1. LIFECYCLE OF YOUR DATABASE SCREENING 2012 APRA MO/KAN CONFERENCE MARCH 2012 Michael Quevli Senior Consultant Blackbaud Target Analytics michael.quevli@blackbaud.com

2. Why do I need to screen my database? Determine readiness Where do I start? Wealth screening vs. modeling Preparing your file  Screening/modeling process Preparing for results Successful implementation Post-project evaluation AGENDA

3. What is the driving force behind the need?  Capital campaign or new major gifts initiative?  Upgrade annual fund or transitional giving (annual to major gifts)?  Establish new or enhance existing planned giving program?  Top donor pool is dry – Need help discovering hidden gems (prospect identification)? What are your objectives?  Who is defining the project?  Do you have senior-level and board buy-in?  Do you have dollar figures attached to those goals? WHY DO I NEED MY DATABASE SCREENED IN THE FIRST PLACE?

4. Database screenings help organizations segment records by utilizing a variety of databases and methods of analysis Focuses your team on those individuals with whom you should be spending your time, talent and efforts:  Points you to the individuals who are the most likely to remain loyal now and in the future by revealing prospects capable of considering gifts of impact even in challenging times  Can help segment your constituents into groups of prospects according to likelihood to make a gift and their inclined financial capability to make the gift depending upon solutions needed and utilized Make sure leadership is setting VERY clear and measureable expectations to measure your success! WHY DO I NEED MY DATABASE SCREENED IN THE FIRST PLACE?

5. Do we have the staff levels and capacity necessary to take on initial extra work involved to see project from beginning to completion? Is our database in the best shape possible so that we can provide clean data and receive accurate results? What is the IT infrastructure and to what level are they involved? Do we have the technical bandwidth to manage the results import and necessary queries and reports to analyze our progress with the data? Do we have placeholders in our database for the results? Who is the right person to manage the screening project? What fundraising initiatives are we using this for? What info we really need capacity only or capacity and inclination? And the million dollar question… Do we have the budget? BASIC QUESTIONS TO ASK TO DETERMINE READINESS

6. Conduct a current assessment of your database:  Garbage in – Garbage out! Cleanse thy database… NCOA done at least every quarter Updated phones, business info, gift entry, etc. Look at what you have done in the past! Helps with post-analysis of results…  Other screenings or modeling projects in past 5 years – Ratings/rankings stored? How successful was that project?  Internal data mining or data audits conducted  Current stats on giving and/or participation in such programs such as annual fund, major/capital gifts, planned gifts, events, the current donor pyramid WHERE DO I START?

7. Vendor selection:  Is a Request For Proposal (RFP) document necessary? Usually if state-funded, but not always Better to do informal questionnaire vs. mandated RFP – Look at value vs. only cost No matter what you do here, ask consistent questions Ask for a testing period – be sure to use the same prospects for each vendor you test! What does the research profile look like and can it be edited to suit my staff? Can multiple profile templates be saved? WHERE DO I START?

8. Vendor selection (continued):  Seek three bids and ask: Offer variety of solutions to meet specific needs Matching schematics and verification process How is capacity calculated? Help identify prospects for all programs  Major gifts, annual fund, planned gifts, transitional gifts, etc. Years of experience References Timeline for completion Where does the data live and it is secure? Ease of importing results WHERE DO I START?

9. Vendor selection (continued): Experienced consultants to help advise on implementation of results Cost for each type of service  Predictive modeling  Wealth pre-screen  Full wealth screening on top prospects  Software to manage results and conduct research  Other data appends  On-site vs. on-line training/consulting?  Can results be edited?  Make apples to apples comparison if possible WHERE DO I START?

10. WEALTH SCREENING VS. MODELING Wealth screening: -Finds detailed public data on individuals -Assets uncovered such as real estate such as primary residence, seasonal residence(s), and real estate investment properties, security insiders, privately and publicly held company data, public company executive compensation, -Philanthropic interests and donations -Political affiliations and contributions -Biographical data such as career history, education, family data, club memberships, awards, achievements, and certifications -Wealth indicators such as luxury items, liquid assets, executive lists, etc. -Liquid asset ratings -Wealth screening can be used as pre-screen Modeling: -Typically utilizing an organization’s internal data, specifically gift history, along with vendor appended data, to predict the likelihood and capability of a prospect to gift you certain types of gifts and particular gift levels

11. WEALTH SCREENING VS. MODELING Modeling (continued): -Major gifts -Annual fund -Planned gifts -Transitional mid-level gifts -Gift levels -Custom vs. prescriptive -Identify top prospects -Upgrade existing prospects -Identify new prospects for donor acquisition -Often used as pre-screen for detailed wealth profiling

12. WEALTH SCREENING VS. MODELING Which type of service works best? -Have you done modeling before? -Comprehensive campaigns often require both -First time analysis of database – Recommend predictive modeling -Modeling works if robust gift data available and accurate -Detailed screening best on smaller group of top prospects -How many top prospects do you need detailed profiles on? -How many gift officers? -How many prospects necessary for portfolios?

