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Strategic Prospect Research

Two Paths to Opening Doors with Donors2011 Annual AFP Statewide ConferenceINSPIRE YOUR PRACTICEJuly 22, 2011Who We AreKassy RodeheaverJenny FlynnLibrarianGrants &Nonprofit Info CenterPima County Public LibraryKassy.Rodeheaver@pima.govwww.library.pima.gov/grants

Associate Vice PresidentFoundation Development and the GIFT Center University of Arizona Foundationjflynn@al.arizona.eduwww.uafoundation.org/giftcenter

Jenny self-intro, be sure to mention work with lots of GIFT Center clients and much of the content here is developed based on whats worked with many projects.

Kassymention background with Jenny & GIFT Center, Prospect Research Office at UAFnow working as Grants Librarian at PCPL. Many free classes! See our website.2What will we do today?Discuss the what and why of prospect researchReview how affinity and capacity shape giving and thus prospecting Introduce two complementary paths to strategic prospect researchIdentify and red flag common prospect research pitfallsExplore the two paths with examples, exercises, action plans, and resources to make the best use of your limited research timeDisclaimersOur focus today is on major gifts. And, lots of info! PowerPoint with links will be available. Jenny: what were doing.

Kassy: disclaimer.Pop Quiz!What is prospect research?

Creepy stalkingyou might get arrested!Spending hundreds of hours watching episodes of Oprah so you can get to know her as a potential donorLearning more in order to match your organizations mission with like minded people who support you already or may wish to in order to achieve their philanthropic goals

Important to define your terms. In the case of prospect research, important to identify what it is NOT.Why Do Prospect Research?SAVE TIME

Save time when you identify best prospects (strategic rather than scattershot)Speed up relationship process by getting to know the people you are approaching, know their affinity, perhaps increase it

Also important to consider WHY. Many organizations do no prospect research, and your interest in doing it may not get immediate support, especially when there are many demands on your time..

NOTE: Slide mentions affinity, which isnt discussed until later, but can briefly be introduced here.

5Why Do Prospect Research?OPPORTUNITY FOR ABUNDANCE

Widen your pool of donors Broaden the scope of your attention so you dont miss prospects

Such as the person who gives steadily, perhaps slowly increasing the amount, over many years.

6Why Do Prospect Research?OPPORTUNITY FOR MORE AND DEEPER CONNECTIONS

Get to know a prospect through his/her connections and interestsLearn common interests and shared history; match projects with interest and passion

This is where the magic is.7Two Paths Overview*

*Spoiler: They end up in the same place! More prospects and more gifts!Path #1 = Friendraising and network building your way to prospects and ways to connect working through peoplePath #2 = Proactively seeking new prospects and relationship-building information about current donors working through data

Jenny will do #1.

Kassy will do #2.8Who are the donors to your organization?First, lets talk about the donors already supporting you. Show of hands, do you currently have donors to your organization?

Keep donors to your organization in mind throughout the program todayWho are the donors to your organization?How are these donors connected to your organizationwhy do they give?Who gives the most (what type of person)?Jolie or Garden Lady?

Audience answerstry to direct in affinity and capacity terms.

Dependsare you an international aid org in Africa? Or a botanical garden in Tucson?Affinity and Capacity Impact Giving Potential Higher the affinitygreater likelihood to give (Garden Lady) Higher the capacitygreater potential amount to give (Jolie)If you are an aid organization in Africa, Jolie might have high affinity (as well as high capacity). If you are a botanical garden in Tucson, Garden Lady likely has high affinity and surprising capacity over time.

What do affinity and capacity mean for your organization? High Affinity/High Capacity = Best prospects for now and future High Affinity/Low Capacity = Good small gift prospects with potential for future Low Affinity/High Capacity = Consider carefully before pursuing Low Affinity/Low Capacity = Dont worry, there are other fish in the seaThis framework gives you structure as you do both friendraising and proactive prospect research, so keep in mind throughout the presentation.

