Community Foundation Achieves 25% Planned Giving Growth

Community Foundation Achieves 25% Planned Giving Growth

Executive Summary

A prominent community foundation was facing stagnant growth in its planned giving program, hindering its ability to address long-term community needs. Legacy Bridge Advisors, a subsidiary of Golden Door Asset, partnered with the foundation to design and implement a comprehensive planned giving strategy. Through targeted marketing, donor education, and streamlined processes, the foundation experienced a 25% increase in planned giving commitments within the first year, translating to an estimated $2 million in future gifts. This case study details the challenges, strategic approach, and technical implementation that led to this significant achievement.

The Challenge

The community foundation, serving a region with a population of over 500,000, had a history of successful annual fundraising campaigns. However, their planned giving program, which relies on bequests, charitable gift annuities, and other deferred gifts, was underperforming. Despite having over 10,000 active donors in their CRM, only 150 had formally documented planned giving commitments. This represented a participation rate of just 1.5%, significantly below the industry average of 3-5% for organizations of similar size and reach.

The lack of a dedicated planned giving officer and the reliance on general marketing materials contributed to this stagnation. While the foundation's website mentioned planned giving options, it lacked compelling content tailored to different donor profiles and tax planning scenarios. For example, the website information on Charitable Remainder Trusts (CRTs) was insufficient to explain the potential tax benefits to a high-net-worth individual considering selling appreciated assets worth $500,000. Without clear communication on how a CRT could defer capital gains taxes and generate income, potential donors were unlikely to explore this option further.

Furthermore, the foundation's bequest acceptance process was cumbersome. Potential estate gifts often encountered delays due to unclear internal procedures and a lack of standardized legal document templates. This resulted in a perceived lack of responsiveness, discouraging some donors from finalizing their planned gifts. One specific case involved a promised bequest of $100,000, which nearly fell through due to difficulties in coordinating with the donor's attorney and navigating the complexities of the estate settlement. This close call highlighted the urgent need for a streamlined and efficient bequest acceptance system. Finally, the foundation lacked a system to track and nurture planned giving leads effectively. Many potential donors were identified during annual fundraising events, but their interest in planned giving was not followed up on systematically. This resulted in missed opportunities and a significant loss of potential future gifts. Internal data indicated that at least 50 qualified leads were lost in the previous year due to inadequate follow-up.

The Approach

Legacy Bridge Advisors adopted a multi-pronged approach to address the community foundation's challenges:

1. Comprehensive Assessment & Strategy Development: We began with a thorough audit of the foundation's existing planned giving program, analyzing donor demographics, past giving patterns, and marketing materials. This assessment revealed that the foundation's primary donor base consisted of individuals aged 65+, with a median net worth of $750,000. Armed with this knowledge, we developed a tailored planned giving strategy that focused on bequests, charitable gift annuities, and charitable remainder trusts, aligning with the financial needs and philanthropic goals of this demographic.

2. Targeted Marketing & Donor Education: We created a series of targeted marketing materials, including brochures, website content, and email campaigns, highlighting the benefits of planned giving for both the donor and the community. These materials emphasized the tax advantages of different planned giving vehicles, such as the potential to reduce estate taxes or generate income through a charitable gift annuity. We organized a series of donor education seminars led by estate planning attorneys and financial advisors. These seminars covered topics such as "Understanding the Basics of Estate Planning" and "Maximizing Your Charitable Impact Through Planned Giving."

3. Streamlined Bequest Acceptance Process: We worked with the foundation's legal counsel to develop standardized legal document templates for bequests and other planned gifts. We also created a clear and efficient internal process for accepting and managing planned gifts, ensuring that all requests were handled promptly and professionally. We established a centralized system for tracking planned giving commitments, allowing the foundation to monitor the progress of each gift and ensure timely follow-up.

4. Donor Relationship Management Enhancement: Integrated the planned giving prospect tracking into the existing Salesforce instance allowing fundraising staff to see past giving, notes, and planned giving interest. Developed a follow-up plan, including phone calls, personalized emails, and invitations to special events, to keep potential donors engaged and informed. Segmented the donor database to identify individuals with a high propensity for planned giving, based on factors such as age, net worth, and past giving history. This segmentation allowed us to tailor our marketing efforts and focus our resources on the most promising prospects.

