1. Using Data to Identify Potential Donors Session for Symposium on Rural Philanthropy July 17, 2012

2. Scope of Session Role of Prospect Research Preparing for Prospect Research Ethical Considerations What Are You Looking For? Wealth Ratings Additional Resources

3. Role of Prospect Research Find and verify  Ability to make a major gift  Interest in your mission  Links to your organization Also consider  Philanthropic behavior

4. AND organize, record, protect, analyze, package and disseminate relevant prospect and donor information. Take the long view! Role of Prospect Research

5. Professionalize Prospect Research  Centralize all donor and prospect information  Invest in a database designed to store information that can be accessed and analyzed.  Invest in database training (or you will end up with Excel spreadsheets)  Establish written policies to protect donor information  Establish written procedures governing database usage

6. Prospect Research Ethics

7. AFP’s “Donor Bill of Rights”“Donor Bill of Rights” APRA’s “Statement of Ethics”“Statement of Ethics” Ethical Considerations Confidentiality Accuracy Relevance Self-responsibility Honesty Conflict of Interest A donor has a right to see any information you have collected

8. Discovery – Enough information to merit initial contact Capability, Interest, Linkage Cultivation – Spot research as needed – Much of the research is done through contact with the prospect Pre-solicitation (0 to 6 months) – Full profile, everything that will influence successful solicitation Levels of Research

9. Role of Prospect Research MAJOR GIFT PROSPECT – Interest/Linkage -- Gift history, volunteer activity, shared values, membership, family link, beneficiary – Philanthropic behavior -- Gifts to any organization, political contributions, religious affiliation – Wealth Indicators -- insider, private company ownership, occupation, real estate, private equity, club membership, foundation or donor advised fund, gifts to other orgs What Are You Looking For?

10. – Income often is not relevant nine out of 10 planned gifts are bequests. – Consistent annual fund donor – Volunteer – Age 40-60 – Educated – bachelors degree or higher – Motivated by helping others, religious beliefs and giving back What Are You Looking For? PLANNED GIFT PROSPECT

11. PLANNED GIFT PROSPECT cont’d. – Single or widowed – Married with few or grown children – Wants to provide for loved ones – Concerned about retirement income – Tax concerns Bequest Donors: Demographics and Motivations of Potential and Actual Donors. Prepared for Campbell & Company by Center on Philanthropy at Indiana University, March 2007. What Are You Looking For?

12. Where is the Information? Your database – gleaned from annual fund – Gift history – size, frequency, appeal response, fund – Event attendance – Volunteer activity – Beneficiaries of grants and scholarships Prospect contacts – staff, board members and other volunteers Publicly available resources – Commercial databases – Commercial screening and data append services – Free resources online and through libraries

13. Wealth Center on Wealth and Philanthropy Giving USA Bank of America Study The Millionaire Next Door by Thomas J. Stanley (1996) Rural Policy Research Institute Transfer of Wealth in Indiana Study

14. Respondents by source of wealth Some or all from inheritance/gifts -- 50.9% Some or all from business or professional efforts - - 89.1% Some or all from investment -- 75.5% All from inheritance/gifts -- 3.6% All from business or professional efforts -- 11.8% All from investment -- 0.9% Wealth Source: "Extended Report of the Wealth with Responsibility Study / 2000." Paul G. Schervish and John J. Havens, Boston College, March 2001

15. Wealth “There is a growing body of evidence on the critical role that entrepreneurs and small businesses play in driving local and national economies. The structure of rural economies is essentially composed of small enterprises, which are responsible for most of the job growth and the innovation. Moreover, small businesses represent an appropriate scale of activity for most rural economies. “ Rural Policy and Research Institute website http://www.rupri.org/entrepreneurship.php

16. Chambers of Commerce USA Chamber of Commerce Directory Directory of Local Chambers of Commerce and Visitors Bureaus Wealth in Your Community

17. Zoominfo 1) Create list of businesses in your community based on location, revenue, and/or number of employees 2) Go to business’ website to identify stakeholders 3) Research stakeholders Dun & Bradstreet Hoover’s Online Reference USA Commercial resources that may be available through you library.

