1. Seven Habits of Highly Successful Prospect Researchers
FINAL
4/21/ :28 PM
Seven Habits of Highly Successful Prospect Researchers
AFP Fundraising Fundamentals Series
October 20, 2004

2. Presenters Valerie Parker Ryan Elliott
FINAL
4/21/ :28 PM
Presenters
Val
Valerie Parker
Development Officer-Prospect Research & Management
Webster University
Ryan Elliott
Director of Advancement Services
Ryan
Ryan’s primary responsibilities include
directing the University’s annual fund,
Its information and records management operations,
gift processing and financial reporting
and the prospect and donor research program.
I also assist the Vice President for Development in the general administration of the department, including
campaign planning and strategy,
the preparation and monitoring of an annual department budget,
and development of departmental policy.
Prior to assuming the Director’s role in early 2003, I was the lead researcher in a 2 person research shop, where the primary responsibility was identifying and qualifying prospective donors for the University's $30 million "New Tradition" comprehensive campaign and chairing the Prospect Management committee.  
Additional priorities included working with faculty and staff regarding funding opportunities for Webster's five schools and colleges, its network of worldwide campuses and its partnerships, including the Repertory Theatre of St. Louis and The Community Music School of Webster University.  
I currently serve as the Communications Director for APRA MO-KAN).  
I earned undergraduate degrees in History and Sociology from the University of Missouri-Columbia and an M.A. in Media Communications (public relations) from Webster University.
Ryan has made presentations on prospect research to the St. Louis Planned Giving Council and at the APRA MO-KAN Chapter Conference.

3. Audience Survey Organization Types FR Staff Sizes
FINAL
4/21/ :28 PM
Audience Survey
Organization Types
FR Staff Sizes
Dedicated Research Staff?
Goals for Today
Val
How many work for an educational institution?
for a health-related non-profit?
for an arts agency?
for a social-services agency?
other?
How many work for an organization with a FR staff greater than 50?
between 25-49
between 10-24
9 or fewer?
How many of you have at least one full-time staff position dedicated to research?
How many would like one?
For those of you without a full-time researcher, who is responsible for managing your prospect pool?
What are some of your goals for today? What would you like to take back to your organization?

4. Presentation Overview
FINAL
4/21/ :28 PM
Presentation Overview
Intro / Review Handouts / Overview of Seminar & Goals / Define Prospect Research & Mgmt.
The Seven Habits
Build your own gift table/chart of standards
Q&A / Break
Ryan
Really looking for participation from the audience today to make this presentation a success.
Point out handouts for attendees—we’ll reference most of them as we go through the session today
One of our main goals today is to send you home with information, tools, templates, tips and strategies that you can employ when you return to the office.
You probably won’t use all of them, but our hope is that you find parts that you need and that will work for you and your organization
We’ll review the “seven habits” or keys to successful planning of prospect research and management in a fund raising campaign
For the 1st habit, we’ll create a sample gift table/chart of standards (an interactive group exercise)
After that, we’ll break for Q&A and to recharge

5. Presentation Overview (cont.)
FINAL
4/21/ :28 PM
Presentation Overview (cont.)
Create a list of your top prospect categories
What are they interested in funding?
Who can help make this potential gift a reality?
Q&A / Break
Ryan
When we come back, for the 2nd habit we’ll do a short brainstorming exercise to get you to think about your organization’s top prospects
Each of you will write down a list of your top prospect groups and we’ll share a few of them with each other
For the 3rd habit we’ll discuss tips for identifying a funding interest for each prospect
For the 4th habit we’ll talk about applying our knowledge of our organization and its top prospective donors to determine who best to involve in cultivating and soliciting the prospects
After that, we’ll break again for Q&A and to recharge

6. Presentation Overview (cont.)
FINAL
4/21/ :28 PM
Presentation Overview (cont.)
How much should we ask for?
Implementing the plan
How are we doing?
Q&A / Conclusion
Ryan
We’ll come back from break and look at ways to identify a target solicitation/ask amount as part of the 5th habit
For the 6th habit we’ll move into taking what we know about our prospective donors and putting it into a fund raising framework based on some tried and true principles that will position us for a successful implementation
We’ll follow that up with templates and methods for tracking fund raising progress and measuring results—the last of the seven habits
Lastly, we’ll provide a final opportunity for Q&A and provide you with our contact information should you wish to follow-up with us after today

