using research effectively

PROSPECTING FOR GOLD LTD Wealth Intelligence Services

PROSPECTING FOR GOLD LTD Wealth Intelligence Services™

Using Research Effectively March 2013 Kerry Rock


Today is about developing an effective prospect research

•  Your fundraising strategy

•  Your fundraising case

•  How many prospects?

•  Your prospect research plan

•  Managing the pipeline

•  Resource requirements


How many wealthy people in the UK?


There are various estimates

Why do so few fundraisers know the answer to this question? * $1m

Barclays Wealth Insights 2011 619,000

Capgemini World Wealth Report 2012* 441,000

MDRC High Net Worth Market 2010 575,000

Prospecting for Gold 2011 500,000

Coredata 2010 284,317


What type of fundraising do you focus on?

Your Fundraising Strategy


Gifts can come from anywhere...

*Grants fundraising Trusts & foundations Lottery Public sector

Social enterprise

Charity shops Charity trading Social business Co-operatives Property development

*Special events

Concerts Auctions Balls & galas Challenge & trek events

*Direct marketing Direct mail Internet fundraising Face-to-face

*Major donors Capital fundraising Legacies

*Corporate

Sponsorship CSR Donations

Community fundraising *Events Branches Street collections

Gaming

Social lotteries Internet gaming Competitions

Emergencies Media fundraising

Advertising Inserts Broadcast appeals

* Can any others be researched?


Strategies

Fundraising Approaches Typical Gifts

Capital campaigns £50,000 + Major gifts £1,000 - £20,000 Legacies £15,000+

Companies (directors) £5,000 - £50,000 Annual giving £5,000+

Trusts £1,000 - £100,000+ Special events £250 - £1,000 ticket

Direct marketing £500+


Your case for support

You also only want those who are interested in your case.


Case questions for prospect researchers

1.  Will enough millionaires like your case to achieve the target?

2.  Can we research them?

3.  Can we test the fundraising case with a sample of them?

4.  Can we improve the case to make it attractive to more millionaires?


How many prospects do you need?


A Table of Gifts

What is it for? How does it help?

% of Target Number of Donations Gift Size Total Value

10% 1 £400,000 £ 400,000 20% 2 £200,000 £ 400,000 36% 4 £100,000 £ 400,000 52% 8 £ 50,000 £ 400,000 68% 16 £ 25,000 £ 400,000 84% 80 £ 12,500 £1,000,000

100% 160 £ 6,250 £1,000,000 TOTAL 271 - £4,000,000


But not everyone will give….

% of Target Number of Donations Gift Size Total Value Number of

Prospects 10% 1 £400,000 £ 400,000 12

20% 2 £200,000 £ 400,000 24

36% 4 £100,000 £ 400,000 48 52% 8 £ 50,000 £ 400,000 96 68% 16 £ 25,000 £ 400,000 192 84% 80 £ 12,500 £1,000,000 960

100% 160 £ 6,250 £1,000,000 0

TOTAL 271 - £4,000,000 1332


Prospect Category Description Typical Fundraising

Comment

Cold Prospects

They can afford to give but we don't yet know whether or not they are interested in giving

We're not yet on their radar

Lukewarm Prospects

They have the ability to give and are on our database

Alumni, members, mail donors, other

audiencesWarm

ProspectsWe think they will give, given

the right treatmentScreened and we have a plan to get to them

Hot ProspectsWe have met them, they are

interested, and can make a big gift

Further meeting with a peer is imminent


Target Prospects

% of Target

No Donations Gift Size Total Value Total Value Hot

Prospects Warm

Prospects Cold

Prospects

10% 1 £400,000 £400,000 £400,000 3 12 72

20% 2 £200,000 £400,000 £400,000 6 24 144

36% 4 £100,000 £400,000 £400,000 12 48 288

52% 8 £50,000 £400,000 £400,000 24 96 576

68% 16 £25,000 £400,000 £ 400,000 48 192 1152

84% 80 £12,500 £1,000,000 £1,000,000 240 960 5760

100% 160 £6,250 £1,000,000 £1,000,000 0 0 0

TOTAL 271 - £4,000,000 £4,000,000 333 1332 7992

Campaign Targets


Donor Groups

High Value Donors

£100 - £1,000

Major Donors £100,000+

Mid Value Donors £1,001 - £99,999


So, which type of millionaire do you need?

Because there are far more E than A

Wealthband Wealth Gift Capacity Wealthband E £1-5m £10,000 - £50,000 Wealthband D £5-10m £50,000 - £100,000 Wealthband C £10-25m £100,000 - £250,000 Wealthband B £25-50m £250,000 - £500,000 Wealthband A £50m+ £500,000 +


Your prospect research plan


Prospect Research Plan Headings

Managing prospect research Database Monitoring & evaluating Appendices

Identifying new prospects Screening Desk research Prospecting Research process

Staffing Resources required Budget

Background to the campaign Research brief Defining types of prospects How many prospects?


