Data Driven Major Giving: How Analytics Can Move Your Prospects from Indifferent to Invested April 17, 2013

wealthengine.com | Page 2 Agenda Data is the Foundation of Strategy Using Data to –Identify Major Gift Prospects –Optimize Major Gift Portfolios –Define Ask Amounts The Prospect Management Process –Commonly Measured Metrics and Suggested Benchmarks –Forecasting Major Giving Results Based On Pipeline Analysis –Reporting Results

Data is the Foundation of Strategy

wealthengine.com | Page 4 4 What is Analytics? Analytics + Analysis = Data Informed Decision Making Analysis The process of breaking a complex topic or substance into smaller parts to gain a better understanding of it. Analytics The process of developing optimal or realistic decision recommendations based on insights derived through analysis

wealthengine.com | Page 5 Data Leads to Actionable Insight Wisdom Evaluated understanding Knowledge Application of data and information; answers "how” & “why” questions Information Data that are processed to be useful; provides answers to "who", "what", "where", and "when" questions Data Symbols Wisdom Knowledge Information Data

wealthengine.com | Page 6 All Strategy Derives from Organizational Objectives and Goals Vision Mission Objectives Goals Strategies Tactics Increase capacity to transport excess food to those in need Increase major gift revenue by 20% A world without hunger Feed the hungry Invest in screening data Use data to optimize portfolios and ask values Answer “Why?” Questions Answer “What?” Questions Answer “How?” Questions

Capacity and likelihood to give data identify the best major gift prospects…

wealthengine.com | Page 8 Use Data to Optimize Portfolios by Finding the Best Prospects Based on Capacity and Likelihood to Give (or Affinity), an entire constituency can be segmented for application of distinct strategies: For major gifts, constituents with high capacity and high affinity are shaded in green for immediate assignment and cultivation Constituents in shaded in blue are second tier prospects and should be engaged in high-touch cultivation at the annual giving level Capacity Likelihood to Give

wealthengine.com | Page 9 Use Data to Optimize Portfolios by Finding the Best Prospects ,6262,3978,328 Capacity Likelihood to Give Based on Capacity and Likelihood to Give (or Affinity), an entire constituency can be segmented for application of distinct strategies: For major gifts, constituents with high capacity and high affinity are shaded in green for immediate assignment and cultivation Constituents in shaded in blue are second tier prospects and should be engaged in high-touch cultivation at the annual giving level

wealthengine.com | Page 10 Data Appends (Wealth, Demographic and Lifestyle Attributes) Allow Evaluation of All Constituents Likelihood to Give Capacity RangeVery LowLowModerateHighVery HighTotal $5M $1M up to $5M $500K up to $1M $250K up to $500K $100K up to $250K ,462 $50K up to $100K , ,894 $25K up to $50K ,0371, ,067 $15K up to $25K ,066 Up to $15K Unrated ,028 Total9762,6932,4296,0102,89014,998

wealthengine.com | Page 11 Likelihood to Give Capacity RangeVery LowLowModerateHighVery HighTotal $5M $1M up to $5M $500K up to $1M $250K up to $500K $100K up to $250K ,462 $50K up to $100K , ,894 $25K up to $50K ,0371, ,067 $15K up to $25K ,066 Up to $15K Unrated ,028 Total9762,6932,4296,0102,89014,998 Quickly Identify the Best Prospects for Major Gift Cultivation 28 shaded green have high capacity, high likelihood to give 32 23

wealthengine.com | Page 12 Likelihood to Give Capacity RangeVery LowLowModerateHighVery HighTotal $5M $1M up to $5M $500K up to $1M $250K up to $500K $100K up to $250K ,462 $50K up to $100K , ,894 $25K up to $50K ,0371, ,067 $15K up to $25K ,066 Up to $15K Unrated ,028 Total9762,6932,4296,0102,89014,998 Identify Second Tier Prospects for High-Touch Leadership Giving Program shaded in blue are also good major gift candidates

