clientsupport@donorsearch.net • www.donorsearch.net • 410.670.7880 What to Look For? : Identifying Major Gift Prospects with DonorSearch DonorSearch Webinar October 27th, 2017 Kristin Sours – Director of Client Success kristin@donorsearch.net clientsupport@donorsearch.net • www.donorsearch.net • 410.670.7880

Customer Service & Client Support Contacts Kristin Sours Manager of Client Support kristin@donorsearch.net Megan Walsh Client Support Representative megan@donorsearch.net Adam Haarer Manager of Client Relationships adam@donorsearch.net Carrie Gerbrick Client Support Representative carrie@donorsearch.net Ruth Robertson Manager of Production & Integrations ruth.robertson@donorsearch.net Cathy Zauner Client Support Representative cathy@donorsearch.net Stuart Entwistle Director of Strategic and Enterprise Sales stuart@donorsearch.net Sarah Tedesco Executive Vice President sarah@donorsearch.net For General Questions, email us at: clientsupport@donorsearch.net 10/27/2017 www.donorsearch.net clientsupport@donorsearch.net • www.donorsearch.net • 410.670.7880

Please ask questions! And don’t forget to download today’s slides! clientsupport@donorsearch.net • www.donorsearch.net • 410.670.7880

So what does a good prospect look like? clientsupport@donorsearch.net • www.donorsearch.net • 410.670.7880

Markers of Philanthropy How do you know them when you see them? Who are in the top 20% for your nonprofit? Sometimes only 5-10% of your base. clientsupport@donorsearch.net • www.donorsearch.net • 410.670.7880

Things to Consider- What category do your donors fall into? High Affinity & High Capacity Low Affinity & High Capacity Low Capacity & High Affinity Low Capacity & Low Affinity Tip: Be efficient at organizing your donors so you spend time with the right people. clientsupport@donorsearch.net • www.donorsearch.net • 410.670.7880

clientsupport@donorsearch.net • www.donorsearch.net • 410.670.7880 Our Study: The following information that will be discussed during this presentation was pulled from a study DonorSearch conducted: We looked at 5 billion dollars in known charitable giving to over 400 non-profit organizations. The donors were analyzed to determine what factors made someone more/less likely to give. clientsupport@donorsearch.net • www.donorsearch.net • 410.670.7880

What are the top characteristics to look for? The top characteristics are philanthropic driven, whereas the last are based on wealth. BEST Predictor: current giving to the nonprofit. Prospect’s external giving with other nonprofits. Trustee of a Foundation Lifetime political giving to the FEC Owning RE of $1.2 million + Business affiliations clientsupport@donorsearch.net • www.donorsearch.net • 410.670.7880

Predictive Marker 1 – Previous Giving Loyal donors are a nonprofits best friend. Of all factors analyzed, past giving to a nonprofit is the strongest predictor of future philanthropy. Analysis of previous giving to your organization is the single best predictor of future philanthropy. clientsupport@donorsearch.net • www.donorsearch.net • 410.670.7880

Marker 1 – RFM Score for DonorSearch Users Sorting Capabilities: RFM Score: relationship with your nonprofit Recent: Last Gift Date – most recent gift date Frequency: Number of Gifts – frequency of giving Money: Total Gift Amount – cumulative amount of giving Identify new capacity and new opportunities when you understand your donor relationship TIP: Sort by RFM total inside of My Portfolio as a starting point clientsupport@donorsearch.net • www.donorsearch.net • 410.670.7880

Predictive Marker 2 – Giving to Other Nonprofits Philanthropic giving to other nonprofit organizations is the second most predictive indicator of future giving. It makes sense intuitively – people who are already philanthropic are more likely than the average person to give charitably. clientsupport@donorsearch.net • www.donorsearch.net • 410.670.7880

Predictive Marker 2 – DS1-1 Giving to Other Nonprofits DS1-1 - Individuals who have made a gift of $5k – $10k to a nonprofit are 5 times more likely to make a charitable donation elsewhere. Individuals who have made a gift of over $100k to a nonprofit are 32 times more likely to make a charitable donation elsewhere. Individuals who have made a gift of $50k – $100k to a nonprofit are 25 times more likely to make a charitable donation elsewhere. Individuals who have made a gift of $10k – $25k to a nonprofit are 10 times more likely to make a charitable donation elsewhere.