Finding prospects

We know how many – but where do we find them?

Finding prospects


Screening vs. Mining - some definitions

•  Tend to be used interchangeably - but shouldn’t be!

•  Screening compares an organisation’s database to a known database of wealthy individuals, trustees, company directors, influential or legacy prospects.

•  Data mining, data modelling, predictive analysis and several other often interchangeable terms, refer to creating statistical models to identify trends in your data, sometimes with the same aim.


Wealth screening – a research shortcut?

•  A quick glance at your database shows you ―  very high profile people

―  some tell tale signs – titles, addresses

•  Screening: Take your supporters/ donors/ members and systematically identify those have the potential to make a significant gift

•  Enables you to target through research and analysis to build your pipeline and implement fundraising


What happens when you screen

•  On average expect 1-3% match rate – but we rarely find average! •  4,600 current and lapsed donors: 374 matches (8%) •  575 people who have donated at some time: 136 matches

(24%) •  45,000 current and lapsed donors: 2,227 matches (4.9%) •  278,000: 6,037 matches (2.2%) •  146,000 supporters: 1,196 matches (0.8%) •  2,400 members: 210 matches (8.8%)

•  Check your likely match rate: http://prospectingforgold.co.uk/database-screening-services/


What’s next

•  Prioritise those to start researching and then developing ―  draw out the people using your knowledge (e.g. giving

history)

AND

―  objective data on wealth and other characteristics


New prospects

•  New name research

―  New Name from Proactive Research

―  Reactive research into new name from director/trustee/external suggestion

―  New name from screening (not previously identified as a major donor prospect)


Ranking & Rating

Ability

Attachment Affinity


The Grid

Further from you but wealthy

Close to you and wealthy

Further from you

but merely affluent

Close to you

but less wealthy

Affinity

£


Managing the pipeline


Moves Management

Have as few stages as you can

•  Select your steps for solicitation

•  View each one as a ‘move’ to log on your database

•  Each activity is planned and scheduled

•  One person is responsible for the moves of that prospect (not necessarily the fundraiser)

•  Prospect strategy meetings – led by the researcher


Prospect Pipeline

•  Might take 18-24 months •  Knowing how many prospects are at each stage •  Making sure there are enough prospects at each stage •  Making sure time is made for new prospects to enter the pipeline •  Making sure there are leaks to drop prospects out of •  Giving the researcher the power to be the tap that feeds the flow

rather than the blockage which holds up the pipeline •  Protecting prospects

The researcher can control this process as they have the information available to them and can see the overall picture


Prospect Pipeline Essentials

Prioritise

Regularly Review

Push Progress

Keeping the Pipeline Flowing


How do you manage the Prospect Pipeline?

Project Management

Software

Database

Hand written

List File Cards

Excel Spread sheet

CRM Software

Access Database

Prospect Management

Software

PROSPECT PIPELINE


Prospect Management

% of Target

Num

ber of D

onations

Gift Size

Total Value

Num

ber of G

ifts R

aised

Warm

Prospects

Needed

Num

ber of Prospects

Found

Prospect D

eficit

10% 1 £400,000 £400,000 1 3 3 0

20% 2 £200,000 £400,000 0 6 0 6

36% 4 £100,000 £400,000 0 12 4 8

52% 8 £50,000 £400,000 0 24 0 24

68% 16 £25,000 £400,000 0 48 0 48

84% 80 £12,500 £1,000,000 0 240 0 240

100% 160 £6,250 £1,000,000 0 480 0 480

TOTAL 271 - £4,000,000 1 813 7 806


Staffing and budgets


Resources required – information, equipment, databases

Staff Salaries •  Staff overheads •  Expenses •  Training/mentoring

Database •  Purchase •  Annual license fee •  Cleaning •  Maintenance •  Data entry

Internet •  Connection •  Subscription •  CD Rom/online sources

Publications •  Directories CD Rom •  Newspapers &

magazines •  Books

Others?


The process in action

•  A case study of a team working together post screening to prioritise and allocate prospects.


Save the Children: Screening to create their research pipeline – an example of cross team working

•  Why screen? •  Who to screen? •  What information to send? •  Understanding who might make a good prospect

•  Behaviour/responsiveness •  Geodemographics •  Loyalty •  Attitude •  Value •  Net promoter


Planning first steps

•  Lots of matches!

•  Presentation with all key stakeholders

•  Meeting individual teams to understand where this might fit within their priorities

•  Mapping potential overlap

•  Phased approach


Qualifying and allocating

•  Phase 1: potential corporate leads, potential trust leads and potential key volunteers

•  Internal qualification/research

•  Negotiating over multiple next best actions

•  Phase 2: experiment with mid-level donors; Phase 3: more major donor prospects

•  Next step: results??


Any Questions?


Contact Us

Kerry Rock [email protected] Tel: 07913028195

using research effectively

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