Portfolios are often selected based on past giving history…

wealthengine.com | Page 14 Affinity Score Capacity RangeVery LowLowModerateHighVery HighTotal $5M+ $7,983,010 $1M up to $5M $10,481,105 $500K up to $1M $4,120,173 $250K up to $500K $370,479$341,000$440,241$6,786,036$7,937,755 $100K up to $250K $601,489$332,565$1,545,482$6,350,829$8,830,365 $50K up tp $100K $196,430$243,806$712,639$3,133,520$4,286,395 $25K up to $50K$94,259$289,513$201,514$583,946$1,119,834$2,289,066 $15K up to $25K $39,287$24,468$73,790$134,884$272,430 Up to $15K$40,226 $10,961$36,692$87,880 Unrated$27,383$15,889 $11,409$9,571$64,252 Total$161,868$1,513,087$1,143,353$3,378,469$40,155,653$46,352,430 The Current Portfolios Under Management have a Total Value of $46MM 243 prospects are currently under management (assigned to a gift officer or volunteer) These were selected based on total giving Values in the cells are the sum of the capacity of each individual who falls within the range 243 prospects are currently under management (assigned to a gift officer or volunteer) These were selected based on total giving Values in the cells are the sum of the capacity of each individual who falls within the range $46,352,430 The total capacity of the prospects under management is the total number in the lower right-hand corner ($46MM)

Potential soars when portfolios are selected based on capacity and likelihood to give ratings…

wealthengine.com | Page Optimal ( Selected Based on Capacity and Likelihood Ratings) Affinity Score Capacity RangeVery LowLowModerateHighVery HighTotal $5M+ 89,015,42719,223,723108,239,150 $1M up to $5M 35,938,65048,700,14684,638,796 $500K up to $1M 34,221,64727,739,46061,961,108 $250K up to $500K 30,862,459 $100K up to $250K $50K up tp $100K $25K up to $50K $15K up to $25K Up to $15K Unrated Total 159,175,725126,525,788285,701,513 Selecting the 243 optimal prospects yields $286MM under management This is 6 times the capacity under management Selecting the 243 optimal prospects yields $286MM under management This is 6 times the capacity under management 89,015,42719,223,723108,239,150 35,938,65048,700,14684,638,796 34,221,64727,739,46061,961,108 30,862, ,701,513

wealthengine.com | Page 17 Strategy Grows Out of Analysis All else being equal, if 20 gifts close at 10% of capacity, this change in portfolio value would result in an additional $2MM ($2,351,452 vs. $381,501) To activate this potential, any high-likelihood, high-capacity prospects not under management by an individual staff or volunteer should be assigned Currently assigned prospects with lower capacity/likelihood scores should only be kept under management if they are close to or in the solicitation phase The second tier of prospects with high capacity and likelihood scores should be “fast-tracked” in high-touch annual giving/cultivation program

Ask amounts are often based on instinct, “gut” feelings, or the comfort level of the solicitor…

wealthengine.com | Page 19 Data including Capacity Estimates Allow Analysis of Major Gift Solicitations Prospect Manager or Major Gift Officer Average Capacity of Prospects Average Ask Amount % of Capacity Asked Average Gift Amount % of Ask Received % of Capacity Received Jocelyn$95,617$24,28625%$10,24242%11% Sarah$167,708$24,16714%$16,66769%10% Total$131,662$24,22618%$13,45556%10%

wealthengine.com | Page 20 This Organization Receives on Average Only 10% of Potential Gift Value Prospect Manager Average Capacity of Prospects Average Ask Amount % of Capacity Asked Average Gift Amount % of Ask Received % of Capacity Received Jocelyn$95,617$24,28625%$10,24242%11% Sarah$167,708$24,16714%$16,66769%10% Total$131,662$24,22618%$13,45556%10% Analysis shows gifts received are valued at approximately 10% of capacity 11% 10%

wealthengine.com | Page 21 Gift Officers May be Defaulting to the Minimum Major Gift Level Prospect Manager Average Capacity of Prospects Average Ask Amount % of Capacity Asked Average Gift Amount % of Ask Received % of Capacity Received Jocelyn$95,617$24,28625%$10,24242%11% Sarah$167,708$24,16714%$16,66769%10% Total$131,662$24,22618%$13,45556%10% With a minimum major gift amount of $25K, it looks like prospect managers may be satisfied asking for gifts of $25K $24,286 $24,167 $24,226

wealthengine.com | Page 22 With Gifts Closing at Just 56% of Asks, There May be Money Left on the Table Prospect Manager Average Capacity of Prospects Average Ask Amount % of Capacity Asked Average Gift Amount % of Ask Received % of Capacity Received Jocelyn$95,617$24,28625%$10,24242%11% Sarah$167,708$24,16714%$16,66769%10% Total$131,662$24,22618%$13,45556%10% On average, they are receiving gifts of $10K-$15K $10,242 $16,667 $13,455