Marker 2 – Charitable Giving for DonorSearch Users Identify new capacity and new opportunities when you understand your donor’s external giving TIP: Sort by DS Score – DS1-1 Largest Gift Found Range Total Likely Matches Overall Score – 18.5+

Predictive Marker 3 – Foundation Trustee Your prospect’s participation as a foundation trustee is even more valuable than finding any wealth marker. Prospects understand the importance of philanthropy and the work nonprofits do because they have firsthand experience. Prospects are valuable because of the connections they bring.

Marker 3 – Foundation Trustee DonorSearch Users Identify potential giving vehicles if they have a family foundation Understand the size of the nonprofits they are affiliated with and their influence

Predictive Marker 4 – FEC - Political Giving at the Federal Level Your prospect’s lifetime giving to federal political campaigns is an excellent predictor of future philanthropy. The FEC regulates political giving to federal campaigns. It requires that the campaign report the name of the donor, the occupation of the donor, the name and address of the donor and the date of the gift.

Predictive Marker 4 – Political Giving at the Federal Level Those who give politically to the FEC at levels of $10,000+ cumulatively have a 1:1 correlation to giving a 5, 6, 7 figured gift to a nonprofit. Perspective: A single FEC gift of $250 puts your constituent into the top 6% of the US population. What’s more, a single FEC gift of $1,000 puts your constituent into the top one tenth of one percent.

Marker 4 – How Predictive is FEC Giving? Back Testing Database % of Rec % of $ Predictive Strength All FEC and Charitable Giving above $2,500 3.8% 54.6% 14.48 All FEC and Charitable Giving above $1,000 11.0% 70.7% 6.43 All FEC and Charitable Giving above $500 14.4% 74.3% 5.17

Predictive Philanthropic and FEC Review: 3% of the donors predicted 54.6% of all dollars Charitable and Political Giving in excess of $2500 14.4% of the donors predicted 74.4% of all dollars Charitable and Political Giving in excess of $500

Predictive Marker 5 – Wealth & Real Estate Your prospect’s real estate holding can help predict which prospects are likely to be the source of future philanthropy.

Marker 5 – How Predictive is Real Estate? An individual that owns $2+ million worth of real estate is 17 times more likely to give philanthropically than the average person. An individual that owns $1-2 million worth of real estate is 4 times more likely to give philanthropically than the average person. An individual that owns $750K – 1 million worth of real estate is 2 times more likely to give philanthropically than the average person.

Marker 5 – How Predictive is Real Estate? % of recs % of $ Predictive Strength $2+ million 1.4% 25.0% 17.55 $1-2 million 3.2% 13.2% 4.17 $750k-$1 million 2.5% 5.7% 2.25 $500k-$750k 5.4% 6.8% 1.25 $250k-$500k 12.8% 8.6% 0.67 $125k-$250k 10.9% 4.8% 0.44 <$125k 8.4% 3.5% 0.42

Marker 5 – Real Estate Data for DonorSearch Users Sorting Capabilities: Total by Properties, Real Estate Trust, No. of States,

Predictive Marker 6 – Business Affiliations Your prospect’s business affiliations can help predict which prospects are likely to be the source of future philanthropy.

How Predictive are Business Affiliations Back Testing Database % of recs % of $ Predictive Strength SEC Yes and Maybe 2.0% 15.5% 7.76 Business Yes and Maybe $5 million+ 0.6% 5.1% 9.04 Business Yes and Maybe $1-$5 million 0.7% 2.5% 3.53 Business Yes and Maybe 6.5% 21.5% 3.32

Marker 6 – Business Data for DonorSearch Users Sorting Capabilities: Stock, SEC Insiders, Salary Information, Options, and Business Affiliations The darker the green the more significant the data. Click IDP profile for more information.

RECAP… RFM – Know your relationship and sort accordingly Identify External Philanthropy: DS1-1s Grant Giving Foundation Trustees FEC Giving at $10,000+ cumulatively Real Estate at $2,000,000+ Business revenues at $5,000,000+

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