Think Print Is Dead? Think Again Page 2

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1 November 2015 Vol. 48 No. 11 IDEAS AND INSIGHTS FROM SHARPE GROUP Think Print Is Dead? Think Again Page 2 WASHINGTON ATLANTA MEMPHIS SAN FRANCISCO Tis the Season to Give 2016 Sharpe Seminars Schedule Announced Rain Dances or Meteorology? PAGE 4 PAGE 5 PAGE 6

2 Think Print Is Dead? Think Again by Teri L. Sullivan Brain studies shed light on how people process print and digital communications. There are many reasons why organizations are turning more toward digital communications and marketing. Digital communications (enewsletters, social media posts, website advertising, etc.) can be more cost effective as there are no printing or postage costs although it is important to factor in the cost of staff creative time, as well as the Internet provider and an client, if applicable. It s an attractive solution, especially for organizations with tight communications and marketing budgets. But is digital marketing as effective as print in attracting readers and generating action? Target the audience When planning a communications strategy, the most important thing to keep in mind budgets aside is the composition of the target audience. Every message outlet will be received differently by different audience members, particularly across age groups. In the bequest planning arena, for example, we know that the primary target audience is aged (see What s Wrong With Focusing on Bequest Intentions from 40-Year-Olds? Give & Take, December 2013). And while studies continue to show that Americans are online in increasing numbers, Pew Research studies give a different picture in this age group. According to Pew, the majority of Americans aged 65+ use the Internet, but as we age that number decreases: 68 percent of adults aged 70-74, 47 percent of yearolds and 37 percent who are 80 years old and older. In addition, consider that using the Internet may not mean that the person is comfortable spending a lot of time navigating the World Wide Web. This means that while the future of marketing gift planning opportunities will find online communications over time to be at least as effective as print in reaching donors, the majority of current prospective donors will not be reached using a digital strategy. But setting aside the issue of who is online, knowledge of how any donor, of any age, processes and remembers information from digital and print formats is something to factor into a communications plan. Seeing (and touching) is believing Over the last decade there have been many studies about which communication vehicles are most effective. Common wisdom has been that people tend to process information derived from reading printed material better than from a digital medium. But many studies have indicated that this has changed as digital reading has become more ubiquitous. So does this mean that we now or will in the very near future accept information gained from reading digital works as well as or better than printed material? Neurological studies suggest this may not be the case. A 2013 Scientific American article, The Reading Brain in the Digital Age: The Science of Paper Versus Screens, indicates that even today s so-called digital natives take in information from a mix of paper and digital media. And the reason that paper is still important lies in how our brains are wired and how reading and writing have evolved. In fact, writing wasn t even invented until relatively recently in human history. We are not born with the brain circuitry to interpret written language. Our brains improvise this ability by using functions that process language and visual cues. An important part of reading, according to Scientific American, is the tactile activity. In other words, the act of holding and touching a book, magazine or other print object has a large impact on what we remember when we read. We recall what we ve read by following a mental map of sorts. When attempting to remember a particular fact, for example, our brains rely as much on where that fact was first seen (the place on the page and location in relation to the whole book) as the source. The Scientific American article indicates that we digest information in a complicated mix of all of our senses, not just our vision. But this article focuses largely on books and magazine or newspaper articles. The results are even more complicated when studying marketing messages. The right messages in the right places Earlier this year, the United States Postal Service published a commissioned study by Temple University s Center for Neural Decision Making. This neuromarketing study honed in on consumer responses to physical and digital media when making purchasing decisions. What they found was November

