Data-Driven Fundraising: Using Data to Find Major Donors June 14, 2017 Brought to you by

Data-Driven Fundraising: Using Data to Find Major Donors June 14, 2017 presented by Ryan Woroniecki, Vice President of Strategic Partnerships ryan@donorsearch.net  donorsearch.net  (410) 702-4223

ryan@donorsearch.net  donorsearch.net  (410) 702-4223 About DonorSearch DonorSearch was founded in 2007 with one goal: to provide nonprofits with the nation’s largest philanthropic database and best wealth information to identify your best donors. The current vision is to make high quality prospect research affordable for every nonprofit and make it available proactively to improve the operational efficiency of fundraising. Bill Tedesco Founder, CEO DonorSearch ryan@donorsearch.net  donorsearch.net  (410) 702-4223

ryan@donorsearch.net  donorsearch.net  (410) 702-4223 Agenda What is Prospect Research slide 5 Myths about Prospect Research slides 6 through 11 Why Major Gifts matter Giving USA slides 12 through 16 Markers of Philanthropy slides 17 through 26 Common Questions slides 27 through 30 Wrap up information slides 31 through 35 DS integration screenshot slide 14 Q&A ryan@donorsearch.net  donorsearch.net  (410) 702-4223

How Do You First Identify Major Gift Prospects? Prospect research – Discovering and evaluating prospective donors, and their interests, relationships, inclination to give, and philanthropic capacity to inform and support an organization’s fundraising strategic efforts. – APRA Start with donors and current supporters Identify any Internal Relationships and Capacity Segment donors & Prioritize Use Screening – pinpoint capacity, uncover relationships, identify competitive philanthropy ryan@donorsearch.net  donorsearch.net  (410) 702-4223

Myths About Prospect Research “My organization is too small” “Only certain types of organizations use prospect research” “We can’t do major gifts” ryan@donorsearch.net  donorsearch.net  (410) 702-4223

“My organization is too small” MYTH: Only super large organizations that pull in millions and millions of donations are capable of affording and utilizing prospect research services. FACT: Prospect research is appropriate for organizations of any size as it is the catalyst for major gifts. The most effective nonprofits use research to raise major gifts regardless of the size. Hundreds of DonorSearch clients raise less than $1 million a year in contributed revenue. ryan@donorsearch.net  donorsearch.net  (410) 702-4223

“My organization is too small” Amy Eisenstein and Adrian Sargeant conducted a study on major gifts at small nonprofits, the study proved major gifts and therefore research are effective: 662 organizations with a $10 million or less budget 336 of them have under $1 million budget “We were able to quantify the negative impact of focusing on new donor acquisition and our results therefore suggest that the pipeline should be carefully evaluated to ensure a focus on only those individuals most likely to offer a contribution. The need for good quality prospect research to assist in this kind of donor evaluation is therefore highlighted” - Eisenstein ryan@donorsearch.net  donorsearch.net  (410) 702-4223

“Only certain types of organizations use prospect research” MYTH: Organizations like healthcare and higher education are the only types of organization that are capable of using prospect research. FACT: We work with all kinds of organizations from local social services organizations and community foundations to major healthcare systems and of course higher education ryan@donorsearch.net  donorsearch.net  (410) 702-4223

“We can’t do major gifts” MYTH: Many organizations like us have to focus on grants and corporate gifts because the that’s what we’ve done in the past and where all the money is. FACT: The majority of giving in the USA is from individuals. Individuals give almost 4 times as corporations and foundations put together. ryan@donorsearch.net  donorsearch.net  (410) 702-4223

