalocody.com | 800.756.7483 External Data Age Marital Status # of Children Education Income Stock/real estate holdings email address

21. www.ruffalocody.com | 800.756.7483 Types of Analysis Giving Patterns – RFM Recency of Giving Frequency Money—Size of Gift Giving History--Loyalty – Length of time on the file (LOTOF) – Continuous Giving==Frequency over time High Affinity non-donors Enhanced data selects

22. www.ruffalocody.com | 800.756.7483 PG Affinity Indicators PG Society Attended events, reunions Board, past Board Volunteer Season tickets Travel program (**)

23. www.ruffalocody.com | 800.756.7483 Lifestage Annual Fund Donors go through a cycle Identify and target older, lapsing Annual Fund donors Develop relationship with Institution Begin Planned Gift Marketing Annuitize Annual Fund Gift

24. www.ruffalocody.com | 800.756.7483 Probability/Possibility Ability Capacity Data Wallet Affinity Propensity Interest Heart

25. www.ruffalocody.com | 800.756.7483 Using Enhanced Data Wealth Information PG Scoring Models

26. www.ruffalocody.com | 800.756.7483 Enhanced/Other Selects-External Age Wealth rating/Planned Giving indicators – You can help make these pay off ! Recent death in household Donors to other charities Lack of presence of living children (**) – James, 2008 Birth of first grandchild – James, 2008 Church Attendance – Rooney 2008

27. www.ruffalocody.com | 800.756.7483 Enhanced/Other Selects--Internal Multi-Newsletter responders Upgrade/Downgrade – Age, # gifts, LOTOF Title/Gender--Miss Specific school/college, specific program Donor loyalty scores Volunteered email Web hits

28. www.ruffalocody.com | 800.756.7483 Donor Rating Scores Point System Pyramid Passion Index

29. www.ruffalocody.com | 800.756.7483 Planned Giving Prospect Matrix High $, Low Affinity If we could only get them to give us a million (Bill Gates, Joan Kroc) High $, High Affinity You already know them. You have buildings named after them. Low $, Low Affinity You don’t want to spend money on them Low $, High Affinity They want to know more Wealth High Low High Donor Affinity/Philanthropic Intent Low c 2005 Timothy D. Logan, ACFRE

30. www.ruffalocody.com | 800.756.7483 Developing a Proactive Planned Giving Marketing Plan

31. www.ruffalocody.com | 800.756.7483 Step 1 File Segmentation For Planned Giving

32. www.ruffalocody.com | 800.756.7483 Self-Selected or Proactive? Proactive Marketing produces results and identifies more Planned Gifts.

33. www.ruffalocody.com | 800.756.7483 The Most Important Factors Age Frequency of giving Loyalty/Length of Time on file (LOTOF) Recency of giving Other key Touch Points

34. www.ruffalocody.com | 800.756.7483 PG Segmentation Hierarchy 1.Multi-year/multi-givers cut by age 2.Internal affinity scores Including Affinity Touch Points 3.PG scores 4.Use wealth rating if appropriate for gift

35. www.ruffalocody.com | 800.756.7483 PG Constituent Segmentation Matrix Few Gifts, High Affinity Former Faculty, Employees Grateful Patients Board Awardees Many Gifts, High Affinity Multiple Year Givers Legacy Society Few Gifts, Low Affinity Advisors PG Committee Many Gifts, Low Affinity Parents Affinity High Low High Number of Gifts Low c 2006 Timothy D. Logan, ACFRE

36. www.ruffalocody.com | 800.756.7483 What About Non-Donors? High affinity non-donors Donor loyalty scores Affinity indicators – Based on Touch Points

37. www.ruffalocody.com | 800.756.7483 Step 2 Which Type of Planned Gift?

38. www.ruffalocody.com | 800.756.7483 Segmentation for Gifts Age based gifts – Bequest, CGA, Retirement assets Wealth based gifts – Trust, DAF Other/Combination – Life Estate, Insurance, Deferred CGA, PIF

39. www.ruffalocody.com | 800.756.7483 Age Based Gifts Well…..Age (55 to 80) Other analyses based on direct mail RFM analysis Recency of giving (24 months) Frequency of giving – Over a specified period (70%)— Sagrestano – Length of time on the file (LOTOF) Average gift is NOT important Title/Gender—(dearth of results data)

40. www.ruffalocody.com | 800.756.7483 Gifts of Wealth Length of time on the file (LOTOF) Largest one-time gift (LOTG) Total cumulative giving Wealth rating indicator Prospect research

41. www.ruffalocody.com | 800.756.7483 At What Age, Wealth? Dove, et al. 2002.

42. www.ruffalocody.com | 800.756.7483 Step 3 What is the Purpose of the Message?

