Prospect Research & Prospect Management There is no Silver Bullet! Abbie J. von Schlegell, CFRE Sarah Tedesco, Executive Vice President

What is DonorSearch? We provide Prospect Research and Prospect Identification services to nonprofits to improve the operational efficiency of fund raising. We supply batch screening and modeling using wealth and philanthropy databases. We supply online search tools for individual research, prospect generation. We focus on predicting both capacity to give as well as philanthropic inclination. We are a 10 year old family own business with 40+ employees headquartered in Maryland with 2,400+ active clients. We have built and use the largest database of philanthropic gift records in the nation. Our revenues continue to grow 20%+ per year. www.donorsearch.net Marriottsville, MD

Who is Abbie von Schlegell, CFRE 40+ years in Development Institutions: Stanford University, The University of Chicago, Enterprise Community Partners, The Shakespeare Theatre Co., Consultant Editor, first book on women’s philanthropy, Women as Donors, Women as Philanthropists Frequent speaker and presenter nationally and internationally Just awarded FAFP, Distinguished Fellow from AFP International 10 year anniversary of own firm www.abbievonschlegell.com www.donorsearch.net Marriottsville, MD

Agenda Why Prospect Research? Major Gifts How do you identify your Major Gift Prospects? Reviewing Lists with Volunteer Leadership 6 Markers of Philanthropy Prospect Management Best Practices of the Nonprofit Sector www.donorsearch.net Marriottsville, MD

Why Prospect Research? Prospect Research is essential for identifying high-impact donors within an organization’s current donor pool and in the larger community. Different types of Methods Screening One off searches Social Media Communication with Donors Self Identified www.donorsearch.net Marriottsville, MD

Why Major Gifts? Major gifts are some of the largest donations your organization will receive.  80% of their fundraising total coming from 20% of their donors. There's even a defensible stance that the comparison is much more drastic, which argues that the break down is closer to 90-10 for major gifts. Major gift programs give interested supporters guidance in the allocation of their funds.  www.donorsearch.net Marriottsville, MD

What is Your Major Gift Size? Amount + Purpose = Extraordinary The first step is to define what a “Major Gift” is for you. The term major gift means something different at every organization. www.donorsearch.net Marriottsville, MD

Capability for Major Gifts 3% of estimated net worth What is Your Major Gift? Capability for Major Gifts 3% of estimated net worth 10/20 times consistent annual gift www.donorsearch.net Marriottsville, MD

How do you Identify these Major Players? Determine the prospect’s potential for giving Consider wealth screening Conduct leadership volunteer and board reviews Place the prospect appropriately in the gift range chart www.donorsearch.net Marriottsville, MD

Six Markers of Philanthropy First Study - 2005 $5 Billion 2 Million 400 in Giving Individuals Organizations www.donorsearch.net Marriottsville, MD

Six Markers of Philanthropy New Study - 2017 $685 Million 1 Million 400 in Giving Individuals Organizations (no outliers) www.donorsearch.net Marriottsville, MD

Six Markers of Philanthropy Giving to Your Organization www.donorsearch.net Marriottsville, MD

Previous Giving to Your Organization RFM = Relationship or Affinity Score. It’s calculated using the following 3 data sets: - Recency of giving (0-100) - Frequency of giving (0-100) - Monetary total contribution (0-100) Total RFM score ranges from 0-300 Analysis of previous giving to your organization is the single best predictor of future philanthropy RECENCY FREQUENCY MONETARY Last Gift Number of Gifts Total Giving www.donorsearch.net Marriottsville, MD

Six Markers of Philanthropy Giving to Other Organizations www.donorsearch.net Marriottsville, MD

Prior Giving Elsewhere 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 www.donorsearch.net Marriottsville, MD

Six Markers of Philanthropy Foundation Trustee www.donorsearch.net Marriottsville, MD

IRS990PF www.donorsearch.net Marriottsville, MD

New Findings: Foundation Trustee All User Reported Donors All User Reported Donors Matching to Foundation Trustee (Y or M) 1 Nonprofit Users Reporting 227 192 2 User Reported Donors 684,351 14,225 (48:1 or 2%) 3 Average Lifetime Giving $315 $1,306 4 Cumulative Lifetime Giving $149,798,873 $13,791,182 5 Total Gift Count 2,403,282 83,290 6 Average Individual Gift Size $87 $257 7 Per Person Average Gift Size Comparison $1.00 $2.95 8 Per Person Average Lifetime Giving Comparison $4.15 www.donorsearch.net Marriottsville, MD

Six Markers of Philanthropy Political Giving www.donorsearch.net Marriottsville, MD

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 A single political gift of $250 puts your donor in the top 6% of the U.S. population A single political 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 5-, 6-, or 7-figure charitable gift somewhere www.donorsearch.net Marriottsville, MD

Six Markers of Philanthropy Value of Real Estate www.donorsearch.net Marriottsville, MD

Value of Real Estate Real Estate Value % of Donors % of Giving Predictive Strength $2+ million 1.4% 25.0% 17.6 $1-2 million 3.2% 13.2% 4.2 $750K - $1 million 2.5% 5.7% 2.3 $500K - $750K 5.4% 6.8% 1.3 $250K - $500K 12.8% 8.6% 0.7 $125K - $250K 10.9% 4.8% 0.4 $125K 8.4% 3.5% www.donorsearch.net Marriottsville, MD

Six Markers of Philanthropy Business Affiliations www.donorsearch.net Marriottsville, MD

Business Affiliations % of Donors % of Giving Strength SEC | Yes & Maybe 2.0% 15.5% 7.8 Market Guide | Yes & Maybe 3.0% 19.5% 6.6 D&B | Yes & Maybe $5+ million 0.6% 5.1% 9.0 D&B | Yes & Maybe $1-5 million 0.7% 2.5% 3.5 D&B | Yes & Maybe 6.5% 21.5% 3.3 www.donorsearch.net Marriottsville, MD

Prospect Management Identify a staff members for ongoing prospect management Assess needs for skill building and plan appropriate training Document Prospect Management Practices for the full Development Team (staff and volunteers)

Prospect Management in Practice Set up systems in donor database to support prospect management Decide what research results to upload into the donor database Decide how many “good prospects” needed to meet goals

Motivating Your Potential Donors You cannot motivate people: they are already motivated – your job is to find out what motivates them and give the messages and create the environment for involvement that will help their interest flourish and engage them with you Listen (two ears, one mouth ratio) to what donors say and ask; observe who they gravitate towards at events Most of all, listen for the nearly audible “click” when your program’s values combine with theirs

Clearly Stated Mission Donors Respect the Fundraisers and Staff Prospect Research & Wealth Screening Demonstration of sound business teams Board Members engaged and Strong Leadership Everyone understands philanthropy Trained Fundraisers with an appetite to learn – CFRE, ACFRE Where do you fall? www.donorsearch.net Marriottsville, MD

If you have any questions: Stay in touch! If you have any questions: Abbie: abbie@abbievonschlegell.com 410-908-9068 Sarah: sarah@donorsearch.net 410-670-8571 www.donorsearch.net Marriottsville, MD