Using Data to Identify Potential Donors - PowerPoint Presentation

Slide1

Using Data to Identify Potential DonorsSession forSymposium on Rural PhilanthropyJuly 17, 2012Slide2

Scope of SessionRole of Prospect Research

Preparing for Prospect Research

Ethical Considerations

What Are You Looking For?

Wealth

RatingsAdditional ResourcesSlide3

Role of Prospect Research

Find and verify

Ability

to make a major giftInterest in your mission Links to your organizationAlso consider

Philanthropic behaviorSlide4

ANDorganize, record, protect, analyze, package and disseminate relevant prospect and donor information.Take the long view!

Role of Prospect ResearchSlide5

Professionalize Prospect ResearchCentralize all donor and prospect informationInvest in a database designed to store information that can be accessed and analyzed.

Invest in database training (or you will end up with Excel spreadsheets)

Establish

written policies to protect donor informationEstablish written procedures governing database usageSlide6

Prospect Research EthicsSlide7

AFP’s “Donor Bill of Rights” APRA’s “Statement of Ethics”

Ethical Considerations

Confidentiality

Accuracy

Relevance

Self-responsibilityHonestyConflict of Interest

A donor has a right to see any information you have collectedSlide8

DiscoveryEnough information to merit initial contactCapability, Interest, LinkageCultivationSpot research as neededMuch of the research is done through contact with the prospectPre-solicitation (0 to 6 months)

Full profile, everything that will influence successful solicitation

Levels of ResearchSlide9

Role of Prospect ResearchMAJOR GIFT PROSPECTInterest/Linkage -- Gift history, volunteer activity, shared values, membership, family link, beneficiaryPhilanthropic behavior

-- Gifts to any organization, political contributions, religious affiliation

Wealth Indicators

-- insider, private company ownership, occupation, real estate, private equity, club membership, foundation or donor advised fund, gifts to other orgs

What Are You Looking For?Slide10

Income often is not relevant nine out of 10 planned gifts are bequests.Consistent annual fund donorVolunteerAge 40-60Educated – bachelors degree or higherMotivated by helping others, religious beliefs and giving back

What Are You Looking For?

PLANNED GIFT PROSPECT Slide11

PLANNED GIFT PROSPECT cont’d.Single or widowedMarried with few or grown childrenWants to provide for loved onesConcerned about retirement incomeTax concernsBequest Donors: Demographics and Motivations of Potential and Actual Donors. Prepared for Campbell & Company by Center on Philanthropy at Indiana University, March 2007.

What Are You Looking For?Slide12

Where is the Information?Your database – gleaned from annual fundGift history – size, frequency, appeal response, fund Event attendanceVolunteer activityBeneficiaries of grants and scholarships

Prospect contacts

– staff, board members and other volunteers

Publicly available resourcesCommercial databasesCommercial screening and data append servicesFree resources online and through librariesSlide13

Wealth Center on Wealth and Philanthropy Giving USA

Bank of America Study

The Millionaire Next Door

by Thomas J. Stanley (1996)Rural Policy Research Institute

Transfer of Wealth in Indiana StudySlide14

Respondents by source of wealthSome or all from inheritance/gifts -- 50.9%Some or all from business or professional efforts -- 89.1%Some or all from investment -- 75.5%

All from inheritance/gifts -- 3.6%

All from business or professional efforts -- 11.8%

All from investment -- 0.9%

Wealth

Source: "Extended Report of the Wealth with Responsibility Study / 2000."Paul G. Schervish and John J. Havens, Boston College, March 2001Slide15

Wealth“There is a growing body of evidence on the critical role that entrepreneurs and small businesses play in driving local and national economies. The structure of rural economies is essentially composed of small enterprises, which are responsible for most of the job growth and the innovation. Moreover, small businesses represent an appropriate scale of activity for most rural economies. “Rural Policy and Research Institute website http://www.rupri.org/entrepreneurship.phpSlide16

Chambers of CommerceUSA Chamber of Commerce DirectoryDirectory of Local Chambers of Commerce and Visitors BureausWealth in Your CommunitySlide17

Wealth in Your CommunityZoominfo1) Create list of businesses in your community based on location, revenue, and/or number of employees2) Go to business’ website to identify stakeholders3) Research stakeholders

