wealth engine advancement partners summer seminar 2013
DESCRIPTION
TRANSCRIPT
Making Major Gifts MajorLetting Data DriveVicki ClaussenAugust 1,2013
wealthengine.com | Page 2
Agenda
Where are you now?– Fund Raising Activity– Donor Management Software– Staff
Making the Case for DataUsing Data to – Identify Major Gift Prospects– Optimize Major Gift Portfolios– Define Ask Amounts
Using Data Screening to Get to the Capacity Factor
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Prospect Identification Metrics
3
Peer
Ref
erra
l
Push
Tec
hnol
ogy
Subs
crip
tions
Data
Minin
g Sc
ore
Wea
lth S
cree
ning
Pare
nt S
cree
ning
Staff
Ref
erra
l
$5K G
ift R
epor
t
$1K G
ift R
epor
t0%
5%
10%
15%
20%
25%
30%
35%
40%
45%Number of Prospects Time Invested
Insights:Peer referral yields relatively few prospects for time in-vestedWealth Screening yields a high number of prospects for time invested
Capacity and likelihood to give data identify the best major gift prospects…
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Use Data to Optimize Portfolios by Finding the Best Prospects
Based on Capacity and Likelihood to Give (or Affinity), an entire constituency can be segmented for application of distinct strategies:
For major gifts, constituents with high capacity and high affinity are shaded in green for immediate assignment and cultivationConstituents in shaded in blue are second tier prospects and should be engaged in high-touch cultivation at the annual giving level
Cap
acit
y
Likelihood to Give
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Use Data to Optimize Portfolios by Finding the Best Prospects
2 2 47
41 30 525
3,626 2,397 8,328
Cap
acit
y
Likelihood to Give
Based on Capacity and Likelihood to Give (or Affinity), an entire constituency can be segmented for application of distinct strategies:
For major gifts, constituents with high capacity and high affinity are shaded in green for immediate assignment and cultivationConstituents in shaded in blue are second tier prospects and should be engaged in high-touch cultivation at the annual giving level
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Data Appends (Wealth, Demographic and Lifestyle Attributes) Allow Evaluation of All Constituents
Likelihood to Give
Capacity RangeVery Low
LowModerat
eHigh
Very High
Total
$5M+ 1 3 2 6
$1M up to $5M 2 1 19 23 45
$500K up to $1M 7 11 50 39 107
$250K up to $500K 34 19 301 135 489
$100K up to $250K 139 60 905 358 1,462
$50K up to $100K 6 490 469 2,155 774 3,894
$25K up to $50K 186 795 1,037 1,288 761 4,067
$15K up to $25K 132 464 498 607 365 2,066
Up to $15K 127 278 67 216 146 834
Unrated 525 484 266 466 287 2,028
Total 976 2,693 2,429 6,010 2,890 14,998
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Likelihood to Give
Capacity RangeVery Low
LowModerat
eHigh
Very High
Total
$5M+ 1 3 2 6
$1M up to $5M 2 1 19 23 45
$500K up to $1M 7 11 50 39 107
$250K up to $500K 34 19 301 135 489
$100K up to $250K 139 60 905 358 1,462
$50K up to $100K 6 490 469 2,155 774 3,894
$25K up to $50K 186 795 1,037 1,288 761 4,067
$15K up to $25K 132 464 498 607 365 2,066
Up to $15K 127 278 67 216 146 834
Unrated 525 484 266 466 287 2,028
Total 976 2,693 2,429 6,010 2,890 14,998
Quickly Identify the Best Prospects for Major Gift Cultivation
28 shaded green have high capacity, high likelihood to give
3 2
23
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Likelihood to Give
Capacity RangeVery Low
LowModerat
eHigh
Very High
Total
$5M+ 1 3 2 6
$1M up to $5M 2 1 19 23 45
$500K up to $1M 7 11 50 39 107
$250K up to $500K 34 19 301 135 489
$100K up to $250K 139 60 905 358 1,462
$50K up to $100K 6 490 469 2,155 774 3,894
$25K up to $50K 186 795 1,037 1,288 761 4,067
$15K up to $25K 132 464 498 607 365 2,066
Up to $15K 127 278 67 216 146 834
Unrated 525 484 266 466 287 2,028
