Prospect Mgt And Research Intro

Hope College

Dept. Prospect Management and Research

Prospect Identification and Research

Hope College


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


Purpose and Process

Hope College


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


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


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


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


Methods for Identifying Top Prospects

Hope College


Sources

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

Hope College


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


Peer Screening

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

Hope College


Hope College


Vendor Screening

♦ Asset♦ Geographic/Demographic

♦ Modeling

Hope College


In-house Screening/Datamining

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

Hope College


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


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


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

http://www.crainsdetroit.com/

http://www.forbes.com/lists

http://www.forbes.com/lists

Hope College


Researching Top Prospects

Hope College


APRA Code of Ethics

♦ Confidentiality♦ Accuracy♦ Relevance♦ Accountability♦ Honesty

Hope College


CIA Qualifiers

♦Capacity ♦Interest♦Affiliation

Hope College


Researching Individuals

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

Hope College


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

Hope College


DOCUMENT YOUR SOURCES!!

Hope College


The “Full” Picture

Hope College


Analyzing the Research

Hope College


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


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


More than one number available

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

Hope College


Resources

Hope College


More Resources

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

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

Hope College


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

[email protected]

Prospect Mgt And Research Intro

Documents

Transcript of Prospect Mgt And Research Intro