3 this: Participants in the study processed digital content more quickly but spent more time with physical ads, producing a stronger emotional response and more long-term memory of the content. This study looked closely at observable brain activity, which yielded different results than a self-reporting survey with the same participants before the neurological study. In the surveys, the participants indicated no preference between physical and digital advertising, but the brain studies found different subconscious responses. The study indicated digital communications are a good cost-effective strategy when an organization wants to get attention quickly. However, print is the best option to generate more accurate recall of the message. In addition, brain activity indicated consumers have a higher perceived value and desirability of a product when viewing a physical ad. What stands out to marketers from these studies should be that both digital and print marketing are important parts of any marketing strategy, with different objectives, contexts and target audiences. It s not an either/or issue. To be truly effective, both are needed. An organization s relationship with a donor and the donor s perceived importance of the mission may be better built through long-term communications that continue traditional reliance on print. Digital ads may best come into play as a transactional means a way for a donor to quickly give a gift (which may be particularly helpful during your year-end communications), but with the stage having already been set by other communications. When communicating more complex concepts such as charitable gift planning options that involve a mixture of motivations and critical analysis of options, online strategies can be helpful but traditional print continues to prove most effective in motivating completed gifts for many Sharpe clients. Each medium has different strengths based on the audience and the objectives of the campaign. And given the demographics of gift planning, a strategy that removes or devalues a print component may yield poor results. For data that analyzes the effectiveness of a digital campaign for gift planning, see Rain Dances on Page 6. Learn more about the importance of year-end giving communications in Tis the Season to Give on Page 4. Teri Sullivan is Brand Manager of Sharpe Group. What to Do With or Without the IRA Rollover Congress returned from its summer recess with a full agenda to act on before year-end. Legislators face a number of pressing tasks including addressing the nation s debt ceiling. Commentators have predicted that these issues may prevent Congress from discussing the IRA Rollover and other income tax provisions until late in the session. The IRA Rollover provision, which allows individuals over 70½ to make direct distributions from their IRAs to a qualified charity on a tax-free basis, is part of a larger Tax Extenders Bill that includes a number of popular provisions that are widely expected to be passed in November or December. In the past, the charitable IRA provision has been extended so late in the year that many donors had already taken their minimum required distributions. Nonprofits often found it impractical at that point to communicate with prospective IRA contributors in time for them to act before a December 31 deadline. Keep in mind that in every year the IRA gift legislation has been extended the benefits have been retroactive to the beginning of that year. Under these circumstances, some have suggested that potential donors adopt the Nike slogan and Just Do It. If the provision is passed, the gifts are covered; if the provision is not passed, the amount directed to charity will be reportable as income but will also count as a charitable deduction, resulting in a wash for tax purposes for those who itemize and can fully deduct the gift amount. How should you address the IRA rollover with your donors? Sharpe Group has created a publication that can help your donors discover the best ways to give, including the charitable IRA: Your Guide to December Giving: The Most Generous Time of the Year. To learn more see Page 4 or visit Contact us at info@sharpenet.com or call For more in-depth information for advisors and gift planners on how certain donors can benefit from retirement plan gifts with or without the IRA Rollover legislation, see Robert Sharpe s article Rolling with the Rollover, in the September 2015 issue of Trusts & Estates magazine. com/author/robert-f-sharpe-jr. 3

4 Tis the Season to Give Beginning on Black Friday and continuing through December, consumer spending typically sees a sharp rise in the final weeks of the year, thanks to holiday gift shopping and those rushing to take advantage of year-end sales. Yet it s not just personal spending that spikes at the end of each year. According to Blackbaud s 2014 Charitable Giving Report, an average of 32 percent of online giving took place in the final three months of Additionally, some 50.5 percent of the organizations surveyed in a 2012 Guidestar Survey reported that more than half of their gifts were received between October and December. Philanthropy in the spotlight In an attempt to draw even more attention to charitable giving, the Tuesday after Thanksgiving was designated Giving Tuesday (or #GivingTuesday) in 2012 and has become a more popular day to give each succeeding year. According to online giving on #GivingTuesday has increased by roughly 470 percent since its inception. This year, #GivingTuesday will occur on December 1. #GivingTuesday joins National Philanthropy Day (November 15) as a nationwide effort to put the spotlight on the important role nonprofits play in a global society. Since President Reagan first proclaimed National Philanthropy Day in 1986, communities around the country have marked the day with special events to recognize donors, volunteers, foundations, leaders and others involved in philanthropy. But what remains the most important giving day of the year? December 31! According to Network for Good s 2014 Digital Giving Index, 31 percent of online giving occurred in December, and 12 percent of gifts were made during the final three days of the year. Furthermore, the average dollar amount given online was higher on December 31 than on any other day of the year. The study revealed that, in 2014, the average daily size of a gift was $104. This number increased to $142 on #GivingTuesday and $229 on the last day of the year. Both #GivingTuesday and National Philanthropy Day bring attention to the spirit of charitable giving in a season often overshadowed by consumerism and spending. They capitalize on the natural increase in charitable donations during this time period, bring attention to nonprofit missions and hopefully remind everyone that it is better to give than to receive. These days also provide a good opportunity to use a digital strategy that follows up on your year-long multimedia communications and offers a convenient way for your donors to quickly give while giving is at the forefront of their minds. Contact a Sharpe representative for ideas about ways to take advantage of these special opportunities. Encourage larger year-end gifts with Sharpe s yearend marketing guide, Your Guide to December Giving: The Most Generous Time of the Year, available November 15. To learn more, visit or us at info@sharpenet.com or call New Guide to December Giving Available This Month There s still time to order Sharpe s Year-End Giving brochures for a December mailing or to distribute at events. In addition, Sharpe Group has developed a new guide to help you plan your year-end fundraising. Your Guide to December Giving: The Most Generous Time of the Year, available November 15, includes our commentary, specific advice on seven ways to boost giving and communications materials you can use in both digital and print formats. To learn more about Sharpe s year-end communications, visit info@sharpenet.com or call November