7. What is Prospect Research & Management?
FINAL
4/21/ :28 PM
What is Prospect Research & Management?
Prospect Research
The process of identifying people & organizations with capacity and inclination to support your mission
Prospect Management
Standard & synergistic processes for gathering, storing, retrieving, managing & analyzing prospect/donor information
Identify & track key donors, “under-performers” & excellent prospects
Willingness & Readiness Issues (Cultivation & Solicitation Cycle)
Val
Prospect Research
This is a solid working definition, but implementation/practice/ expectations vary across organizations
Prospect Management
Understanding the donor cultivation and solicitation cycle
Relationships are ongoing
Knowing where prospects are at a given time to involve appropriately in activity
PR&M makes campaign planning more strategic and more effective
Using information to identify and qualify is half of the picture, as PR&M is essential throughout the cultivation cycle

8. The Seven Habits Building a Gift Table/Chart of Standards
FINAL
4/21/ :28 PM
The Seven Habits
Building a Gift Table/Chart of Standards
Identifying your top prospective donors
Determining a funding interest
Determining who to involve in cultivation & solicitation
Developing a target ask amount range
Implementing the plan
Tracking your progress & measuring results
Val
In our experience, these are the seven key steps to successful planning in a fund raising campaign. These seven steps allow you to sharpen your focus, apply some “science” to the fund raising “art”, and help you find your path and measure your results in a campaign environment, regardless of the type of campaign you are engaged in.
READ THESE HABITS TWICE (at least)
Remind the audience that as we go through the session, each slide will reference which habit we are currently discussing.

9. #1 - Building a Gift Table/ Chart of Standards
FINAL
4/21/ :28 PM
#1 - Building a Gift Table/ Chart of Standards
Ryan
Your major gift campaign--annual or multi-year?
Plan ahead
The Indiana University Center on Philanthropy Model Gift Pyramid
Exercise: Create a sample gift table
Review handout on types of campaigns (in packet)
Develop your gift table in advance of your campaign (know what you need and what it takes to accomplish your goals).
Don’t speculate, articulate. What is feasible? Be informed and knowledgeable. Manage expectations within an organization in terms of the size of donor pool necessary, the number of gifts, and the gift ranges necessary to achieve your campaign goals
Review and distribute the “gift range chart” handout and IU donor pyramid model handout (in packet)
Build sample gift table of $100,000 (completed template exists—don’t put in packet as handout, provide after exercise)
Instructions on completing the gift table/chart of standards are on the slide after next
This exercise will guide the entire campaign planning process for your prospect pool
Will identify the number of prospects needed
Will identify the size and number of gifts needed from your prospect pool

10. #1 - Building a Gift Table/ Chart of Standards
FINAL
4/21/ :28 PM
#1 - Building a Gift Table/ Chart of Standards
Major Gifts
10% of Donors
Upgraded Gifts
20% of Donors
Base
70% of Donors
60% of $
20% of $
Ryan
Model
Gift Pyramid
This is the Indiana University Center on Philanthropy model gift pyramid
60% of goal from 10% of donors = major/leadership gifts
20% of goal from 20% of donors = upgraded gifts
20% of goal from 70% of donors = base/annual gifts
Our gift table/chart of standards will take this into account
Handout blank template for groups to work on—give a copy to everyone present

11. #1 - Building a Gift Table/ Chart of Standards
FINAL
4/21/ :28 PM
#1 - Building a Gift Table/ Chart of Standards
Ryan
The first 2 gifts should equal 10% of goal, or 5% each
The next 4 gifts equal 10% of goal
The chart is flexibly developed beyond this point, depending on available prospects, gift history, and linkage, ability & interest
Ask them to break into groups based on the size of the audience (4-5 people in a group if possible)
Explain that we are going to cover the 7 rules and then get started
Review the rules
Note that point #3 also impacts point #4. A blend of well-known, lesser known and unknown prospects will make up the gift table. The more unknown the prospects are in terms of linkage, ability and interest, the higher the prospect to donor ratio should be.

