I’m a Relationship Person! What Do I Do with Prospect Screening Data? Please take this time before the start of the session to silence your cell phone or pager. Your feedback is valuable. At the end of the session, we ask that you take a moment to complete an evaluation form. Thank you.

I’m a Relationship Person! What Do I Do with Prospect Screening Data? Presented by: Brian Chapman, President Grenzebach Glier Philanthropic Analytics and David W. Howie, Director Leadership Circle WETA, Inc.

People interpret symbols in different ways…

And so they do with data…

Grenzebach Glier Philanthropic Analytics A different paradigm of data analysis in not-for-profit today –Historical view of data analysis tools –Nascent paradigm to deliver more value High-value donor pipeline issues –Continued linear growth through more donors –Accelerated exponential growth through bigger donors (converting a single $100 donor into a $100,000 donor generates the same revenue as finding 999 new $100 donors)

Historical View of Data Analysis Prospect screening –Mostly based on hard asset data Predictive models –Generic, based on averages of non-peer institutions –Speculative, based on even less Subordinate to market/viewership/financial analysis done by the private sector

A New Paradigm Is Emerging That Will Deliver More Value ● Not just hard assets ● Marketing segments ● Demographics Append constituent information Analyze historical giving behavior ● Who gave ● How they gave ­How frequently ­When ● Benchmarked against peers Create custom predictive models/resource plans ● Who should we be cultivating, visiting, soliciting, calling, ing ● With what likelihood of success

This New Approach to Data Analysis is Based On Three Fundamental Assumptions… Organizations have ever-increasing amounts of data, but are extracting decreasing value from it (and from their investments in it) There is a small but fast-growing influence of private sector practices in the non-profit world There are no spare IT resources to devote to the task of analytics

…And One Key Objective Help make resource allocation decisions about how to deploy staff and programs to: –Raise money effectively in current/upcoming development programs –Keep the pipeline full for subsequent programs and future priorities –Expand resources in areas with the greatest yield, and reduce resources elsewhere

Appended Data: More Than Just Hard Assets

The Information Available to Us Is Much Greater Than Hard Assets Hard Asset Data Company affiliation Non-profit board affiliation Real estate ownership Insider stock holdings Some retirement accounts FEC and some charitable contributions Demographic/Marketing Data, e.g., Age Income Home Market Value Marital status Presence of Children Vehicles Mail response behavior Market Segmentation Relative wealth Lifestyle preferences Consumer behaviors Philanthropic tendencies

Market Segmentation is Used Widely for Big Decisions in Private and Non-Profit Sectors To develop its predictive model of store performance and site location For market and sales performance analysis; drove higher U.S. sales among target audiences Marketing segmentation to drive communication messaging

Key Findings from Screening 29 PBS Stations Effective segmentation means people with more capacity are asked to give more, and are in fact responding –Increasing the ask amounts in direct mail and telephone programs for higher-income people has resulted in larger gifts –Selection of the most promising prospects (longer- term, loyal donors with high incomes, high home values, and a highly philanthropic market segment) for personal visits prioritizes resources and identifies actionable steps

Key Findings from Screening 29 PBS Stations Even on a station-by-station level, donors to Public Broadcasting have a similar wealth distribution to donors to other leading organizations Income Range % of Enhanced Records (PBS Sample) % of Records Across all GG&A Clients Under $15, %3.4% $15,000 to $19, %3.0% $20,000 to $29, %5.7% $30,000 to $39, %8.3% $40,000 to $49, %8.5% $50,000 to $74, %20.8% $75,000 to $99, %14.9% $100,000 to $124, %7.2% $125,000 or more28.3%28.2%

However, Fundraising Performance Lags Across All Income Ranges Household Income Percent of All GG&A Records Average Largest Gift (All GG&A) Percent of PBS Sample Average Largest Gift (PBS Sample) Under $15,0003.4%$ %$ $15,000 to $19,9993.0%$ %$ $20,000 to $29,9995.7%$ %$ $30,000 to $39,9998.3%$ %$ $40,000 to $49,9998.5%$ %$ $50,000 to $74, %$ %$ $75,000 to $99, %$ %$ $100,000 to $124,9997.2%$ %$ $125,000 or more28.2%$1, %$166.22

Effective Segmentation is Critically Important Across PBS Stations, the largest gifts from high income donors were very similar to the largest gifts from lower-income donors Through Pledge Drives and other vehicles, all donors are receiving the same messages—and same solicitations Simply asking higher-value donors for larger gifts will have an immediate benefit

Example: They were going to ask her for $10,000 $21 million in real estate $89 million in stock Salary $724,000 Serves on at least 3 not-for- profit boards 16 gifts to the station totaling over $7,500

Using Screening To Qualify Prospects This prospect: –Is worth tens of millions of dollars –Has made 16 gifts over an 18 year period –Has made $1 million+ gifts to other organizations Next steps were: –Scratch the $10,000 ask plan –Personal invitation to meet the CEO –Preparation of a proposal for a $100,000 capital gift with naming opportunities, and a $10,000 annual commitment

Case Study: WETA Key Priority –To increase support form donors by targeting qualified donor populations for specialized moves management Screening Applications –Identify current Leadership Circle ($1,000 +) donors financially capable for upgrades –Identify Membership (<$1,000) prospects financially capable for upgrade to Leadership Circle –Additional Research (e.g. ability to discern philanthropic interest(s) through charitable donation history and/or philanthropic involvement)

Case Study: WETA Submittal Strategy –Selection Criteria (handout) –Proposed and Revised Timeline of Submittals (handout) – Client Defined Fields –Segment donors into discrete groups for selective events, solicitations, etc. –Example submittals

Results –Targeted Integration into Portfolios – All donors rated 1 & 2 are assigned to staff –Targeted Cultivation for Specific Groups – Event Mailings Case Study: WETA

Top Tips: A Provider and Practitioner’s Perspective Identify program objectives before screening Begin with the end in mind Analyze internal infrastructure necessary to implement screening results Use segmentation to prioritize resources

Top Tips: A Provider and Practitioner’s Perspective Identify actionable steps Consider all data to establish appropriate strategies to achieve program objectives

Contact Information Brian Chapman President, Grenzebach Glier Philanthropic Analytics Grenzebach Glier & Associates, Inc. 401 N Michigan Avenue, Suite 2800 Chicago, IL (312) David W. Howie Director, Leadership Circle WETA, Inc South Quincy Street Arlington, VA (703)