18. Wealth in Your Community Reference USA is available online from many public libraries through Midwest Collaborative of Library Services.

19. Individual Research Public Company Executives SECSEC -- – Compensation, stock holdings, options activity of corporate insiders – Read the help section, know forms – Look for DEF-14A Yahoo Finance Yahoo Finance -- – Financials, charts, historical information, news, insider rosters, stock ownership and recent activity

20. There is a correlation between political contributions and philanthropic gifts FEC Political Contribution Filings Can drill down to form Open Secrets Quicker geographic search Wealth Indicators Political Contributions

21. NETROnline Needs updating Indiana Assessor and Property Tax Directory Commercial website Indy.gov: Dept. of Local Government Finance County Assessor’s Website – look for GIS BRB’s Free Resource Center Wealth Indicators Property

22. Executive Salary Wizard Executive Salary Wizard (Public Execs) Salary.com Jobstar.com Physicians (Hope for orthopedic surgeons, neurosurgeons & radiologists) Indiana Professional Licensing Agency Wealth Indicators Occupation / Salary

23. Guidestar – more info with paid subscription Guidestar FC Online – paid service might be available through your library Chronicle of Philanthropy Indiana Grantmakers Alliance Annual Reports Google search with name and “donor” or “gift” Wealth Indicators Philanthropy

24. Ratings RATINGS FORMULAS are not SOLICITATION AMOUNTS The purpose of capability ratings is to identify, segment and prioritize prospects. It is a starting point. Solicitation amounts should be based on what is learned through building a relationship with the prospect.

25. BASED ON INCOME The average American contributes 2% of their income per year to charity. The percentage increases at higher levels of income. $100,000-$499,000 x 2.7% x 5 = gift capability $500,000-$999,000 x 2.9% x 5 = gift capability $1,000,000+ x 4.3% x 5 = gift capability Source: Martz & Lundy Ratings

26. BASED ON REAL ESTATE Real Estate x 3 x 5% = gift capacity BASED ON STOCK HOLDINGS $100,000-$499,000 stock & options x 1%-4% = gift capacity $500,000-$999,000 stock & options x 5%-9% = gift capacity $1,000,000+ stock & options x 10% = gift capacity Source: Martz & Lundy

27. Rating Basis of Initial Rating Stock HoldingsPrivate Co Sales*Property HoldingsGifts to Other Orgs 1M+$1M$40M$1.5M$1M 100K - $1M$100K$10M$650K$100K $50K - $100K$50K$5M$350K$50K $25K - $50K$25K$3M$200K1$25K Less than $25K * Where individual is owner, CEO, founder, principal or president Ratings Source: Benz, Whaley Flessner

28. Ratings Grid

29. Additional Research Contact information Career information Circles of Influence Biographical details Interests

30. Searching Public Databases Not all search engines and databases use the same search language Natural language – terms as you would use them in speech. Boolean Language – uses connectors AND, OR, NOT, sometimes – Proximity indicators: NEAR, w/1, * – Parenthesis to group – the order and use of parenthesis can change the outcome of the search – quotation marks for exact phrases

31. Public Library Online Resources INSPIRE Indiana Indianapolis Marion County Public Library General Information -- Collections

32. General Information -- Google Use Advanced Search or know how to use the standard search box – it makes a differenceAdvanced Search

33. Individual Research – Contact Information Directories http://www.anywho.com/ http://www.switchboard.com/ http://search.infospace.com/ispace/ws/index – Reverse lookup http://email.iaf.net/email-search.html – Email search http://zip4.usps.com/zip4/welcome.jsp – Zip codes List courtesy of David Lamb’s Prospect Research page

34. Individual Research – Contact Information

35. Biznar Deep web Creates “clusters” Individual Research Business and Career

36. Google Advanced LinkedIn Muckety Corporate Websites Blue Golf Individual Research – Career / Links

37. Individual Research The Full Picture You are the most important source of information about the prospect / donor Get into the habit of filing contact reports and recording relevant information into your database.