Efficient Data Management & Constituency Development

1. Lecture 8 Data Management & Constituency Development So much information, so little time… Since we are listening to our donors/prospects we need to be sure to record our findings in order to develop a stronger relationship • Long time between “touches” • Multi-person development office (moves management) • Turnover What do we need to know?

2. Lecture 8 Data Management & Constituency Development The relationship is between the donor and the organization • Record information that helps to strengthen that bond • Don’t record anything that you wouldn’t show the donor (e.g. scandals, gossip, irrelevant personal information) • Will the information help you to: • tailor your solicitation better • engage the donor in a specific program of the organization • add value to the relationship? If yes, then it is relevant, useful information and record it in your database

3. Lecture 8 Data Management & Constituency Development Data to Record: • Basic Information • Mailing Address, Phone Numbers, Email Addresses, Spouse’s Name, birthdates • Linkage Information • Why are you entering the prospect into the database? E.g. Golf Tournament, Attended Speaking Program, Invited by Trustee to Cultivation Event, Volunteer, Unsolicited donation, In-Memory-of Donation, etc.

4. Lecture 8 Data Management & Constituency Development Data to Record (continued): • Professional Affiliation • Work address, work website, work phone, email, fax, industry • Attributes • Giving to other non-profits or political campaigns, service on other boards, education/alma mater, hobbies • Notes • Any other tid-bit, call report, article in paper, family member passed away, etc.

5. Lecture 8 Data Management & Constituency Development Data to Record (continued) • If you have your data wealth screened, you’ll get some other information such as: • Stock Holdings and valuations • Real Estate Holdings • Vessel Registration • Businesses • Propensity to give • Many databases have a Prospect tab for this information • Multiple wealth screening products; however not appropriate for all development offices; ideal for shops with mature and active major gifts programs -or- organizations with natural “feeders” (hospitals, colleges)

15. Remote access demonstration (if possible) http://cnecitrix.carene.org/Citrix/XenApp2/auth/login.aspx

16. Lecture 8 Data Management & Constituency Development • Gift Processing - the procedure by which gifts are received, recorded, transmitted for deposit, receipted, and acknowledged in an orderly and timely sequence. Managing the Donor Bill of Rights Important Terms: • Appeal - the call to action that resulted in the gift • Fund - the program or service that the gift is supporting • Campaign – the fundraising effort • Appeals: Fall Appeal, Golf Tournament, Foundation Proposal • Funds: Annual Fund, Charity Care Fund, Capital Fund • Campaigns: Annual, Research Fund, Capital Campaign 2010

17. Lecture 8 Data Management & Constituency Development Gift Receiving Mail/Inbox Transmittal (online fundraising) Deposit to Finance Gift Data Entry Prepare for Deposit/Gift Entry Computer Processing USPS Acknowledgement letters, receipts Example of Process for Gift Receiving & Handling Optimum turnaround time 24 hours

18. Lecture 8 Data Management & Constituency Development Records = Maintenance of donor “relationship” • Accuracy and compliance • Security and confidentiality of donor files (e.g. HIPPA) • Limited access to files • Discussion of donors occurs only within your organization • Ethical considerations • What about the types of data collected? • Is marital status viewed as invasive? • Do you feel comfortable showing the donor his/her record? Legal Component to Records • Compliance with state and federal legal requirements and accounting standards in recording and acknowledging gifts • APF News, Advancing Philanthropy, The Chronicle of Philanthropy, FASB (Financial Accounting Standards Board), are examples of resources

19. Lecture 8 Data Management & Constituency Development Gift Reports • Reflects all performance activity within each of the solicitation methods • Measure and monitor compared to previous years or against long-range goals/objectives Three Primary Areas of Activity to Report: • Source of gifts • Purposes or uses of the money • Results of each fundraising program (campaign or appeal)

