Tag Archives: donor prospect

Yes! You Can Still Raise Major Gifts Without a Wealth Screening

Focused Fundraising, Fundraising Analytics, Major Gift Teams, , , , , , ,

I sat next to Heidi Shimberg, VP of Development and Marketing for the Glazer Children’s Museum, at the Suncoast Chapter meeting of the Association of Fundraising Professionals in March. She told me an amazing story. In September of last year the Glazer Children’s Museum held its grand opening. Only six months later, they have a whopping 6,000 members!

Her fundraising dilemma? To do a wealth screening on 6,000 people would put an unhealthy bulge in the budget. “So why not filter your list and send a smaller number of records to be screened?” I suggested to Heidi. She had thought of that, but when you are brand spanking new, what do you filter by? She felt that if she filtered by wealthy zip codes or addresses, she might miss some “hidden” prospects. It troubled her.

As I was driving my cat to the veterinarian the next morning, my conversation with Heidi was on my mind. Then the light bulb went off. Heidi might not need a prospect researcher on staff, but she sure needed a prospect research strategy. She was averaging 1,000 members a month!

When there are no big dollars in your budget how do you get smart – and still get big dollars in gifts?

Depending on the amount of pressure to raise funds, Heidi has some fun choices.  She could go for the wealth screening and decide on a fundraising strategy for cultivating people with known wealth – maybe joining a special society as a first step and/or one-on-one meetings. Armed with the wealth screening she knows exactly who can give and won’t waste any time approaching members who can’t give.

Or she could swing wider and filter her list by addresses, making a first contact without any real wealth information. Cultivating more people in small groups instead of one-on-one would allow her to find “hidden” donors in her community. Ask the Benevon people about that one. It works.

I can hear you calling me to account. “But Jen, you have not addressed Heidi’s concern about missing the hidden prospects in her member list!” Well here’s the answer. Without a giving history to the Glazer Children’s Museum or any other history (like event attendance etc), Heidi cannot know a crucial piece of information – affinity, or how close someone feels to the museum. It’s just too new. You can’t screen for that on a newborn list. What she can do is methodically approach prospects while developing her entire member list.

Going from “A” to “Z” contacting 6,000 members is foolish. Heidi knows this. Picking 1,000 and working them in small groups will have Heidi training another gift officer next year when her well-stewarded member list, which has also been solicited for unrestricted operating dollars, gets filtered again for the next 1,000. And since she started with her best prospects, she can now feel better about having a trainee cultivating the “B” list. By year five there isn’t likely to be a “hidden” prospect, especially because now there will be money in the budget for a wealth screening on a well-kept donor/member database!

If we could all start out with the very best prospect research tools, so much more could happen. But that’s not reality and it doesn’t have to stop a fundraiser like Heidi from exceeding her major gift fundraising goals.

Aspire Research Group wants to see you succeed. If that means a one or two-hour consult to brainstorm for a mean-and-lean strategy, we’re all about it. Call us today! (727) 231-0516 or email jen at aspireresearchgroup.com.

The Friends of a $55 million Donor

Discussion, Major Gift Teams, , , , , , ,

by Jakki Aviles

David Alan Tepper, founder of Appaloosa Management L.P., has recently announced that, through the David Tepper Charitable Foundation, he will be making a $3 million gift to Feeding America, one of the nation’s largest organizations that fight hunger.

Tepper’s philanthropy did not start with hunger-relief organizations. A gift he is probably best known for is his record $55 million gift to Carnegie Mellon’s business school. Tepper attended the school to receive his MBA, but certainly did not come up with the idea for the gift completely on his own. He was prompted by a friend and former professor, Kenneth Dunn, to donate. Tepper was convinced, but was also driven by naming capabilities– the school is now named the David A. Tepper School of Business.

Friends, however, seem to be the main source of motivation behind Tepper’s generous gifts. According to the Clark-Garwood Patch, Tepper was introduced to the hunger-relief area of philanthropy by a friend, Kathleen DiChiara, who is the founder and president of the Community FoodBank of New Jersey. She asked Tepper for his help in a campaign and he, in turn, got together $2 million between himself and others in his company.

According to an article in PR Newswire, the FoodBank is part of a larger network: Feeding America. Through being introduced to the hunger movement in his home state by Ms. DiChiara, Tepper was made aware of a larger cause that was in need of gifts. Feeding America tapped into a valuable source in Mr. Tepper. He is motivated by the causes his friends encourage, and was already donating to Feeding America’s hunger movement on the local level.

Perhaps the most interesting and valuable aspect of a donor like Tepper is his enormous wealth. The David Tepper Charitable Foundation first became interested in hunger in 2006. In a rather short amount of time, the Foundation moved from a local charity to donations to the national charity. As Tepper’s giving progression has shown, he is capable of giving to all sorts of hunger charities and does not need to be dedicated to just one. His wealth allows him to give on a level that many only dream about.

Tepper’s wealth and wide-range of interests should be a major clue-in for fundraisers looking for donors. As he has demonstrated, his engagement in charities like Feeding America is relatively new, and highly influenced by a friend dedicated to the project. As a fundraiser you need to be careful not to overlook the social networks within your reach. Although Tepper may not have come up with the idea to give to hunger based on his own inner passion for the cause, he is still giving– in large amounts. Who’s to say he could not be influenced to put his money into another great cause?

Are there any David Teppers lurking in your donors’ social sphere? Would you know if there were? Predictive modeling, wealth screenings and donor ratings all focus on the names you have in your database. The social reach of your board members and existing major gift donors might not reveal a David Tepper.

