using data to identify potential donors session for symposium on rural philanthropy july 17, 2012

Using Data to Identify Potential Donors

Session forSymposium on Rural Philanthropy

July 17, 2012

Scope of Session

• Role of Prospect Research• Preparing for Prospect

Research• Ethical Considerations• What Are You Looking For?

• Wealth• Ratings• Additional Resources

Role of Prospect Research

Find and verify

Ability to make a major giftInterest in your mission Links to your organization

Also consider

Philanthropic behavior

ANDorganize, record, protect, analyze,

package and disseminate relevant prospect and donor information.

Take the long view!

Role of Prospect Research

Professionalize Prospect Research

Centralize all donor and prospect information

Invest 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 information

Establish written procedures governing database usage

Prospect Research Ethics

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

Ethical Considerations

• Confidentiality• Accuracy • Relevance

• Self-responsibility• Honesty• Conflict of Interest

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

Discovery– Enough information to merit initial contact

• Capability, Interest, LinkageCultivation

– Spot research as needed– Much 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 Research

Role of Prospect Research

MAJOR GIFT PROSPECT– Interest/Linkage -- Gift history, volunteer activity,

shared values, membership, family link, beneficiary– Philanthropic 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?

– Income often is not relevant• nine out of 10 planned gifts are bequests.

– Consistent annual fund donor– Volunteer– Age 40-60– Educated – bachelors degree or higher– Motivated by helping others, religious beliefs and

giving back

What Are You Looking For?

PLANNED GIFT PROSPECT

PLANNED GIFT PROSPECT cont’d.– Single or widowed– Married with few or grown children– Wants to provide for loved ones– Concerned about retirement income– Tax concerns

Bequest 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?

Where is the Information?

Your database – gleaned from annual fund– Gift history – size, frequency, appeal response, fund – Event attendance– Volunteer activity– Beneficiaries of grants and scholarships

Prospect contacts – staff, board members and other volunteers

Publicly available resources– Commercial databases– Commercial screening and data append services– Free resources online and through libraries

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 Study

Respondents by source of wealth• Some 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 2001

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.php

Chambers of Commerce

USA Chamber of Commerce Directory

Directory of Local Chambers of Commerce and Visitors Bureaus

Wealth in Your Community

Wealth in Your Community

Zoominfo1) Create list of businesses in your community based

on location, revenue, and/or number of employees

2) Go to business’ website to identify stakeholders3) Research stakeholders

Dun & BradstreetHoover’s OnlineReference USA

Commercial resources that may be available through you library.

Wealth in Your Community

Reference USA is available online from many public libraries through Midwest Collaborative of Library Services.

Individual ResearchPublic Company Executives

SEC --– Compensation, stock holdings, options activity of

corporate insiders– Read the help section, know forms – Look for DEF-14A

Yahoo Finance --– Financials, charts, historical information, news,

insider rosters, stock ownership and recent activity

There is a correlation between political contributions and philanthropic gifts

FEC Political Contribution FilingsCan drill down to form

Open SecretsQuicker geographic search

Wealth IndicatorsPolitical Contributions

NETROnlineNeeds updating

Indiana Assessor and Property Tax DirectoryCommercial website

Indy.gov: Dept. of Local Government FinanceCounty Assessor’s Website – look for GIS

BRB’s Free Resource Center

Wealth IndicatorsProperty

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

Indiana Professional Licensing Agency

Wealth IndicatorsOccupation / Salary

• Guidestar – more info with paid subscription

• FC Online – paid service might be available through your library

• Chronicle of Philanthropy• Indiana Grantmakers Alliance• Annual Reports• Google search with name and “donor” or “gift”

Wealth IndicatorsPhilanthropy

Ratings

RATINGS FORMULAS are not SOLICITATION AMOUNTS

The 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.

BASED ON INCOME

The 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

Ratings

Ratings

BASED ON REAL ESTATE• Real 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 & Lundy

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 Flessner

Ratings Grid

Additional Research

• Contact information• Career information• Circles of Influence• Biographical details• Interests

Searching Public Databases

Not all search engines and databases use the same search language

• Natural language – terms as you would use them in speech.

• Boolean Language– uses connectors AND, OR, NOT, sometimes– Proximity indicators: NEAR, w/1, *– Parenthesis to group– the order and use of parenthesis can change the

outcome of the search– quotation marks for exact phrases

Public Library Online Resources

INSPIRE IndianaIndianapolis Marion County Public Library

General Information -- Collections

General Information -- Google

Use Advanced Search or know how to use the standard search box – it makes a difference

Individual Research – Contact Information

Directories• http://www.anywho.com/• http://www.switchboard.com/• http://search.infospace.com/ispace/ws/index

– Reverse lookup• http://email.iaf.net/email-search.html

– Email search• http://zip4.usps.com/zip4/welcome.jsp

– Zip codes

List courtesy of David Lamb’s Prospect Research page

Individual Research – Contact Information

BiznarDeep webCreates “clusters”

Individual ResearchBusiness and Career

• Google Advanced• LinkedIn• Muckety• Corporate Websites• Blue Golf

Individual Research – Career / Links

Individual ResearchThe Full Picture

You 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.