Technical Implementation

The implementation involved the following technical components:

• HubSpot Marketing Automation: Used HubSpot to create and manage targeted email campaigns to nurture planned giving leads. This included automated email sequences that provided educational content about different planned giving options, highlighted the impact of planned gifts on the community, and invited potential donors to attend donor education seminars. We tracked email open rates, click-through rates, and website visits to measure the effectiveness of our marketing efforts and optimize our campaigns accordingly.
• Salesforce Integration: Integrated the foundation's existing Salesforce donor management system with the new planned giving lead tracking process. This allowed us to centralize all donor information and ensure that planned giving leads were properly tracked and followed up on. We customized Salesforce to capture key information about planned giving prospects, such as their interest in specific planned giving vehicles, their estate planning goals, and their estimated net worth.
• Legal Document Template Creation: Developed a library of standardized legal document templates for bequests, charitable gift annuities, and other planned gifts. These templates were reviewed and approved by the foundation's legal counsel and were designed to ensure compliance with all applicable laws and regulations. The templates included customizable sections that allowed the foundation to tailor each document to the specific needs of the donor.
• Gift Acceptance Policy Development: Created a detailed gift acceptance policy that outlined the foundation's procedures for accepting and managing planned gifts. This policy addressed issues such as due diligence requirements, appraisal procedures, and the handling of illiquid assets. The policy was designed to protect the foundation from potential legal and financial risks associated with planned giving.
• ROI Calculation Methodology: Calculated the estimated return on investment (ROI) by comparing the projected value of planned giving commitments received in the first year after implementing the new strategy to the cost of implementing the strategy. The projected value of planned giving commitments was based on historical data regarding the average value of planned gifts received by the foundation. The cost of implementing the strategy included the cost of marketing materials, donor education seminars, and consulting fees.

Results & ROI

The implementation of the Legacy Bridge Advisors' planned giving strategy yielded significant results for the community foundation:

• 25% Increase in Planned Giving Commitments: Within the first year, the foundation experienced a 25% increase in documented planned giving commitments. This translates to an increase from 150 documented commitments to 188 commitments.
• Estimated $2 Million in Future Gifts: Based on the average value of past planned gifts, the increase in commitments represents an estimated $2 million in future gifts to the foundation. The average planned gift historically was $53,000.
• Improved Donor Engagement: Attendance at donor education seminars increased by 40%, indicating greater donor engagement with the foundation's planned giving program. Donor feedback from the seminars was overwhelmingly positive, with many attendees expressing appreciation for the informative presentations and the opportunity to learn more about planned giving options.
• Streamlined Bequest Acceptance Process: The implementation of standardized legal document templates and a clear internal process reduced the time required to accept and manage bequests by 30%. This improved efficiency and reduced the risk of losing potential gifts due to delays or complications.
• Increased Website Traffic & Lead Generation: Website traffic to the planned giving section of the foundation's website increased by 60%, and the number of planned giving inquiries received through the website increased by 75%. This indicates that the targeted marketing efforts were successful in driving awareness of the foundation's planned giving program and generating qualified leads.

The foundation's investment in the planned giving strategy, including consulting fees and marketing expenses, was approximately $50,000. Based on the estimated $2 million in future gifts, the ROI for the first year was a remarkable 40x.

Key Takeaways

Here are key actionable insights for other RIAs and wealth managers looking to help their non-profit clients:

1. Tailor Your Marketing: Generic messaging doesn't work. Segment your audience and create targeted marketing materials that address their specific financial needs and philanthropic goals. Use real-life scenarios to illustrate the benefits of planned giving.
2. Educate Your Donors: Provide educational resources, such as seminars and webinars, to help donors understand the complexities of planned giving. Partner with estate planning attorneys and financial advisors to deliver expert advice.
3. Streamline Your Processes: Ensure that your bequest acceptance process is efficient and user-friendly. Develop standardized legal document templates and a clear internal process for managing planned gifts.
4. Track and Nurture Leads: Implement a system for tracking planned giving leads and nurturing them through personalized communication. Follow up promptly with potential donors and keep them engaged with the organization.
5. Data-Driven Decisions: Track key metrics, such as website traffic, email open rates, and planned giving commitments, to measure the effectiveness of your efforts. Use this data to optimize your strategy and maximize your return on investment.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors identify clients likely to benefit from charitable strategies and build comprehensive financial plans that incorporate philanthropic goals. Visit our tools to see how we can help your practice.