The Metropolitan Association of Philanthropy Basic Systems for Prospect Research and Management

1. The Metropolitan Association of PhilanthropyBasic Systems for Prospect Research and Management Chris Cannon Saint Louis Zoo September 26, 2001

2. Introduction of PR&M • Outline of this Session: • The Basics: Definitions and Starting Points • Asking and Recording: In-House Fundamentals • Available Information: Internet and other options • Analyzing and “Data Mining”: Finding Giving Clues Cannon - Basic Prospect Research and Management Systems

3. What is Prospect Research? • Prospect research is the process of identifyingpeople and organizations who have the capacityand inclination to support your organization and seeking salient information about these prospects. • Prospect research can range from notes on cocktail napkins 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 - Basic Prospect Research and Management Systems

4. What is Prospect Management? • Prospect management is the process of using what you know to manage and guide the activity of the people and organizations who have the capacity and inclination to support your organization. • Prospect management is to prospect research what knowledge is to information. It’s putting what you know to use. Cannon - Basic Prospect Research and Management Systems

5. The Role: Why is PR&M important? • The role of research and management is to provide the organization with pertinent, timely and actionable information that assists with the fulfillment of the organization’s mission. • Information is a powerful tool that, when coupledwith a plan of action, can lead to strategies for bolstering support from existing donors and developing future supporters. Cannon - Basic Prospect Research and Management Systems

6. What is needed for PR&M? • 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 - Basic Prospect Research and Management Systems

7. 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. • Know what you can/should find and what you cannot. • When you here hooves, think horses but hope for zebras. Cannon - Basic Prospect Research and Management Systems

8. Asking Questions & Recording Answers • Before we look at the various sources of information and systems for PR&M, let’s start with our “inside-out; top-down” approach • Who are your best supporters, what do you know about them and where do you store what you know? • You should have more information and manage it “better” for these folks than any others Cannon - Basic Prospect Research and Management Systems

9. Asking Questions • What do you want to know about your (best) supporters? • Why your organization? What’s the motivation? • How can they help? Who/What do they know? What are they willing to do? • What are their interest/s and capabilty/ies Cannon - Basic Prospect Research and Management Systems

10. Recording Answers • Using your best supporters as the model for “ideal” PR&M: • What do you know? What have you asked? • How does your filing system work? • Where and how are you recording data? What kind of database are you using? What codes are used? How can you extract and analyze it? • These should represent your best practices Cannon - Basic Prospect Research and Management Systems

11. What’s Available? Resources for PR&M • There are three aspects to consider when reviewing the resources available for research: • What types and sources of information on your donors and prospects are available? • What materials or processes can be provided to record, analyze, communicate and USE this information? • What can 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 - Basic Prospect Research and Management Systems

12. What’s Available? Types & SourcesTypes of information • Always look for information that addresses interest and/or ability: • wealth indicators: stock, salary, assets, business links, home(s) • Relationships and connections • Giving to other organizations • Giving and activity patterns to your institution • Many clues come from their “unsolicited” gifts • “Net Wealth” does not exist! Cannon - Basic Prospect Research and Management Systems

13. Sources of Information • There are 4 1/2 primary “sources” of information, all of which can provide information that overlaps. • 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 - Basic Prospect Research and Management Systems

14. 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. • Database maintenance and standard usage play key roles! Cannon - Basic Prospect Research and Management Systems

15. 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 - Basic Prospect Research and Management Systems

16. 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 and usage details change from time-to-time. The following were accurate as of September 22, 2001.) Cannon - Basic Prospect Research and Management Systems

17. 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 standard search engines can’t scour) • http://www.internet-prospector.org/ (an Internet journal for how to scour the web for information) Cannon - Basic Prospect Research and Management Systems

18. Sources of Information: On-line Web Sources - General (cont.) • 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 - Basic Prospect Research and Management Systems