wealthengine.com | Page 23 If 20 Gifts are Closed with Gifts Averaging 10% of Capacity, the Organization will Realize $263,324 Prospect Manager Average Capacity of Prospects Average Ask Amount % of Capacity Asked Average Gift Amount % of Ask Received % of Capacity Received Jocelyn$95,617$24,28625%$10,24242%11% Sarah$167,708$24,16714%$16,66769%10% Total$131,662$24,22618%$13,45556%10% $131,662 x 10% x 20 Gifts $131,662 10% $131,662 x 10% x 20 Gifts = $263,324

If ask amounts are adjusted to reflect capacity on an individual basis, fundraising potential increases…

wealthengine.com | Page 25 Prospect Manager Average Capacity of Prospects Average Ask Amount % of Capacity Asked Average Gift Amount % of Ask Received % of Capacity Received Jocelyn$95,617$24,28625%$10,24242%11% Sarah$167,708$41,92725%$28,92969%17% Total$131,662$32,91525%$19,58559%15% Adjusting Average Ask Amount Up to 25% of Capacity on Average Leads to Higher Asks Sarah’s asks are adjusted from 14% to 25% of capacity, resulting in an average ask of $41,927 $41,92725%

wealthengine.com | Page 26 Prospect Manager Average Capacity of Prospects Average Ask Amount % of Capacity Asked Average Gift Amount % of Ask Received % of Capacity Received Jocelyn$95,617$24,28625%$10,24242%11% Sarah$167,708$41,92725%$28,92969%17% Total$131,662$32,91525%$19,58559%15% Higher Asks Lead to Higher Closed Gift Amounts This leads to a 17% of capacity average gift for Sarah and 15% overall 15% 17%

wealthengine.com | Page 27 Prospect Manager Average Capacity of Prospects Average Ask Amount % of Capacity Asked Average Gift Amount % of Ask Received % of Capacity Received Jocelyn$95,617$24,28625%$10,24242%11% Sarah$167,708$41,92725%$28,92969%17% Total$131,662$32,91525%$19,58559%15% If 20 Gifts are Closed with Gifts Averaging 15% of Capacity, the Organization will Realize $394,986 15% $131,662 $131,662 x 15% x 20 Gifts $131,662 x 15% x 20 Gifts = $394,986

wealthengine.com | Page 28 All else being held constant, If 20 gifts close at 15% of capacity on average, this will result in $394,986 in revenue This represents an additional $131,662 in revenue over prior asks Ask amounts do not need to be a set and static percentage of capacity, but should be evaluated on an individual basis Questions to ask include: –Are we one of this prospect’s top three priorities? –Is this prospect enthusiastic about a particular project or program? –Do we have a funding need that meshes with this prospect’s interests? –What other current commitments do they have? If gift officers default to a low ask amount, consider training to boost confidence in the ratings and/or confidence in the process Strategy Grows Out of Analysis

wealthengine.com | Page 29 Realize Untapped Fundraising Potential By analyzing file capacity and modeling likelihood to give, this organization was able to increase capacity under management and (without closing more gifts) increase potential funds raised by $2MM By analyzing ask amounts in relation to capacity, this organization was able to identify a weakness in their major gift program and by encouraging each gift officer to ask for a minimum of 25% of capacity, increases fundraising potential by $131,662 If this organization realizes even 10% of this potential $2.1MM gain, they will have realized a Return on Investment (ROI)of 740% based on a $25,000 investment in data and analytics

Prospect Management

wealthengine.com | Page 31 The Management Process “Management is concerned with ensuring plans and strategies are implemented, that progress is monitored, that corrective action is taken when required and that results are reported and stakeholders are kept informed.”

wealthengine.com | Page 32 Major Gift Maturation Process “It can take 18 to 24 or more months to cultivate and secure a major gift. Therefore, it is as important to measure and manage the activities that lead to major giving as to measure dollars in the door.”

wealthengine.com | Page 33 Evaluating Major Gift Activities Stage of Prospect Development Prospect ManagerDiscoveryCultivationSolicitationStewardshipTotal Jocelyn Sarah Total Percent in Stage20%45%17%18%100% “Depending on your stage of campaign, seniority of gift officers, and age of major gift program, you may want to manage the prospect pipeline by emphasizing movement from cultivation into solicitation, or increased activity qualifying new prospects.” Are your portfolio’s balanced?

