The Iceberg Effect

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The Iceberg Effect

• Fraser (the contrarian) Green, CFRE
• CAGP National Conference
• Calgary
• April 21, 2006

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WarningI come by my evangelism honestly!

• Fraser photo

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First a little story aboutNewtown, St. Marys Bay
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(No Transcript)
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Today, well talk about

• What
• Barry Manilow
• can teach you
• about
• planned giving

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simple essence
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The meaning of life
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Its the right side, stupid!..
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We wont talk much about
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or taxes
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or financial planning
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or wealth
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Hell, were not even gonna talk about money!

• (well, okay..
• maybe just a
• bit about money)

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• God knows you get
• enough of that stuff
• at this conference already!

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This session is not sanctionedby the Banff
School
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So,lets call itthe Canmore School

• My real name
• is Fraser
• but you can
• call me Mike..

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here are..

• 8 contrarian principles
• designed to help you
• - understand the iceberg
• - see its potential
• - tap its wealth
• - transform your program
• - get there before your
• competition!

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first contrarian principle

• think BIG
• really, really BIG..

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Most of that icebergis below the waterline..

• And youre not paying
• attention to it, are you?

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Two years ago..

• We partnered with Mal Warwick
• and did the first-ever poll of
• direct mail donors.
• N500 (Canada), /- 4.4 19/20
• Lang Research/Comquest
• www.donorresearch.net

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Profile of a veryordinary donor

• 80 are 55
• only 10 work F/T
• grew up before TV
• 2/3 female
• empty nest

• average education
• modest income
• whitebread
• attends church
• supports 10 charities

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Hidden Gold

• Income
• household income 55K
• average DM gift 30

• Assets
• net worth 350,000
• average bequest 20,000

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• These are
• the donors
• who fly way
• under your
• radar.

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• Thats why we
• took the sub
• instead of the
• boat today.

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• 97 know they can leave
• a gift in their will
• 92 already
• have a will

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Say WHAT?

• 17 have made
• at least one
• charitable bequest

• 18 are very or somewhat likely
• to do so within
• five years

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Oh yeah..

• There are 7 million direct mail
• donors in Canada today
• (we know, we measure)

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and..

• The majority of these donors have never been
  asked..

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• Thats a big
• honkin iceberg!

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Second contrarian principle..we are emotional
beings..
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I Repeat

• WE ARE
• EMOTIONAL
• BEINGS!!!

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what are we?
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Question

• What were the
• two most important
• moments in your life?

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Mine?

• 1135 pm October 19, 1988
• 640 pm June 21, 1999

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what did you experienceduring your moments?

• were you thinking?
• .....or feeling?

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The Old Brain(amygdala)
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Our brains..old and new

• New Brain
• rational
• thinks
• processes data
• justifies decisions

• Old Brain
• primative
• emotional
• survival
• decides

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burn this!

• The old
• (emotional)
• brain
• decides.

• The new
• (rational) brain
• justifies
• the old brains
• decision.

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Think differently

• Conventional
• CAGP wisdom
• Speaks to the
• new brain

• Contrarian
• wisdom
• Speaks to
• both brains
• (with the emphasis
• on the old!)

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Proposing Marriage for Dummies
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Relationship fundraising

• Ken Burnett
• courtship
• how do I feel when I give?
• so why do we write our
• brochures the way we do?

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Third contrarian principle..

• Relating is
• successful above
• the waterline.
• Marketing gets to
• the bulk of the
• underwater money

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I visited Stephanie recently

• she has almost 100,000
• shes got at least 20,000 suspects
• 40,000,000 potential revenue (minimum)
• shes relating to 300 people
• her legacy deficit is 19,700 donors!
• Stephanie MUST market to reach her potential

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• Listen up CAGP!
• Tea and banana
• bread aint gonna
• get you there!

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So, lets market..

• What I learned from
• Tommy Douglas.

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My rant about yourcommunications officer..

• She probably
• isnt doing
• communications
• at all.

• Shes doing
• broadcasting.

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Fourth contrarian principle

• Its the will, stupid!

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Pop Quiz

• Do you know
• what percentage
• of your planned
• giving revenue
• comes from bequests?

• Straw poll

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Check your materials..

• How many planned giving
• vehicles are mentioned?
• Lets add em up..

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Elementary, my dear Watson

• 90 - 95 of the
• money is in the will

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Remember Cuba Gooding Jr. inJerry McGwire?

• Whats he saying
• right here?

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• show me
• the money!

• Wheres your
• money?
• In the will!

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Okay, okay

• you can relate the other stuff
• but you cant market it
• weve watched focus groups
• and you know what happens?

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THIS!
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If you really wantyour iceberg..

• Youve got to
• sacrifice
• Its the will, stupid

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Fifth contrarian principle

• Why, not how!

