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

http://www.imcpl.org/

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.