Prospect Ratings Demystified

1. Prospect Ratings Demystified Or How to read that “stuff” in Wizard

2. Special Thanks Lai Lonne Fong Dorothy U. Oluonye Jessica Messerschmitt

3. Why have ratings? • Determine Wealth Levels • Gift Capacity • Propensity to Give • Frequency of Giving • Likely Gift Type (CRT, Bequest, etc.)

4. Who has ratings • All Domestic Alumni (unless they are deceased) • Many Foundations and Corporations (older records—no longer reviewed) • Certain Friends (most at this point)

5. The LIFETIME RATING Explained Making a recommendation based on an analysis of financial and other factors about the range of gift possible from a prospect. (Cecilia Hogan; Prospect Research—a Primer for Growing Nonprofits; Jones and Bartlett, c. 2004)

6. What it Means • Definition 1: 3% to 5%, conservatively calculated, of Demonstrated Net Worth • Definition 2: What a prospect can be expected to expend philanthropically over the course of his or her lifetime—to any charitable institution (not just CWRU)

7. Why? • Prospects need to be “binned” in categories by wealth on an absolute scale—Who is the richest and what percentage can we get? • Propensity is NOT at issue here, just wealth

8. Where to Find it • On the front Screen in the Purple Quadrant • NOT THE WHOLE PICTURE—Drill down!! • Three types of rating: • LIFETIME • NEEDS RESEARCH APPROVAL • NO LONGER VALID

9. How is Lifetime Rating Calculated • Balance Sheet Model • Assets – Liabilities = Net Wealth • Industry Standard Formulas for Calculating Net Worth—Several Scenarios Formulated • Most likely scenario is used based on combination of “hard” and “soft” data (contact reports, news articles –other giving, etc.)

10. Ratings Control • Research Office has last word…BUT! • Ratings will be changed if proof is offered • Propensity to give to CWRU not a factor • Ratings are reviewed from time to time

11. How Ratings Stack Up • Up to $100M: 3 Alumni, 24 Friends • Up to $50M: 2 Alumni, 6 Friends • Up to $25M: 20 Alumni, 26 Friends • Up to $10M: 45 Alumni, 54 Friends • Up to $5M: 213 Alumni, 137 Friends • Up to $2.5M: 60 Alumni, 54 Friends • Up to $1M: 224 Alumni, 99 Friends • Ratings from $100K - $500K not fully approved: there is much room for growth!!

12. Expectation Field • Found on Prospect Screen • Intended for Fundraiser use • Completely user-defined

13. The PRIZMNE System • Classifies thousands of neighborhoods in 66 lifestyle segments, each a distinct marketplace group • Provides a highly accurate measure of socioeconomic standing, philanthropic tendency, and lifestyle indicators (Source: GGA presentation, 2005)

14. PRIZMNE Variables • Social Rank (income, employment, education) • Household Composition • Mobility (length of residence, car ownership) • Ethnicity • Housing • Urbanization (urban/rural, housing densities) (Source: GGA presentation, 2005)

15. Where to Find PRIZMNE • Found in Demographic Profile section • Codes of Importance: • 1 Upper Crust (6,613 hits) • 2 Blue Blood Estates (3,357 hits) • 5 Country Squires (5,513 hits) • 6 Winner’s Circle (2,160 hits) • 7 Money & Brains (6,326 hits) • 9 Big Fish, Small Pond (6,294 hits) • 10 Second City Elite (2,104 hits)

16. Grenzenbach Glier& Associates The GGA ratings

17. GGA Explained • Almost all individuals in Wizard were rated in 2005 • Three, Four or Five ratings, found in Evaluations • GGA Major Gift: A, B, C, D, E (A being the best) • GGA Annual Giving: 1 through 6 (1 being the best) • GGA Planned Giving: P, S, T, X (P being the best) • NL (Nothing to Lose): High wealth but no giving • GGA Gift Capacity Estimate (not very many records)

18. Blackbaud Analytics The next wave in prospect ratings!

19. What is Blackbaud? • A Predictive Model • Charts Capacity AND Likelihood • Most Detailed Product Available on Market • As Many as 26 Records per Prospect

20. Blackbaud Ratings Broken Down • University as a whole analyzed for: • Major Gift Likelihood ($2,500 or more) • Annual Giving Likelihood • Annuity Likelihood • CRT Likelihood • Bequest Likelihood • Target Gift Range (capacity) • Each school analyzed separately: • Major Gift Likelihood (school specific) • Target Gift Range

21. Where to Find • Found in Evaluations • Target Gift Range (TGR’s) Scores are from 1 to 15 (University) and 1 to 12 (schools) • Likelihood Scores are from 1 to 1,000 (1,000 being the best score) • Mapped into Wizard in file-specific Quartiles • Ignore the $ sign on actual rating—it is a hard code

22. Ratings Not (Yet) in Wizard • From Blackbaud Wealthpoint Screening: • Estimated Wealth • To be mapped to a wealth field • Annual Giving Capacity ($ range) • Annual Giving Capacity Value ($ value) • 1% of Wealthpoint total assets • Major Giving Capacity ($ range) • Major Giving Capacity Value ($ value) • 5% of Wealthpoint total assets • YOUR GUT INSTINCT!!!

23. How-to Section (the fun part) Looking up ratings; reports, etc.

24. Reports where Ratings Matter • File-Print-Other • Brief Biographical Summary • Executive Snapshot • Wizard In-depth Profile • High Profile Summary Report • Proposal List – Entity NEW (choose school for Blackbaud) • Proposal List – Prospect NEW (choose school for Blackbaud) • Not all ratings appear on all reports

25. Ratings in Advanced Look-up • Tab PT (A-N) • Evaluation sub-tab • Use Type and Rating fields • To look up Blackbaud data: • Best interpreted as a combination of MGL and TGR • You must do two searches and use intersecting clipboards • For PRIZMNE • Tab PT (A-N) • Demographic Profile sub-tab; use Level field

26. Thanks for Coming dso@case.edu duo1@case.edu jlm67@case.edu