Total 976 2,693 2,429 6,010 2,890 14,998
Identify Second Tier Prospects for High-Touch Leadership Giving Program
19
50 39
301 135
544 shaded in blue are also good major gift candidates
Portfolios are often selected based on past giving history…
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Affinity Score
Capacity Range Very Low Low Moderate High Very High Total
$5M+ $7,983,010 $7,983,010
$1M up to $5M $10,481,10
5$10,481,10
5
$500K up to $1M $4,120,173 $4,120,173
$250K up to $500K $370,479 $341,000 $440,241 $6,786,036 $7,937,755
$100K up to $250K $601,489 $332,565 $1,545,482 $6,350,829 $8,830,365
$50K up tp $100K $196,430 $243,806 $712,639 $3,133,520 $4,286,395
$25K up to $50K $94,259 $289,513 $201,514 $583,946 $1,119,834 $2,289,066
$15K up to $25K $39,287 $24,468 $73,790 $134,884 $272,430
Up to $15K $40,226 $10,961 $36,692 $87,880
Unrated $27,383 $15,889 $11,409 $9,571 $64,252
Total $161,868$1,513,08
7$1,143,35
3$3,378,46
9$40,155,6
53$46,352,4
30
The Current Portfolios Under Management have a Total Value of $46MM
243 prospects are currently under management (assigned to a gift officer or volunteer)These were selected based on total givingValues in the cells are the sum of the capacity of each individual who falls within the range
$46,352,430
The total capacity of the prospects under management is the total number in the lower right-hand corner ($46MM)
Potential soars when portfolios are selected based on capacity and likelihood to give ratings…
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243 Optimal Prospects @$286MM(Selected Based on Capacity and Likelihood Ratings)
Affinity Score
Capacity Range Very Low Low Moderate High Very High Total
$5M+ 89,015,427 19,223,723 108,239,150
$1M up to $5M 35,938,650 48,700,146 84,638,796
$500K up to $1M 34,221,647 27,739,460 61,961,108
$250K up to $500K 30,862,459 30,862,459
$100K up to $250K
$50K up tp $100K
$25K up to $50K
$15K up to $25K
Up to $15K
Unrated
Total 159,175,725 126,525,788 285,701,513
Selecting the 243 optimal prospects yields $286MM under managementThis is 6 times the capacity under management
89,015,427 19,223,723 108,239,150
35,938,650 48,700,146 84,638,796
34,221,647 27,739,460 61,961,108
30,862,459 30,862,459
285,701,513
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Strategy Grows Out of Analysis
All else being equal, if 20 gifts close at 10% of capacity, this
change in portfolio value would result in an additional $2MM
($2,351,452 vs. $381,501)
To activate this potential, spend your time with high-likelihood,
high-capacity prospects not under management by an individual
staff or volunteer should be assigned
Most of the time when you are cultivating lower capacity people
it’s because of the likelihood scores. Goal is to move them to
close or decrease your time with them
The second tier of prospects with high capacity and likelihood
scores should be “fast-tracked” in high-touch annual
giving/cultivation program
Ask amounts are often based on instinct, “gut” feelings, or the comfort level of the solicitor…
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Data including Capacity Estimates Allow Analysis of Major Gift Solicitations
Prospect Manager or Major
Gift Officer
Average Capacity
of Prospects
Average Ask
Amount
% of Capacity
Asked
Average Gift
Amount
% of Ask Received
% of Capacity Received
Jocelyn $95,617 $24,286 25% $10,242 42% 11%
Sarah $167,708 $24,167 14% $16,667 69% 10%
Total $131,662 $24,226 18% $13,455 56% 10%
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This Organization Receives on Average Only 10% of Potential Gift Value
Prospect Manager
Average Capacity
of Prospects
Average Ask
Amount
% of Capacity
Asked
Average Gift
Amount
% of Ask Received
% of Capacity Received
Jocelyn $95,617 $24,286 25% $10,242 42% 11%
