tax effective giving – making donations stretch further concern’s experience
TRANSCRIPT
Introduction
Concern
• Aid agency• Formed in 1968• Tax Campaign since 1995• Tax income reclaimed to date €22.8 million
Scope of today
Tax-effective giving
• Criteria for claiming• Tools for capturing & handling donor data • Tools for contacting donors• Handling & monitoring responses• Follow on donor communications
Steps involved
Mary Kenny - €250 to Concern in 2009 Lives in Dublin Works in a bank and pays higher rate tax 2010 Concern sends 2009 tax form for the €250 Mary signs it and returns it to Concern Concern submits claim to Revenue to reclaim the tax
Mary paid on the €250 Revenue sends Concern cheque for €174
Criteria for Claiming
Whose eligible? Gave €250+ within a tax year Individual Tax payer in Republic of Ireland PAYE taxpayers Claim at the higher 41%
or Claim at the standard 20% Ethiopia
Criteria for Claiming
Whose not eligible?
Self-Assessed– Claim on their own tax returns/self-assessment
form
Corporate– Claim as if it were a business expense
Additional Information
• Married couples
• OAP
• No upper limit
• Collected money
• Legacy donations
€250 donation
• Higher Rate Taxpayer
– Claim 69.5%• Donation of €250, claim back €174
Standard Rate Taxpayer
– Claim 25% Donation of €250, claim back €63
Capturing & handling data
1. Capture contact details
2. Capture financial details
3. Capture tax related details
4. Prompt tax effective ask amounts
2006 New Approach
Income
2003 – 2005 = €1.76m
2006 – 2009 = €3.7m
Response rate
2003-2005 = 37%
2006-2009 = 50%
Tools - Contacting Donors
Direct Mail Email Telemarketing Text Messaging Radio Online Response forms
Direct Mail
• Who are we talking to?
• What is our message to them?
• Why should they act?
• How should they respond?
Who are we talking to?
• Existing Concern donors only
• Their donations equate to €250 or more within a tax year
• They are PAYE tax payers only and pay ROI tax
• They are already predisposed to the Concern cause
• They are open to receiving communications from Concern
What is our message to them?
Strong message that will intrigue and interest the recipient
Simple straightforward style that quickly demonstrates how easy it is to give yet more money to Concern
Personal and friendly tone of voice
Immediate action needed to continue the work that Concern is already performing with the donations
Use AIDCA formula
AIDCA
• Attention - avoid being discarded
• Interest - start & continue reading
• Desire - want to help
• Conviction - reaffirm worthy of support
• Action - easy and immediate response
Attention
• Personalised
• Unusual, exciting or colourful formats
• Relevant to person or intriguing
1. Attention
Interest
• What is it you want me to know?
• Telling the story and showing the need
– Using case studies– Facts and figures that
are understandable– Make interactive
(questions)
2. Interest
Conviction
• Speak with confidence
• Will this donation make
any difference?– Use testimonials– Guarantees of cost-
effectiveness
4. Conviction
Why should they act?
• It is at no extra cost to the donor
• It will provide extra funding
• It is simple - sign and send
How should they respond?
Response mechanism is vital – Tax form and envelope
Easy to read and understand
Easy to complete and donate/reply
Response handling
Tax Administrator
All administration issues Cleans data Record all responses Submits claim Files all responses (audit/Revenue Inspection)
Recap
Ensure all donor details are captured and recorded
Ensure the donor selections factor in claim criteria
Ensure the contact tools used have a clear message with call to action
Ensure all details of the claim are correct before submitting
Give your donors an update on the total received