Four words make up the title of this article. What’s your understanding of them?
Am I saying thank you for my engagement with your awesome country and people?
Am I dying or retiring? After all, I am now (supposedly) an oldie.
Neither answer is true, yet we can easily assume so much from just four words.
Thank you
Look at your most important letters—those to legacy enquirers, pledgers and next of kin. Do you use some god-awful template? I hope not.
Are you stuck using standard paragraphs which all baby boomers know is a template? Which is not really a thank you at all— it is mechanical, not human.
Do you use “condolence” when dealing with next of kin of a legator? It is a hated word, especially if the death is dementia-related when death can be a release for both halves. And what is a condolence? Sympathy and pity, and many want neither. They want empathy—best expressed by saying “I cannot imagine what you are feeling” (or something similar).
Goodbye
No, I am not (to my knowledge) dying. And I am not retiring – I would drive my family to distraction and be horribly bored.
In this instance, goodbye relates to “say goodbye to receiving a legacy to your charity”—an increasingly common act as engagement/relevance/trust/confidence diminishes.
Marriage is not always forever. Nor are legacies.
Today’s intelligent donor prospects are marketing-savvy people who will investigate you to ensure their legacy to you is a good investment. They need to be respected as equals.
A whiff or sniff, of doubt in the wisdom of leaving a legacy to your charity and out you will go.
On average 43% of pledgers fulfil their pledge. Reasons for lack of action will only be known when I can interview the dead, so I hope you will have a wait a while for the answer. For now, here are some factors to consider:
1. Marriage
Putting their gift in their Will is a serious act of trust and confidence which takes 5-7 years, the period is long NOT because of charities, but due to personal/family needs.
A quick unconsidered marriage proposal is likely to be a failure and the same applies to legacy giving.
2. Divorce
Divorce rates (a primary Will making/changing motivation) dropped during Covid in most countries. Will this continue? There were 60,000 divorces annually in Canada for years but dropped to 43,000 in 2020. Why? Because of lack of access to court services during Covid. Watch this space.
The average age at divorce is 46 and most couples separate before divorce. Interestingly common law couples will never mirror divorce rates – especially in Quebec! Common law couples have increased from 6% to over 20% and Wills are even more important for this sector.
3. Timing
The next Will starts its planning at 55-60 when lifestyles for everyone are more settled and when charitable legacies are seriously considered.
DO we know the journey of a Will?
Answer: we do not have a clue as to when prospects are:
Which confirms that a constant reminder of the impact of gifts in Wills far outweighs the benefit of any legacy brochure sent once.
But importantly: It is not when Wills are made which is important – it is the start of their estate planning which plays a more important role. And we have no idea when it might be for any prospect.
The common law(s)
What have been the most common statements in ALL focus groups in every country?
1. KISS. Keep It Simple Stupid.
The simpler the process, the more likely testamentary action is.
Which is why so many Americans are changing terminology from planned giving to legacy giving.
and,
2. What will be the impact of MY legacy?
Over 70% of baby boomers I’ve met in the last three years are putting their legacies in a “Letter of Wishes” – a non-binding document which can ADD (truly) evidence of “your wishes” in a court of law according to a majority of legal advisers. Why? Because you are unlikely to ever have to change your Will. It can constantly meet your personal needs – especially in a time of financial uncertainty. And it can be cost free. And they can change their mind in a second!
Result
Legacies are driven by knowledge of impact and a truly great thank you and engagement in the way your prospects WANT engagement – which ranges from a one-on-one meeting to nothing.
I know this is now obvious but, just like marriage: get to know your prospects REALLY well.
Would you get married after receiving a templated letter of proposal from a future partner?
Richard Radcliffe is Founder of Radcliffe Consulting (www.radcliffeconsulting.org) and bases his opinion on views expressed by prospects he meets. After 30+ years in the legacy business he still does not know everything which drives his enthusiasm.