13. Custom analysis of donors can reveal the statistical profile of the typical or “ideal” donor to your organization  This profile will be different from the ideal donor to any other organization Donors can be segmented into groups who give…  Regular small gifts for annual fund  Large gifts for major giving  Planned gifts including bequests, CRTs, and gift annuities  Gifts at specific levels Each group should have somewhat different characteristics and variables that play into models that are unique to your organization PREDICTIVE MODELING

14. WEALTH SCREENING Assumption: appreciated assets form the basis for most major gifts What can be discovered: -Real estate values -Public company insider stock holdings -Some private company affiliations -Federal political donations -Some charitable donations Note: Most of this information is disclosed for the protection of the public – The rest is voluntarily disclosed What cannot be discovered: -Debts, Mortgages -Bank Account Holdings -Retirement Assets

15. MAJOR ASSET CATEGORIES According to the IRS, households with net worth between $1.5M-$10M have their worth spread among these asset categories We can find exact matches on this data We can sometimes find this information This data is typically well hidden

16. File preparation call to go over necessary data for screening  Key staff to include: Database administrator Prospect researcher Development Director Data accuracy – QA very carefully Remember, Garbage in – Garbage out! Transmittal of data  Do we include soft credits for individuals who give through a foundation?  Send primary address vs. business – you get better results!  Secure FTP  CSV or Excel format is common PREPARING YOUR FILE

17. Communicate with vendor’s consultant or project coordinator  Discuss objectives and challenges  Discuss staff attendance  Confirm technology requirements necessary for software training  Ask how long will my data file be stored? This can be essential as staff changes happen. Determine who will manage software and assign as administrator  Typically staff member managing the screening project PREPARING FOR DELIVERY OF RESULTS

18. Invite relevant staff members to results presentation:  Development executives and directors (VP, ED, DOD, DOAS, etc.)  Development officers (major gifts, annual fund, planned gifts, events, volunteer programs)  Data management experts (prospect researchers, db administrators, gift processing, maybe general IT staff involved in importing results) Software training may only include those who will access software, depending upon staff levels and access granted PREPARING FOR DELIVERY OF RESULTS

19. Data upload and integration of results into process  IT upload pertinent scores, ratings, summary wealth and philanthropic data  Create queries of top prospects and next tier of prospects Cross tabulations between those likely to give with capacity (see next slide) Additional refinement using past giving  Number of gifts  How recently they gave  Consecutive years of giving  Total giving  Assignment of top prospects to gift officers into prospect tracking system APPLICATION OF RESULTS FOR SUCCESSFUL IMPLEMENTATION

20. Responsibilities and task assignments  Leadership Vice President of Development, Executive Director, Director of Development, Director of Advancement Services, etc.  IT and/or database admin Import scores and ratings  Prospect research: Confirm data on top prospects Enhance basic profiles with in-depth research as assigned APPLICATION OF RESULTS FOR SUCCESSFUL IMPLEMENTATION

21. Responsibilities and task assignments (continued)  Major gifts – Focus on best prospects by wealth and those likely to give large gifts in the near future Do results add insight into existing prospects in pipeline? Add newly identified major gift prospects to individual portfolios Create strategy for increased gift asks based on verified data  Annual fund Identify overlap with Major Gifts Target mailings/emails for top prospects Upgrade give ask levels for top prospects where warranted APPLICATION OF RESULTS FOR SUCCESSFUL IMPLEMENTATION

22. Responsibilities and task assignments (continued)  Planned gifts – Look at more than age as factor  Middle aged adults 45-55 are planning their estate! Long-term strategy Add PG options to mailings Assign top PG gift prospects for individual attention  Significantly higher close rate where one-on-one contact involved  Assign hours per week devoted to PG activities APPLICATION OF RESULTS FOR SUCCESSFUL IMPLEMENTATION

23. Calculating ROI  Only applies if you utilized results for all fundraising programs!  How much did you spend vs. increase in giving? Measure all programs (major, annual, planned, events, volunteers, etc.) Measure each program Ask colleagues at other institutions how they are tracking ROI.  Donor Pyramid Did you see growth? At all levels? Widening of mid-level/transitional gifts in pyramid? How many upgraded gift level? How many new prospects identified? Number of prospects gave vs. previous years? POST-PROJECT EVALUATION

24. Post-mortem  How often should you screen? Every year, 2 years, 3 years, more than 3 years?  On average wealth screening every 2-3 years *  On average modeling every 3-4 years *  Was it a success?  How are you measuring success?  Was everyone held accountable for assignments?  Where the right people assigned the right tasks?  What would you do differently? * If embarking on campaign, organizations screen more often in these scenarios POST-PROJECT EVALUATION

25. © 2011 BlackbaudLifecycle of the Database Screening 25 QUESTIONS?