using prospect research to boost giving

Using Prospect Research to Boost Giving

Presented on13 Jan 2009


Jennifer J. FillaPresident

Aspire Research Group LLC

www.AspireResearchGroup.com

13 January 2009



Defining Prospect Research

What is it?

• Anonymous collection, summary, analysis & presentation

• All public sources

Privacy Concerns*

• Appropriation

• Intrusion

• Public Disclosure of Private Facts

• False Light

The ONLY purpose for the researched information is to help you develop a deeper relationship with your prospects and donors.

APRA Statement of Ethics on www.aprahome.org

*(Source: Wites & Kapatan, P.A., Florida Litigation Guide, retrieved on 11/28/08 from:http://www.floridalitigationguide.com/guide/35.php)



What makes a good prospect?

– Recency

– Frequency

– Longevity

– Income

– Assets



Research in the Cycle

Database

Data miningWealth ScreeningPeer Review

Screening confirmationProspect Profiles



Identify with Data MiningFinding prospects inside your database

Data mining analyzes the information contained in your database and finds patterns that suggest or predict which types of people are more likely to give at various levels. This method can use advanced statistical models as well as simple filtering searches.



Data Mining

Affinity and Inclination

• Recency, frequency & longevity

• First gift is a big one or a pledge

• Giving increases

• Attendance at events and/or volunteering

• Benefited from services

• Giving history – private foundation

Wealth

• Securities

• Occupation/company ownership

• Real estate

• Family tree

• Luxury items

• Age

• Giving history – private foundation

Note on Planned Giving: Affinity + Age

Querying on indicators



Identify with ScreeningsPrioritizing your Prospects

• Vendor wealth screenings– Blackbaud Analytics

– DonorSearch.net

– Target America

– Wealth Engine

• Board and staff review



Research for WealthProspect Profiling

Elements of a Prospect Profile

• Biographical– Age, family, education

• Giving– Gifts, community involvement,

family foundations

• Occupation

• Assets– Securities, real estate, collections, luxury items

• In the News



Impact of RecessionNational Business Sector Trends

Declining• Financial

– Banking

– Investments

– Mortgages

• Housing– Real estate

– Construction

• Automotive

Recession-Proof• Funeral homes

• Tax accountants

• Bankruptcy lawyers

• Waste collection

• Debt collection

• High-end personal services like cleaning and lawn care

• Bartering & trade like CraigsList

• Soup & food staples

Emerging• Info services

• Computer systems & Software

• Employment services

• Mgmt, science & technical consulting

• Home health care

• Childcare services

• Motion picture/video

Source: Inc.com, 2005



Impact of RecessionFlorida Forecasts 2009-2011

• Positive growth is forecasted for Education and Health Services (2.5%).

• Florida’s housing construction sector bottoms out later and lower than expected in the second quarter of 2009.

• Professional and Business Services and Leisure and Hospitality both will contract slightly on average (-0.03%).

Source: Florida & Metro Forecast by the Institute of Economic Competitiveness, UCF College of Business Administration, December, 2008.



Analyzing Giving Trends

• Entrepreneurs are less likely than all other donors to give to environment or religion. They are more likely to give to a foundation, for international aid or for human services.

• Investors were more likely to give to education, environment, foundations, and religion. They were not less likely than people with other types of wealth to give to any particular type of charity.

• Donors with wealth from real estate were more likely than other donors to give to campus-wide initiatives and to “service-related” fields. They were less likely to give for science or technology, and no gifts were reported to libraries.

Center on Philanthropy at Indiana University. 2008. An Analysis of Million Dollar Gifts: January 2000 – September 2007. (New York: CCS).



Determining the Ask Amount

• Explore during cultivation why the prospect gives to you and/or others

• Review the capacity rating and the history with your organization

• How close is the prospect? A first gift, step-up gift, or stretch gift?

• Choose an amount that fits the prospect’s ability and the organization’s need



True or False

1. All information found in the public domain is suitable to include in a profile

2. You have to buy data mining and wealth screening services

3. Research can learn how much is in a trust fund

4. If you use a wealth screening vendor, you don’t need a profile before a major gift solicitation

5. A loyal donor without any typical wealth indicators is a good planned giving prospect



Using Prospect Research to Boost Givingby Jennifer J. FillaPresidentAspire Research Group, LLC610.566.5113jen@aspireresearchgroup.comwww.AspireResearchGroup.com

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http://www.aspireresearchgroup.com/Documents/PResearch2BoostGiving.AFP2008

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