Sarah $167,708 $24,167 14% $16,667 69% 10%
Total $131,662 $24,226 18% $13,455 56% 10%
Analysis shows gifts received are valued at approximately 10% of capacity
11%
10%
10%
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Gift Officers May be Defaulting to the Minimum Major Gift Level
Prospect Manager
Average Capacity
of Prospects
Average Ask
Amount
% of Capacity
Asked
Average Gift
Amount
% of Ask Received
% of Capacity Received
Jocelyn $95,617 $24,286 25% $10,242 42% 11%
Sarah $167,708 $24,167 14% $16,667 69% 10%
Total $131,662 $24,226 18% $13,455 56% 10%
With a minimum major gift amount of $25K, it looks like prospect managers may be satisfied asking for gifts of $25K
$24,286
$24,167
$24,226
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With Gifts Closing at Just 56% of Asks, There May be Money Left on the Table
Prospect Manager
Average Capacity
of Prospects
Average Ask
Amount
% of Capacity
Asked
Average Gift
Amount
% of Ask Received
% of Capacity Received
Jocelyn $95,617 $24,286 25% $10,242 42% 11%
Sarah $167,708 $24,167 14% $16,667 69% 10%
Total $131,662 $24,226 18% $13,455 56% 10%
On average, they are receiving gifts of $10K-$15K
$10,242
$16,667
$13,455
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If 20 Gifts are Closed with Gifts Averaging 10% of Capacity, the Organization will Realize $263,324
Prospect Manager
Average Capacity
of Prospects
Average Ask
Amount
% of Capacity
Asked
Average Gift
Amount
% of Ask Received
% of Capacity Received
Jocelyn $95,617 $24,286 25% $10,242 42% 11%
Sarah $167,708 $24,167 14% $16,667 69% 10%
Total $131,662 $24,226 18% $13,455 56% 10%
$131,662 x 10% x 20
Gifts
$131,662 10%
$131,662 x 10% x 20 Gifts =
$263,324
If ask amounts are adjusted to reflect capacity on an individual basis, fundraising potential increases…
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Prospect Manager
Average Capacity
of Prospects
Average Ask
Amount
% of Capacity
Asked
Average Gift
Amount
% of Ask Received
% of Capacity Received
Jocelyn $95,617 $24,286 25% $10,242 42% 11%
Sarah $167,708 $41,927 25% $28,929 69% 17%
Total $131,662 $32,915 25% $19,585 59% 15%
Adjusting Average Ask Amount Up to 25% of Capacity on Average Leads to Higher Asks
Sarah’s asks are adjusted from 14% to 25% of capacity, resulting in an average ask of $41,927
$41,927 25%
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Prospect Manager
Average Capacity
of Prospects
Average Ask
Amount
% of Capacity
Asked
Average Gift
Amount
% of Ask Received
% of Capacity Received
Jocelyn $95,617 $24,286 25% $10,242 42% 11%
Sarah $167,708 $41,927 25% $28,929 69% 17%
Total $131,662 $32,915 25% $19,585 59% 15%
Higher Asks Lead to Higher Closed Gift Amounts
This leads to a 17% of capacity average gift for Sarah and 15% overall 15%
17%
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Prospect Manager
Average Capacity
of Prospects
Average Ask
Amount
% of Capacity
Asked
Average Gift
Amount
% of Ask Received
% of Capacity Received
Jocelyn $95,617 $24,286 25% $10,242 42% 11%
Sarah $167,708 $41,927 25% $28,929 69% 17%
Total $131,662 $32,915 25% $19,585 59% 15%
If 20 Gifts are Closed with Gifts Averaging 15% of Capacity, the Organization will Realize $394,986
15%$131,662
$131,662 x 15% x 20
Gifts $131,662 x 15% x 20 Gifts =
$394,986
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All else being held constant, If 20 gifts close at 15% of
capacity on average, this will result in $394,986 in revenue
This represents an additional $131,662 in revenue over prior
asks
Ask amounts should be evaluated on an individual basis– What is the constituents capacity
– What is their Likelihood• Are we one of this prospect’s top three priorities?
• Is this prospect enthusiastic about a particular project or program?
• Do we have a funding need that meshes with this prospect’s interests?