12. #1 - Building a Gift Table/ Chart of Standards
FINAL
4/21/ :28 PM
#1 - Building a Gift Table/ Chart of Standards
Ryan
The prospect to donor ratio begins at the top at 5:1 and gradually reduces to 2:1
Top 10% of donors = 60% of goal
Next 20% of donors = 20% of goal
Next 70% of donors = 20% of goal
Key points to reinforce
There are almost no wrong answers
Work backwards from goal and instructions
First two gifts = 10% of goal (2 gifts of $5,000 each)
Next four gifts = an additional 10% of goal (4 gifts of $2,500 each)
Create your gift ranges based on round numbers of normal gift ranges
Remember your donor pyramid!
10% of donors = 60% of goal
20% of donors = 20% of goal
70% of donors = 20% of goal
60% of $100,00 goal = $60,000
20% of $100,000 goal = $20,000
Give groups minutes to complete the exercise (see how we’re doing on time at this point)

13. Sample Gift Table: $100,000 Goal
FINAL
4/21/ :28 PM
Sample Gift Table: $100,000 Goal
Gift # of Cum. # # of Cum. # of $ per Cum.
Range Gifts of Gifts Prospects Prospects range $
Ryan
$5,000 2 2
10 (5:1) 10
$10,000
$10,000
$2,500 6 8
30 (5:1) 40
$15,000
$25,000
$1,000 18 26
72 (4:1)
112
$18,000
$43,000
$500 34 60
136 (4:1)
248
$17,000
$60,000
10% of donors
60% of goal
$250 48
108
144 (3:1)
392
$12,000
$72,000
$100 80
188
240 (3:1)
632
$8,000
$80,000
Here is one way the $100,000 gift table/chart of standards could look by following the rules.
$100,000 is a good number to choose because it can easily be multiplied or divided to fit your campaign goal.
20% of donors
20% of goal
< $100
412
600
824 (2:1)
1,456
$20,000
$100,000
70% of donors
20% of goal

14. Q&A / Break #1 Ryan FINAL 4/21/2017 10:28 PM
See you back here in 5-10 minutes (check how we’re doing on time)

15. #2 - Identifying Your Top Prospective Donors
FINAL
4/21/ :28 PM
#2 - Identifying Your Top Prospective Donors
Val
Capacity, Inclination & Readiness
Key constituencies/stakeholders
List and prioritize top prospects
Issues unique to your organization & its ability to FR effectively
Mix of well-known, lesser known, unknowns
3 key factors to consider in finding top prospects are Capacity, Inclination & Readiness (throughout this session we’ll cover ways to do this)
do they have a natural constituency? Are they looking to renew and upgrade past donors? Do they need to uncover new prospects from their existing database (looking at indications of wealth and inclination)?
What do you know about your constituencies? What is recorded in your database?
Things to look at include:
1) giving history (frequency & size)
2) involvement w/ your org.
Volunteer service
Event attendee
Alumni
Program participant
3) Age
4) Grantmakers that fund organizations like yours
5) Electronic screening
Modeling, hard assets, suggested gift amount
Surface new prospects AND provide more info on existing prospects
6) Create new list of prospects that you find in publications (unknowns)
Think about what you are trying to accomplish and who it will positively impact—who has a stake in its success?

16. #2 - Identifying Your Top Prospective Donors
FINAL
4/21/ :28 PM
#2 - Identifying Your Top Prospective Donors
Val
Strategy #1: Review list of Past Top Donors
Strategy #2: ID & prioritize list of Top Constituents/Stakeholders (top should include Trustees and Advisory Boards)
Strategy #3: Review list of Grantmakers that fund organizations like yours
Strategy #1: Your past/current supporters are your best future supporters (if cultivated properly, an exciting funding opportunity exists, and if the donor is ready to make another gift)
Strategy #2: Look at strategic plan for example of prioritized list of Webster’s constituencies/prospects (in packet)
Strategy #3: The Foundation Center is a great resource. Look at honor rolls for other like-organizations.

