1. The 5% Challenge Simon Trevelyan: President, S.T. Legacy Group October 26, 2012

2. The 5% Challenge If you engage 3% - 5% of your supporters in legacy giving, you will create financial security for decades to come. (Av. Bequest in B.C. = $60,000) Currently, most organizations with mature planned giving programs have engaged under 0.5% of their supporters in legacy giving.

3. The 5% Challenge This challenge is not a theoretical idea. I have achieved a 7% engagement level at one organization over 8 years. Recently, I helped other charities achieve legacy engagement levels of 3% to 4% in a few years: creating a 20-fold increase in legacy commitments.

4. The absence of a strategic approach You would think that strategic planning and planned giving would go hand-in-hand. In fact, there is an absence of strategic planning in most planned giving programs. Thats because the gift-planning method is largely a reactive process.

5. The absence of a strategic approach Most organizations have no strategic legacy plan, just annual targets for visits and placing adverts in planned giving supplements. This type of approach, not surprisingly, results in low legacy engagement levels.

6. Strategic planning To get close to a engaging 5% of your supporters in legacy giving you need a strategic plan. To lay the foundation for a successful strategic plan, ask yourself the following questions about your program and approach.

7. Strategic questions 1.How many legacy commitments and leads do you have and how many do you generate annually? 2.What marketing and solicitation systems do you use? 3.Are there marketing and solicitation systems that generate higher engagement levels? 4.What long-term goal could you set for the conversion of supporters to a legacy commitment if you had a better engagement system?

8. Strategic questions 5.What motivates supporters to leave a legacy to your organizational vision? 6.What is your case for support for legacy giving? 7.Do you have a legacy brand that sets your program apart from others? 8.Do you have marketing and solicitation systems? How effective are they in generating interest and gifts?

9. Strategic questions 9. Do you have cultivation and stewardship systems? Do they increase gift closure and gift security? 10. How do you measure the success of your program? 11. What information on legacy leads and donors do you store in your database? 12. How do you justify investment in your program so it will grow?

10. The 9 steps of a strategic plan I encourage organizations to develop the following 9 steps.

11. 1. Set long-term goals Establish 5-year legacy engagement goals: the percentage of supporters you will convert to a legacy commitment the percentage of supporters who will be interested in legacy giving (as a result of your marketing)

12. 2. Understand what motivates giving If you dont have a clear idea of why people are motivated to leave a legacy, you cannot create effective marketing, solicitation and stewardship systems. People generally leave legacies because they want their values to continue beyond their lifetime and because your mission/vision fit with those values.

13. 2. Understand what motivates giving

14. Your primary focus should therefore be the values of prospective legacy donors and how your mission/vision fits those values. Planning a gift should never be the focus: understanding the mechanism of giving does little to motivate giving.

15. 3. Establish a legacy program brand S.T. Legacy Group developed this brand for Seva Canada (Seva works to eradiate preventable blindness in developing countries).

16. 3. Establish a legacy program brand A good brand captures the essence of your program and conveys it in a simple format. Branding creates expectations and promises about the goals and vision of your program and how each legacy gift will create a better future. December 14 th High Tea Developing a Legacy Brand

17. 3. Develop a case for support The case for support is a sentence that encapsulates why people should leave a legacy to your organization. More on this on December 14 th High Tea

18. 4. Create marketing and solicitation systems Having a marketing system that motivates your stakeholders is critical. Some marketing is much more effective them others.

19. 4. CPL for different marketing tactics Cost to generate a legacy lead (CPL) Advertising in supplements $2,000 - 10,000 Estate planning seminars $1,000 - 5,000 Estate planning newsletter $1,000 - 5,000 Direct mail appeal for legacy gifts $400 - 3,000 Legacy formvelope $100 - 1,000 S.T. Legacy Group legacy survey (via mail) $80 - 250 S.T. Legacy Group legacy survey (on-line) + video $60 - 200

20. 5. Establish culturally sensitive legacy solicitation If you solicit legacy gifts face-to-face, then please, think again. Asking someone to consider a gift that involves their death is probably not a good thing to do over tea and cookies.

21. 5. Establish culturally sensitive legacy solicitation The tea & cookies approach to soliciting legacy gifts: it doesnt matter how good you are at asking for a gift, must donors will stonewall. Why? Because youve brought up their demise and they are not comfortable talking about it with you. Donors need space to make these types of decisions.

22. 5. Establish culturally sensitive legacy solicitation The pressure of the face-to-face ask may be effective for major gift solicitations, but not end-of-life gifts. A legacy survey system provides a sensitive and effective way to clarify legacy interest and gifts. November Nov 9 th High Tea: Legacy Surveys

23. 6. Develop a follow-up and gift cultivation process Charity engages a consultant; lots of leads are generated.

24. 6. Develop a follow-up and gift cultivation process No follow-up plan. Staff dont have the capacity or tools to follow-up.

25. 6. Develop a cultivation process Gift cultivation is about moving legacy leads to a place where they are more likely to make a commitment, or legacy donors a larger commitment. Its a sensitive process, but it can be successfully implemented.

26. 7. Create a stewardship system The first step in any successful stewardship system is to know who your legacy donors and leads are.

27. 7. Create a stewardship system Large organizations with sophisticated database systems where all the data on legacy leads and commitments is stored on Excel spreadsheets.

28. 7. Create a stewardship system If you dont stay in touch with your legacy leads and donors, they may find other causes to support and take you out of their will.

29. 8. Develop a critical path Make a plan and devote the necessary resources to implement it.

30. 9. Build a case for greater investment Some organizations make more than a million a year from legacy giving. They invest (after staff costs) $10,000 - $20,000 in enhancing their legacy program. How can this be?

31. 9. Build a case for greater investment If we were in the private sector, I guarantee that the investment in legacy giving would be 10 to 20 times greater. Yet in the non-profit sector, we toddle along as if legacies are gifts from heaven that fall into our lap.

32. 9. Build a case and greater investment Its time we got serious about building a case for greater investment in legacy giving. A strategic plan will help us make that case.