Transcript Scientific fact: By tomorrow you will forget 80% of what you hear

© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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How to Market
Charitable Bequests
A special presentation for organizations with
endowments at the Rhode Island Foundation
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Where are we now?
(urgent ~ start today)
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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“It is in the fourth quarter now. Birth rates
dropped 25% in the U.S. between 1925 and
1935. This segment of the population is now
age 68 to 78. In other words, the population
who will be leaving bequests is about to
start a DOWNWARD trend that will not
reverse until 2017.” -- Robert Sharpe
Source: quoted by Mal Warwick, March 2004
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Translation...
Time’s running out on some of
your best prospects.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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But there’s a rub...
It won’t “just happen.”
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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“For those who think the generational
transfer will automatically flood their
organizations with resources, it’s time to
think again. Without putting in the hard
work of generating these planned gifts,
90% of donor mortality will simply
result in lost current giving.”
Source: Russell N. James III, University of Georgia, March 2009
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Translation...
It’s totally up to you.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Repeat after me...
“If I do nothing now, my
organization loses forever a
once-in-a-generation
opportunity.”
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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UK: Good at bequest
marketing. USA: Stinky.
In the U.K., legacy gifts account
for 29% of total annual giving
… vs. below 10 % in the U.S.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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“Planned giving.”
Insider talk.
“Bequests.”
Everyday talk.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Caution...
Industry jargon is selfdefeating and a MAJOR
barrier to understanding.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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“Some say bequests
constitute at least 80% of
so-called planned gifts;
others say 90% or more…”
Source: Mal Warwick, March 2004
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Planned giving?
Bequests.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Key tip from Richard Radcliffe
Write like you’re
writing to your mum
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Relax.
It’s easy money.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Most U.S. donors (more than
90%) are happy to consider
putting a charitable gift in their
wills ... yet few (under 10%)
have done so.
Source book: Iceberg Philanthropy (2007)
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Who gives?
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Facts from researcher Richard Radcliffe
• Women leave 78% of the legacies
• Most are NOT wealthy
• Legacy makers have a history of giving
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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You already know the people
most likely to make a bequest.
They’re your loyal donors, the
ones who give year after year.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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There is a core group “of mostly retired
donors who although cash poor (and thus
they belong to the lowest income
category) are actually asset rich.” They
are an important market for bequests.
Source: James and Sharpe, via Adrian Sargeant, 2009
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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The millionaires next door
• Helene Whitlock Alley, the $100 donor
who bequeathed $7.3 million to a diabetes
group
• “Homeless man leaves $4 million estate” -Richard Leroy Walters, did his stock trades
over phone at a senior center
• Jean Preston, librarian, amassed an $8
million estate
Source: Marc A. Pitman, Fundraising Coach
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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“What psychologists refer to as ‘self-grieving’ or grieving
for the loss of oneself is common with the elderly as they
begin to experience a number of physical difficulties and
limitations. (Shaffer 1970). It is interesting to note that
individuals attempt to compensate for these losses by
searching for new sources of self-esteem, an ego need that
could clearly be borne in mind by charities soliciting gifts
from this age group.”
Source: Adrian Sargeant - Jen Shang; ID, Death & Bequest Giving, Sept. 2008
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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4 major vectors:
(1) loyal donors
(2) childless
(3) no grandkids
(4) not rich
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Of current donors over age 50...
– 50% of those WITHOUT offspring left a
charitable bequest.
– When grandchildren appear, grandparents
drop charities from their wills.
– Only 9.8 % of those with grandchildren
left a charitable bequest.
Source: Russell N. James III, University of Georgia, March 2009
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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During bad economic times,
bequests can be especially
attractive to avid supporters on
reduced incomes…
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Can’t afford a gift to your
favorite charity this year?
Make a charitable bequest.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Ground Zero:
Board commitment
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Rationale:
If your board won’t support your
organization, why should anyone
else?
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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~ Step One ~
Start a legacy society
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You can’t thank them
when they’re dead.
Thank them abundantly now.
And make them feel special.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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~ Step Two ~
Write a 1-page letter to
donors who have given
for 5 or more years
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Strangers are not going to leave
you their money, mostly.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Letter says, in essence...
Thank you. You can support us
in many ways. And when the
time is right, please consider a
gift in your will. (Include contact
information and sample
language.)
