Post on 18-Dec-2014
description
Using Data to Identify Potential
Donors
Governor’s Conference on Service and Nonprofit Capacity Building
October 3, 2013
Carol Lukemeyer, CFRE
Scope of Session
• Role of Prospect Research
• Ethical Considerations
• What Data Says about Wealth
• Using Data Sources to Build Prospect Lists
• Individual Research
• Ratings
Role of Prospect Research
Find prospects with
Ability to make a major gift Interest in your mission Links to your organization
Who exhibit
Philanthropic behavior
AND organize, record, protect, analyze,
package and disseminate relevant prospect and donor information.
Take the long view!
Role of Prospect Research
Professionalize Prospect Research
Centralize all donor and prospect information
Invest in a database designed to store information that can be accessed and analyzed.
Invest in database training (or you will end up with Excel spreadsheets)
Establish written policies to protect donor information
Establish written procedures governing database usage
Prospect Research Ethics
AFP’s “Donor Bill of Rights” APRA’s “Statement of Ethics”
Ethical Considerations
•Confidentiality •Accuracy •Relevance
•Self-responsibility •Honesty •Conflict of Interest
A donor has a right to see any information you have collected
Major Gift Cultivation Cycle
Discovery – Enough information to merit initial contact
• Capability, Interest, Linkage Cultivation
– Spot research as needed – Much of the research is done through contact with
the prospect Pre-solicitation (0 to 6 months)
– Full profile, everything that will influence successful solicitation
Levels of Research
Role of Prospect Research
MAJOR GIFT PROSPECT – Interest/Linkage -- Gift history, volunteer activity,
shared values, membership, family link, beneficiary – Philanthropic behavior -- Gifts to any organization,
political contributions, religious affiliation – Wealth Indicators -- insider, private company
ownership, occupation, real estate, private equity, club membership, foundation or donor advised fund, gifts to other orgs
Prospect Indicators
– Income often is not relevant • nine out of 10 planned gifts are bequests.
– Consistent annual fund donor – Volunteer – Age 40-60 – Educated – bachelors degree or higher – Motivated by helping others, religious beliefs and
giving back
Prospect Indicators
PLANNED GIFT PROSPECT
PLANNED GIFT PROSPECT cont’d. – Single or widowed – Married with few or grown children – Wants to provide for loved ones – Concerned about retirement income – Tax concerns
Bequest Donors: Demographics and Motivations of Potential and Actual Donors. Prepared for Campbell & Company by Center on Philanthropy at Indiana University, March 2007.
Prospect Indicators
Where is the Information?
Your database – gleaned from annual fund – Gift history – recentcy, frequency, size – Event attendance – Volunteer activity
Prospect contacts – staff, board members and other volunteers
Publicly available resources – Commercial databases – Commercial screening and data append services – Free resources online and through libraries
Wealth Studies
• Center on Wealth and Philanthropy
• Giving USA: The Annual Report on Philanthropy
• Bank of America Study of High Net Worth Philanthropy
• The Millionaire Next Door by Thomas J. Stanley (1996)
• Rural Policy Research Institute • Transfer of Wealth in Indiana Study
Respondents by source of wealth • Some or all from inheritance/gifts -- 50.9% • Some or all from business or professional efforts -
- 89.1% • Some or all from investment -- 75.5% • All from inheritance/gifts -- 3.6% • All from business or professional efforts -- 11.8% • All from investment -- 0.9%
Wealth
Source: "Extended Report of the Wealth with Responsibility Study / 2000." Paul G. Schervish and John J. Havens, Boston College, March 2001
Wealth
• “There is a growing body of evidence on the critical role that entrepreneurs and small businesses play in driving local and national economies.
• The structure of rural economies is essentially composed of small enterprises, which are responsible for most of the job growth and the innovation. Moreover, small businesses represent an appropriate scale of activity for most rural economies. “
Rural Policy and Research Institute website http://www.rupri.org/entrepreneurship.php
Identifying Potential Donors in Your Community
1) Compile list of successful small business 2) Identify stakeholders 3) Conduct initial research to verify capability
and philanthropy 4) Conduct peer screening
Business Directories USA Chamber of Commerce Directory Directory of Local Chambers of Commerce and
Visitors Bureaus
Wealth – Small Business
Zoominfo – “Free” source, need to register & share contacts for more information. Paid version sometimes has biographies
Dun & Bradstreet Hoover’s Online Reference USA Demographics Now A to Z Databases
Commercial resources that may be available through your library.
Wealth – Small Business
• FC Online – limited free searching. Good contact information.
• Guidestar – more info with paid subscription
• National Center for Charitable Statistics – advanced search features to find private foundations and
charitable trusts (browse NTEE codes) – Register (free) to get more results – On 990 form, look for “contributors”
Wealth
Wealth – Private Foundations and Trusts
Click through to PF990 to identify
trustees and grant recipients
T90 is for named trusts such as
charitable remainder trusts – wealth
indicator
Drilling Down
• Further Wealth and Philanthropic Information • Contact information • Career information • Circles of Influence • Biographical details • Interests
Data shows there is a correlation between political contributions and philanthropic giving.
Open Secrets Faster but less detail FEC Political Contribution Filings Can drill down to filing Useful for additional addresses and sometimes spouse information.
Philanthropy --Political Contributions
Philanthropy --Political Contributions
Philanthropy --Political Contributions
Philanthropy --Political Contributions
By drilling down to the form you can find occupation and sometimes home address.