20. Lecture 7 Data Management & Constituency Development Some examples: • Percentage of participation: • Clues that indicate if prospects like what is being sent to them, or • Early signals of a change in donor interests • Renewal rates and average gift size: • Indications of donors’ enthusiasm for method of appeal • Donors’ response to recognition: • Donor attendance at recognition events • Donor responses to invitation to give higher amounts • Volunteers’ personal solicitation performance: • Percentage of assigned prospect visits completed • Number and size of gift received

21. Personal Case Assignment 8.1 • What is the process for gift receiving and handling for your personal case organization? Hint: This is usually in a procedure manual • What reports does your personal case organization run on a regular basis (e.g. monthly/quarterly) • Send the answers to these questions to mrberard@butler.org along with a critique of your personal case’s gift processing and reporting

22. Constituency Development “The Constituency consists of people who need the nonprofit’s services, who provide the services and direct the programs, who govern the organization, and who support the cause” (Rosso, 2003) Rosso defines the Constituency as the set of interested persons Serving the cause with a passion Constituency = Interested Parties

23. Constituency Development The Constituency Model • Figure 5.1 on page 42 • The Center represents the strength of the constituency (i.e. where the bond is the strongest, hence Board Members, Management and Major Donors) • The circle surrounding the center consists of your clients, members, volunteers, employees, and donors. These people have a stake in the organization.

24. Constituency Development The Constituency Model (continued) • The third circle represents those with less of a connection (at that time) • This circle represents opportunity for re-engagement due to past stronger affiliation • Requires creative tactics; return is moderate • The fourth circle are people with similar interests • Ill defined • Typically know little about the organization; the organization knows little about them • Direct Mail is the typical approach • Worth probing; but return is generally low

25. Constituency Development Identifying Likely Donors - identified by three characteristics: • Linkage - personal contact • Ability - financial capacity to give • Interest – in nonprofit’s work Building your lists (outside of your natural constituency): • Personal introduction • Trustee/Development Committee/Staff Exercise • Invitation to a fundraising event • Invitation to a speaking program • Invitation to participate in a grassroots initiative • Invitation to a tour • Invitation to a cultivation event

26. Constituency Development Building your lists: (continued) • Similar Interests • Annual reports from similar organizations • Memberships to professional organizations • Attendees to lectures on relevant topics • Attendees to events of similar organizations/missions • Ability/Propensity to Give/Capacity • Donor walls/annual reports of similar organizations • Political campaign donor listings Must be researched by Development Office and then rated by volunteers as personal contact is the most effective tactic

27. Constituency Development Roles and Responsibilities that Influence Giving - see figure 5.2, page 47 of text, The Wheel of Roles and Responsibilities • Used for identifying candidates for major gifts or for volunteer leadership positions (e.g. Board) • Based on the portions of one’s life (i.e. demands of time) i.e.: family, career, religion, education, recreation, politics, and social life and how those portions related to the organization • Family - Often most central concern; positive influence on giving; also hindrance to MG • Career – Certain professions tend to be major givers (due to capacity); Need to move beyond stereotypes • Religion – Bedrock of philanthropy; “Devouts” tend to give to only secular causes (Prince, 1994)

28. Constituency Development Roles and Responsibilities that Influence Giving (continued) • Education - Donor may place high value on education due to stature; May restrict capacity if paying for tuition (e.g. children’s education) • Recreational Interests – Provide a forum for involvement; increase awareness about societal needs; avenue to engage prospect; may restrict capacity (e.g. worldwide travel) • Politics (civic engagement) – Prospects with a high interest in civic engagement are usually very community oriented and involved in many different circles • Social Life – important to fundraising (networks and connections); broadening social contacts will assist in establishing helpful linkages

29. Constituency Development Constituency Development • Identifying prospects (interest + connection + capacity) • Bringing qualified prospects into the donor pyramid • Escorting donor up through the donor pyramid • Started in the Development office (building lists); qualified by engaging volunteers and other members of the constituency in that process • Ongoing and continuous

30. Constituency Development Wealth Screening Demonstration www.donorresearch.com http://www.wealthengine.com/

31. Constituency Development Personal Case Assignment 8.2: • How does your organization recruit new donors? • How does your organization utilize other staff, volunteers to validate prospects/solicit involvement?