The Planned Giving Pulse interviewed Michael J. Rosen, CFRE, about outsourcing planned giving.  How does an organization determine if they should be outsourcing planned giving, and what should they be asking potential providers?

Michael J. Rosen, CFRE, is Executive VP of Client Development at Legacy Leaders in Philadelphia and Toronto.  In addition to being a frequent speaker at conferences, Michael was an independent fundraising consultant and the co-founder and co-owner of The Development Center, a pioneering direct mail telefundraising company (1982-1997). 

Pulse:  How do you determine if you should be outsourcing your planned giving program? 

Rosen:  If you are able to have effective face-to-face conversations with all of your prospective planned gift donors, either directly or with one of your key volunteer leaders, then you may not need to outsource.   On the other hand, if you are unable to do that with everyone you should be talking with, and/or if you are not confident that those conversations are the most effective that they could be, then you need to consider seeking assistance from the outside.

Pulse:  What are some of the benefits of outsourcing?

Allows an Organization to Reach a Greater Number

There are a number of benefits that include being able to actually have a personal conversation with every prospective planned gift donor.  I see that both as a benefit to the organization and to the donor.  A planned gift prospect is someone who generally has been supportive of the charity over time.  As a service to that individual, effective charities will provide that individual donor with information that will help him or her fulfill the donor’s philanthropic objectives over time.  If you are not having that conversation, you are not raising the maximum dollars for the organization and are not giving donors adequate information to help them fulfill their philanthropic aspirations.  Good development and good stewardship necessitate having highly personalized conversations with donors about planned giving opportunities.  If those conversations are not occurring, then that says something not too flattering about a development program and a stewardship program.  If an organization has the expertise and a sufficient number of skilled solicitors to have the conversation with the donors, they probably don’t need to outsource.

Brings Highly Expert Advice

Outsourcing brings expertise to the process and provides the ability to have highly personalized conversations with vast numbers of prospects in a short time.  Because a service provider has worked with a large number and wide variety of non-profit organizations, they will have the expertise to develop the best possible solution for their clients while avoiding pitfalls that might not be apparent to someone less experienced.  The simple fact is that even a seasoned development professional with a 20-year track record will likely not have as much experience with bequest solicitation campaigns as an established service provider.

Allows Staff to Focus Efforts

The ideal is that Executive Director, along with the Chair of the Board, will be able to sit down and have coffee with every single planned giving prospect.  But since that’s not practical, you have to look at what is the best possible utilization of those staff and volunteer resources, and at the same time have mass personal communication to prospects that cannot be seen.  Outsourcing allows organizations to utilize their resources to the best of their ability.  It allows staff, in a very short period of time, to have high-level communications with prospective donors, without incurring the additional cost of permanent staff.

Quickly and Dramatically Grows Program While Containing Cost

Outsourcing can dramatically build a Planned Giving program quickly without having to expand staffing, thereby providing a very cost-effective way to build the program.  It supplies a whole raft of additional donors and prospects for staff and volunteers to work with on a stewardship basis.

Pulse:  What should you be asking potential providers?

Rosen:  How long has the provider been in business?

·         Is the provider a marketing company that happens to do fundraising?  Or is the company comprised of fundraisers that are doing planned gift marketing?

·         What is the scope of experience?  Does the provider have experience in your market niche, but also do they have experience throughout the non-profit sector?  The diversity provides broader knowledge applicable in any environment.

·         What is the provider’s track record?  (Actual results)

·         Ask for references.  Talk to people who have used a company.

·         Ask for information about a campaign that did not go as expected.  That is often where you get the really revealing information.   References provide good comments.  Situations that didn’t go as expected or go well - if the company is not forthcoming about this, the company hasn’t been in business long, or you know they are lying.  If a company has been in business long enough, what separates the good guys from the bad guys is how they deal with challenges when they arise.  You learn about how creative they are, their integrity, how proactive they are.  You learn a lot when you look at a case study like that. 

·         Find out whom you will be working with (Specific staff).  Is the person who signs the contract who you will be working with?  Or will they disappear and you will be given a junior staffer?
 

·         How well do they listen?

·         Look at a company’s commitment to the profession.  Are they giving back?  Do their fundraising peers respect them?  Are they invited to speak at conferences?  Are they invited to publish?  Are they committed to professional ethics?  It is a measure of both a company’s commitment to the profession but it is also a way to understand the level of respect that an organization engenders within the profession.

An active author, Michael J. Rosen, CFRE, created and writes the World View column in Advancing Philanthropy magazine.  He also sits on the Editorial Board of the International Journal of Non-Profit and Voluntary Sector Marketing and has contributed to the book, “Membership Development:  An Action Plan for Results.”