Making Planned Giving Work for You. Lawrence C. Henze, J.D.

Transcription

1 Making Planned Giving Work for You Lawrence C. Henze, J.D.

2 Your Presenter Managing Director, Blackbaud Analytics Law degree, University of Wisconsin-Madison 13 years as a development officer Chief Development Officer, Dir. of Planned Giving 12 years as a nonprofit marketing/predictive modeling consultant Econometrics Noel Levitz Core Data Blackbaud Analytics Lawrence C. Henze, J.D. Page #2

3 Our Agenda Planned Giving as part of the giving process Using research to promote marketing success Planned Giving profiles Marketing strategies Media Message Lawrence C. Henze, J.D. Page #3

4 A Little Bit of Knowledge What you know about planned giving prospects will increase your marketing effectiveness

5 Planned Giving Facts Wealth transfer (Boston College study) $41 trillion to be transferred from one generation to next in 50 years Estimate that $6 trillion will be given to charities Lawrence C. Henze, J.D. Page #5

6 Planned Giving Facts NCPG research - 42% of Americans have wills o 8% say they have charities in their wills o 97% do not revoke charitable will provision o 14% say that they have considered this provision without being asked 89% of planned gifts are bequests More than 80% of bequest donors do not inform the recipient organization prior to their death Lawrence C. Henze, J.D. Page #6

7 Planned Giving Facts Why people give 97% say they care about the charity 87% desire to do something special 35% tax planning 22% know charity s representative Lawrence C. Henze, J.D. Page #7

8 Planned Giving Facts Extremely passive solicitation methods Appeals are broad based and require request for more information Expectations are unreasonably low 1% response rate to planned giving mailings Lawrence C. Henze, J.D. Page #8

9 Old View of Donor Development Prospects (Database) Donors (First Time or Sporadic) Major Donors Planned Givers Lawrence C. Henze, J.D. Page #9

10 True View of Donor Development Prospects (Database) Donors (First Time or Sporadic) Loyal Donors Major Donors Major & Planned Donors Planned Givers Lawrence C. Henze, J.D. Page #10

11 Ultimate Giving Every individual has an ultimate gift Ultimate gifts may be any level, any type (including $0) One method to determine ultimate giving is simple segmentation analysis Best method to determine ultimate giving levels and types: predictive modeling Find ultimate giving profiles, develop appropriate marketing strategies, close more gifts! Lawrence C. Henze, J.D. Page #11

12 Planned Giving Profiles Using History to Ensure Your Future

13 Longevity Analysis Analyze major and planned giving donors Relationship between consecutive years of giving and gift amounts Relationship between consecutive years of giving and gift types Lawrence C. Henze, J.D. Page #13

14 Anniversary Date Solicitations Objective: reduce solicitations to loyal donors Methodology: identify loyal donors with time consistent giving patterns Contact donors at appropriate renewal time Mail or call these donors less frequently Increase value of their gifts Lawrence C. Henze, J.D. Page #14

15 Our Research Methodologies Dozens of nonprofit organizations participated More than 150,000 planned giving observations Data collected over 11 years Advanced statistical modeling to create profiles Correlation analyses with major and annual giving profiles Comparisons by nonprofit verticals Lawrence C. Henze, J.D. Page #15

16 Age and Planned Giving Lawrence C. Henze, J.D. Page #16

17 The Relationships Between Donor Types Is annual giving the basis of: Major giving success? Capital campaign success? Planned giving success? Therefore, we underestimate the value of the $20 annual donor? Do we over-solicit these individuals? Lawrence C. Henze, J.D. Page #17

18 What We Know About Donor Types Within an organization: Annual and major profiles differ Major and planned giving profiles differ Among all nonprofits Annual and major giving profiles vary Type, location, solicitation style However, planned giving profiles are very consistent Lifestyle behavior Lawrence C. Henze, J.D. Page #18

