Kristin Sours, Director of Client Relationships, DonorSearch Prospect Research & Prospect Management: There Is No Silver Bullet! Presented By: Kristin Sours, Director of Client Relationships, DonorSearch

Who is DonorSearch? Premiere Provider of Prospect Research and Prospect Identification services for all nonprofits Batch screening and modeling using wealth and philanthropy databases Online search tools for individual research and prospect generation Predicting capacity and philanthropic inclination 11 year old family-owned business 50+ employees Headquartered in Maryland 4,000+ active clients Largest database of philanthropic gift records in the nation Our revenue continues to grow by +20% per year donorsearch.net | 410-670-7880

Introduction Kristin graduated from East Carolina University, where she received a B.A. in Public Relations She started her career with DonorSearch in 2014 and was quickly promoted to manage the client success team to improve support Kristin has a passion for helping people and takes pride in her 100% satisfaction rating Wife to Austin (also an alum of ECU) and mother to daughter, Addison Loves to laugh, be outdoors and do yoga donorsearch.net | 410-670-7880

Agenda Why prospect research? Major Gifts How do you identify your Major Gift Prospects? 6 Markers of Philanthropy Prospect Management Best Practices of the nonprofit sector Wrap-up/Questions donorsearch.net | 410-670-7880

Why Prospect Research? Prospect Research is essential for identifying high-impact donors within an organization’s current donor pool and in the larger community. Different types of methods: Screening One off searches Social media Communication with donors Self-identified donorsearch.net | 410-670-7880

Why Major Gifts? Major gifts are some of the largest donations your organization will receive. 80% of their fundraising total coming from 20% of their donors. There’s even a defensible stance that the comparison is much more drastic, which argues that the breakdown is close to 90-10 for major gifts. Major gift programs give interested supporters guidance in the allocation of their funds. donorsearch.net | 410-670-7880

Motivation of the First Class Donor donorsearch.net | 410-670-7880

What Is Your Major Gift Size? Amount + Purpose = Extraordinary The first step is to define what a “Major Gift” is for you. The term major gift means something different at every organization. donorsearch.net | 410-670-7880

How to Identify Major Players Determine the prospect’s potential for giving Consider wealth screening Conduct leadership volunteer and board reviews Place the prospect appropriately in a gift range chart donorsearch.net | 410-670-7880

Why Start with Proven Philanthropy? $5 billion in giving 2 million individuals 400 organizations *Based on DonorSearch study completed in 2007, with a follow-up study in 2017 that omitted the outliers donorsearch.net | 410-670-7880

SIX MARKERS OF PHILANTHROPY #1: GIVING TO YOUR ORGANIZATION

Previous Giving to Your Organization RFM = Relationship or Affinity Score It’s calculated using the following three data sets: Recency of giving (0-100) Frequency of giving (0-100) Monetary total contribution (0-100) Total RFM score ranges from 0-300 Analysis of previous giving to your organization is the single best predictor of future philanthropy RECENCY FREQUENCY MONETARY Last Gift Number of Gifts Total Giving donorsearch.net | 410-670-7880

SIX MARKERS OF PHILANTHROPY #2: GIVING TO OTHER ORGANIZATIONS

Prior Giving Elsewhere 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 donorsearch.net | 410-670-7880

SIX MARKERS OF PHILANTHROPY #3: FOUNDATION TRUSTEE

IRS990PF donorsearch.net | 410-670-7880

New Findings: Foundation Trustee All User Reported Donors All User Reported Donors Matching to Foundation Trustee (Y or M) 1 Nonprofit Users Reporting 227 192 2 User Reported Donors 684,351 14,225 (48:1 or 2%) 3 Average Lifetime Giving $315 $1,306 4 Cumulative Lifetime Giving $149,798,873 $13,791,182 5 Total Gift Count 2,403,282 83,290 6 Average Individual Gift Size $87 $257 7 Per Person Average Gift Size Comparison $1.00 $2.95 8 Per Person Average Lifetime Giving Comparison $4.15 donorsearch.net | 410-670-7880

