Segmenting Diocesan Database for Major Givers vs' Planned Givers

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Segmenting Diocesan Database for Major Givers vs.
Planned Givers

• James S. Friend, Jr.
• Director, Office of Stewardship and Development
• Diocese of Allentown

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Who Are Your Donors?

• What are their Philanthropic priorities?
• What are their personal needs?

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Who Are Your Donors? Matching their Needs with
Our Mission

• Bequests

Gift Annuity

• Gift of Property

NamingOpportunity
Lead Gifts

• IRA Gifts

Transformational Gift
Unitrust
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Segmentation

• Segmentation defined classify groups and target
  messages based on profile attributes,
  participation, or other defined metrics.
• Starts with good data Information is power!
• Gathering the proper data
• Parish Census
• Raisers Edge

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Elements of a Major and Planned Gift Development
system

• Base Development Program
• Prospect identification
• Feeding and maintaining an active prospect
  pipeline
• Major and planned gift cultivation
• Donor relations and stewardship

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Base Development

• Parishioner program
• Entering the system as a donor is the beginning
  of prospecting
• Tracking donor behavior
• Giving consecutively
• Increasing in amount
• Building donor awareness at the diocesan level
• Encouraging involvement at the diocesan level

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Goal of Prospect Identification

• From To

How do we get there?
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Identify and Prioritize
Who are my best prospects for??
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Diocesan Initiatives
DiocesanEndowment
Catholic Charities
CatholicEducation
Education of Seminarians
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Getting Started

• What question(s) are you trying to answer?
• Examples Who are my underperforming annual fund
  prospects? Which of my constituents has the
  capacity to make a major gift? Who is a good
  candidate for a planned gift?
• What will my final result look like (segmentation
  vs. prioritization)?
• What data points do I have that I can use in my
  prospecting project? (Diocesan Appeal / Stock
  Gifts / Access to Diocesan ParishSoft / Previous
  Campaigns / ?)

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Identifying Prospects for Major and Planned
Gifts.

• Prioritization is the key.
• Major and planned giving involves one-to-one
  relationships, with different strategies for
  engagement applied to each individual. Optimizing
  your donor list helps create efficiency and a
  good return on your investment.

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Previous giving behavior

• Outright giving vs. cumulative giving
• RFM Analyze how Recent, Frequent and Monetary
  (Giving Amount)
• How recently a donor gives
• How frequently they give and for how long
• How much a donor gives both cumulatively and
  outright

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RFM is Nothing New

• Has been used by direct marketers for over 40
  years as a segmentation tool to increase
  marketing Return On Investment (ROI).
• The basic premise of RFM is that customers who
  have purchased more recently, more frequently and
  have spent more with your company are your best
  prospects for future direct marketing campaigns.
• The goal of RFM is to increase marketing ROI by
  communicating only with customers that are likely
  to respond. What do you do with a limited budget
  to communicate with Major/Planned Donors?

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Capacity Indicators

• Geodemographics
• PRIZM or other scores available via vendors
• Zip codes
• Census tract
• Employment
• Title
• What sector do they work in?
• Employer Name

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Capacity Indicators (cont.)

• Demographic
• Family characteristics (partnered/married vs.
  single, presence of children)
• Age
• Giving
• Amounts
• Methods (Cash vs. Stock)
• Volunteer
• Board Positions with other organizations
• ?

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Inclination Indicators

• Giving
• Years of giving
• Total giving
• Frequency of giving
• Last gift date

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Inclination Indicators (cont.)

• Engagement (with your diocese / other orgs)
• Special event attendance
• Volunteer roles
• Boards
• Other volunteer activities
• Survey responses
• Other activities with your diocese

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• WARNING
• The following methods are not statistically
• significant, but they are superior to drawing
• names from a hat.

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What Do You Do With the Data?

• Simple searches
• Who has X data point in their record?
• Analysis
• Which groups do X behavior?
• Scoring
• Rank your constituents by the presence of
  particular attributes.
• Mapping
• Visually represent geodemographic data.

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Simple Searches

• Geodemography
• Who lives in wealthy areas?
• In which Metropolitan Areas are my major givers
  located?
• Which clusters give the most to my organization?
• Employment
• Who has a title or employer that indicates
  wealth?
• Who is in a sector that is performing well (or
  not)?

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Simple Searches (cont.)

• Which local companies have the most employees who
  donate to your organization? Which clusters give
  the most to my organization?
• Demographic
• Who is married?
• Who does not have children?
• Giving
• Who has given the most (money and/or frequency)?
• Who gives stock gifts?

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Simple Searches (cont.)

• Inclination
• Who has given the most?
• Who gives most frequently?
• Who has given for many years?
• Engagement
• Who attends the events?
• Who volunteers the most?
• Who has responded favorably toward your diocese
  in surveys?
• Demographic
• Who is related to other constituents in our
  database?

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How do we get there?

• A process of filtering or refinement, based on
• Previous giving behavior
• The ability or capacity to give at a major
  level
• The likelihood or propensity to give to your
  diocese or specific ministry
• Interests aligning to the mission and impact of
  your ministries

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Digging Deeper Exploring their Capacity to Give

• Individual electronic screening, exploring
  significant career exploits, other donations
• Specifically Find actual assets and income held
  by a constituent
• Database screening
• Peer evaluation
• Prospect research
• Evaluate and validate this research with a Team
  Approach

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Digging Deeper Exploring their Propensity to Give

• Personal Visits / Surveys
• Peer evaluation
• Incorporate Likelihoods or Propensity Ratings
  into Team Approach

Source www.fundraisingresearch.inf
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Your Introspective vs. Their Interest

• Define and internalize the impact of your diocese
• Align interest characteristics to these impact
  areas
• Create custom surveys for constituents to self
  identify an area of interest
• Align ministry preferences to interests
• Use the depth of Team Approach to code
  constituent interests

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Profile of one Planned Giving Donor

• John Jones Age 62
• Recently chose early retirement from management
  level job at manufacturing plant
• Has given consistently to the Diocesan Appeal at
  a moderate giving level of 150 per year.
• Attends Catholic Charities functions with some
  regularity
• Gave 5,000 to the Diocesan Capital Campaign,
  paid out over 5 years.
• Was active in his parish before his wife passed
  away
• Widower
• 3 grown children
• Chose Charitable Gift Annuity Option

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Sample Profile of Major Donor

• Joe and Kristin Jackson Ages 41/38
• Dual career family
• Have given sporadically over the years to the
  Diocesan Appeal, usually with an outright gift of
  1,000
• Attends no diocesan activities that were aware
  of
• Made a one time gift of 5,0000 to the Diocesan
  Capital Campaign
• Not active in their parish
• Have 2 small children
• Kristin is on the Board of a local nonprofit
• Made 10,000 Gift to last years Appeal

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Questions for the Group

• What are the characteristics of our major and
  planned giving donors?
• What distinguishes our lifelong donors from our
  top outright donors?
• Our major donors tend to be of a generation that
  is passing what is different about the next
  generation?
• Which types of people do your gift officers
  cultivate most efficiently and effectively?