2. The Vision-Driven Approach evolution in legacy development and marketing Simon Trevelyan, President and Founder S.T. Legacy Group

3. Forward thinking S.T. Legacy Group is Vancouver-based consulting company that helps charities to implement and develop effective legacy programs

4. Terminology Legacy gifts are arranged during a donor’s lifetime and realized at a future event, usually the demise of the donor Examples of legacy gifts: bequests, gift of life insurance, beneficial interest in RRSPs/RRIFs, CRTs, gift annuities

5. Terminology Don’t confuse major gifts with legacy gifts Major gifts require a very different approach Gifts of securities during a donor’s lifetime are not legacy gifts, they are major gifts

6. Terminology Legacy Prospect or Lead: someone who asks for information on leaving a legacy gift Legacy Expectant or Commitment: someone who has informed a charity they have left a legacy gift

7. A revolutionary approach The Vision-Driven Approach is changing the way charities implement legacy giving is a practical system that any charity can implement

8. The Vision-Driven Approach After 16 years in the sector, I saw how ineffective charities were at engaging donors in legacy giving At the SPCA I developed an effective system for generating legacy gifts that was very different I refined that system at S.T. Legacy Group

9. Traditional Approach Assumes the best way to get legacy gifts is to send a planned giving officer to visit a donor to talk with them about their giving options.

10. Traditional Approach The “How of giving” Focuses on educating individual donors about how legacy gifts can be made … maximizing tax advantages for the donor Assumes most legacy gifts come from the head – a rationale decision

11. Traditional Approach Gift planning officer provides gift planning advice to individual donors Focuses on converting a small number of donors to a legacy commitment “Planned Giving, Gift Planning”: these names reflect the process

12. Vision-Driven Approach Assumes the best way to get legacy gifts is to inspire donors with your vision for the future and show them how they can be a part of that vision. http://www.youtube.com /watch?v=5rvaYoaBs mA

13. Vision-Driven Approach The “Why of Giving” Focuses on integrated marketing that gets a compelling legacy message out to as many donors as possible as frequently as possible Assumes most legacy gifts, at least at the outset, come from the heart – an emotional decision Marketing pulls on the heart-strings

14. Vision-Driven Approach Focuses on inspiring donors with mission/vision and what their gift will do Asks donors for their advice and opinions, engages them in a dialogue about the future Focuses on converting as many donors as possible to a legacy commitment

15. Vision-Driven Approach Supported by Donor Research Donors: most important reason for leaving a charitable legacy… belief in a charity’s mission and vision One of the least important reasons for leaving a charitable legacy: tax savings for the donor Donors are much more interested in knowing how their gifts will make a difference than how their gift can be made

16. What Donors Told Me About the Traditional Approach I’m not interested in what’s in it for me.. I want to help the animals The information you sent was extremely difficult to read … I gave up after the first page I’m not motivated to give to you because my estate will save taxes

17. What Donors Told Me About the Traditional Approach If I want gift planning advice, I will get it from my financial planner You don’t have the expertise, and you’re in a conflict of interest

18. More Legacy Commitments BC SPCA: legacy leads increased ten-fold when we switched from the Traditional to the Vision- Driven Approach –2,500 legacy commitments (est. $150 million) –5,000 legacy prospects (est. $300 million) –in 10 years annual legacy revenue increased from 700K to $7 million –legacy revenue is now a stable revenue source: over 60% of all donations

19. More Legacy Commitments Seva Canada, a small charity with one fundraiser, adopted this approach about three years ago Seva now gets more legacy commitments annually than some of the largest charities in the province

20. Personal Visits in most cases … not wanted or needed SPCA staff visited less than 3% of legacy leads or expectants However, donor follow-up and stewardship was exceptional In a few circumstances visits were essential We didn’t waste time on donor visits – they weren’t cost effective

21. Personal Visits the worst venue to ask for a legacy gift Major gift solicitation absolutely does require a personal visits Legacy gift solicitation is usually a disaster face-to-face People need time and privacy to make a legacy gift decision

22. Myths About Legacy Giving staff need a lot of technical expertise about planned giving vehicles you have to meet donors face-to-face to secure legacy gifts or large legacy gifts most donors are too poor to leave a legacy gift it will be too time-consuming to run a legacy program

23. Is Legacy Giving Appropriate for Your Organization?

24. Are you ready for a Legacy Program If the answers to all of these questions are yes, then you are ready for a legacy program. 1.Will your organization be in existence in 50 years from now? 2.Is your organization meeting a vital need in the community? 3.Will future generations need the services you provide? 4.Do you have committed donors or stakeholders? 5.Is the leadership of your organization respected and are you fiscally responsible? 6.Do you have staff that can dedicate a minimum of 5% of their time to legacy giving?

25. Is Legacy Giving Worth the Investment?

26. Is it Worth the Investment? Over the next 40 years, the largest inter-generational transfer of wealth in history will occur and charities that engage their donors in legacy giving will share in this wealth. Legacy Giving Can give charities financial stability Up to 37% of charitable donors will consider a bequest The average charitable bequest in BC: 50K

27. Worth the Investment Future estimated revenue if a charity converted 5% of its donors to a legacy commitment # of donorsLegacy Future est. commitments revenue* 2,000 donors 100 $5 million 4,000 donors200 $10 million 8,000 donors400 $20 million * Assumes the average bequest is $50,000

28. Are You Too Late?

29. The legacy field is wide open Most charities engage fewer than 0.5% of their donors in legacy giving because they use the traditional approach A majority of donors say they have not been asked for legacy gifts by the charities they support Legacy giving remains vastly under-exploited because charities don’t know how to market legacy gifts and ask appropriately

30. Strategic Plan

31. What are you selling To whom are you selling How will you market what you are selling How will you treat people who want what you have to offer What are your long-term and annual goals How will you measure success How will you report to decision-makers How will you invest to maximize returns

32. What are you selling How legacy gifts can be made? How donors can support your vision? If 50%, or more, of the information you send to donors is the former, then you are selling how to make gifts.. and your program will underperform

33. What are you selling? Do you think your donors are inspired by the mechanics of making a gift? Or are they inspired by your vision and the legacy they will leave?

34. Target Markets Groups mostly likely to respond to your messages: People who already give People who give regularly People who have been impacted by your mission Individuals in the 45+ age groups People without children or grand-children

35. Key Messages Develop key messages that remain consistent in all marketing and communications Example of one key message: After you have provided for your loved ones, you can help the world’s most vulnerable people build health and self-reliance with a gift to ABC Foundation in your Will. \

36. Legacy Program Branding

37. Effective Legacy Branding Distinguishes your legacy program from others Enhances your core legacy message Helps supporters build familiarity and trust in your program Most charities do not brand their programs

38. Legacy Brands Developed by S.T. Legacy Group

40. An Integrated Marketing Plan