SIX MARKERS OF PHILANTHROPY #4: POLITICAL GIVING

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 A single political gift of $250 puts your donor in the top 6% of the U.S. population A single political 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 5-, 6-, or 7-figure charitable gift somewhere donorsearch.net | 410-670-7880

New Findings: Political Giving All User Reported Donors All User Reported Donors Matching to Political Giving 1 Nonprofit Users Reporting 227 207 2 User Reported Donors 684,351 164,170 (4:1 or 24%) 3 Average Lifetime Giving $315 $605 4 Cumulative Lifetime Giving $149,798,873 $68,115,066 (45%) 5 Total Gift Count 2,403,282 757,289 6 Average Individual Gift Size $87 $141 7 Per Person Average Gift Size Comparison $1.00 $1.62 8 Per Person Average Lifetime Giving Comparison $1.92 donorsearch.net | 410-670-7880

SIX MARKERS OF PHILANTHROPY #5: VALUE OF REAL ESTATE

Value of Real Estate Real Estate Value % of Donors % of Giving Predictive Strength $2+ million 1.4% 25.0% 17.6 $1-2 million 3.2% 13.2% 4.2 $750K - $1 million 2.5% 5.7% 2.3 $500K - $750K 5.4% 6.8% 1.3 $250K - $500K 12.8% 8.6% 0.7 $125K - $250K 10.9% 4.8% 0.4 $125K 8.4% 3.5% donorsearch.net | 410-670-7880

New Findings: Value of Real Estate Real Estate Value % of Donors % of Giving Predictive Strength $2,000,000+ 3.5 29.6 8.48 $1,000,000 - $1,999,999 5.8 9.2 1.58 $750,000 - $999,999 4.1 6.3 1.52 $500,000 – $749,999 7.8 4.2 0.54 $250,000 - $499,999 17.5 4.9 0.28 $125,000 - $249,999 13.9 2.2 0.16 $1 - $124,999 6.2 1.7 0.27 donorsearch.net | 410-670-7880

SIX MARKERS OF PHILANTHROPY #6: BUSINESS AFFILIATIONS

Business Affiliations % of Donors % of Giving Strength SEC | Yes & Maybe 2.0% 15.5% 7.8 Market Guide | Yes & Maybe 3.0% 19.5% 6.6 D&B | Yes & Maybe $5+ million 0.6% 5.1% 9.0 D&B | Yes & Maybe $1-5 million 0.7% 2.5% 3.5 D&B | Yes & Maybe 6.5% 21.5% 3.3 donorsearch.net | 410-670-7880

Prospect Management Identify a staff member for ongoing prospect management Assess needs for skill building and plan appropriate training Document Prospect Management Practices for the full Development Team (staff and volunteers) donorsearch.net | 410-670-7880

Prospect Management In Practice Set up systems in donor database to support prospect management Decide which research results to upload into the donor database Decide how many “good prospects” needed to meet goals donorsearch.net | 410-670-7880

Motivating Your Potential Donors You cannot motivate people – they are already motivated. Your job is to find out what motivates them and give the messages and create the environment for involvement that will help their interest flourish and engage them with you. Listen (two ears, one mouth ratio) to what donors say and ask; observe who they gravitate towards at events Most of all, listen for the nearly audible “click” when your program’s values combine with theirs donorsearch.net | 410-670-7880

Best Practices Clearly stated mission Donors respect the fundraisers and staff Prospect research & wealth screening Demonstration of sound business teams Board Members engaged and strong leadership Everyone understands philanthropy Trained fundraisers with an appetite to learn – CFRE, ACFRE Where do you fall? donorsearch.net | 410-670-7880

LETS CONNECT! Kristin Sours kristin@donorsearch.net (443)569-8265