Hope College

Dept. Prospect Management and Research

Prospect Identification and Research

Hope College

Dept. Prospect Management and Research

Prospect Identification and Research♦ Purpose and function of prospect research

in development♦ Methods for identifying top prospects♦ Researching top prospects♦ Analyzing the research♦ Resources (free and fee-based)

Hope College

Dept. Prospect Management and Research

Purpose and Process

Hope College

Dept. Prospect Management and Research

Information Management

♦ Identify new, major gift prospects♦ Maintain accurate information on major gift

prospects and current major donors♦ Provide information solicitors need to be

successful

Hope College

Dept. Prospect Management and Research

Solicitation Management

♦ Coordinate and monitor progress of major donor/prospect cultivation and solicitation

identification

cultivation

solicitation

stewardship

♦ Keep energy focused on prospects who will contribute

Hope College

Dept. Prospect Management and Research

It’s all about Relationships

Prospect Research gives you the tools to be able to:

• ask the right person

• for the right amount

• for the right project

• at the right time

• (with the right person).

Hope College

Dept. Prospect Management and Research

The Process of Prospect Research

♦ Identify the prospect♦ Qualify the prospect through research♦ Facilitate strategy and plan of action for

the prospect♦ Track the prospect’s movement in the

cultivation cycle

Hope College

Dept. Prospect Management and Research

Methods for Identifying Top Prospects

Hope College

Dept. Prospect Management and Research

Sources

♦ Publications Review♦ Peer Screenings♦ Vendor Screenings♦ In-house Screenings/Datamining♦ Push Technology♦ Online Databases & Lists

Hope College

Dept. Prospect Management and Research

Publications♦ Business Direct Weekly♦ Chamber of Commerce Directory♦ Newspapers♦ Chronicle of Philanthropy♦ Chronicle of Higher Education♦ Annual Reports♦ Alumni Magazines♦ Leadership Magazine♦ Foundation Directories (Foundation Center)

Hope College

Dept. Prospect Management and Research

Peer Screening

♦ New Names♦ Connections/Relations♦ Best Person to Make Ask♦ Willingness to Assist♦ Gift Capacity♦ Interest Level

Hope College

Dept. Prospect Management and Research

Hope College

Dept. Prospect Management and Research

Vendor Screening

♦ Asset♦ Geographic/Demographic

♦ Modeling

Hope College

Dept. Prospect Management and Research

In-house Screening/Datamining

♦ Time of year giving analysis♦ Solicitation effectiveness analysis♦ Geographic analysis♦ Longevity analysis

Hope College

Dept. Prospect Management and Research

Other Suggested Questions…(Peter Wylie, “The Many facets of Database Mining,”

NEDRA News, Summer 2002)

♦ What % of people in your db have NEVER given?

♦ What % of your donors make up 95% of your funding?

♦ Where do the majority of your donors live?♦ What % have attended an institutional

function?

Hope College

Dept. Prospect Management and Research

Push Technology

♦ Lexis/Nexis $$♦ NewsAlert.com♦ Google News Alerts

– www.google.com/newsalerts

♦ Yahoo!News Alerts– alerts.yahoo.com/config/set_notification?.t=n

♦ BizJournals.com

Hope College

Dept. Prospect Management and Research

Online Databases & Lists♦ GuideStar♦ Foundation Center ($)♦ Iwave ($)♦ GrantSmart♦ Chronicle of Philanthropy (Guide to Grants

- $)♦ Hoover’s Online ($)♦ Multex Investor♦ Crain’s Detroit – www.crainsdetroit.com♦ Forbes Lists www.forbes.com/lists

Hope College

Dept. Prospect Management and Research

Researching Top Prospects

Hope College

Dept. Prospect Management and Research

APRA Code of Ethics

♦ Confidentiality♦ Accuracy♦ Relevance♦ Accountability♦ Honesty

Hope College

Dept. Prospect Management and Research

CIA Qualifiers

♦Capacity ♦Interest♦Affiliation

Hope College

Dept. Prospect Management and Research

Researching Individuals

♦ Personal Info♦ Business Info♦ Relationship to Organization♦ Professional & Philanthropic Affiliations♦ Financial Info

Hope College

Dept. Prospect Management and Research

Researching Corporations and Foundations♦ Contact information♦ Organization description♦ Giving guidelines♦ Giving history♦ Alumni♦ Inside advocate♦ Contact with staff

Hope College

Dept. Prospect Management and Research

DOCUMENT YOUR SOURCES!!

Hope College

Dept. Prospect Management and Research

The “Full” Picture

Hope College

Dept. Prospect Management and Research

Analyzing the Research

Hope College

Dept. Prospect Management and Research

Estimating Gift Capability

GIFT CAPABILITY OVER FIVE YEARS

♦ Using Consistent Annual Giving:– 20 x consistent annual gift = gift capability

♦ Using Annual Income:– 10% of annual income– Same as: 2% of annual income x 5 years

♦ Using Public Stock Holdings:– (Total known direct stock holdings x 1,2, or 3)

x 5%

Hope College

Dept. Prospect Management and Research

Gift Capability (cont.)

♦ Using Public Stock Holdings– 1-4% of stock and options worth $1-499K– 5-9% $500K-999K– 10% $1 million+

♦ Using Private Company Holdings– (25-50% of prospect’s holdings) x 1.5-5%

♦ Using Real Estate– $400K or less: 3 x property total x 0.03– $401K or more: 5 x property total x 0.05

Hope College

Dept. Prospect Management and Research

More than one number available

♦ Average of all ♦ Most accurate♦ Range: lowest to highest number♦ Totals from formulas added together

Hope College

Dept. Prospect Management and Research

Resources

Hope College

Dept. Prospect Management and Research

More Resources

♦ AFP (Assn of Fundraising Professionals)– www.afpwm.org

♦ APRA (Assn of Professional Researchers for Advancement)– www.aprami.org

Hope College

Dept. Prospect Management and Research

Efficiency & Effectiveness

♦ Efficiency– Wastes less time of your time– Wastes less of the prospect’s time

♦ Effectiveness– Address needs, interests, & preferences of

prospects up front– No nasty surprises– Identifies those who will give – and those who

will not

Hope College

Dept. Prospect Management and Research THANK YOU!

Pam SpencerHope College616-395-7366

spencerp@hope.edu