43. www.ruffalocody.com | 800.756.7483 Purpose of the Marketing Message Education Top of Mind Stewardship Call to Action/Ask

44. www.ruffalocody.com | 800.756.7483 Step 4 Choose the Marketing Media

45. www.ruffalocody.com | 800.756.7483 PG Marketing Methods Direct Mail Newsletters Web Telephone E-mail Press Releases Professional Networks Donor Seminars Face-to-face

46. www.ruffalocody.com | 800.756.7483 Purpose of the Medium Marketing Channel Direct Mail piece, postcard Newsletter Website Email Magazine Telephone Visits Seminars, Events Professional Networks Purpose Identify Educate Educate, Top of Mind Identify Top of Mind Qualify, Call to Action Educate, Qualify Educate, Identify, Top of Mind

47. www.ruffalocody.com | 800.756.7483 Continuum of Direct Response Face to Face Telephone Call Video Tape Direct Mail Mass Ads INTERACTIVE NON-INTERACTIVE PERSONALIZATION TARGETING

48. www.ruffalocody.com | 800.756.7483 Step 5 Develop a Donor Centered Message

49. www.ruffalocody.com | 800.756.7483 Identify the Value Thread Build the bridge in your messaging. “If I am a 60 year old with a $7 million estate—I need to know my $7 million will be put to good use—or I will give it elsewhere. They need to show me that they know me.” From Kay Sprinkel

50. www.ruffalocody.com | 800.756.7483 Donor Centered Messaging Crafting your legacy Unlock the value of your assets Using your real estate creatively Increase your retirement income Providing income to your elderly parents Paying for college for your children or grandchildren Sagrestano, 2008

51. www.ruffalocody.com | 800.756.7483 PG Donor Clusters Adding the Donor’s Information

52. www.ruffalocody.com | 800.756.7483 Cluster Marketing Age Planned giving readiness Immediacy of Gifts Comfort with legacy/death Wealth Existing Legacy Society Member Board Members, Development Committee members, etc. Assigned to a gift officer

53. www.ruffalocody.com | 800.756.7483 Cluster Examples Named you in will, is not decision maker Donors who indicated a concern about income who have requested CGA information Donors who have included you in their estate plans and are over 80 Donors who have a PG with another institution

54. www.ruffalocody.com | 800.756.7483 Special Populations These are really clusters Older, divorce, living together Older females living together (sisters) Gay/lesbian couples – Lack of presence of children Boomers (now turning 60) – DINKS

55. www.ruffalocody.com | 800.756.7483 Cluster Messaging Thank you’s Birthday cards Holiday Cards Donor milestones Program involved donors Travel donors Special planning/tax considerations

56. www.ruffalocody.com | 800.756.7483 Step 6 Planning Your Strategy

57. www.ruffalocody.com | 800.756.7483 Developing the Plan Market—Step 1 Message—Steps 2, 3,5 Media—Step 4, 6 Market or Media Driven Planning – Age based – Gift Type based

58. www.ruffalocody.com | 800.756.7483 Planned Giving Marketing Matrix

59. www.ruffalocody.com | 800.756.7483 Planned Giving Marketing Plan Shell

60. www.ruffalocody.com | 800.756.7483 Planned Giving Marketing Plan

61. www.ruffalocody.com | 800.756.7483 Planned Giving Marketing Plan Age Distribution

62. www.ruffalocody.com | 800.756.7483 Step 7 Check for Message Integration

63. www.ruffalocody.com | 800.756.7483 An Integrated Department Free Rider Opportunities Your Annual Fund callers Your Major Gift Officers Check your website

64. www.ruffalocody.com | 800.756.7483 PG Free Rider Opportunities Annual fund mailings Annual fund telephone program Articles in Newsletters Ads in Alumni Magazine Web site Acknowledgements Travel Program

65. www.ruffalocody.com | 800.756.7483 Free Rider Methods Brochure Seasonal Brochure Ads Buck slip/return card Donor Profiles/Testimonials Quizzes

66. www.ruffalocody.com | 800.756.7483 The One Thing The one hard and fast rule: Do not combine asks in one message OKAY to gather data – One or two quick screening questions

67. www.ruffalocody.com | 800.756.7483 Train Your AF Callers Planned Giving Knowledge Say “Thank You” Capturing comments – What to listen for Planned Giving Clues – Personal – Financial – Lifestage

68. www.ruffalocody.com | 800.756.7483 Face to Face The MGO’s Role—PG Colombo Structure – How—outright, multi-year, asset with income back Assets – What—cash, securities, real estate, retirement, intellectual property, business interest Timing – When—all now, some later, scheduled, deferred, at death Motivation – Why—charitable intent, taxes, legacy, project, position

69. www.ruffalocody.com | 800.756.7483 Check Your Website Easy to Navigate? – What’s it called – How many clicks Here’s looking at you, kid! – Photo of you and your team Gift calculator

70. www.ruffalocody.com | 800.756.7483 Steps to Develop Your Plan Step 1: Identify/Segment Step 2: What type of Planned Gift? Step 3: Purpose of Message Step 4: Choose Medium Step 5: Develop a Donor Centered Message Step 6: Message Strategy/Planning Step 7: Message Integration

71. www.ruffalocody.com | 800.756.7483 In Summary 1.Cultivating PG donors is rooted in AF/Direct Response 2.Proactive Marketing is key--Every PG prospect doesn’t raise their hand 3.Take 7 steps to develop an Integrated Planned Giving Marketing Plan

72. www.ruffalocody.com | 800.756.7483 RuffaloCODY Timothy D. Logan, ACFRE Vice President, Senior Consultant Planned Giving Services 800-756-7483 timothy.logan@ruffalocody.com