Philanthropy – Google Search
Individual Income Public Company Executives
SEC -- • Compensation, stock holdings, options activity of
corporate insiders • Read the help section, know forms • Look for DEF-14A
Yahoo Finance -- • Financials, charts, historical information, news, insider
rosters, stock ownership and recent activity
Morningstar • Compensation, stock holdings and activity
Individual Income Public Company Executives
SEC Edgar System
SEC Edgar System
SEC Edgar System
Once you have opened the
DEF14A, do a search (Control F)
for “Executive Compensation”
Individual Income Public Company Executives
•Go to Morningstar.com
•Search for the company
•Click on the “Insiders” tab to get compensation and recent transactions.
SEC – public company executives Salary.com Jobstar.com Physicians (Hope for orthopedic surgeons, heart surgeons &neurosurgeons)
Indiana Professional Licensing Agency
Individual Income Occupation / Salary
NETROnline Identify county by town
Marion County Assessor http://maps.indy.gov/PropertyAssessmentViewer/
Beacon Schneider http://beacon.schneidercorp.com/
Zillow – sales figures and estimates based on like sales
Purdue Extension Farmland Values
Wealth Indicators Property
Wealth Indicators Property
Wealth Indicators Property
Drill down on parcel number for assessed
value
Searching Tips
Not all search engines and databases use the same search language
• Natural language – terms as you would use them in speech.
• Boolean Language – uses connectors AND, OR, NOT, sometimes – Proximity indicators: NEAR, w/1, * – Parenthesis to group – the order and use of parenthesis can change the
outcome of the search – quotation marks for exact phrases
Standard Google Search
Standard Google Search
Advanced Google Search
• Google Search Guide Operator Result
“” Exact word or phrase - Eliminates word (no spaces)
~ Searches for synonyms (no spaces)
OR or | Finds either word or phrase .. Range such as numerical
* Wild card to match one or more words in a phrase
Google Searches
• Alerts • Fagan Finder – lists alternative search engines,
blog search engines and Q&A search sites
Search Engines Misc.
Search Engines Misc.
Access information not available through a web search – deep web
INSPIRE Indiana Indianapolis Marion County Public Library Indiana State Library Old newspaper indexes, geneology resources,
marriage records
Database Collections
Individual Research – Contact Information
Directories • Switchboard • Zabasearch • Pipl
Individual Research – Contact Information
• Google Advanced • LinkedIn • INSPIRE INDIANA’s business databases • IMCPL newspapers and business
magazines, trade publications • Corporate websites
– “about us” or “history”
Individual Research Basic Biographical and Business
• Obituaries
– Family members
• LinkedIn • Muckety • Corporation Wiki • Blue Golf
– Identify club membership if they golf
Individual Research – Links
Muckety.com
Muckety.com
From APRA’s Statement of Ethics Integrity
Members shall be truthful with respect to their identities and purpose and the identity of their institutions during the course of their work. They shall continually strive to increase the recognition and respect of the profession
Accountability
Members shall respect the privacy of donors and prospects and conduct their work with the highest level of discretion. They shall adhere to the spirit as well as the letter of all applicable laws and all policies of their organization. They shall conduct themselves in the utmost professional manner in accordance with the standards of their organization.
What About Facebook?
Ratings
RATINGS FORMULAS are not SOLICITATION AMOUNTS
The purpose of capability ratings is to identify,
segment and prioritize prospects. It is a starting point. Solicitation amounts should be based on what is learned through building a
relationship with the prospect.
BASED ON INCOME
The average American contributes 2% of their income per year to charity. The percentage increases at higher levels of income.
• $100,000-$499,000 x 2.7% x 5 = gift capability • $500,000-$999,000 x 2.9% x 5 = gift capability • $1,000,000+ x 4.3% x 5 = gift capability Source: Martz & Lundy
Ratings
Ratings
BASED ON REAL ESTATE • Real Estate x 3 x 5% = gift capacity BASED ON STOCK HOLDINGS • $100,000-$499,000 stock & options x 1% to 4% = gift
capacity • $500,000-$999,000 stock & options x 5% to 9% = gift
capacity • $1,000,000+ stock & options x 10% = gift capacity Source: Martz & Lundy
Rating Basis of Initial Rating
Stock Holdings Private Co Sales* Property Holdings Gifts to Other Orgs
1M+ $1M $40M $1.5M $1M
100K - $1M $100K $10M $650K $100K
$50K - $100K $50K $5M $350K $50K
$25K - $50K $25K $3M $200K1 $25K
Less than $25K
* Where individual is owner, CEO, founder, principal or president
Ratings
Source: Benz, Whaley Flessner
Ratings Grid
• Lists of Businesses and Business Info – Chamber of Commerce Directories – Zoominfo – Dun & Bradstreet, – Reference USA (through public library)
• Wealth – For public company insiders : SEC, Yahoo Finance – For real estate: County Assessor’s websites, Zillow – For political contributions: FEC Political Contributions Filings, Open
Secrets – For occupation/salary: Salary.com, Jobstar, Indiana Professional
Licensing Agency, specific occupation surveys
Resource Review
• Philanthropy – FC Online, National Center on Charitable Statistics, Guidestar, annual
reports, general search engines such as Google, newspaper article search
• Contact Information – Zabasearch, Pipl, Zoominfo, Anywho, Switchboard
• Career / Biographical – Google and other search engines, INSPIRE, IMCPL databases,
obituaries
• Circle of Influence – Biographies, Newspaper/Magazine articles, Corporation Wiki,
Muckety, LinkedIn, Blue Golf
Resource Review
And the number one all-time best prospect information resource?
Individual Research The Full Picture
You are the most important source of information about the prospect / donor
Get into the habit of filing contact reports and recording relevant information into your database.