PROSPECTIVE DONOR RESEARCH ASSOCIATION OF FUNDRAISING PROFESSIONALS ATLANTA CHAPTER
CFRE Review Course May 17, 2013
Ann-Laura Parks, CFRE
WHAT IS PROSPECT RESEARCH?
Data Analysis Technology Communication Tracking Ethics
TEST CONTENT OUTLINE
A
Develop a prospect list by identifying individuals and groups who have the capacity and propensity to give in order to qualify candidates for further research and cultivation efforts.
WHERE TO START? Cold
– Prospects you've identified as qualified but have little or no awareness of your organization.
Warm
- Prospects with whom you've previously spoken or met and have some awareness of your organization.
Hot
– Prospects you've successfully cultivated to the point of being ready for an ask.
Sources of Support
INDIVIDUALS* 73% of all giving + 8% in bequests Smaller gifts from more people Care about your cause Want to give back to the community Want recognition Costly to develop
* I include Federated Funds (United Way, Combined Federal Campaign, etc.) in this category.
Sources of Support
CORPORATIONS 5% of all giving Narrow range of interest Connects to business strategy In areas of operation, local community Employee volunteer involvement Reinforce brand; visibility Sponsorships, corporate philanthropy, matching gifts, in-kind
Sources of Support
FOUNDATIONS 14%
of all giving Private family foundations, community foundations & donor advised funds, trusts controlled by banks & law firms, etc. May fund only for specific issues & geographic areas Lengthy process Can sometimes be difficult to access
Sources of Support
GOVERNMENT Often
considered a contract for services Least flexible – must be exact match for RFP Tedious filing and reporting requirements More restrictions on how money can be used Capacity for detailed record-keeping
TEST CONTENT OUTLINE
B
Implement and utilize a data management system that stores information about prospects to enable retrieval and analysis.
WHAT SHOULD BE IN A PROFILE? Contact Age,
info
family, education, hobbies,
birthday Community
involvement/
Philanthropy Occupation Assets
(securities, real estate, etc.)
Giving
history
SOME INFORMATION SOURCES Your database The donor and/or peers Search engines LinkedIn opensecrets.org State & local government sites Foundation Center GuideStar Hoovers, Edgar Online, LexisNexis, sec.gov Grants.gov & CFDA.gov
ETHICS Stakeholder Assets All
trust and confidence
are managed and accounted for
data are collected/used properly
Donor
privacy and rights are maintained
Secure
& confidential; access to files is limited
Discussions
internally
about donors occur only
AFP CODE OF ETHICS 
#10: Members shall protect the confidentiality of all privileged information relating to the provider/ client relationships.

#17: Members shall not disclose privileged or confidential information to unauthorized parties.

#18: Members shall adhere to the principle that all donor and prospect information created by, or on behalf of, an organization or a client is the property of that organization or client and shall not be transferred or utilized except on behalf of that organization or client.
TEST CONTENT OUTLINE
C
Analyze the prospect list using characteristics such as interest, values, giving history, and relationship to the organization in order to select potential donors for particular projects.
ANALYSIS
Data Mining
Look for patterns & trends that inform planning Determine donor/prospect segments Find links between donor/prospect & organization
Wealth Screening
Are there potential major donors hiding in your database? Prioritize where you should put your effort
PROSPECT ATTRIBUTES The Linkage, Ability, and Interest (LAI) principle is one way to rate prospects. For a potential donor to become a qualified prospect, three criteria must apply.
Linkage - a connection through a peer to the potential donor.
Ability - the perception that the prospect has a gift capability at a certain level.
Interest - Interest in and an understanding of the mission and accomplishments.
DONOR SURVEYS
Methods include questionnaires, focus groups, interviews
Decide what you want to know
Find out donor perceptions
Measure donor satisfaction
What motivates giving? (or made them stop?)
Evaluate development initiatives
Collect donor stories
Build donor trust and loyalty
MARKET STUDY May be called a Feasibility Study – often done prior to a capital campaign or new program development to: Determine need Discover stakeholder opinions Reduce risk of failure Determine total investment needed to reach goal Inform strategy based on reliable data Identify potential problems Identify potential sources of revenue & funders
TEST CONTENT OUTLINE
D
Rate prospects in categories of giving potential in order to prioritize and plan solicitations.
RFM ANALYSIS
R = Recency F = Frequency M = Monetary Value
Score prospects in each category, add them up across and sort.
Et Voila! A prioritized list.
Example Work Sheet Name
# Total Past Giving Gifts Amt
Recency Frequency Monetary RFM Score Score Score Score
Donor A 1/1/2013
1
$50
4
1
1
6
Donor B
1
$75
4
1
1
6
Donor C 2/17/2008
22
$2,200
3
5
2
10
Donor D 5/19/2009
6
$230,988 4
3
5
12
$9,000
2
4
7
Donor E
Last Gift Date
2/2/2013
12/12/1987 3
1
Source: “10 Ways to Improve Your Fundraising Strategy with Prospect Research” by Helen E. Brown, Jennifer Filla, Debbie Sokolov
YOU CAN USE THE SAME SYSTEM WITH OTHER CRITERIA
Linkage Ability Interests Readiness
TEST CONTENT OUTLINE
E
Present the list of current and prospective donors and relevant information to organizational leaders in order to establish consensus for action.
WHO, WHAT, HOW Fundraising Components
Sources of Support
Annual
Individuals
Major
Giving
Gifts
Capital
Campaign
Planned
Giving
Foundations Corporations Government
WHO, WHAT, HOW Fundraising Components
Sources of Support
Annual
Individuals
Major
Giving
Gifts
Capital
Campaign
Planned
Giving
Foundations Corporations Government
WHO, WHAT, HOW Fundraising Components
Sources of Support
Annual
Individuals
Major
Giving
Gifts
Capital
Campaign
Planned
Giving
Foundations Corporations Government
WHO, WHAT, HOW Fundraising Components
Sources of Support
Annual
Individuals
Major
Giving
Gifts
Capital
Campaign
Planned
Giving
Foundations Corporations Government
ACQUISITION
Direct Response
Friends Asking Friends
Events
Marketing
ABOUT THE CFRE EXAM
Test is written for international audience. You may see unfamiliar spellings and terminology.
200 multiple choice questions + 25 pretest questions that don’t count.
Current and prospective donor research: 32 questions on the exam = 16% of your score.
Scaled scoring of 200-800. Passing grade is 500.
SAMPLE EXAM QUESTION The rationale that will most likely motivate major gifts is: A. B. C. D.
sense of loyalty, gratitude, and affection for the organization belief in the institution tax consideration belief that current needs are important
SAMPLE EXAM QUESTION Which one of the following questions expresses a key element in winning corporate grants? A. B.
C. D.
What can the corporation do for us? Will our proposal have appeal to the consumers of the company's products? What can we do for the corporation? Will our proposal have appeal to the company's stockholders?
TIPS
Read very carefully for clues about what the question is really asking.
Answer questions based only on information in the question. Don’t assume info not given.
Skip questions you are not sure of and go back to them later.
GOOD LUCK!