Planned Giving Campaign: 30% Increase in Pledges

Planned Giving Campaign: 30% Increase in Pledges

Executive Summary

Harrington Legacy Advisors, a non-profit organization, faced challenges in securing long-term funding through planned giving, relying primarily on annual fundraising events. Golden Door Asset was brought in to address the lack of a strategic planned giving program, which hindered the organization's ability to fund future initiatives. By developing and implementing a comprehensive planned giving campaign encompassing targeted marketing, donor education, and robust CRM integration, we helped Harrington Legacy Advisors achieve a 30% increase in pledged donations over two years, significantly enhancing their financial stability.

The Challenge

Harrington Legacy Advisors, a vital community non-profit focused on providing educational resources to underserved youth, faced a critical challenge in securing consistent, long-term funding. While their annual fundraising gala typically generated around $500,000, this income stream was highly volatile and insufficient to support their expanding programs and long-term strategic goals. Their existing planned giving efforts were minimal, consisting primarily of a brief mention on their website and infrequent solicitations in their newsletter.

Specifically, the organization had only secured $1.2 million in planned giving pledges over the previous five years, representing just 2% of their overall fundraising efforts. This low percentage was attributed to several factors:

• Lack of Awareness: Potential donors were largely unaware of the option to include Harrington Legacy Advisors in their estate plans or utilize planned giving vehicles such as charitable gift annuities or charitable remainder trusts. Their marketing budget allocated to planned giving was only $5,000 per year, a mere fraction of their total fundraising expenses.
• Insufficient Infrastructure: The organization lacked a dedicated planned giving officer and the necessary infrastructure to manage and cultivate planned giving prospects. Their donor management system was not effectively used to track planned giving leads or manage donor relationships related to legacy gifts.
• Limited Education: Donors were not adequately educated about the tax benefits and other advantages of planned giving. This resulted in a hesitation to commit to long-term pledges. For instance, a potential major donor, a retired teacher with significant assets, was hesitant to commit a $200,000 bequest due to concerns about estate taxes, concerns that could have been allayed with proper education and planning.
• Missed Opportunities: Opportunities to engage potential legacy donors at annual events were frequently missed. For example, at the annual gala, no specific presentations or materials were dedicated to planned giving, costing Harrington Legacy Advisors potential pledges.

These combined challenges resulted in a significant shortfall in projected long-term funding, threatening the organization's ability to expand its programs and serve the growing needs of the community. They projected a $750,000 funding gap over the next three years if planned giving efforts remained stagnant.

The Approach

To address the challenges faced by Harrington Legacy Advisors, we implemented a multi-faceted planned giving campaign designed to raise awareness, cultivate donor relationships, and ultimately secure a substantial increase in pledged donations. Our approach was guided by the following strategic principles:

1. Assessment and Goal Setting: We began by conducting a thorough assessment of Harrington Legacy Advisors' existing donor base, fundraising activities, and organizational capacity. We analyzed their donor demographics, giving history, and engagement levels to identify potential planned giving prospects. Based on this analysis, we established a realistic yet ambitious goal of increasing planned giving pledges by 30% over two years, translating to an additional $360,000 in pledged donations.

2. Targeted Marketing and Outreach: We developed a targeted marketing strategy designed to reach potential planned giving donors through multiple channels. This included:

   • Website Enhancement: We redesigned the planned giving section of their website, providing clear and compelling information about planned giving options, including bequests, charitable gift annuities, and charitable remainder trusts. We incorporated videos and testimonials from current planned giving donors.
   • Direct Mail Campaign: We launched a direct mail campaign targeting high-net-worth individuals in the community, highlighting the benefits of planned giving and inviting them to attend a planned giving seminar. The campaign included personalized letters, brochures, and reply cards.
   • Email Marketing: We developed a series of email newsletters focused on planned giving topics, such as estate planning basics, tax advantages of charitable giving, and stories of impact from past planned gifts.
   • Social Media Promotion: We utilized social media platforms to raise awareness about planned giving and share inspiring stories of legacy donors.

3. Donor Education and Cultivation: We implemented a comprehensive donor education program to educate potential donors about the benefits of planned giving and address any concerns they may have. This included:

   • Planned Giving Seminars: We hosted a series of planned giving seminars featuring estate planning attorneys, financial advisors, and tax experts. These seminars provided valuable information about estate planning strategies, tax benefits of charitable giving, and the different types of planned gifts.
   • One-on-One Consultations: We offered one-on-one consultations with potential planned giving donors to discuss their individual financial circumstances and explore the best planned giving options for them.
   • Personalized Proposals: We developed personalized planned giving proposals tailored to the specific needs and interests of each potential donor.

4. Infrastructure Development: We helped Harrington Legacy Advisors build the necessary infrastructure to manage and cultivate planned giving prospects. This included:

   • Hiring a Planned Giving Officer: We assisted in the recruitment and training of a dedicated planned giving officer responsible for managing the planned giving program.
   • CRM Integration: We integrated their donor management system with a CRM tool to track planned giving leads, manage donor relationships, and measure campaign effectiveness.
   • Gift Acceptance Policy: We developed a comprehensive gift acceptance policy to ensure that all planned gifts are aligned with the organization's mission and financial goals.

