An Introduction to Direct Marketing and Legacy Fundraising

A. It is talking to your
supporters so they end up
responding with a
donation
B. It might not be immediate
but it has to happen for it
to be direct marketing.
C. 3 Main areas of activity
1. Acquisition/Recruitment
2. Retention
3. Development
Karen Gallagher Consulting

 helps a relationship develop between the
supporter and the charity
 gives enormous pleasure to the supporter
 generates an income for the charity
 For Example:
◦ 100,000 supporters who each give £200 in the time
they support a charity = £20 Million
◦ Reduce this down for a local charity and it makes
sense
◦ And£200 is a low Lifetime Value for a supporter

 The supporter will be happy to leave a gift in
their will when they die
 The average legacy gift nowadays is around
£18,000
 Huge benefit in getting Direct Marketing right

Legacies
Pledgers
Major Donors
Mid Value Donors
Committed Donors
Regular Donors
Donors
Responders
Incidental Donors

 Supporter Acquisition
◦ Recruiting new supporters
◦ Enquirers, members etc
 Supporter Retention
◦ Welcome to the cause
◦ Keep them interested
◦ Inspire and engage them further
 Supporter Development
◦ More engaged
◦ Increase the commitment of supporters by
increasing or broadening their support

 Most challenging part of developing an
Individuals Giving programme
◦ Perceived as a business risk
◦ Rarely breaks even in 1st year
◦ Viewed as a long term investment
 Developing your recruitment strategy
◦ Current supporters
◦ What do you know about them
◦ Male or Female
◦ Younger adults, middle-aged or mature
 Use this as the basic criteria when choosing
audiences for further recruitment

 Cold Direct Mail
◦ Lifestyle Lists
◦ Reciprocals
◦ Rented Lists
◦ Compiled Lists
 Unaddressed
Mail
◦ Door Drops
◦ Inserts
 Take ones
◦ Leaflets
◦ Postcards
 Press Ads
 Telephone
 Statement
Stuffers

 Payroll Giving
 Face to Face
 Door to Door
 Electronic
◦ Website & Email
◦ SMS
 Product
Despatches
 Ticket Media
 Social Media
 Events
 TV
 Radio

 Foundations for developing a
direct marketing programme
◦ Can be simple and inexpensive
◦ Spreadsheet holding names,
addresses and gift history
◦ Be-spoke tailored to meet
organisational needs
 Raiser’s Edge
 Alms
 Donor Strategy
 Thank You
 Microsoft Dynamics

 A focus on donor retention
will raise lots of money
 Everyone knows that it’s a lot
more expensive to acquire a
new donor than to retain an
existing donor

 Doing everything possible to keep a
donor interested in your cause after
their first gift
 To develop their support you must
◦ Inspire
◦ Engage them further
◦ Welcome them to your cause
◦ Thank them for their support

 Systems and Processes:
◦ Fast & Accurate Gift Set Up
◦ Fantastic Donor Care
 As well as being:
◦ Thoughtful
◦ friendly
◦ kind to our supporters.
◦ putting ourselves in their shoes
◦ Understand what they want from us
 Learn everything you can about your supporters

 Personally
 Promptly
 Creatively
 Often
 Is the single most
important tool you
have in your
fundraising toolbox
 Include a BRE
‘Speed and content of
the first Thank You
defines the future
relationship with your
donor’
Giles Pegram CBE

 Is fundamental in enabling charities to
differentiate themselves
 You need to provide a
◦ high quality and efficient service to develop
loyalty and
◦ increase overall lifetime value
 Simply – maintain a meaningful dialogue
 Reassure them that they have
◦ done the right thing supporting your cause, your
charity
◦ and that they have made a positive impact

• Thank them for the gift
• Provide more information about
your organistion
• Your Vision
• Examples of your work
• How the cause will benefit
• It should inspire
• Other ways to support, committed
gift, legacy, event etc

 Reminds donors of benefits of
supporting the cause
 Informs them of success of projects
supported
 Helps promote other charity services
◦ Legacies
◦ Events
◦ Volunteering Opportunities
 Dispatched 2 – 4 times / year

 Special Events
◦ Seminars
◦ Talks
◦ Tours of facilities
 Open Days
 Make donors feel valued
 Good way to reward higher value
donors

 Should aim to increase donor’s level of
involvement with your organisation
 Should offer regular opportunities to increase
their level of involvement
 Using your newsletter to cross sell other
methods of giving without the donor feeling
pressurised
 Selecting frequent cash donors to receive a
regular giving ask
 Exiting Regular Givers could be asked to
upgrade

 Regular monthly giving through direct debit
or standing order – very cost effective
 Typical values of between £2 - £10 per
month
◦ Helps charity to plan (RGs stay for an average 4
years)
◦ Saves administration costs
◦ Spreads the risk, relying on large number of small
gifts
◦ Supports donor recruitment, easier to commit to
lower value ask
◦ Helps build a secure and sustainable income base