17. #2 - Identifying Your Top Prospective Donors
FINAL
4/21/ :28 PM
#2 - Identifying Your Top Prospective Donors
Val
Strategy #4: Electronic screening
Strategy #5: Data mining (analyze your DB for prospects w/major gift potential)
Strategy #6: Predictive modeling (who else in your DB looks like your past top donors?)
Strategy #4: An electronic screening. Campus development officers often turn to electronic prospect screening services to better target and quality major gift prospects. These products match the campus’s donor database to a host of proprietary and public databases that offer a wealth of financial and demographic data.
This process consists of three major approaches: Geodemographic screening makes predictions according to prospects' zip codes or other geographic and demographic data. Some companies now place more emphasis on hard asset screening and less on geodemographic analyses, however. Hard asset screening analyzes personal wealth data such as stock ownership, real estate holdings, and company affiliations and makes giving-level predictions based on assets at the donor's disposal. Past giving behavior is often linked with hard asset and geodemographic data to perform predictive modeling.
Strategy #5: Look at what you know about and record on your existing constituency. Certain factors can be indicators of wealth and propensity to give. Read Peter Wylie’s book, Data Mining for Fund Raisers, available at case.org
Strategy #6: This takes a bit more effort than data mining and requires an ad hoc database querying tool. Predictive modeling supposes that your past top donors and in certain instances/models, wealthy individuals in general, share certain characteristics/traits. Assuming that you have the time, resources and know-how you can work on identifying these characteristics and find out who else among your constituents within your DB also have these characteristics, but who are not currently donors.

18. #2 - Identifying Your Top Prospective Donors
FINAL
4/21/ :28 PM
#2 - Identifying Your Top Prospective Donors
Val
Strategy #7: Scan local newspapers, business directories, honor rolls, etc. for names—create lists for select trustees & staff to review
Exercise: List your top constituents in priority order
This is a way to build a cold prospect list. Who in the community is successful, interested perhaps in your organization’s mission or shares its values, who is donating large gifts at other organizations in town or with a similar scope.
Handout worksheet for attendees to use
Point out document in packet that lists the various constituency types/funding sources and the advantages and disadvantages of each
Give attendees 5-7 minutes to complete
Solicit feedback on exercise

19. #3 - Determining a Funding Interest
FINAL
4/21/ :28 PM
#3 - Determining a Funding Interest
Ryan
What are your organization’s most urgent and compelling needs?
The strategic vision and its timeframe
What is interesting to donors and what is not
What has worked in the past
“Fishing” with a menu of opportunities
This needs to be defined by your organization’s board and its leadership.
It must also be informed from a FR perspective—not all needs are easily funded through philanthropy (Webster’s parking garage is an example)
The opportunities available for funding by donors at your organization must be consistent with its objectives and help towards fulfilling its mission.
What IS the top priority? What are the top priorities?
Working from a strategic, priority-driven plan provides DO’s with concrete understanding of the charge and an immediacy in describing to potential donors why a substantial gift is important today and how that gift can be transformational.
Some non-profit agencies don’t have one-time capital funding requirements, so what programs/priorities have been a success in attracting philanthropic support in the past? Why? What can this tell you about your FR planning?
An old FR standard is to go “fishing” with a menu of opportunities. List what is available to fund and specify a cost for each. Interests are as varied as people, so this method can really help you focus in with key prospective donors that you know
Point out handout in packet on “The Case”—this can help guide organizations that need help w/strategic vision

20. #3 - Determining a Funding Interest
FINAL
4/21/ :28 PM
#3 - Determining a Funding Interest
Val
Discuss/Brainstorm Ideas at PMM
Host cultivation events for projects/programs
Use annual fund to test messages, projects and programs
Look at prospects past giving history
Talk with people who know your prospects
Let DO’s inform process based on 1st hand knowledge
Look at what have specific prospects given to in the past and ask yourself, why? Does this provide insight into their future funding interests? Is there other information in the file (contact reports, etc.) that provide clues?
People who know your prospects are a great source of information. Talk to your prospects peers, your key volunteers, executives at your org, etc.)