19. 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; recently removed a good deal of detail) • http://www.amcity.com or http://www.bcentral.com (40 business journals) Cannon - Basic Prospect Research and Management Systems

20. Sources of Information: On-line Web Sources - Individual (cont.) • Public Information: • http://www.tray.com/ (FEC's site for all campaign gifts for federal elections) • http://ssdi.genealogy.rootsweb.com (http://www.ancestry.com recently became a pay site) • http://www.langenberg.com (number of address/phone number directories) • http://www.pac-info.com/ (appraisal sites and many other public record sites) Cannon - Basic Prospect Research and Management Systems

21. Sources of Information: On-line Web Sources - Individual (cont.) • Salary and Securities: • http://finance.yahoo.com (one-stop source for corporations and their leaders) • http://people.edgar-online.com/people/(TenKwizard.com recently became a pay site) • http://www.salary.com/ • Newspapers, especially special inserts to the Business Journals and the post-Dispatch Cannon - Basic Prospect Research and Management Systems

22. Sources of Information: On-line Web Sources - Individual (cont.) Real Estate Appraisal Special: Real estate ownership is pubic record and a valuable wealth indicator. St. Louis City and County and St. Charles County have on-line databases: The City: http://www.stlouiscity.com/assess/lookup.cfm County: http://revenue.stlouisco.com/ias/ St. Chuck: http://www.win.org/library/library_office/assessment/ Additional items, such as different mailing addresses, neighbors and trust information, can provide new directions. Cannon - Basic Prospect Research and Management Systems

23. Sources of Information: On-line Web Sources - Real Estate Special Cannon - Basic Prospect Research and Management Systems

24. Sources of Information: On-line Web Sources - Corporate • Preparing for the $0.34 proposal can be quick and effective using information from the following types of web sites: • Corporate Sites: • http://finance.yahoo.com • http://www.tenkwizard.com(Just switched to being a pay-site) • http://www.hoovers.com/ Cannon - Basic Prospect Research and Management Systems

25. Sources of Information: On-line Web Sources - Foundations • 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 - Basic Prospect Research and Management Systems

26. 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: • http://www.google.com • http://www.ilor.com • http://www. savvysearch.com Cannon - Basic Prospect Research and Management Systems

27. 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 organization’s information to target top prospects Cannon - Basic Prospect Research and Management Systems

28. Sources of Information: “The Invisible Web” • Gary Price provides the best source of links for non-indexed sites, such as census info.(http://gwis2.circ.gwu.edu/~gprice/listof.htm) • This site also illustrates that there is too much information to assess, analyze and manage. • Therefore, we need to develop Systems. Cannon - Basic Prospect Research and Management Systems

29. Systems of analyzing what we know • 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 systems for gathering, analyzing, communicating and utilizing information. Cannon - Basic Prospect Research and Management Systems

30. Systems of analyzing what we know:Standardize, Automate and Manage • To start, 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 - Basic Prospect Research and Management Systems

31. Systems of analyzing what we know • Systems for prospect research and management should start, again, with the “top-down, inside-out” approach • Let’s look at some fundamental systems and then some more advanced systems that your organization can begin using tomorrow! Cannon - Basic Prospect Research and Management Systems

32. Systems of analyzing what we know:Fundamental Starting Points • SYSTEM: Develop a board questionnaire that is completed by each (new) board member • VALUE ADDED: Learn, record and be able to act upon information about your best supporters. • IMPLICATIONS Cannon - Basic Prospect Research and Management Systems

33. Systems of analyzing what we know:Fundamental Starting Points • SYSTEM: Send annual survey to your top donors, asking questions about your mission and finances, their interests and motivations, their interaction with your organization, next steps, etc. • VALUE ADDED: Initially, you’ll learn more about your best supporters and gain some ideas on where to go next. Over time, patterns, strengths and weaknesses and future avenues for growth will emerge. • IMPLICATIONS Cannon - Basic Prospect Research and Management Systems