• What other current commitments do they have?
Data can give you the confidence to ask for the right
amount
Strategy Grows Out of Analysis
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Realize Untapped Fundraising Potential
By analyzing file capacity and modeling likelihood to give, this
organization was able to increase capacity under management
and (without closing more gifts) increase potential funds
raised by $2MM
By analyzing ask amounts in relation to capacity, this
organization was able to identify a weakness in their major gift
program and by encouraging each gift officer to ask for a
minimum of 25% of capacity, increases fundraising potential
by $131,662
If this organization realizes even 10% of this potential $2.1MM
gain, they will have realized a Return on Investment (ROI)of
740% based on a $25,000 investment in data and analytics
WealthEngine To Get to CapacityHelping You Reach the Right People for the Right Purpose
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So Your Mother Says Do a Screening
Have files in electronic formatHow many records– Alumnni: where do you start– Parents– Grandparents– Business, community support– Foundations– Events
WhenBefore campaignBefore cultivation opportunitiesBefore the askWith new gifts
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Comprehensive Data from 30+ Sources
Acxiom Household Profiles
Dun & Bradstreet Hoovers Business
Information Marquis Who’s Who Reuter’s Market
Guide Airmen Certificate –
Pilot license Physicians Profiles –
AMA SSA Master Death
Index Do Not Mail
Registry
Personal Demographics
Business & Organizations
Asset & Income
Philanthropic / Giving
D&B – Business Profiles
D&B – State Business Registrations
GuideStar Directors GuideStar
Foundations Section 527
Political Organizations
Foundation Trustees
Acxiom Household Profiles
DataQuick Real Estate
LexisNexis Real Estate
Aircraft Registration – FAA
Boat Owners – Coast Guard & State Reg’s
IRS Pension Holders Reuter’s Market
Guide SEC – Insider Stock
(WealthID)
Federal Election Contributions
State Political Donations
Section 527 Organization Donations
Donations to tax exempt organizations(IRS Section 501 (C)(3))
The WealthEngine Advantage—our unique data sources provide deeper insight on business ownership, lifestyle and overall affluence.
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Leveraging Big Data for Maximum Results
AgeBirth Month/YearNationalityMarital StatusPresence of Children Education and Graduation DatesCredit Card UserEthnicityReligious Affiliation
Demographics & Contact Info
Occupation and BioCompany NameStart DateEmployeesPublic/Private CompanySales VolumePhysician, Specialty and Hospital InformationProfessional AwardsCertificationsCivic InformationMemberships
Business & Organizations
Net Worth EstimateLiquidityTotal AssetsHousehold IncomePensionReal Estate Value Stock Transactions and Holdings144 Stock Sale IntentionsOptionsCharitable ContributionsInvestment Interests
Wealth & Assets
TravelSports (i.e. golf, ski)Spectator Sport InterestsArts & CultureHobbiesLeisure ActivitiesPolitical AffiliationsPrivate FoundationsAircraft OwnershipBoat OwnershipClubsAutomobiles owned
Lifestyle &Interests
WealthEngine leverages data from 60+ sources for insight on business ownership, lifestyle and overall affluence
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Bringing Together Data from Multiple Sources
Extracting Value from Data and Appending Information
Identifying Top Prospects for Cultivation
Screening Process
Knowledge of wealth data
ScoresExtract greater insight from data
Profiles Complete the value of data & intelligence
Parse
1|0Transform
Clean
Normalize & Append
LN
D&BSEC
FEC
Income
GS
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Scoring at the Household Level
Prevents one household with a multi-million dollar income from skewing the average incomes of other households in the tract
Asset behavior varies dramatically by age. Zip+4 level averages age, diminishing the impact of varying behavioral characteristics
Avoids classifying renters as homeowners and subsequently inflating actual assets
Prevents Estimation Error from Zip+4 Asset Variability
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Propensity to Give (P2G) Score Quickly Defines Potential
30% - 35%
45% - 50%
10% - 15%
< 5%
5% - 10%
15% - 25%
25% - 35%
40% - 45%
25% - 30%
< 1%
Perc
enta
ge o
f Pr
ospe
ct U
nive
rse
Percentage of Total Giving
P2G successfully predicts 80% of major donors so you can spend less time validating data
P2G looks at: the predictive value of data sourcesthe quality of match to those sourcesthe estimated giving capacity
75% - 85% of your total giving typically comes from donors in the P2G-1 & P2G-2 scoring categories
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Analytics are the Heart of Wealth IntelligenceWealthEngine scores provide indicators of wealth & affluence
Total Assets
Net Worth
Cash on Hand
WealthEngine Estimates the difference between
total assets and total debt for a household
Estimates the total value of all financial and non-financial assets held by a household, derived from varying asset components
Estimates financial assets that are readily accessible (e.g., checking, savings, money market accounts, etc.)
