Prospects

One of the most enjoyable aspects of major-gift fundraising is getting to build relationships with donors. But often nonprofits squander the opportunities given to them by not doing any research. Before we get started, a word of warning: The goal of research isn't to snoop. We're only going to look at publicly available information, but it can still feel intrusive. Your integrity is always worth more than the biggest donation a person might give. Always.

It doesn’t matter how many foundations, individual donors, local and regional governments, and other funders believe in your organization and can donate financial support to it if those donors can’t find you and put you on their radar. Researching grants and prospects is the first step in the process, and navigating the upper levels of major-gift fundraising often requires a different approach than individual gift campaigns.

It takes 10 touches to move someone through the buying process. Why don't we look at donor prospect lists the same way?

Good “prospecting,” as the professional development officers say, is much more like a well-guided trek with an experienced guide than a treasure hunt. Unfortunately, you’d never know it if you simply observed how many nonprofits go about seeking new supporters.

For far too many charitable organizations, discovering new potential supporters and bringing them in to the fold is the proverbial treasure hunt. Look under every rock, travel down every path.

Gaining new donors has never been about “everyone” and “everywhere.”

Financial firms may be quick to offer the disclaimer that past performance is no indicator of future performance. In the fundraising world, the opposite is true: Past performance strongly correlates with future performance.

Based on a back testing of $5 billion in known giving to 400 nonprofit organizations, the five factors that most accurately predict future giving are, in order of predictive strength:

• Previous giving to your organization
• Previous giving to other organizations
• Participation as a foundation trustee or director
• Federal political giving
• Real estate valued at $2+ million

By investing in research and being proactive, you may be surprised with your short- and long-term financial results. In reality, I would be surprised if you have long-term financial success without it!

In the August 2007 issue, Margaret King, president of the InfoRich Group, explained why ignorance is not always bliss, especially when it comes to prospect research, in her article, "What You Don’t Know — and How It Can Hurt You."

Ted Hart speaks with Jen Filla, founder and president of Aspire Research Group, and Helen Brown, founder of the Helen Brown Group, about prospect research on his Nonprofit Coach radio show.

Geographic information systems (GIS) mapping has widespread applications to the work we do, and for almost any nonprofit sector. This technology enables fundraisers to plot on a map the location of your: $100+ donors, loyal donors, subscribers, patients, alumni, food recipients, ticket buyers, gala attendees and so much more. The most important qualities of GIS mapping are that it is visual and multidimensional. You can overlay profiles to learn about phenomenon that can drive your strategy.

Where do you look for potential donors? Here are some shortcuts to help you identify the right donor prospects who can take your cause to the next level. 1. If you need funding, go to your current donors first. 2. Start with your most committed donors and move them into larger gifts. 3.  Look for people who have both wealth and affinity for your cause. 4.  Don’t expect cold calls to yield anything. 5. Focus on your top level donors. 6. Set priorities relentlessly. 7. Use your informal networks to identify prospects. 8. Pay attention to the ladies.