5 2016 Dates for Sharpe Group Training Opportunities Real, useful knowledge I can put into practice starting Monday. Not overwhelming but quite expansive. I am so excited about continuing to learn more. Thank you for the best training I have ever received Seminar Dates Announced Jessa Harding Research and Stewardship Administrator, George Washington s Mount Vernon An Introduction to Planned Giving Gift Planning Toolbox Integrating Major and Planned Gifts Discover how to build your planned giving program. Learn the keys to effective communications with your donors. Examine the donor life cycle and explore how you can help donors make larger gifts today and plan gifts through bequests, trusts, gift annuities and other techniques. Learn to work effectively with those 65 and older who may make up much of your donor base or soon will. This seminar is appropriate for those who are new to planned giving. Acquire the knowledge you need to complete larger gifts. Learn the basic workings of the most common gift planning tools, focusing on how to use them individually or blend them for maximum gift value. Determine which gift arrangements may be best able to fulfill a donor s personal and philanthropic objectives and learn to recognize the typical donor profile for each type of gift. Register for this seminar to benefit from training on various charitable planned gifts. Learn how major and planned giving can work together. Discover how to help donors make the best gifts for their age, wealth and other factors, while meeting your current, capital and endowment needs. Learn how to interpret a donor s verbal and non-verbal clues to determine which giving option is right and how to help donors make larger charitable gifts that might not otherwise be possible. This seminar is for you if your organization has both departments and would like to bring everyone together, or if you or others are responsible for both major and planned gifts. Washington February 8-9, 2016 Chicago July 11-12, 2016 New York March 7-8, 2016 San Francisco March 29-30, 2016 Dallas February 25-26, 2016 Chicago April 11-12, 2016 See full agendas and register at or call with questions. 5

6 Rain Dances or Meteorology? by Robert F. Sharpe, Jr. What is your fundraising strategy? As we experience persistent drought in parts of the U.S., we are reminded of the importance of water and the rain that deposits it in our lakes, rivers and reservoirs. Prior to the development of modern atmospheric science and meteorology, humans engaged in all manner of weather modification rituals. Among them were rain dances practiced by various cultures around the world that, when combined with offerings to natural weather spirits, were believed to result in prompting the rain necessary to sustain life. While few, if any, records exist regarding the effectiveness of these rituals, it must have rained often enough for some observers to note and record cause and effect. The practices were continued until humans gradually discovered the science behind whether or not and when it should rain. Fortunately, other marketing efforts focused on encouraging bequests and other planned gifts are being conceived and implemented by those who are more interested in the actual science of influencing estate gifts. In our consulting efforts we are exposed to actual data and the results of past marketing strategies from programs of all sizes. The following charts depict results from two organizations that took very different marketing approaches and achieved very different results. Organization A Bequest Income Misguided metrics We are reminded of some of the planned gift marketing that is being practiced today. Unfortunately, in too many instances it is based on a paucity of reliable information and the misguided intuition that can too often take its place. Unfettered e-marketing to groups of people who are much younger than true bequest prospects, programs that attempt to quantify and monetize income to be received in the distant future from baby boomers and other activities that are common at many nonprofits are in many ways equivalent to rain dances. Lots of energy is expended and justified by the fact that some rain in the form of estate gifts (that in most cases would have happened anyway) does occur. Income in Millions Year November