21. #4 - Determining Who to Involve in Cultivation & Solicitation
FINAL
4/21/ :28 PM
#4 - Determining Who to Involve in Cultivation & Solicitation
Val
Develop a prospect-specific strategy
Relationship building
Who are your organization’s key leaders, volunteers, champions?
Peer asks are effective
Who knows who?
What are key organizational volunteers tasked with? Are they on special committees? Advisory boards? How will their financial support make success possible?
Who is in your leadership’s network that is willing and able to support?

22. #5 - Developing a Target Ask Amount
FINAL
4/21/ :28 PM
#5 - Developing a Target Ask Amount
Ryan
Discussions at prospect management
Past gift history
Gifts to other organizations
Conversations with the donor prospect
I list these roughly in order of priority and accuracy.

23. #5 - Developing a Target Ask Amount
FINAL
4/21/ :28 PM
#5 - Developing a Target Ask Amount
Ryan
“Fishing” with a menu of opportunities
Electronic screening
Gift ability formulas
Peer screenings
Point out gift ability formulas in packet (in the newsletter articles)

24. FINAL
4/21/ :28 PM
Q&A / Break #2
Ryan

25. #6 - Implementing the Plan
FINAL
4/21/ :28 PM
#6 - Implementing the Plan
Campaign phases
Leadership gifts – test phase (revise plan if necessary based on results of solicitation of very top donor prospects)
Major gifts
Broad-based phase
The Cultivation/Solicitation Cycle
Moves Management (PM committee)
PM Policy & Guidelines
Val
Arm your development officers with comprehensive moves management information on each prospect.
DO’s/solicitors start at the top and work their way down (point out handout in packet on solicitation techniques)
Have a blend of prospects in all of the stages of the gift cycle
See the “cultivation/solicitation” cycle in packet
Discuss progress at ongoing PMM—what is working, what is not, what are next steps—help each other w/roadblocks and to brainstorm new ideas
Take good notes and incorporate into the plan
How many of you have a regular Prospect Management Meeting?
Would anyone like to share a success story of how your meeting is organized?
Discuss how we run PMM at Webster U.
Initial focus on list review to identify major gift prospects
Transitioned to creating prospect-specific strategies on mgp’s
Exec. Office represented at each PMM
We take action steps from PMM and then meet w/Deans, President and others to coord. & implement
It is worthwhile depending on the size of your fund raising operation to consider implementing PM policy and guidelines (see “principles” in packet for rationale for pm policy)

26. #7 - Tracking Your Progress & Measuring Your Results
FINAL
4/21/ :28 PM
#7 - Tracking Your Progress & Measuring Your Results
Ryan
Evaluate performance in your leadership-level solicitations
Revise plan if necessary
Use a campaign tracking chart
Develop a prospect tracking system
How are you doing in your prospects to gifts ratio on your gift table?
Were we too ambitious? Too conservative?
The silent phase, where you solicit leadership gifts, sets the tone for the rest of the campaign. Extrapolate likely results based on your performance here.
Tracking chart—not just the ½ full thermometer
Look at how you are doing on your gift table/chart of standards
Look at how you are doing on your individual FR goals if you are in a comprehensive campaign
A prospect tracking system is where you record of all of the relevant information on your specific prospects
It helps DO’s manage their prospect pool and to effectively cultivate relationships
A basic tracking system contains only your top donor prospects; the respective “captain” of each prospect; lists their funding interest(s); lists who else at your organization needs to be involved in the cultivation/solicitation; lists the target ask amount range; lists an expected target solicitation date; and lists what stage of the FR cycle the prospect is in (refer to cultivation/solicitation cycle in packet).

27. Enjoy Your Successful Campaign
FINAL
4/21/ :28 PM
Enjoy Your Successful Campaign
Ryan
Proper planning, analysis, execution and implementation works!

28. Q&A / Conclusion Thanks for participating!
FINAL
4/21/ :28 PM
Q&A / Conclusion
Thanks for participating!
Valerie Parker /
Ryan Elliott /