 Recruiting new supporters straight to
Regular Gift
◦ Face to face
◦ Inserts
◦ Mail
◦ DRTV
 Cash to Committed Gift Conversion
◦ Telephone, Mail or Email once per year
◦ Welcome packs or Newsletters

 Powerful fundraising tool
◦ Recruitment
◦ Regular Gift Upgrade
◦ Cash to RG conversion
◦ Lapsed RG Reactivation
 Outsourced to professional telephone
fundraising agencies (though some charities
moving to in house)
 Donors should be supporters for at least 1
year
 Plan for year 2 of IG programme

 Letters to existing supporters to ask for gifts
to support specific projects
 Donors recruited through traditional methods
respond better
 4 x cash appeals per year (seasonal)
 When building a donor base – important to
get the balance of
◦ Committed givers-who will provide restricted
regular income
◦ Cash supporters – who will fund specific project
appeals

 Key – good copy – great stories
 Stories of NEED and how the charity is
providing the perfect SOLUTION
 ‘Your donation can help more people like…’
 Client facing staff – don’t like providing
stories/case studies – MAKE THEM – explain
why

1. Use I and You, especially YOU
2. Use simple English
3. Use short sentences & vary the length
(Plenty of white spaces)
4. Use short paragraphs (max 7 lines)
5. Avoid Jargon

6. Make sure it sounds like someone is talking
7. Ask for money not support
8. Make it Urgent – Repeat It, Use the PS (90%
recipients read the PS first)
9. Be concise and to the point – but as long as it
needs be to convince the reader (Tests have
proven long copy outperforms short copy
10. Use emphasis – underline and bold key messages

Karen Gallagher Consulting - 16th March 2013

 Do size and shape matter?
 Can size and shape break through the noise
and achieve “doorstep dominance”?
 Problems with unusual formats:
◦ Cost
◦ Printers
◦ Media outlets

Tall
Long

Concern sandwich insert:
triangle folding out to square

 Smart use of formats can achieve stand out
from the noise
 But more complex and costly
 Can divert attention from other matters

Often rated as 2nd most important
consideration after your audience
Depends on the circumstance of
each charity
• Is this the right time for this appeal?
• How often should we communicate?
• When was last communication and
response?
• Seasonality is important
• Over or under-mailing people

All of the above drive people to make
a response at the time of reading
 Response mechanism is vital – and
should be planned first
 Easy to read and understand
 Make forms bigger
 Make boxes bigger
 Plenty of room on the forms
 Easy to complete and donate
 Provide options–phone, mail, web

Analysis and Results
 ROI
 NET income
 Short Term
• Response Rates
• Campaign Break Even
• Donations Received
 Long Term
• Donor Acquisition Cost
• Attrition Rates
• Lifetime Values
• Net Income Potential

 Number mailed
 Cost per donor mailed
 Number of donations
 % Response Rate
 Cost per response
 Gross Income
 Net Income
 Return on investment

 Test Stuff – lots of stuff
◦ Ask Amounts
◦ Additions
 Leaflets
 Stickers
 Address Labels
 Postcards
◦ Stamp vs PPI
◦ Cash vs Direct Debit
◦ New Pack vs Control (Banker)
◦ Plain envelopes vs teaser or photo

 Ensure donation option
is available on website
 Email your donors
◦ Primer and reminder emails
 Use video in emails
 Use Twitter & Facebook to engage supporters
and donors
 Website front page should reflect the appeal
◦ Make sure Donate Now button is obvious

 Data Protection
◦ Permission to hold
3rd party information
◦ Store Information
correctly
◦ Check whether you
need to register with
the Information
Commissioner
◦ Check Code of DM
Practice
 Gift Aid
◦ Make the most of
tax effective giving
◦ Ask for declarations
at every opportunity
◦ Variable tax copy

 Think about the Pack!
◦ Size & Weight
◦ Can create excessive postage costs and
◦ Beware of VAT on postage – work arounds!
◦ Ruin a mailing’s ROI
◦ Obtain a weight from supplier before production
 Avoid mis-prints
◦ Send existing print samples
◦ Be specific re stock, weight and size etc
◦ Quantity-accurate
◦ Ask for Paper Samples

 Prevent Disastrous Data and Personalisation
errors
◦ Work with clearly defined data fields
◦ Add For Position Only data field in a non
printing colour
◦ Request Data dumps for all key fields
◦ Review data fields
◦ Request ‘live’ Proofs
◦ Ensure address block fits window

 Sign it off
 Mail It
 Be conscious of the day it will land
 Sit back and wait for the response
 Make sure Donor Care/Supporter
Services are briefed and ready to take
the calls

A charitable legacy is a gift to
charity made in an individuals
will and paid by their executor
when they are dead.