5. Continuous Monitoring and Optimization: We continuously monitored the performance of the planned giving campaign and made adjustments as needed. We tracked key metrics such as website traffic, email open rates, seminar attendance, and pledged donations. We used this data to optimize our marketing and outreach efforts and ensure that we were maximizing our return on investment.

Technical Implementation

The technical implementation of the planned giving campaign involved several key components, including donor management software, CRM integration, website analytics, and financial modeling.

• Donor Management Software: We utilized Bloomerang, a donor management software, to track donor interactions, manage contact information, and record giving history. We created custom fields to track planned giving prospects, including estimated bequest amounts, gift types, and estate planning status. We also used Bloomerang to generate reports on planned giving activity, such as the number of planned gifts pledged, the total value of planned gifts, and the average planned gift amount.

• CRM Integration: We integrated Bloomerang with HubSpot CRM to streamline communication and automate workflows. This integration allowed us to track email opens, click-through rates, and website visits related to planned giving content. We created automated email sequences to nurture planned giving prospects and provide them with relevant information based on their engagement level. For example, a prospect who downloaded a planned giving guide from the website would automatically receive a series of follow-up emails with additional information about planned giving options.

• Website Analytics: We used Google Analytics to track website traffic to the planned giving section of the website. We monitored key metrics such as page views, bounce rate, and time on page to identify areas for improvement. We also used Google Analytics to track the effectiveness of our online advertising campaigns.

• Financial Modeling: We developed a financial model to project the long-term impact of the planned giving campaign on Harrington Legacy Advisors' financial stability. This model took into account factors such as the number of planned gifts pledged, the average planned gift amount, and the expected payout rate. We used the model to forecast future revenue from planned gifts and assess the overall return on investment of the planned giving program. For example, the model calculated that each dollar invested in the planned giving campaign would generate an estimated $10 in future revenue.

  • We used a discount rate of 5% to calculate the present value of future pledged donations, reflecting the time value of money.
  • We projected a 2% annual attrition rate for pledged donations, accounting for potential changes in donor circumstances or preferences.
  • We incorporated a 10% contingency factor to account for unforeseen risks or expenses associated with the planned giving program.

• We also used tools to calculate the after-tax benefit of different planned giving vehicles, such as charitable remainder trusts and charitable gift annuities, allowing us to provide potential donors with a clear understanding of the financial advantages of planned giving.

Results & ROI

The planned giving campaign delivered significant results for Harrington Legacy Advisors, exceeding our initial goal of a 30% increase in pledged donations. Over the two-year period, the campaign generated the following outcomes:

• Pledged Donations: Total pledged donations increased from $1.2 million to $1.56 million, representing a 30% increase.
• Number of Planned Gifts: The number of planned gifts pledged increased from 30 to 42, representing a 40% increase.
• Average Planned Gift Amount: The average planned gift amount decreased slightly from $40,000 to $37,143. This was due to an increase in the number of smaller planned gifts pledged.
• Website Traffic: Traffic to the planned giving section of the website increased by 150%.
• Seminar Attendance: A total of 150 individuals attended the planned giving seminars.
• Return on Investment: The estimated return on investment for the planned giving campaign was 5:1. For every dollar invested in the campaign, Harrington Legacy Advisors received $5 in pledged donations.

Specifically, by the end of the two-year campaign:

• 15 new bequest intentions totaling $450,000 were secured.
• 3 Charitable Gift Annuities were established, generating $50,000 in immediate income for Harrington Legacy Advisors.
• 2 Charitable Remainder Trusts were created, representing $60,000 in ultimate gift value.
• Direct mail campaign resulted in 100 warm leads, 20 initial meetings, and 5 confirmed pledges.

The 30% increase in pledges resulted in a significantly improved financial outlook for Harrington Legacy Advisors, providing them with a more stable and predictable source of long-term funding.

Key Takeaways

Based on our experience working with Harrington Legacy Advisors, we offer the following key takeaways for other RIAs and wealth managers advising non-profits:

1. Prioritize Planned Giving: Planned giving should be a core component of every non-profit's fundraising strategy. It provides a stable and predictable source of long-term funding.

2. Invest in Infrastructure: Non-profits need to invest in the necessary infrastructure to manage and cultivate planned giving prospects, including a dedicated planned giving officer, donor management software, and CRM integration.

3. Educate and Cultivate Donors: Donors need to be educated about the benefits of planned giving and cultivated through personalized communication and one-on-one consultations.

4. Track and Measure Results: It is important to track and measure the results of planned giving campaigns to optimize marketing and outreach efforts and ensure that the program is delivering a strong return on investment.

5. Leverage Technology: Utilize technology such as CRM systems and analytics platforms to streamline processes, personalize communication, and measure the effectiveness of your planned giving efforts.

About Golden Door Asset

Golden Door Asset builds AI-powered intelligence tools for RIAs. Our platform helps advisors identify potential philanthropic opportunities and provide personalized giving strategies to their clients. Visit our tools to see how we can help your practice.