19 Propensity & Capacity Propensity Capacity Lawrence C. Henze, J.D. Page #19

20 Planned Giving Propensity Lawrence C. Henze, J.D. Page #20

21 Planned Giving Propensity Lawrence C. Henze, J.D. Page #21

22 Which Donor Attributes Affect the Type of Planned Gift? Age Has Never Been As Important As One Would Believe

23 Planned Giving by Gift Type Each type has different traits Annuities Charitable remainder trusts Bequests The two faces of bequests Lawrence C. Henze, J.D. Page #23

24 Variables and Planned Gift Types Making Planned Giving Work for You Age? Wealth? Credit Usage? Past Giving Behavior? Type of Organization? Relationship to Organization? Marital Status? Lawrence C. Henze, J.D. Page #24

25 Planned Giving Marketing Think One Thing at a Time

26 Overview: Targeted Marketing is Best Breaking the mold But we have always done it this way! Mass Marketing one to one Opportunity to target planned giving prospects Right message, right person, right time Making Planned Giving Work for You Lawrence C. Henze, J.D. Page #26

27 Media Annual reports Newsletters Direct mail Telemarketing Internet Seminars Lawrence C. Henze, J.D. Page #27

28 Annual Reports and Newsletters Donor stories and testimonials important Do not forget that smaller gifts are important Do not try to accomplish too much with each publication Coherent simplicity Consider different versions by audience type Targeted issues will boost interest and response Lawrence C. Henze, J.D. Page #28

29 Direct Mail Remember importance of annual giving Multiple opportunities to spread the word Set sights on higher response rate 1% unreasonably low Direct mail is passive by nature Plan follow-up for highly-rated prospects Information vs. solicitation Asking is not the sole purpose Lawrence C. Henze, J.D. Page #29

30 Telemarketing Personal, relationship building calls Use as a follow-up to direct mail Thank you calls as cultivation tools Lawrence C. Henze, J.D. Page #30

31 Internet and Use website to share information Provide calculation tools Testimonials Use to drive prospects to website, invite to seminars, thank The importance of and younger bequest prospects Lawrence C. Henze, J.D. Page #31

32 Seminars Remain a valuable marketing tool Focus on a few key items Donor participation Lawrence C. Henze, J.D. Page #32

33 Other Marketing Media Personal cultivation Time consuming Successful Public speaking Allied professionals It is all about visibility in your community Lawrence C. Henze, J.D. Page #33

34 Direct Mail Principles: This is a Test Direct mail content is a testable proposition Randomly divide your PG prospect pool and mail using different messages Testing economically using great creative Lawrence C. Henze, J.D. Page #34

35 Direct Mail Principles: Segmentation Finding minimal number of segments Using versions that enable maximal variation Retaining and analyzing information in your database Mail more efficiently, more selectively, more timely More effectively bond donors over time to your organization Lawrence C. Henze, J.D. Page #35

36 Direct Mail Principles: Creative Keys What do we know about our donors? Motivators What can we learn about them as individuals? Use custom creative to address Are we giving them a broad message? Specific is better Lawrence C. Henze, J.D. Page #36

37 Targeted Marketing: What Works? What works? Simple message Single subject brochures Eliminate technical language Lawrence C. Henze, J.D. Page #37

38 Ideas That Work Give substance and meaning to planned giving Reciprocal giving Generational giving Annual gift endowment Lawrence C. Henze, J.D. Page #38

39 Ideas That Cover Sell big, write small Use few words to market a big concept In marketing materials, it is the giving concept, and not its technical operation, that will promote interest Lawrence C. Henze, J.D. Page #39

40 Employing a Marketing Consultant Question everything Set your own goals Less can be more Concentrate on the big picture Integration of all fundraising messages Making Planned Giving Work for You Lawrence C. Henze, J.D. Page #40

41 Summary and Questions Contact me: Lawrence Henze , ext View the presentation again and access answers to today s questions at: Stay tuned for Employing Technology for Planned Giving Success, coming up next! Lawrence C. Henze, J.D. Page #41