Planned Giving Direct Marketing using a Call Program MPGC Conference November 2009

1. Planned Giving Direct Marketing using a Call ProgramMPGC Conference November 2009 Laurel Hardgrove, Director, Ridgeview Foundation Doug Stasek, Vice President, Ridgeview Foundation

2. In this session, we will share: • Why the time is right to ask for planned gifts • Two case studies where a call program was used to direct market planned giving • 2008 at Ridgeview Foundation in Waconia • 1998 at London Health Sciences in Canada • The results • The learnings • Discussion regarding how this information might benefit you and your organization

3. Let us get to know you …… • Sectors Represented • Years of Experience • Size of Planned Giving Program

4. Why the Time is Right to ask for Planned Gifts ….. • Intergenerational Wealth Transfer—Study at Boston College and Cornell University revealed that: • $41 trillion to $135 trillion dollars in the next 50 years • $6 trillion to $25 trillion dollars in charitable bequests • Decima Research—7% of Canadians will support a charity through their will or estate plan. If charities ask for a planned gift, the response increases to 34% • Stelter and Selzer & Company Inc.—90% of Americans currently make annual gifts, 7% have made planned gifts. Potential for an additional 10% to make planned gifts

5. Why use a Call Program? • Quest to find the most effective way to build relationships with Ridgeview Foundation donors • We wanted a dialogue with our donors, and a better rate of response than direct mail • We tested a pool of Annual Fund donors who had “lapsed”—not given for at least 2 years and as long as 5 years back—to refresh their support • We also wanted to ask some of our loyal, frequent donors to consider a Legacy gift to support Ridgeview

6. Ridgeview Foundation’s Context • Small, 109 bed hospital in west metro • Young Foundation with start up planned giving program and 12 confirmed planned gift commitments • Foundation in $30 million capital campaign • During the campaign, some donors had given for the first time • Timing: October and November 2008 • Regionalized database, focused on donor retention • Premier programs—Emergency, Cardiology and Cath Lab, Birthing Center, Orthopedic and Joint Replacement, Cancer Care, Hospice and Home Care

7. Ridgeview Foundation’s Experience • The Legacy Call Program focused on Annual Fund donors • 2300 donors who had made 3 gifts in the last five years were selected • The letter, signed by our hospital CEO, asked donors to consider a Legacy gift to benefit Ridgeview Medical Center • The mail package included the CEO signed letter, a bequest confirmation form, and a response envelope

8. Follow up and Results • In follow up calling, we made contact with 909 donors--3.9% or 35 donors said they either had or will make a planned gift to Ridgeview. Three have already sent in their Bequest Confirmation Form. • A further 16 said they would consider making a planned gift, and an additional 40 are very warm prospects for a future planned gift. • A total of 91 donors and interested prospects emerged from this calling—a 10% response!

9. Investment in the Callers • Important to spend time training Callers to speak on the Foundation’s and Hospital’s behalf • ARIA Call Center from St. Cloud • 5 Callers came and toured the hospital, ate lunch in the cafeteria, met the CEO • Trained on Ridgeview’s premier programs, Annual Fund, Planned Giving overview • Important to empower our front line of communication to speak with our donors!

10. London Health’s Experience • London Health Sciences, large teaching hospital in Canada (1000 beds), was the “beta site” for Legacy Leaders in 1998 • Young Foundation, thousands of grateful patients each month, yet only 30 confirmed planned gift commitments • Not as much incentive in Canada for planned gifts—ie. no estate tax • Foundation in $104 million capital campaign • During the Campaign, some donors had given for the first time • Mail/Phone program aimed at annual donors to the foundation • Timing: Spring 1998 • Premier programs—Emergency, Cardiac, Transplants, NICU, Orthopedic and Joint Replacement, Regional Cancer Care

11. Follow up and Results • Donor selection criteria: • Annual donors who have made 3 gifts over the last 5 years • Special event attendees – 2 or 3 events over the last 3 years • Hospital volunteer for at least a year • Cumulative giving of over $1000 • In house call center and group of callers • Mail package included physician signed letter, customized brochure, bequest confirmation form, and reply envelope • End result—495 new donors pledging over $11.7 million!

12. Selection Criteria: Number in the category: Response Rate: Annual donors--3 gifts in last 5 years 8600 6.3% Special Event Attendees 69 7.3% Hospital Volunteers 280 8.6% Leadership Donors of $1000 1200 10.2% Donor Groups Called with varying Response Rates Number in the Category: Selection Criteria: Response Rate:

13. Age Breakdown

14. LHSF Call Program Donors by Age

15. Age Data from Stelter Research • 75% of annual fund donors ages 40 to 55 have not been approached by a charity to consider a planned gift! • “Annual donors have already demonstrated that they believe in a charity’s mission. They just need to be asked to give differently, and now is the perfect time to initiate that conversation.”

16. Results ….. Years later ….. • Hundreds of confirmed planned giving donors at London Health Sciences Foundation • After 9 years, $1.7 million in realized cash gifts from the original 1998 calling, average $60,000 bequest • The honor of planned giving—3 families with undocumented planned gifts who came forward

17. Lessons Learned • We have to get asking! • Build relationships after the call, stress recognition and your Legacy giving club • Record every prospect and donor comment in the donor database • For this program to be truly effective, collaboration with Annual Fund colleagues • The Call Program contacts prospects who wouldn’t otherwise be visited—”the lost prospects”

18. We want your thoughts and feedback …. • What conclusions do you draw from this? • How do you see applying this information to your organization? • Questions?

19. George Bernard Shawon “Leaving a Legacy” “I am of the opinion that my life belongs to the community, and as long as I live, it is my privilege to do for it whatever I can. I want to be thoroughly used up when I die, for the harder I work, the more I live. Life is no ‘brief candle’ to me. It is a sort of splendid torch which I have got hold of for a moment, and I want to make it burn as brightly as possible before handing it on to future generations.”