Presented by: Chris Cannon, Saint Louis Zoo April 4, 2001

1. Junior League of St. Louis and TheMetropolitan Association of PhilanthropyProspect Research: Where to Start and How to Proceed with Boards, Donors and Prospects Presented by: Chris Cannon, Saint Louis Zoo April 4, 2001

2. 1 Introduction: What is it? • Prospect research is the process of identifyingpeople and organizations who have the capacityand inclination to support your organization. • Prospect research can range from notes on cocktailnapkins to sophisticated analyses of information available from 100’s of sources, all aimed at securing strategic information that helps your organization act effectively. (And, the cocktail napkin often wins!) Cannon - Jr. League/MAP

3. The Role: Why is it important? 2 • The role of research is to provide the organization with pertinent, timely and actionableinformation that assists with the fulfillment ofthe organization’s mission. • Information is a powerful tool that, when coupledwith (proactive and reactive) plans of actions, can lead to strategies for bolstering support from existing donors and developing future supporters. Cannon - Jr. League/MAP

4. What is needed for research? 3 • An emphasis on the importance of information. • An environment where information is shared. • Procedures for procuring information. • Access to sources of information. • A storage facility. (aside from your superb memory) Cannon - Jr. League/MAP

5. Where to focus our efforts? 4 • An emphasis on the importance of information and a hospitable environment are often ingrained organizational issues, not to be covered here. • Procedures for procuring information and the sources of that information will be the focus here, with the implication that - whether paper files or electronic - you must save what you learn. Cannon - Jr. League/MAP

6. 5 How to Research 101 • Be thorough and consistent. • Start at the beginning (inside-out;top-down applies here, too). • Develop a logical pattern and a specific set of standard sources. • Record all relevant findings and the fact that research occurred. • Set a time limit! Research should not impede on human contact. • When you here hooves, think horses but hope for zebras Cannon - Jr. League/MAP

7. 6 What’s Out There? Resources for Research There are three aspects to consider when reviewing the resources available for research: 1) What sources of information on your donors and prospects are available? 2) What materials or processes can be provided to communicate this information? 3) What can the you do to add value to the information? The next few pages focus on the sources you can find (mostly on-line and/or for free) to learn about prospects and donors. Cannon - Jr. League/MAP

8. Sources of Information 7 • There are 4 1/2 primary “sources” of information, all of which can • provide information that overlaps. In fact, the overlap of sources is a key component to verifying information: • Organization-specific files (constituent/prospect in-house files, including information provided by volunteers and institutional memory….the best sources!) • Paper Sources (Older and unique sources tend to be paper files) • On-line Web Sources (Many free sites provide excellent data) • Pay-sources and the “invisible web” Cannon - Jr. League/MAP

9. 8 Sources of Information: Organization-specific files • Your organization’s institutional memory and files are critical to basic research. Ask those close to you who and what they know and how they can help. • Volunteer, staff and board information, in-house files and information tell you where to start (and when to stop). • This information provides key links among donors and prospects. • It also provides critical data for verification of your findings. Cannon - Jr. League/MAP

10. 9 Sources of Information: Paper Sources Whether in-house or at the school or public library, paper (or microfiche) files are sometimes our only hope (making our esteemed librarians our best friends). What sources are often the most useful? • Relevant newspapers • Dun & Bradstreet, etc. • Who’s Who • Good ol’ phone books • Martindale-Hubble • NFP Annual Reports • Yearbooks • Alumni Directories • SEC filings (S1, DEF 14A) • Foundation directories • (Local) magazines Cannon - Jr. League/MAP

11. 10 Sources of Information: On-line Web Sources There are many free sites that offer information on all manner of research subjects. Here, a few sites are noted based on the type of information they provide. Although overlap is inevitable, these sites are broken into 4 basic subjects: 1) General 2) Individual 3) Corporate 4) Foundation (Please note that web addresses change from time-to-time. The following were accurate as of March 1, 2001.) Cannon - Jr. League/MAP

12. 11 Sources of Information: On-line Web Sources - General • http://www.princeton.edu/one/research/netlinks.html (great resource for links to nearly every component of wealth identification and prospect data verification) • http://gwis2.circ.gwu.edu/~gprice/listof.htm (comprehensive listing of on-line resources, including many "hidden" sites that standard search engines do not scour) • http://www.internet-prospector.org/ (an Internet journal for how to scour the web for information) • http://www.presbyterianchurchusa.com/lamb/ (a useful site for links and ideas from David Lamb, a well-known prospect researcher) • http://www.richmond.edu/develop/research/ (another useful site for links and ideas from Univ. of Richmond ) • http://pubweb.acns.nwu.edu/~cap440/ (a good site from Northwestern.) • PRSPCT-L is the standard for prospect researchers listservs (PRSPCT-L-subscribe@yahoogroup.com to subscribe) Cannon - Jr. League/MAP

