1. Data-Driven Fundraising: Using Data to Find Major Donors
June 14, 2017
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2. Data-Driven Fundraising: Using Data to Find Major Donors
June 14, 2017
presented by
Ryan Woroniecki, Vice President of Strategic Partnerships
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3. 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
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4. 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
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5. 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
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6. Myths About Prospect Research
“My organization is too small”
“Only certain types of organizations use prospect research”
“We can’t do major gifts”
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7. “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.
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8. “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
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9. “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
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10. “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.
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11. 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
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12. ryan@donorsearch.net  donorsearch.net  (410) 702-4223
An Increase in Giving
Individuals contribute the largest amount to charitable giving.
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13. 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
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14. 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
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15. 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?
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16. Markers of Philanthropy
How do you know them when you see them?
Who are in the top 20% for your nonprofit?
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17. Four Markers of Philanthropy – DonorSearch Study
$5 Billion Million 400
in Giving Individuals Organizations
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18. Giving to Your Organization1
Four Markers of Philanthropy
Giving to Your Organization
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19. Previous Giving to Your Organization
R+F+M = RFM or =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
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20. Giving to Other Organizations2
Four Markers of Philanthropy
Giving to Other Organizations
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21. 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
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22. 3 Foundation Trustee Four Markers of Philanthropy
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23. Position as Foundation Trustee or Board Member
Information is easy to find
Understand the importance of philanthropy
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24. 4 Political Giving Four Markers of Philanthropy
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25. 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
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26. 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?
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27. 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
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28. 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.
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29. 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?
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30. 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
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31. 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
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32. 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
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33. 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

34. 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:
We’ll give you a free File Audit!

35. DS Integration

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