wealthengine.com | Page 34 Common Major Gift Officer Performance Metrics For Full-time MGO: Number of Personal Visits 50% to 75% depending on stages of portfolio Percentage of Unique Visits 15 to 25, varies by wealth of portfolio Proposals Submitted 5 to 20, roughly 30% to 60% of asks Number of Gifts Closed 60% to 85% of “ask” or solicitation Amount of Gifts Closed Provides incentive for teamwork and discourages hoarding and poaching of prospects Assists Dollars raised/costs of fundraising (including salaries) ROI

wealthengine.com | Page 35 Major Gift Metrics and Benchmarks Metric Standard Benchmarks* Organization Benchmarks LowHighExampleYour HistoricYour Goal Portfolio Size % in Discovery10%30%18% % in Cultivation30%60%40% % in Solicitation20%30%25% % in Stewardship10%20%17% # of Solicitations per Year 38 % of Solicitations Closing per Year33%66%50% # of Solicitations Closing per Year 19 Time to Close a Major Gift12 months30 months % of Ask Received60%85% # of Research Rated Leads per Gift30 # of Prospects in Discovery per Gift6 # of Prospects in Cultivation per Gift3 *Benchmarks were obtained from a literature review and represent our best estimates from internal and external sources. Percentages and values will vary by organization depending on maturity of program, stage of campaign, geographic region, wealth profile of constituency, level of affinity of constituency and many other factors. Benchmarks should be used with caution, and it is always best to benchmark against your historic results

Forecasting Major Gift Results with Pipeline Analysis

wealthengine.com | Page 37 Gift Levels Number of Gifts Needed Dollars Needed Per Level Cumulative Total Needed Cumulative Total Received Cumulative Percent Received $ Value of Proposals Submitted Pipeline Expected Yield (40%) $ Value of Proposals Planned (1-3 months) Future Pipeline Expected Yield (20%) Total Expected Pipeline $400,0001 $500,000 25% $0 $200,0001 $600,000$700,000 35% $0 $100,0002$200,000$800,000 40% $200,000$80,000$0 $80,000 $50,0003$150,000$950,000$850,000 43% $50,000$20,000$50,000$10,000$110,000 $30,0003$90,000$1,040,000$910,000 46% $30,000$12,000$30,000$6,000$128,000 $20,00010$200,000$1,240,000$1,070,000 54% $20,000$8,000$20,000$4,000$140,000 $15,00012$180,000$1,420,000$1,160,000 58% $45,000$18,000$15,000$3,000$161,000 $10,00015$150,000$1,570,000$1,210,000 61% $60,000$24,000$10,000$2,000$187,000 $5,00020$100,000$1,670,000$1,230,000 62% $20,000$8,000$30,000$6,000$201,000 $3,00030$90,000$1,760,000$1,242,000 62% $3,000$1,200$75,000$15,000$217,200 $2,00040$80,000$1,840,000$1,274,000 64% $12,000$4,800$36,000$7,200$229,200 $1,00050$50,000$1,890,000$1,299,000 65% $10,000$4,000$15,000$3,000$236,200 VariesMany$110,000$2,000,000$1,333,000 67% $0 $76,000$15,200$251,400 Campaign Pipeline Report

wealthengine.com | Page 38 Gift Levels Number of Gifts Needed Dollars Needed Per Level Cumulative Total Needed Cumulative Total Received Cumulative Percent Received $ Value of Proposals Submitted Pipeline Expected Yield (40%) $ Value of Proposals Planned (1-3 months) Future Pipeline Expected Yield (20%) Total Expected Pipeline $400,0001 $500,000 25% $0 $200,0001 $600,000$700,000 35% $0 $100,0002$200,000$800,000 40% $200,000$80,000$0 $80,000 $50,0003$150,000$950,000$850,000 43% $50,000$20,000$50,000$10,000$110,000 $30,0003$90,000$1,040,000$910,000 46% $30,000$12,000$30,000$6,000$128,000 $20,00010$200,000$1,240,000$1,070,000 54% $20,000$8,000$20,000$4,000$140,000 $15,00012$180,000$1,420,000$1,160,000 58% $45,000$18,000$15,000$3,000$161,000 $10,00015$150,000$1,570,000$1,210,000 61% $60,000$24,000$10,000$2,000$187,000 $5,00020$100,000$1,670,000$1,230,000 62% $20,000$8,000$30,000$6,000$201,000 $3,00030$90,000$1,760,000$1,242,000 62% $3,000$1,200$75,000$15,000$217,200 $2,00040$80,000$1,840,000$1,274,000 64% $12,000$4,800$36,000$7,200$229,200 $1,00050$50,000$1,890,000$1,299,000 65% $10,000$4,000$15,000$3,000$236,200 VariesMany$110,000$2,000,000$1,333,000 67% $0 $76,000$15,200$251,400 Campaign Pipeline Report