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Listen up..

• Because most of us
• (and I really mean YOU)
• are doing this
• DEAD WRONG

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Lets get this straightonce and for all!

• Fundraisers
• tell them
• WHY
• they should give

• Allied professionals
• tell them
• HOW
• they can give

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Vision
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Passion
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Conviction
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Inspiration
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Sixth contrarian principle

• Tell stories..

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We all love stories

• Glengarry School Days
• Lord of the Rings
• why do they turn novels into movies?
• what makes history interesting?
• Cape Bretoners watch the stories
• its simply in our nature

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Great fundraising isgreat storytelling

• testimonials
• legacy donor profiles
• vision pieces
• history
• making the case

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Look at the materialyou brought with you

• can anyone
• read me a story?

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Seventh contrarian principle

• Urgency

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Leave it till next year?

• civics are savers
• civics have assets
• will boomers?
• floating nursing homes
• 38 of women and 55 of men aged 75

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I promise you..

• Fundraisers are going to
• recognize the iceberg.
• The earlier you stake your claim,
• the more successful youll be.

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Queen Isabella had a choice

• and so do you

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Eighth contrarian principle

• Its not about
• the money

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Its about

• heart
• soul
• footprints on the earth
• passion
• joy of living

• meaning
• human spirit
• why we live
• relationships
• love
• human duty

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• Yes, well get to
• the money eventually.
• But thats not what
• all this is about.

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• Covenant House
• understands

• lets watch

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So by now youre thinking..

• Okay, Fraser..
• this sounds good..
• what do we
• actually do?

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Ninth contrarian principle

• The Holy Trinity
• Comittment
• Openness Lifestage

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Commitment

• Jac queline REALLY LOVES what you do
• she believes in you
• she trusts you
• - to do great work
• - with her money
• - to stick around for
• twenty years or more

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Openness

• Jacqueline is one of
• the 97 - and the 92
• she thinks legacy gifts are a good idea
• (might have made one or be thinking about it)

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Lifestage

• Jacquelines family
• situation allows her to do this without
  compromising her obligations to the people she
  loves most
• oh yeah, 65

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Back to the iceberg(once more with feeling)

• 20-35 are great suspects
• the key is to find those who match the trinity
• its quite a simple idea!

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okay..Ive done my WHYnow, lets do HOW

• lets market legacy gifts
• to very ordinary donors
• and make a pisspot of money
• in the process

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3 simple phases

• research
• cultivation
• solicitation

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Or, to say it more simply

• listen
• court
• propose

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13 Simple Steps

• to getting the other
• 90 of your iceberg

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First Phase

• Do your research
• (that means listening!)

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Step 1 slice some ice

• look for those donors who you think might meet
  the criteria of some or all of the Holy Trinity
• 4 direct mail groups
• try to chop your file down to about 1/4

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Step 2 listen

• focus groups
• test your brand
• test legacy giving idea
• test current materials

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Lets watch

• a clip or two..
• from The Ottawa Hospital

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Caution

• use good judgement when
• choosing researchers? (CDA)
• do it yourself with
• some coaching?

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Step 3 write somethingtheyll actually like
reading

• tell stories
• vision, emotion, values, passion (remember Barry
  Manilow)
• dont use the words planned giving!!!!
• pictures that work
• does font matter?

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Step 4 listen again..

• a couple more focus groups
• try out the new materials
• Jacks vision for OHF
• ask about cultivation
• ask about solicitation
• donors ALWAYS surprise me with their candor

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Step 5 ask them if theyre prospects

• you dont ask so directly
• interview donors by phone
• multiple choice questions
• weighted answers (sorry, thats the one thing I
  cant show)
• look for the Holy Trinity

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Guess what? It works!

• (psst..wanna see some?)

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Qualified Prospects ( bonus expectancies!)
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Argue this!
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internal marketing tip

• market results to
• everyone in the organization
• tell the donors story

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Step 6 separate milk from cream

• take your highest
• scores and move
• that group ahead
• you have identified your prospects
• (throw the little ones back)

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Step 7-10 cultivate

• living testimonial
• CEO 20 years from now vision piece
• legacy newsletter people, not dollars!
• dead testimonial
• how about a Christmas card?
• use the phone too if focus groups said okay

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Steps 11-12

• (are these trick questions? ..maybe)
• solicitation and follow up
• what method?
• how directly do you ask?
• how badly do you need to know?

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Step 13

• make a new plan
• - steward expectancies
• - cultivate prospects
• - rollout to segments
• - defend the program internally! (youre
  never done now)

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Apply these 8 principles with evangelistic zeal

• Great-great-great-
• great-great-great
• granddad and I
• guarantee
• youre gonna
• make more
• money

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thus endeth the sermon..

• thanks