34. Systems of analyzing what we know:Fundamental Starting Points • SYSTEM: Review gifts made to your organization every week, with an eye for wealth or interest indicators. Act upon these gifts through personal follow-ups. • VALUE ADDED: Many donors make many commitments so the closer contact is made to the day the gift was sent, the better. This is stewardship and cultivation • IMPLICATIONS Cannon - Basic Prospect Research and Management Systems

35. Systems of analyzing what we know:Fundamental Starting Points - Sample • SYSTEM: Review gifts made to your organization Cannon - Basic Prospect Research and Management Systems

36. Systems of analyzing what we know:Fundamental Starting Points • SYSTEM: Bring brief lists of “cold” but promising prospects or foundation/corporate board member lists to each board meeting with clear instructions and rationale for the board • VALUE ADDED: Learn who knows whom and who should be able to help. You’ll learn who’s not a viable prospect (though still an attractive “suspect”). You can also help develop the strategy for a program, etc. Conditioning and sharing results are keys here. • IMPLICATIONS Cannon - Basic Prospect Research and Management Systems

37. Systems of analyzing what we know:More Advanced Processes • SYSTEM: Develop codes for a rating system for your donors and prospects. Couple this with your cultivation status system (next slide) • HOW TO: Assign numbers/letters for Interest and Ability that make sense (i.e., A1 is most promising prospect; C4 is least promising) • VALUE ADDED: Prospect Management requires a standardized rating system, and codes are the most effective way to target your best prospects first • IMPLICATIONS Cannon - Basic Prospect Research and Management Systems

38. Systems of analyzing what we know:More Advanced Processes - Sample • SYSTEM: Develop codes for a rating system Cannon - Basic Prospect Research and Management Systems

39. Systems of analyzing what we know:More Advanced Processes • SYSTEM: Develop codes for a cultivation status system for your donors and prospects. Couple this with your rating system. • HOW TO: Assign status levels that reflect each prospect’s stage in the cultivation cycle: identification, cultivation, solicitation, stewardship (per ask) • VALUE ADDED: Prospect Management requires knowing who’s ready to be asked, who’s in the pipeline, etc. • IMPLICATIONS Cannon - Basic Prospect Research and Management Systems

40. SYSTEM: See handout for cultivation cycle and strategies Systems of analyzing what we know:More Advanced Processes - Sample Cannon - Basic Prospect Research and Management Systems

41. Systems of analyzing what we know:More Advanced Processes • SYSTEM: Seek new prospects (or new information on prospects) through consistent prospecting techniques. • HOW TO: An example would be to use appraisal web sites to review lists of those who live on, say, Fordyce Lane against your database of donors • VALUE ADDED: Prospecting by using proven wealth indicators increases the possibility of raising major gifts • IMPLICATIONS - $0 x 0 is always $0! Cannon - Basic Prospect Research and Management Systems

42. Systems of analyzing what we know:More Advanced Processes • SYSTEM: Using “hunches”, demographic statistics, conventional wisdom and the like, develop ways to “mine” your database through queries and reports • HOW TO: For example, run a query/report of how much each viable prospect has given, then review those about whom you know little but have given “a lot” • VALUE ADDED: Your database contains hundreds of clues that will help in your research and management • IMPLICATIONS Cannon - Basic Prospect Research and Management Systems

43. Systems of analyzing what we know:More Advanced Processes - Sample • SYSTEM: Using “hunches”, demographic statistics, conventional wisdom and the like • Some Key Indicators include: • total giving (do you know your top 500?) • number of gifts per year • Real estate in a trust; home location • stock ownership; salary • “Miss” and age for planned giving • Giving to other institutions • Other ideas. (Many of us are idiosyncratic) Cannon - Basic Prospect Research and Management Systems

44. PR&M: Where to? • The role of prospect research and management 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 • October 26, 2001 - APRA MO-KAN Conference at SLU Cannon - Basic Prospect Research and Management Systems