After providing for your loved ones and once
all debts have been cleared, you can leave a
share of the remainder of your estate.
‘The residue of my estate to be divided in
equal shares between XY charity and AB
Charity’

This is a gift of a specific amount.
‘I give XY Charity £2,000- for general
charitable purposes’.

Any item you leave, such as a house, a piece of
jewellery or shares
‘‘I give XY Charity my house (etc) for general
charitable purposes’.

Is a variant of the residuary legacy where the
gift only takes place after the death of (most
commonly) the legator’s spouse.

UK Legacy Foresight Research
• Legacy Income currently £1.6 Billion
• Estimated to be worth £5.3 Bn by mid
century
• Legacies account for 12% of sector’s
voluntary income
• Set to grow significantly

NfP Synergy Research (2014)
• 37% of the public have made a will
(down slightly from 2006)
• Overwhelming majority of over 65
year olds have made a will
• Last 2 years – an increase in the
number of people who have included
charities as beneficiaries in their wills
• Timing of ask vital – most important
group to target is 45-54s

 2013 - 1,570 charitable gifts in 510 wills
 65% left by women
 Down from 1,816 charitable gifts in 662
wills in 1997 (59.7% left by women)
 In 2013 the top 4 causes are as follows:
Cause 2013 1997
Religion 36.88% 53.4%
Health/Saving Lives 25.92% 16.6%
Poverty & Relief of those in need 22.25% 5.8%
Animals 7.83% 4.5%

• Need to demystify legacies – they are simply
another way of giving a gift to charities
• Legacy Giving is big gift fundraising
• Organisations need to communicate the
legacy message both internally & externally
• Legacies are a normal, effective and
appropriate way to support your
organisation

• Need to identify the handful of donors who
will provide the bulk of legacy value and
treat them in a manner which will motivate
them to give their bequest to your
organisation
• Donors
• Staff
• Board of Trustees
• Volunteers
• Beneficiaries
• Other Stakeholders

• Needs to be done in such a way to avoid
alienating donors
• Targeting and segmentation are critical in
legacy fundraising
• Legacy messages need to be integrated in
other communications (but don’t dominate
them)
• Language is essential ‘donations in wills’
likely to be better received than ‘gifts in wills’
or ‘legacies’

• Develop appropriate case studies which
demonstrate how a legacy gift can contribute
to the long term impact of your work
• Give legacy pledgers the opportunity to
inform you of their intentions to support you
in this way
• Post legacy pledge – relationship needs to be
managed appropriately – maintaining &
deepening the relationship to ensure it is
fulfilled

• Sign up for Will to Give
• Produce legacy giving materials which
promote the benefits of doing so in a simple
and accessible way
• Include Legacy messages within donor
newsletters etc
• Test a solus legacy appeal
• Legacy event or seminar
• Offer receipt of legacy information on
donation and supporter reply forms

• Educate staff, volunteers, trustees and
patrons on legacies and their importance as a
source of fundraising income
• Promote legacies to stakeholders, volunteers,
staff and trustees
• Make some of these stakeholders advocates
to promote legacies
• Ensure administration support exists to deal
with legacy queries either internally or
externally

• Gifts over the inheritance tax threshold
(currently £325,000) is taxed at 40%
• Gifts to a registered charity are not taxable
• Means loved ones could have tax bill reduced
up to 40% of the amount bequeathed
• Since 6th April 2012 – if a donor leaves 10% of
their estate to charity the tax due may be
paid at 36%
• For more information go to HMRC website
www.hmrc.gov.uk

‘I give to Charity A of Address, registered charity
number, a share /the whole of my residuary
estate/a sum of money/a specific item or
property (delete as appropriate) for its general
charitable purposes. I direct that the receipt of
the Treasurer or duly authorised officers shall be
a sufficient discharge for my executors.’

• A group of 37+ of NI charities working together to
promote charitable gifts in wills
• Wills Notification Service established in 2012 in
partnership with Sector Matters (NICVA)
• Aim to provide WTG member charities with advance
notice of legacies when probate is granted
• Probate Office forward copies to DSD who send
them to Sector Matters
• WTG Members receive notification
• £250 & £495 per year
• www.willtogive.org

Number of Gifts 124
No of Residuary Gifts 39 (31%)
No. of Pecuniary Gifts 58 (47%)
No. of Specific Gifts 7 (6%)
Other Gifts 20 (16%)
No. of Gifts to Faith based
Organisations
78 (63%)
No. of Gifts to Other Charities 46 (37%)

www.karengallagherconsulting.co.uk
07765251098

An Introduction to Direct Marketing and Legacy Fundraising

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