7 Organization B Bequest Income Income in Millions Year In the mid-2000s, Organization A abandoned years of proven marketing strategies and embarked on a marketing program almost exclusively based on online communication and reaped disappointing results. By contrast, Organization B stuck to proven scientific methods and is meeting goals set out a decade or more ago. Reading the data Those in our field who want to truly understand the science behind planned gifts are those who take the time to examine where and why bequests are actually originating. They look at data and hard facts, not the results of surveys in which people may merely be expressing their intentions. These gift planning scientists take the time to profile those who actually include a specific organization in their plans. They then compare these profiles to industry norms for that type of entity and take the steps necessary to influence the behavior of the people who meet that profile. The factors important for predicting bequests, for example, are normally related to age, longevity and frequency of giving. Some may be surprised to learn that income and gift levels are often of secondary importance where bequests are concerned, as experience reveals the likelihood of a bequest can be inversely related to wealth and lifetime giving levels. Beware of rating systems that in many cases are little more than instruction manuals for how to conduct expensive and marginally effective rain dances. We have reverse-engineered many systems and found that some simply append ages and return a list of the oldest donors who have given more than once or twice, with no attendant analysis of donor patterns and other factors that are highly predictive but are often excluded because they depend on much more labor-intensive subjective analysis not normally available to the data house. In other cases, vendors will sell a marketing program suggesting mailings to either virtually all donors or all over a relatively young age regardless of the type of gift being marketed. Others give a score for planned giving propensity without distinguishing which gift may be best for that donor. Should the donor be targeted with information about a bequest, a gift of appreciated securities, a charitable remainder trust or a life estate gift? Donors of each of these types of gifts have particular fingerprints related to age, wealth, income and other factors. With a little effort, prospects for particular types of gifts can be identified largely from an organization s own records with basic age, wealth and income appends and with analysis that is based on the organization s (and similar organizations ) actual experiences. A well-conceived marketing program will not normally be a one-size-fits-all effort. One organization may have 10,000 valid prospective bequest donors but fewer than 1,000 people receptive for more sophisticated gifts. Marketing to 10,000 people on every gift plan because they score a certain way is not only likely to be a costly misuse of funds, but it can also change the focus of donors at a critical time and lead to disruption of other fundraising initiatives. It s time to abandon the rain dance mentality even as some labor furiously to supply the dance steps and costumes. It is better to take a more scientific approach. Use your radar and find the dark clouds most likely to contain rain and then carefully seed them using the least amount of precious resources necessary. Learn more about how to build a successful gift planning program by attending one of our upcoming seminars. The 2016 seminars are now open for registration. See Page 5 for details or visit us online at com/seminars. Robert Sharpe is Chairman of Sharpe Group. 7

8 Philanthropy in 2016: Meeting the Challenges With economic uncertainty and volatility returning, potential tax reforms on the horizon, changes in our political landscape and demographic shifts, how will charitable giving fare in 2016? What gifts will be more attractive than ever and which ones will face challenges in today s shifting philanthropic environment? Robert F. Sharpe Jr., Sharpe Group Chairman, and Barlow Mann, Chief Operating Officer, will lead this quick-paced presentation designed to help fundraisers and financial officers hit the ground running in the new year and equip them with answers to address donor concerns when considering larger gifts now or in the future. Philanthropy in 2016: Meeting the Challenges Live Webinar Thursday, December 10, 2015, 1:30 p.m. EST Registration: $95 per site To register and for more info, visit or contact us at or info@sharpenet.com Donor Data Enhancement Services Donor Base File Enhancement By adding demographic data to your donor files, you can segment and communicate gift planning strategies better, increasing your success in current and deferred planning efforts. Choose Net Worth Silver or Net Worth Gold and you ll receive age, gender, marital status and net worth information about your donors (see charts here). Ask about other ways we can enhance your data à la carte (such as Deceased Suppression). This donor data enhancement forms the basis for our Sharpe Gift Planning Matrix. Visit us online at for more information on our findings. And ask your Sharpe Group consultant how to make this data work for you or how to combine it with other services for more efficient pricing. Net Worth Silver Age (Month/Year) Gender Net Worth Silver Wealth Rating Marital Status up to $500,000+* * Data reported in nine levels, up to top level of $500,000+ $2,500 minimum for up to 25,000 matched records Then, $45 per thousand additional matched records Net Worth Gold Age (Month/Year) Marital Status Gender Estimated Income and Net Worth Gold Wealth Rating up to $2 million +** ** Data reported in eleven levels, up to top level of $2 million+ $2,750 minimum for up to 10,000 matched records Then, $98 per thousand additional matched records A client service publication published monthly since 1968 by Sharpe Group, with offices in Washington, Atlanta, Memphis and San Francisco, info@sharpenet.com or through our website at The publisher of Give & Take is not engaged in rendering legal or tax advisory service. For advice and assistance in specific cases, the services of your own counsel should be obtained. Articles in Give & Take may generally be reprinted for distribution to board members and staff of nonprofit institutions and other non-donor groups. Proper credit must be given. Call for details. Copyright 2015 by Sharpe Group. All Rights Reserved. Learn more about us at SHARPEnet.com, or reach out to us to start a conversation. We re not about high-pressure sales pitches like some in our industry; we want to build a relationship and stand by your side when you need us. info@sharpenet.com