This framework is important from a donors point of view as well, as it shapes their level of passion and interest. Understanding how a donor fits into the framework is part of getting to know them.What do they mean to a donor?High capacity, low affinity

If I let $100 fall out of my pocket, will you stop chasing me?

High affinity, low-to-moderate capacity

Hello? Can anybody see me?

High capacity: Sometimes we pursue without regarding this persons actual interests. (Cary Grant, North by Northwest, being chased by a crop duster.)

Note that high affinity donors have great value, no matter the level of their capacity. They can be advocates and champions. Over time, donors of modest means can become major donors, cumulatively, through estate planning, and/or as their capacity rises.13What do they mean to a donor?Low capacity, low affinity

Whatev, Ive got yogurt.High affinity, high capacity

This is important to me, but I need to partner with a good organization that I can trust and that shares my vision.

Low capacity and affinitypretty easy to cross off the list for now.High affinity and capacity donor are your best current prospects. Using both types of research, you can get to know this type of prospect better.

NEXT SLIDE SET UP: Transition to pitfalls (Kassy will do)

A lot of the problems we face with prospect research are not due to lack of resources or even time, but to do with not ironing out a clear framework for how the information we find relates to donors and to our organizations. Lets look at some of those pitfalls14Pitfalls in Prospect ResearchOveremphasizing capacity (Oprah Effect)Ignoring affinityDo no researchUsual suspects onlyEveryone should care fallacy Too much time spent/unfocusedUnimportant/irrelevant detailsMake no use of the information

Kassy: does pitfalls.15By contrast, through strategic prospect research, we:Identify and learn more about high capacity, high affinity prospectsFind ways to connect to those prospectsBegin to see the relatively invisible high affinity, moderate capacity donors who build your baseBegin to build greater affinitythe research process leads right into qualification and cultivation through friendraisingKASSY DOES THIS SLIDE.

Back to Jenny

Two Paths: Friendraising Path #1 = Friendraising working through peoplePath #2 = Proactive research working through data

Lets get down in earnest to friendraising.17What is friendraising?Friendraising: Forming and sustaining relationships around mutual interests in a way that advances your organization or cause. Friends of Gorilla Conservation run in London

First, what is it?18I have friends. What I need is MONEY!

Pssst. Yeah, you. You can have BOTH. In fact, they are connected.Friendraising and SustainabilityMany organizations lose up to 60% of their cash donors after the first donation.*

Friends tend to be more loyal. Friendraising is not only a prospecting strategy; its also a sustainability strategy.

*Building Donor Loyalty: The Antecedents and Role of Commitment in the Context of Charity Giving, by Adrian Sargeant & Dr. Lucy Woodliffe. Journal of Nonprofit & Public Sector Marketing . Volume 18, Issue 2, 2007.

Okay, but where do I begin?

Begin where you are, with what you have right now.Start with what you have right now.

TRANSITION TO ASSET INTERVIEW EXERCISE: A basic principle of friendraisingand fundraisingis that as an organization or cause, you have strengths. Needs too, but resources grow from your strengths. To help get a better idea of your strengths, a good exercise is an asset inventory.21Breakout: Asset Interviews

Using the Fundraising Assets worksheet provided, interview the person sitting next to you.

Complete, for both partners if time permits, the organizations mission, active volunteers, and other friends boxes in 5 minutes.

Take form back to your own organization and finish with a buddy.Briefly review sample to give an idea.

Have fully completed samples on the tables. Yes. Jenny will bring.

Kassy: Bring a copy of the Nolo book.

Jenny: Bring Friendraising to show.22Breakout: Asset InterviewsFollow up questions:What are some examples of assets you identified? Anything unexpected emerge?How can you use those assets to increase your pool of friends and to identify prospects? One way is the

Transition to Mini Discovery Campaign now built into #3.23Mini Discovery Campaign!The asset exercise helps you identify your base of support and buildfrom there. Friendraising is an ongoing activity. One way to get it kickstarted is the mini discovery campaign. It:Helps you to tackle a specific issue with help from your friendsSurfaces important information; identifies prospectsBuilds affinity

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