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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The Rich Fox opt-out letter – part 1:
Thanks donors for their lifetime support and explains
the organization’s need for bequests and charitable
remainder trusts. The letter reminds prospects that
many people don’t like to think about writing a will
and thus, despite their best intentions, don’t
adequately ensure that their wishes are carried out.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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The Rich Fox opt-out letter – part 2:
Stresses that it is not a request for another
contribution and then introduces the concept of the
legacy program. The letter explains that donors
needn’t indicate the amount of money they intend to
leave the organization, merely that they should
indicate that they intend to participate in the
program. An enclosed enrollment form also includes
an opt-out box for prospects to declare they’re not
interested.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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The Rich Fox opt-out letter – part 3:
Explains that as soon as the organization receives a
donor’s enrollment form, his or her name will be
inscribed immediately in a place of honor at the
institution and will be published prominently among
the organization’s donors, to help motivate others to
follow the example.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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The Rich Fox opt-out letter – part 4:
Points out, finally, that the legacy program is so
important to the organization’s future that a
representative will call to explain the program and
answer questions – but only if donors do not return
the enrollment form to indicate whether or not
they’ll participate.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Wise words from P.T. Barnum,
Connecticut native son,
philanthropist, political reformer
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Without publicity,
a terrible thing happens:
Nothing.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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#1 reason people don’t
make a charitable bequest?
“It never occurred to me.”
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Calendar for bequest mktg. to donors
Jan-Dec
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Monthly e-mailed news w/ bequest reminder
Annual bequest reminder letter
Item in print donor newsletter
Annual legacy society meeting
Spring solicitation w/ bequest reminder
Item in print donor newsletter
Fall solicitation w/ bequest reminder
Item in print donor newsletter
Year-end solicitation w/ bequest reminder
Item in print donor newsletter
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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~ Step Three ~
Never say die.
Inform. Remind. Repeat.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Please remember ___ in your will.
At the bottom of every letter.
Print it on your stationery.
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© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Leave a legacy that will help others for years to
come. A gift to the Canadian Cancer Society in
your Will is a simple and powerful way to join
the fight against cancer. For more information
about how your gift can be arranged and how it
will be used, please call 1-888-939-3333 or visit
us at www.cancer.ca.
Appears as a footer on every email.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Every year send an annual review to every
legacy pledger, summarizing your
organization’s accomplishments and accounts.
Good tip from Richard Radcliffe
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On page 1 explain key accomplishments. On
page 2 have a story illustrating a key
accomplishment. On page 3 talk about cost
efficiency.
Good tip from Richard Radcliffe
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Make it easy to get in touch via the website.
DON’T have a click button labeled "legacies."
DO have a button labeled, "Do you want to
protect our future?" Change the message
every three months.
Good tip from Richard Radcliffe
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Have a legacy page in your newsletter -- just
don't call it that.
ALSO: Every newsletter should have a lawyer
column with answers to questions.
Good tips from Richard Radcliffe
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Results vary.
Patience is a virtue.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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“It takes an average of seven years
for a gift planning program to
mature to the point where planned
gifts are materializing, and it takes
three to five qualified prospects to
secure one planned gift.”
Larry Stelter’s new book
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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How to talk about death.
(Just don’t.)
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Be joyful about
bequests. They are “life
driven, death activated.”
Key tip from Richard Radcliffe
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Talk about the
importance of bequests
to the organization.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Dear Supporter,
I'd like to share some thoughts with you. I am sure you are
aware that the RNLI is funded totally by voluntary
contributions and that legacies are our largest source of
income. We are concerned about future legacy income and
it seems sensible to talk about our concerns with our
regular RNLI supporters as early, and with as much
candour, as possible.
Source: Royal National Lifeboat Institution
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Talk about the lasting
name recognition.
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What are you selling?
Immortality, a bit.
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Talk about how big the
gift will become over
time, if endowed.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Over 50 years,
a $20,000 bequest will grow
to $368,000+ in principal
and make $300,000+ in grants.
Rhode Island Foundation calculation
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Over 50 years,
a $100,000 bequest will grow
to $1,488,000+ in principal
and make $518,000+ in grants.
New York Community Trust calculation
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Mention ease: “All it takes is
a quick phone call to your
lawyer, to add a charitable
gift to your will.”
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Inertia
is your enemy.
Repetition
is your friend.
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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Hold an annual general meeting for your
organization as a way of meeting prospects.
Hold it at 11 AM. Provide a light lunch. Have
someone stand up and say the vision
statement, then give the annual review.
Good tip from Richard Radcliffe
© 2009 Tom Ahern | Ahern Communications, Ink. | Bequest Marketing
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How do prospects identify
themselves? They respond to
offers.
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Successful campaign in
the New Yorker and the
New York Times.
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Just for you...
Lots of free
tips and samples:
www.aherncomm.com
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