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Use WealthEngine Scores to Identify Your Targets
An analytical approach lets you:
Extract More Value
Analyze Data Faster
Fundraise More Cost Effectively
Enjoy Greater Flexibility
Make More Informed Decisions
Maximize ROI
WealthEngine scores bring unmatched clarity into who they are. Use to segment and target donors for every fundraising campaign
Propensity to Give (P2G™) Total Assets Net Worth Liquidity Estimated Annual Donations Gift Capacity Range Gift Capacity Rating Influence Planned Giving: (Bequest,
Annuity & Trust) Inclination: Affiliation RFM
Wealth Ratings & Scores
First Look at the Data
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Major Findings from Test File
1078 Major donor prospects in the files. 403 highly qualified by WealthEngine P2G score and estimated giving capacityMiddle initial updated on 767 recordsAge obtained by through Acxiom on 1251 (suggest age overlay if planning planned giving or b-day cultivation activity.)
1,680 total gift amount less than $500“Same” number of $500 gifts from P2G 1-3Total number of all gifts is a good number to capture as it indicates commitment
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P2G Distribution Your Org/WE Comparison
P2G 1 P2G 2 P2G 3 P2G 4 P2G 50%
5%
10%
15%
20%
25%
30%
35%
40%
WEHF
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Total File Results WealthEngine Results
P2G Score # REC EGC Ttl Gift Org Gift $500+
P2G 1 358 $374,882,024 $7,499,919 $153,676 39
P2G 2 720 $267,489,621 $742,805 $149,891 36
P2G 3 699 $34,788,530 $561,634 $199,224 41
P2G 4 76 $4,073,449 $8,315 $8,315 2
P2G 5 144 $21,933 $21,933 8
Total 1997 $681,233,624 $8,834,606 $533,039
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Best Prospects by P2G/Gift History
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The Results
Determine affinity criteria– Engagement type and score– Donations- RFM– Affiliation
Assign someone to be in charge– Of the passwords– Of access to the information– Of the results file
Find your best prospects and assign or engage immediately Begin to develop your table
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Individual’s record in
DMS
WealthConnect
Connect to FWO Profile
Calculate Ratings &
Scores
Bring Ratings & Key
Datapoints into the DMS
Integrate Wealth Intelligence
Integrating wealth data into your DMS/CRM helps you:
Prepare for a meeting
Refine ask amounts
Make informed decisions
Automate marketing and donor outreach activities
Save time and streamline workflows
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Translating the Results to Action
Look at P2G 1-0 with high match – Property value of $1.2 MM– SEC– Dun & Bradstreet with individual value greater
than $800,000– Guidestar match with EGC greater than $250,000
Look at P2G 1 others– Property value of $1.2 or more– More than 2 properties– High FEC contributions with one of the above
Look at Total Net Worth greater than $2,500,000Look at Large Individual Gifts
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Search Page for Prospect Research
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Wealth Scores Key to Prospect Research Detail on the Subscription- Quickly ID good donors
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Circle of Friends or Connections
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Individual’s record in
DMS
WealthConnect
Connect to FWO Profile
Calculate Ratings &
Scores
Bring Ratings & Key
Datapoints into the DMS
Integrate Wealth Intelligence
Integrating wealth data into your DMS/CRM helps you:
Prepare for a meeting
Refine ask amounts
Make informed decisions
Automate marketing and donor outreach activities
Save time and streamline workflows
wealthengine.com | Page 49
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