Planned Giving Direct Marketing using a Call Program MPGC Conference November 2009 Laurel Hardgrove, Director, Ridgeview Foundation Doug Stasek, Vice President, Ridgeview Foundation

In this session, we will share: Why the time is right to ask for planned gifts Two case studies where a call program was used to direct market planned giving 2008 at Ridgeview Foundation in Waconia 1998 at London Health Sciences in Canada The results The learnings Discussion regarding how this information might benefit you and your organization

Let us get to know you …… Sectors Represented Years of Experience Size of Planned Giving Program

Why the Time is Right to ask for Planned Gifts ….. Intergenerational Wealth Transfer — Study at Boston College and Cornell University revealed that: $41 trillion to $135 trillion dollars in the next 50 years $6 trillion to $25 trillion dollars in charitable bequests Decima Research — 7% of Canadians will support a charity through their will or estate plan. If charities ask for a planned gift, the response increases to 34% Stelter and Selzer & Company Inc. — 90% of Americans currently make annual gifts, 7% have made planned gifts. Potential for an additional 10% to make planned gifts

Why use a Call Program? Quest to find the most effective way to build relationships with Ridgeview Foundation donors We wanted a dialogue with our donors, and a better rate of response than direct mail We tested a pool of Annual Fund donors who had “ lapsed ”— not given for at least 2 years and as long as 5 years back — to refresh their support We also wanted to ask some of our loyal, frequent donors to consider a Legacy gift to support Ridgeview

Ridgeview Foundation’s Context Small, 109 bed hospital in west metro Young Foundation with start up planned giving program and 12 confirmed planned gift commitments Foundation in $30 million capital campaign During the campaign, some donors had given for the first time Timing: October and November 2008 Regionalized database, focused on donor retention Premier programs — Emergency, Cardiology and Cath Lab, Birthing Center, Orthopedic and Joint Replacement, Cancer Care, Hospice and Home Care

Ridgeview Foundation’s Experience The Legacy Call Program focused on Annual Fund donors 2300 donors who had made 3 gifts in the last five years were selected The letter, signed by our hospital CEO, asked donors to consider a Legacy gift to benefit Ridgeview Medical Center The mail package included the CEO signed letter, a bequest confirmation form, and a response envelope

Follow up and Results In follow up calling, we made contact with 909 donors--3.9% or 35 donors said they either had or will make a planned gift to Ridgeview. Three have already sent in their Bequest Confirmation Form. A further 16 said they would consider making a planned gift, and an additional 40 are very warm prospects for a future planned gift. A total of 91 donors and interested prospects emerged from this calling — a 10% response!

Investment in the Callers Important to spend time training Callers to speak on the Foundation’s and Hospital’s behalf ARIA Call Center from St. Cloud 5 Callers came and toured the hospital, ate lunch in the cafeteria, met the CEO Trained on Ridgeview’s premier programs, Annual Fund, Planned Giving overview Important to empower our front line of communication to speak with our donors!

London Health’s Experience London Health Sciences, large teaching hospital in Canada (1000 beds), was the “beta site” for Legacy Leaders in 1998 Young Foundation, thousands of grateful patients each month, yet only 30 confirmed planned gift commitments Not as much incentive in Canada for planned gifts—ie. no estate tax Foundation in $104 million capital campaign During the Campaign, some donors had given for the first time Mail/Phone program aimed at annual donors to the foundation Timing: Spring 1998 Premier programs — Emergency, Cardiac, Transplants, NICU, Orthopedic and Joint Replacement, Regional Cancer Care

Follow up and Results Donor selection criteria: Annual donors who have made 3 gifts over the last 5 years Special event attendees – 2 or 3 events over the last 3 years Hospital volunteer for at least a year Cumulative giving of over $1000 In house call center and group of callers Mail package included physician signed letter, customized brochure, bequest confirmation form, and reply envelope End result—495 new donors pledging over $11.7 million!

Donor Groups Called with varying Response Rates Selection Criteria: Number in the category: Response Rate: Annual donors--3 gifts in last 5 years % Special Event Attendees % Hospital Volunteers % Leadership Donors of $ % Selection Criteria: Number in the Category: Response Rate:

Age Breakdown AgeAnnual Donor (Pool: 10,000) Planned Giving Donors (Pool: 495) 99 years plus.05%0% 89 to 98 years1.3%1.64% 79 to 88 years9.7%14.7% 69 to 78 years28.5%33.8% 59 to 68 years21.8%17.6% 49 to 58 years16.6%15.2% 39 to 48 years13.5%12.5% 29 to 38 years8.1%4.4% 19 to 28 years.2% 100%

LHSF Call Program Donors by Age

Age Data from Stelter Research 75% of annual fund donors ages 40 to 55 have not been approached by a charity to consider a planned gift! “Annual donors have already demonstrated that they believe in a charity’s mission. They just need to be asked to give differently, and now is the perfect time to initiate that conversation.”

Results ….. Years later ….. Hundreds of confirmed planned giving donors at London Health Sciences Foundation After 9 years, $1.7 million in realized cash gifts from the original 1998 calling, average $60,000 bequest The honor of planned giving—3 families with undocumented planned gifts who came forward

Lessons Learned We have to get asking! Build relationships after the call, stress recognition and your Legacy giving club Record every prospect and donor comment in the donor database For this program to be truly effective, collaboration with Annual Fund colleagues The Call Program contacts prospects who wouldn’t otherwise be visited—”the lost prospects”

We want your thoughts and feedback …. What conclusions do you draw from this? How do you see applying this information to your organization? Questions?

George Bernard Shaw on “Leaving a Legacy” “ I am of the opinion that my life belongs to the community, and as long as I live, it is my privilege to do for it whatever I can. I want to be thoroughly used up when I die, for the harder I work, the more I live. Life is no ‘ brief candle ’ to me. It is a sort of splendid torch which I have got hold of for a moment, and I want to make it burn as brightly as possible before handing it on to future generations. ”