13. 12 Sources of Information: On-line Web Sources - Individual Individual Information: http://www.ama-assn.org/aps/amahg.html (the AMA's doctor web site) http://www.martindale.com/locator/ (the site for lawyer searches) http://www.amcity.com or http://www.bcentral.com (40 business journals) Public Information: http://www.tray.com/ (FEC's site for all campaign gifts for federal elections) http://www.ancestry.com(for the social security death index) http://www.langenberg.com (number of address/phone number directories) http://www.pac-info.com/ (appraisal sites and many other public record sites) Salary and Securities: http://finance.yahoo.com (one-stop source for corporations and their leaders) http://www.tenkwizard.com (the best, indexed site for SEC information) Cannon - Jr. League/MAP

14. 13 Sources of Information: On-line Web Sources - Corporate & Foundation Preparing for the $0.34 proposal can be quick and effective using the following types of web sites: Corporate Sites: http://finance.yahoo.com http://www.tenkwizard.com corporate-sponsored web sites Foundation Sites: http://www.fdncenter.org (the first source for foundation information, esp. larger foundations) http://www.guidestar.org (an indexed site for 600,000+ nonprofits) http://www.cof.org (Council on Foundations site) http://www.mcf.org/mcf/forum/articles.htm (good general info. and guidance) Cannon - Jr. League/MAP

15. 14 Sources of Information: On-line Web Sources - What’s Missing? When using free on-line resources, a broad, search engine query can narrow your efforts or indicate that your general search is too vague or broad to be effective. Keep in mind that search-engines do not catch everything nor do they review all pages (see next slide). A few of the more effective and popular search engines are: http://www.google.com http://www.altavista.com http://www. savvysearch.com Cannon - Jr. League/MAP

16. 15 Sources of Information: Pay Sources and the “Invisible Web” • Pay Sources are varied in cost, quality and depth of the information, means of access, etc. Some of these sites include: • http://www.dialogweb.com • http://www.knowx.com • http://www.lexis.com • Additional services from P!N, Grenzebach Glier, Marts and Lundy, etc. can pare down your org’s info. to target top prospects • Gary Price (http://gwis2.circ.gwu.edu/~gprice/listof.htm) provides the best source of links for non-indexed sites, such as census bureau info. Cannon - Jr. League/MAP

17. 16 Handling the “Mountain” of Data: • The information made available should serve to inform decision makers as strategic actions are developed. • In all cases, the information sought, stored and shared should assist with your organization’s strategic actions. (We are, after all, trying to improve our society through fulfilling our missions.) • The key to allowing the information at hand to positively affect the mission of your organization is developing processes for gathering and communicating information. Cannon - Jr. League/MAP

18. 17 Gathering the Information:Processes forPro- & Re-active Research Gathering information can occur in three general ways: 1) Reactive 2) Proactive 3) Evaluative Cannon - Jr. League/MAP

19. 18 Processing the Data:Seeking answers to questions • Reactive research: • Examples of processes • Searching the many sources • Examples of forms • Key issues to consider Cannon - Jr. League/MAP

20. 19 Processing the Data:Providing Questions to Answer • Proactive research: • Examples of processes • Data mining • Seeking biographical, financial, interest-based and other clues about connections to your organization • Prospect Management/Tracking • Success stories • Key issues to consider Cannon - Jr. League/MAP

21. 20 Processing the Data:Using Answers to Develop Next Steps • Evaluating Results: • Examples of processes • Rating and screenings • Responding to volunteers information and ideas • Success stories • Key issues to consider Cannon - Jr. League/MAP

22. 21 Handling the Data:Standardize, Automate and Manage • Information on donors and prospects should be kept in either a paper file or a database: • Information should be stored in a standardized fashion. • If possible, seek ways of automating information gathering and information sharing. (Go to www.ebase.org for an example of a free development database.) • Be certain to update information when necessary, provide information when appropriate and manage data effectively. Cannon - Jr. League/MAP

23. 22 Prospect Research: Where to? • The role of prospect research is to provide information for strategic fund development. Information “informs” action. • Many resources are available; information, though, becomes valuable only after relevance and strategic utility are attached to the information. • The Association of Professional Researchers for Advancement (APRA, www.aprahome.org) and others can lead you to additional information (on additional information). Cannon - Jr. League/MAP

24. 23 Prospect Research: Where to? • Standard processes for gathering, storing and analyzing information will allow you to better identify possible board members, “under-performing” donors and excellent prospects . • Information has a rather short shelf life. Developing weekly or monthly processes for handling new information about gifts, activities and connections is critical. This is where Proactive Research makes its greatest mark. • Use what you learn to make the world a better place. Good luck! Cannon - Jr. League/MAP