The Giving Institute – Annual Report Longest Running Annual Report! Begun in 1956 by the American Association of Fundraising Counsel, now The Giving Institute Researched and written by the Indiana University Lilly Family School of Philanthropy The annual report examines the rates of change for giving in the previous two years, by: Source and recipient type Trends in total giving Economic trends and giving Trends in giving by source Trends in giving by recipient type Trends in volunteering Trends in number of nonprofit organizations ryan@donorsearch.net  donorsearch.net  (410) 702-4223

ryan@donorsearch.net  donorsearch.net  (410) 702-4223 An Increase in Giving Individuals contribute the largest amount to charitable giving. ryan@donorsearch.net  donorsearch.net  (410) 702-4223

Environment/ animals $10.68 To individuals $6.56 International affairs $15.75 Unallocated $2.18 1% Arts, culture, and humanities $17.07 3% 2% 4% Public-society benefit $26.95 5% Religion $119.30 7% 32% Health $29.81 8% 11% Gifts to foundations $42.26 15% Allocation of charitable gifts in 2016 (in billions) Education $57.48 12% Source: Giving USA 2016 Human services $45.21 ryan@donorsearch.net  donorsearch.net  (410) 702-4223

Giving Institute: Trends in Philanthropy 2014-2015 Giving by individuals are up 5.7%, $25.8 billion Giving by foundations are up by 8.2%, $53.97 billion Giving by bequest are up by 15.5% by $28.13 billion Giving by corporations are by 13.7% by $17.7 billion Healthy economy with the Gross Domestic Product (GDP)up by 2.2% Disposable personal income up by 0.5% for 2014 compared to a 1% increase 2012-2013 ryan@donorsearch.net  donorsearch.net  (410) 702-4223

ryan@donorsearch.net  donorsearch.net  (410) 702-4223 So where do you fit in? Charitable donations are up! Personal Income is steady! GDP is healthy! Individual Giving is up! Foundation Giving is up! Corporate Giving is up! It’s prime time for fundraising, so how do we maximize the success of your nonprofit’s fundraising and research efforts? ryan@donorsearch.net  donorsearch.net  (410) 702-4223

Markers of Philanthropy How do you know them when you see them? Who are in the top 20% for your nonprofit? ryan@donorsearch.net  donorsearch.net  (410) 702-4223

Four Markers of Philanthropy – DonorSearch Study $5 Billion 2 Million 400 in Giving Individuals Organizations ryan@donorsearch.net  donorsearch.net  (410) 702-4223

Giving to Your Organization 1 Four Markers of Philanthropy Giving to Your Organization ryan@donorsearch.net  donorsearch.net  (410) 702-4223

Previous Giving to Your Organization R+F+M = RFM or 82+43+65=190 Common measure of loyalty Easy to calculate Can be weighted to suit your organization RECENCY FREQUENCY MONETARY Last Gift Number of Gifts Total Giving ryan@donorsearch.net  donorsearch.net  (410) 702-4223

Giving to Other Organizations 2 Four Markers of Philanthropy Giving to Other Organizations ryan@donorsearch.net  donorsearch.net  (410) 702-4223

Previous Giving to Other Organizations Largest Gift % of Donors % of Giving Predictive Strength Benchmark 100% 1.00 $100,000+ 0.7% 24.1% 32.67 $50,000 - $100,000 0.5% 13.5% 25.02 $25,000 - $50,000 0.6% 6.5% 11.79 $10,000 - $25,000 7.0% 10.73 $5,000 - $10,000 1.1% 5.4% 4.98 ryan@donorsearch.net  donorsearch.net  (410) 702-4223 bill@donorsearch.net  donorsearch.net  (410) 670-7880

3 Foundation Trustee Four Markers of Philanthropy ryan@donorsearch.net  donorsearch.net  (410) 702-4223

Position as Foundation Trustee or Board Member Information is easy to find Understand the importance of philanthropy ryan@donorsearch.net  donorsearch.net  (410) 702-4223