Dun & Bradstreet

Hoover’s Online

Reference USA

Commercial resources that may be available through you library.Slide18

Wealth in Your CommunityReference USA is available online from many public libraries through

Midwest Collaborative of Library Services.Slide19

Individual ResearchPublic Company ExecutivesSEC --Compensation, stock holdings, options activity of corporate insidersRead the help section, know forms Look for DEF-14A

Yahoo Finance

--

Financials, charts, historical information, news, insider rosters, stock ownership and recent activitySlide20

There is a correlation between political contributions and philanthropic giftsFEC Political Contribution FilingsCan drill down to formOpen SecretsQuicker geographic search

Wealth Indicators

Political ContributionsSlide21

NETROnline Needs updatingIndiana Assessor and Property Tax DirectoryCommercial websiteIndy.gov: Dept. of Local Government Finance

County

Assessor’s Website – look for GIS BRB’s Free Resource CenterWealth Indicators

PropertySlide22

Executive Salary Wizard (Public Execs)Salary.comJobstar.comPhysicians (Hope for orthopedic surgeons, neurosurgeons & radiologists)Indiana Professional Licensing Agency

Wealth Indicators

Occupation / SalarySlide23

Guidestar – more info with paid subscriptionFC Online – paid service might be available through your libraryChronicle of PhilanthropyIndiana Grantmakers AllianceAnnual ReportsGoogle search with name and “donor” or “gift”

Wealth Indicators

PhilanthropySlide24

RatingsRATINGS FORMULAS are not SOLICITATION AMOUNTSThe purpose of capability ratings is to identify, segment and prioritize prospects. It is a starting point. Solicitation amounts should be based on what is learned through building a relationship with the prospect.Slide25

BASED ON INCOMEThe average American contributes 2% of their income per year to charity. The percentage increases at higher levels of income.$100,000-$499,000 x 2.7% x 5 = gift capability$500,000-$999,000 x 2.9% x 5 = gift capability$1,000,000+ x 4.3% x 5 = gift capabilitySource: Martz & Lundy

RatingsSlide26

RatingsBASED ON REAL ESTATEReal Estate x 3 x 5% = gift capacityBASED ON STOCK HOLDINGS$100,000-$499,000 stock & options x 1%-4% = gift capacity$500,000-$999,000 stock & options x 5%-9% = gift capacity$1,000,000+ stock & options x 10% = gift capacitySource: Martz & LundySlide27

Rating

Basis of Initial Rating

Stock Holdings

Private Co Sales*

Property Holdings

Gifts to Other Orgs

1M+

$1M

$40M

$1.5M

$1M

100K - $1M

$100K

$10M

$650K

$100K

$50K - $100K

$50K

$5M

$350K

$50K

$25K - $50K

$25K

$3M

$200K1

$25K

Less than $25K

*

Where individual is owner, CEO, founder, principal or president

Ratings

Source: Benz, Whaley FlessnerSlide28

Ratings GridSlide29

Additional ResearchContact informationCareer informationCircles of InfluenceBiographical detailsInterestsSlide30

Searching Public DatabasesNot all search engines and databases use the same search languageNatural language

terms as you would use them in speech.

Boolean Language

uses connectors AND, OR, NOT, sometimesProximity indicators: NEAR, w/1, *

Parenthesis to groupthe order and use of parenthesis can change the outcome of the search

quotation marks for exact phrasesSlide31

Public Library Online ResourcesINSPIRE IndianaIndianapolis Marion County Public Library

General Information -- CollectionsSlide32

General Information -- GoogleUse

Advanced Search

or know how to use the standard search box – it makes a differenceSlide33

Individual Research – Contact InformationDirectories

http://www.anywho.com/

http://www.switchboard.com/

http://search.infospace.com/ispace/ws/indexReverse lookup

http://email.iaf.net/email-search.html

Email searchhttp://zip4.usps.com/zip4/welcome.jspZip codes List courtesy of David Lamb’s Prospect Research pageSlide34

Individual Research – Contact InformationSlide35

Biznar Deep web Creates “clusters” Individual ResearchBusiness and CareerSlide36

Google AdvancedLinkedInMucketyCorporate WebsitesBlue Golf

Individual Research –

Career / LinksSlide37

Individual ResearchThe Full PictureYou are the most important source of information about the prospect / donor

Get into the habit of filing contact reports and recording relevant information into your database.Slide38