Market Analysis – 80142111 – Legacy marketing

Market Analysis: Legacy Marketing (80142111)

1. Executive Summary

The global market for legacy marketing services is estimated at $2.1 billion for 2024, driven by non-profits seeking to capture a share of the multi-trillion-dollar "Great Wealth Transfer." The market is projected to grow at a 6.8% 3-year CAGR, fueled by an aging Baby Boomer population and increased sophistication in fundraising. The primary opportunity lies in leveraging digital platforms and data analytics to identify and cultivate potential donors at a lower cost-per-acquisition, disrupting traditional high-touch, high-cost consulting models.

2. Market Size & Growth

The global Total Addressable Market (TAM) for legacy marketing services is driven by the marketing and consulting spend of non-profit organizations targeting bequests and other planned gifts. This spend represents a small fraction of the total value of bequests, which exceeded $45 billion in the U.S. alone in 2022 [Giving USA, June 2023]. Growth is expected to remain robust as demographic trends unlock unprecedented levels of philanthropic capital.

Largest Geographic Markets: 1. United States: est. $1.1B 2. United Kingdom: est. $350M 3. Canada: est. $150M

3. Key Drivers & Constraints

1. Driver (Demographic): The "Great Wealth Transfer" is the single largest driver, with an estimated $70 trillion expected to pass from older generations to heirs and charities in North America alone over the next two decades.
2. Driver (Non-Profit Strategy): Increasing professionalization of fundraising departments is shifting focus from small, annual donations to high-value, long-term planned gifts, which require specialized marketing expertise.
3. Driver (Technology): The adoption of AI-powered analytics and digital estate planning platforms enables more efficient identification, segmentation, and cultivation of potential legacy donors.
4. Constraint (Economic): Market volatility and recessions can create uncertainty, causing potential donors to delay or reconsider large, future-dated philanthropic commitments.
5. Constraint (Competition): A finite pool of high-net-worth donors is being targeted by a growing number of non-profits, increasing marketing "noise" and driving up acquisition costs.
6. Constraint (Regulatory): Data privacy regulations (e.g., GDPR, CCPA) restrict the methods used for prospect research and targeted outreach, requiring a greater reliance on inbound and content marketing strategies.

4. Competitive Landscape

Barriers to entry are Medium, defined not by capital but by the need for deep expertise in fundraising, tax law, and estate planning, as well as the trust and reputation required to advise on sensitive financial matters.

⮕ Tier 1 Leaders * Blackbaud: Dominant non-profit technology provider offering integrated CRM and analytics tools that support legacy marketing programs. * Grenzebach Glier and Associates (GG+A): Premier philanthropic management consulting firm providing high-touch strategic counsel for major fundraising campaigns, including planned giving. * Stelter: Full-service marketing agency focused exclusively on planned giving, offering end-to-end creative, digital, and print solutions. * R&R Newkirk: A long-standing specialist in planned giving marketing, providing educational content, newsletters, and consulting services.

⮕ Emerging/Niche Players * FreeWill: Disruptive tech platform offering free online will creation, which has proven highly effective at generating new bequest commitments at scale for its non-profit partners. * MarketSmart: A technology and services firm using marketing automation and engagement tracking to qualify planned giving prospects for major non-profits. * Giving Docs: An online estate planning platform that partners with non-profits to facilitate charitable giving within the will-creation process. * Accordant Philanthropy: A consulting group focused on building grateful patient and family fundraising programs within healthcare, a key source of legacy gifts.

5. Pricing Mechanics

Pricing is predominantly service-based, reflecting the high cost of specialized talent. The most common models are monthly retainers for ongoing strategic support and program management ($5k - $25k+/month) or fixed-fee projects for specific deliverables like a marketing campaign or a feasibility study ($25k - $150k+). Commission-based pricing (% of gift value) is strongly discouraged by industry ethics bodies like the Association of Fundraising Professionals (AFP) and presents a significant reputational risk.

The price build-up is dominated by labor costs, including senior strategists, creative teams, and digital marketing specialists. Technology platform fees (e.g., marketing automation, analytics software) and direct marketing expenses constitute the remainder.

Most Volatile Cost Elements (last 12 months): 1. Specialized Labor (Senior Strategists): est. +8% to 12% 2. Digital Media (Targeted Ads): est. +15% to 20% 3. Direct Mail (Paper & Postage): est. +10% to 15%

6. Recent Trends & Innovation

• Digital Estate Planning Integration (2021-Present): The rapid growth of platforms like FreeWill has demonstrated the power of embedding the charitable ask directly into the digital will-creation process, dramatically lowering the barrier for donors to make a bequest.
• AI for Prospecting (2022-Present): Suppliers are increasingly using AI and predictive models to analyze an organization's internal donor database, identifying individuals with the highest propensity for planned giving based on hundreds of behavioral and demographic data points.
• Rise of Non-Cash Asset Gifts (2022-Present): A growing focus on marketing for gifts of appreciated stock, real estate, and cryptocurrency, which requires specialized content and expertise beyond traditional cash bequests.
• M&A Activity (May 2023): Thompson & Associates, a leading estate planning consulting firm, acquired R&R Newkirk, signaling consolidation among established players to create more comprehensive service offerings.

7. Supplier Landscape

8. Regional Focus: North Carolina (USA)

Demand for legacy marketing services in North Carolina is High and Growing. The state is home to a robust non-profit sector, including world-class universities (Duke, UNC System) and major healthcare networks (Atrium Health, Novant Health) that are prime beneficiaries of legacy gifts. Furthermore, NC's status as a top retirement destination continually expands the pool of high-net-worth individuals in the prime demographic for planned giving. The Research Triangle and Charlotte areas concentrate significant wealth and have strong local supplier capacity, including regional agencies and satellite offices of national firms. North Carolina's favorable business climate and labor costs, relative to Tier-1 markets, make it an efficient location to manage such programs.

9. Risk Outlook

10. Actionable Sourcing Recommendations

1. Pilot a "Core-and-Flex" Supplier Model. Contract an established strategic firm for high-value donor strategy ("Core") while piloting a tech platform like FreeWill for broad-based, low-cost bequest generation ("Flex"). This approach balances deep expertise for top-tier prospects with scalable, cost-effective technology for wider audience engagement, aiming to reduce the blended cost-per-lead by est. 30-40%.

2. Incorporate Performance-Based Pricing. In new RFPs, mandate that 15-20% of the supplier's fee be tied to tangible, leading-indicator metrics (e.g., number of qualified prospects identified, documented bequest intentions). This shifts a portion of the risk to the supplier and incentivizes a focus on measurable outcomes over billable hours, improving ROI transparency.