Seven Habits of Highly Successful Prospect Researchers

1. Seven Habits of Highly Successful Prospect Researchers AFP Fundraising Fundamentals Series October 20, 2004

2. Presenters • Valerie Parker Development Officer-Prospect Research & Management Webster University parker@webster.edu • Ryan Elliott Director of Advancement Services Webster University relliott@webster.edu

3. Audience Survey • Organization Types • FR Staff Sizes • Dedicated Research Staff? • Goals for Today

4. 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

5. 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

6. Presentation Overview (cont.) • How much should we ask for? • Implementing the plan • How are we doing? • Q&A / Conclusion

7. 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)

8. The Seven Habits • Building a Gift Table/Chart of Standards • Identifying your top prospective donors • Determining a funding interest • Determining who to involve in cultivation & solicitation • Developing a target ask amount range • Implementing the plan • Tracking your progress & measuring results

9. #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

10. Major Gifts 10% of Donors 60% of $ 20% of $ Upgraded Gifts 20% of Donors Base 70% of Donors 20% of $ #1 - Building a Gift Table/Chart of Standards • Model Gift Pyramid

11. #1 - Building a Gift Table/Chart of Standards • The first 2 gifts should equal 10% of goal, or 5% each • The next 4 gifts equal 10% of goal • The chart is flexibly developed beyond this point, depending on available prospects, gift history, and linkage, ability & interest

12. #1 - Building a Gift Table/Chart of Standards • The prospect to donor ratio begins at the top at 5:1 and gradually reduces to 2:1 • Top 10% of donors = 60% of goal • Next 20% of donors = 20% of goal • Next 70% of donors = 20% of goal

13. Sample Gift Table: $100,000 Goal Gift # of Cum. # # of Cum. # of $ per Cum. Range Gifts of Gifts Prospects Prospects range $ $5,000 2 2 10 (5:1) 10 $10,000 $10,000 $2,500 6 8 30 (5:1) 40 $15,000 $25,000 $1,000 18 26 72 (4:1) 112 $18,000 $43,000 $500 34 60 136 (4:1) 248 $17,000 $60,000 10% of donors 60% of goal $250 48 108 144 (3:1) 392 $12,000 $72,000 $100 80 188 240 (3:1) 632 $8,000 $80,000 20% of donors 20% of goal < $100 412 600 824 (2:1) 1,456 $20,000 $100,000 70% of donors 20% of goal

14. Q&A / Break #1

15. #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

16. #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

17. #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?)

18. #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

19. #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

20. #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

21. #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

22. #5 - Developing a Target Ask Amount • Discussions at prospect management • Past gift history • Gifts to other organizations • Conversations with the donor prospect

23. #5 - Developing a Target Ask Amount • “Fishing” with a menu of opportunities • Electronic screening • Gift ability formulas • Peer screenings

24. Q&A / Break #2

25. #6 - Implementing the Plan • Campaign phases • Leadership gifts – test phase(revise plan if necessary based on results of solicitation of very top donor prospects) • Major gifts • Broad-based phase • The Cultivation/Solicitation Cycle • Moves Management (PM committee) • PM Policy & Guidelines

26. #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

27. Enjoy Your Successful Campaign • Proper planning, analysis, execution and implementation works!

28. Q&A / Conclusion • Thanks for participating! • Valerie Parker / 314.968.5945 parker@webster.edu • Ryan Elliott / 314.968.5963 relliott@webster.edu