4 Political Giving Four Markers of Philanthropy ryan@donorsearch.net  donorsearch.net  (410) 702-4223

ryan@donorsearch.net  donorsearch.net  (410) 702-4223 Political Giving % of Donors % of Giving Strength All Giving > $2.5K 3.8% 54.6% 14.37 All Giving > $1K 11.0% 70.7% 32.67 All Giving > $500 14.4% 74.3% 25.02 Single gift of $250 puts your donor in the top 6% of the U.S. population Single gift of $1,000 puts your donor in the top 1/10th of 1% Virtually every FEC donor with lifetime political giving of $15,000 has made a 4-, 5-, 6-, or 7-figure charitable gift somewhere ryan@donorsearch.net  donorsearch.net  (410) 702-4223

ryan@donorsearch.net  donorsearch.net  (410) 702-4223 Common Questions How is philanthropic data defined? What type of information is it? Is this information sensitive? Confidential? Are there specific suggestions on how to use this information effectively? ryan@donorsearch.net  donorsearch.net  (410) 702-4223

How is philanthropic data defined? What type of information is it? Philanthropic data is a broad term. It means any information related to philanthropy. What type of information is it? In the context of DonorSearch, philanthropic data is any of the following: Gift records in your database Gift records from an annual report Nonprofit/Foundation affiliation Political gift records ryan@donorsearch.net  donorsearch.net  (410) 702-4223

Is this information sensitive or confidential? YES. Many major donors are aware that organizations collect some information on them, and if they ask to see it, it is ethical to share it with them. You don’t want to talk about the process to them or say, I have a profile on you. You may not even show staff this information if it is unrelated to them. Is this information confidential The gift records in your database are confidential. The DonorSearch data is not since it is all from public sources. ryan@donorsearch.net  donorsearch.net  (410) 702-4223

ryan@donorsearch.net  donorsearch.net  (410) 702-4223 Are there specific suggestions on how to use this information effectively? What are your goals? How do you fundraise now? What is your definition of a major gift? How is your board willing to help? ryan@donorsearch.net  donorsearch.net  (410) 702-4223

ryan@donorsearch.net  donorsearch.net  (410) 702-4223 So, why do Donors Give? Want to Make an Impact Feel Financially Secure Donors have a strong belief in values and/or mission Affiliated with the Charity Management of the institution Powerful and wealthy individuals give to other powerful organizations…want to interact with well respected people as well as the cause. Less desire to give to “needy” organizations. Findings suggest that giving is a habit and if an individual has given a large amount once, there is a good chance they’ll give again. Source 2014 U.S. Trust Study of High Net Worth Philanthropy ryan@donorsearch.net  donorsearch.net  (410) 702-4223

Donor Identification Process: Collect Names Look for individuals, foundations, businesses, etc. Work your connections – board, donors, volunteers, employees, grateful patients Look at other organizations – donors give to multiple organizations, especially those with similar missions. People in your service area Those with healthcare interest ryan@donorsearch.net  donorsearch.net  (410) 702-4223

Donor Identification Process: Gather & Analyze Relevant Data Understand what you want to know, then find the right data to support it. Major donor prospects among annual givers Grateful patients Seasonal residents/vacation homes Planned gift prospects Land-rich prospects – grand lists Stock-rich prospects – SEC filings Gifts of real estate, LLCs ryan@donorsearch.net  donorsearch.net  (410) 702-4223

Best Practices of Data Analysis Observe strict data integrity standards. Don’t be driven by data; use it to better understand. Forget data that isn’t public or helpful. Don’t dig too deep. Don’t forget “negative” data. Use data to help focus on best prospects, but don’t overlook anyone

The Wrap-Up Giving is up Overall Major Gifts have a high ROI Prospect Research is Essential to Major Gift Fundraising Understanding the Motivations and Concerns of Major Donors The Essentials to a Successful Fundraising Program Resources and Information: http://www.givinginstitute.org/ http://masteringmajorgifts.com/report/ http://www.donorsearch.net/white-papers/ We’ll give you a free File Audit!

DS Integration

ryan@donorsearch.net  donorsearch.net  (410) 702-4223 Questions? ryan@donorsearch.net  donorsearch.net  (410) 702-4223