wealthengine.com | Page 39 Gift Levels Number of Gifts Needed Dollars Needed Per Level Cumulative Total Needed Cumulative Total Received Cumulative Percent Received $ Value of Proposals Submitted Pipeline Expected Yield (40%) $ Value of Proposals Planned (1-3 months) Future Pipeline Expected Yield (20%) Total Expected Pipeline $400,0001 $500,000 25% $0 $200,0001 $600,000$700,000 35% $0 $100,0002$200,000$800,000 40% $200,000$80,000$0 $80,000 $50,0003$150,000$950,000$850,000 43% $50,000$20,000$50,000$10,000$110,000 $30,0003$90,000$1,040,000$910,000 46% $30,000$12,000$30,000$6,000$128,000 $20,00010$200,000$1,240,000$1,070,000 54% $20,000$8,000$20,000$4,000$140,000 $15,00012$180,000$1,420,000$1,160,000 58% $45,000$18,000$15,000$3,000$161,000 $10,00015$150,000$1,570,000$1,210,000 61% $60,000$24,000$10,000$2,000$187,000 $5,00020$100,000$1,670,000$1,230,000 62% $20,000$8,000$30,000$6,000$201,000 $3,00030$90,000$1,760,000$1,242,000 62% $3,000$1,200$75,000$15,000$217,200 $2,00040$80,000$1,840,000$1,274,000 64% $12,000$4,800$36,000$7,200$229,200 $1,00050$50,000$1,890,000$1,299,000 65% $10,000$4,000$15,000$3,000$236,200 VariesMany$110,000$2,000,000$1,333,000 67% $0 $76,000$15,200$251,400 Campaign Pipeline Report

wealthengine.com | Page 40 Campaign Pipeline Analysis Year One Year Two Year Three Study & Planning Phase Quiet Phase Public Phase 9-12 Months 12 – 15 Months 6-12 Months Goal

Reporting Results For Maximum Impact

wealthengine.com | Page 42 Reporting for Maximum Impact

wealthengine.com | Page 43 Which Has More Impact? Year % of donors renewing after 1st gift % % % % % _ _ _ _ _ _ _ _ _ If you are demonstrating a trend, use a graph Year

wealthengine.com | Page 44 Which Has More Impact? Funding by Constituency Board17% Volunteers20% Members15% Service Recipients19% Event Particpants4% Friends25% Funding by Constituency If you are demonstrating parts of a whole, use a pie chart

wealthengine.com | Page 45 Which Has More Impact? Ability Affinity 317 Major Gift Prospects 962 High Touch Cultivation Prospects 1500 Annual Giving Prospects 2500 Do Not Solicit SegmentsNumber Low Affinity/Low Capacity 2,500 High Affinity/Low Capacity1,500 Low Affinity/High Capacity962 High Affinity/High Capacity317 If you are showing information in two dimensions, use a matrix

wealthengine.com | Page 46 Which Has More Impact? Average time from Identification to closed gift: 36 months Average number of face to face contacts: 6 Average number of touch points (non-substantive contacts): 8 If you are showing information in time, use a timeline

wealthengine.com | Page 47 Which Has More Impact? Or This? Key: ---- Average Number of Touch Points 8

wealthengine.com | Page 48 Presenting Information Visually When working in Excel™, take the next step to explore charts In PowerPoint™, use Smart Art options When explaining a process, use a flow chart When explaining a trend, use a graph When comparing categories, use a bar chart When explaining history, use a timeline When explaining progress in a project, use a Gantt Chart “How you present information can be as important as what you present.”

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wealthengine.com | Page 50 Contact Us Sally Boucher Director of Research WealthEngine Tony Glowacki President & CEO WealthEngine