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Criteria for Marketing an IRA Charitable Rollover Contribution

A Virtual Giving client recently asked us about the target audience for the IRA Charitable Rollover…

We plan to notify our donors about the re-authorized IRA R/O and would like to get your opinion on our utilizing the following criteria in choosing those to contact:

• Age. (70+ years old, of those we have age data for in our database).
• Number of gifts (donor loyalty). Should this be a factor for IRA R/O gifts?  If so, what number of gifts do you think is a good indicator?
• Gift amount. We typically don’t look at gift amount for planned gifts. We suspect, however, that larger annual gifts might be a good indicator for larger IRAs.

Depending on resources, we may send letters to most and emails to others. We look forward to hearing your thoughts on this. 

The reality is that IRA R/O gifts are just another pocket from which donors over age 70.5 can make an outright gift. Instead of reaching for cash, appreciated stock, or other assets, they can reach into their IRA accounts and make a gift directly to charity.

Accordingly, loyalty and gift amount are not particularly important.

I am advising clients to send information about the IRA R/O to all individuals on their database who are age 70.5 now or who will be by the end of 2011.

For sequencing, I suggest sending an e-mail right away, followed by a postcard or letter in January, followed by another e-mail before January 31, so that people can take advantage of the 2010 provision. This is much more than I would normally recommend, but because the provision was passed late in the year, you need to get this information in front of your prospects.

I am then suggesting an additional mailing/email fairly early in 2011 and again at the end of 2011, for next year’s IRA R/O. If you cannot make all these “touches,” then drop the early 2011 sequence, because you will just have informed donors in late 2010.

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