seven habits of highly successful prospect researchers afp fundraising fundamentals series october...
TRANSCRIPT
Seven Habits of Highly Successful Prospect Researchers
AFP Fundraising Fundamentals SeriesOctober 20, 2004
Presenters
Valerie ParkerDevelopment Officer-Prospect Research & Management
Webster University
Ryan ElliottDirector of Advancement Services
Webster University
Audience Survey
Organization Types
FR Staff Sizes
Dedicated Research Staff?
Goals for Today
Presentation Overview
Intro / Review Handouts / Overview of Seminar & Goals / Define Prospect Research & Mgmt.
The Seven Habits
Build your own gift table/chart of standards
Q&A / Break
Presentation Overview (cont.)
Create a list of your top prospect categories
What are they interested in funding?
Who can help make this potential gift a reality?
Q&A / Break
Presentation Overview (cont.)
How much should we ask for?
Implementing the plan
How are we doing?
Q&A / Conclusion
What is Prospect Research & Management?
Prospect Research The process of identifying people & organizations with
capacity and inclination to support your mission
Prospect Management Standard & synergistic processes for gathering, storing,
retrieving, managing & analyzing prospect/donor information Identify & track key donors, “under-performers” & excellent
prospects Willingness & Readiness Issues (Cultivation & Solicitation
Cycle)
The Seven Habits
1. Building a Gift Table/Chart of Standards
2. Identifying your top prospective donors
3. Determining a funding interest
4. Determining who to involve in cultivation & solicitation
5. Developing a target ask amount range
6. Implementing the plan
7. Tracking your progress & measuring results
#1 - Building a Gift Table/Chart of Standards
Your major gift campaign--annual or multi-year?
Plan ahead
The Indiana University Center on Philanthropy Model Gift Pyramid
Exercise: Create a sample gift table
#1 - Building a Gift Table/Chart of Standards
Model
Gift PyramidMajor Gifts
10% of Donors
Upgraded Gifts
20% of Donors
Base
70% of Donors
60% of $
20% of $
20% of $
#1 - Building a Gift Table/Chart of Standards
1. The first 2 gifts should equal 10% of goal, or 5% each
2. The next 4 gifts equal 10% of goal
3. The chart is flexibly developed beyond this point, depending on available prospects, gift history, and linkage, ability & interest
#1 - Building a Gift Table/Chart of Standards
4. The prospect to donor ratio begins at the top at 5:1 and gradually reduces to 2:1
5. Top 10% of donors = 60% of goal
6. Next 20% of donors = 20% of goal
7. Next 70% of donors = 20% of goal
Sample Gift Table: $100,000 GoalGift # of Cum. # # of Cum. # of $ per Cum.
Range Gifts of Gifts Prospects Prospects range $
$5,000
$2,500
$1,000
$500
$250
$100
< $100
10% of donors
20% of donors
70% of donors
60% of goal
20% of goal
20% of goal
2
6
18
34
48
80
412
2
8
26
60
108
188
600
10 (5:1)
30 (5:1)
72 (4:1)
136 (4:1)
144 (3:1)
240 (3:1)
824 (2:1)
10
40
112
248
392
632
1,456
$10,000
$15,000
$18,000
$17,000
$12,000
$8,000
$20,000
$10,000
$25,000
$43,000
$60,000
$72,000
$80,000
$100,000
Q&A / Break #1
#2 - Identifying Your Top Prospective Donors
Capacity, Inclination & Readiness Key constituencies/stakeholders List and prioritize top prospects Issues unique to your organization & its
ability to FR effectively Mix of well-known, lesser known, unknowns
#2 - Identifying Your Top Prospective Donors
Strategy #1: Review list of Past Top Donors
Strategy #2: ID & prioritize list of Top Constituents/Stakeholders (top should include Trustees and Advisory Boards)
Strategy #3: Review list of Grantmakers that fund organizations like yours
#2 - Identifying Your Top Prospective Donors
Strategy #4: Electronic screening
Strategy #5: Data mining (analyze your DB for prospects w/major gift potential)
Strategy #6: Predictive modeling (who else in your DB looks like your past top donors?)
#2 - Identifying Your Top Prospective Donors
Strategy #7: Scan local newspapers, business directories, honor rolls, etc. for names—create lists for select trustees & staff to review
Exercise: List your top constituents in priority order
#3 - Determining a Funding Interest
What are your organization’s most urgent and compelling needs?
The strategic vision and its timeframe What is interesting to donors and what is not What has worked in the past “Fishing” with a menu of opportunities
#3 - Determining a Funding Interest
Discuss/Brainstorm Ideas at PMM Host cultivation events for projects/programs Use annual fund to test messages, projects
and programs Look at prospects past giving history Talk with people who know your prospects
#4 - Determining Who to Involve in Cultivation &
Solicitation Develop a prospect-specific strategy Relationship building Who are your organization’s key leaders,
volunteers, champions? Peer asks are effective
#5 - Developing a Target Ask Amount
Discussions at prospect management
Past gift history
Gifts to other organizations
Conversations with the donor prospect
#5 - Developing a Target Ask Amount
“Fishing” with a menu of opportunities
Electronic screening
Gift ability formulas
Peer screenings
Q&A / Break #2
#6 - Implementing the Plan
Campaign phases1. Leadership gifts – test phase
(revise plan if necessary based on results of solicitation of very top donor prospects)
2. Major gifts
3. Broad-based phase
The Cultivation/Solicitation Cycle Moves Management (PM committee) PM Policy & Guidelines
#7 - Tracking Your Progress & Measuring
Your Results Evaluate performance in your leadership-
level solicitations Revise plan if necessary Use a campaign tracking chart Develop a prospect tracking system
Enjoy Your Successful Campaign
Proper planning, analysis, execution and implementation works!
Q&A / Conclusion
Thanks for participating!
Valerie Parker / [email protected]
Ryan Elliott / [email protected]