At Aspire Research Group we have helped organizations use prospect research to find their David Tepper in two ways:
(1)  Researching an individual identified as wealthy and/or interested in the mission – Sometimes a fundraiser will read about a David Tepper in their community (you are reading local and philanthropy news sources, right?!) Through in-depth research, Aspire Research Group focuses on business, volunteering, giving and social relationships. Using this information the fundraiser can begin to connect the dots back to her organization, with Aspire Research Group providing quick follow-up answers as part of the profile service.

(2) Exploring the relationships of someone known to the organization – Especially with major gift donors, a fundraiser will come to Aspire Research Group looking to find ways to leverage the donor’s business and social spheres of influence. Being informed before sitting down with the donor helps to keep the meeting focused and productive.

If you want Aspire Research Group to help you find your very own David Tepper, give us a call at 800-494-4132 or email jen at aspireresearchgroup dot com.

Gift acceptance: Boldly look a gift horse in the mouth!

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Prospect research is all about finding assets and drooling over the gift possibilities, but at today’s AFP Suncoast chapter meeting, I heard all about the challenges of accepting some of those non-traditional assets as gifts. Two accountants from Gregory Sharer & Stuart, Catherine Mary Sullivan and Amy Mierzejewski told us to be prepared to boldly look the gift horse in the mouth!

Taxes and audits are not easy lunch conversation, but Catherine and Amy walked us through the important parts of a gift acceptance policy and why we should have one. Talking to donor prospects is always a delicate dance and having a gift acceptance policy gives you:

*  A graceful way to let the prospect know you’ll be inspecting the opportunity with counsel and possibly decline the gift
*  Talk about who needs to pay for the costs incurred by accepting the gift, such as appraisals and valuations
*  And lets the prospect know your organization is a good steward of its mission by accepting only the gifts it is capable of using

As part of the conversation, Catherine and Amy touched upon the many issues that arise with gifts like gold coins, real estate, gift annuities and more. And of course, it was quite clear that they are accountants and we are fundraisers – which is to say that if I ever had to consider accepting an unusual gift, I would definitely call Gregory Sharer & Stuart for their expertise and NOT try to do it myself!

Prospect research is the same way. If you just need preliminary information to make a first visit with a prospect, Google away. But if you are going to ask for big-hairy-scary-gift, you need to call on someone like Aspire Research Group to provide you with a donor prospect profile that will make sure you walk away with the major gift that rewards your organization *and* respects the donor.

Do you need a donor prospect profile? Contact Aspire Research Group today.

A Call to Donors Who Can Appreciate the Mission

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“The worst thing for artists is not to have the money available to carry out the ideas they have in their heads,” says Mark Bradford, explaining the thought that went into his $100,000 donation to create the Artists2Artists Fund.

Bradford would know. An article in the Wall Street Journal describes him as once being a financially struggling artist himself; one who was greatly helped by the award of a $50,000 fellowship grant from nonprofit organization United States Artists (USA). It’s important to him now to make available monetary grants for other artists who are in the same spot he once was.

An artist born and raised in Los Angeles with two degrees from California Institute of the Arts according to art21, Bradford is the lead donor to the Artists2Artists Fund of USA, which is designed in an innovative way as to best use social networking for community fundraising.

According to the Wall Street Journal, the  Artists2Artists Fund will be financed by established artists, and will match funds received through USA Projects, which is a social-network fundraising website. Artists can create their own pages on the website, where their works and ideas for future works will be displayed. People donate money for a specific artist to USA, which matches their gift. Of the funds raised, 81% goes to the artist and the other 19% covers program and website expenses.

So how does a nonprofit come by a donor as valuable as Mark Bradford? Look to his story. He is someone who appreciates the value of USA’s mission because his success, at least in part, grew from it. Bradford was the recipient of aid, and is now the leading donor to USA’s budding project. And his donation goes beyond just money– along with the $100,000 major gift he provided, he is also helping USA blaze a new trail for arts philanthropy by starting up a social-network fundraising website and encouraging successful artists to give back.

It is interesting that no gift from Mark Bradley could be found to the California Institute of the Arts where he received two degrees. One of Mr. Bradley’s primary motivations to give to USA was giving back. Why didn’t he want to give back to his alma mater? Did the Institute ask? Do they just not publicly recognize their alumni gifts? After a visit to their website I couldn’t even find a place to make a gift. From appearances, it would seem that the Institute missed a golden opportunity with Mark Bradley.

Mr. Bradley’s primary giving motivation appears to be to give back, but he also gave back in a way that mirrors his art and expressed values. In his art he re-purposes paper, twine and other materials he finds out in the world. He makes art possible from various discarded materials. The Artists2Artists Fund takes small gifts from many people and pulls them together to create a matching grant to an artist. Technology makes it possible to turn small gifts into a real opportunity for a struggling artist.

USA recognized that one of its previous aid recipients was now a successful artist. They took the time to listen to his interests and created a gift opportunity that matched Mark Bradley’s needs as well as their mission. Do you have a way to identify those who receive your services and move on to financial and other success? Once you identify the person, do you have a way to find out how to best connect?

Aspire Research Group helps organizations across the country find better ways to connect with donors. By preparing comprehensive, in-depth profiles on donor prospects we have helped clients just like USA learn enough about their prospects to reach out in a meaningful way by identifying board memberships, peers who could solicit, past giving history, wealth and so much more. You can bet that USA did their research before asking Mark Bradley for a gift. Have you done yours?

To learn more about donor prospect profiles, visit www.AspireResearchGroup.com or call (800) 494.4132.

An easy-to-use, kickbutt cultivation strategy tool

4Fundraisers, Focused Fundraising, , , , ,

I usually attract two types of clients: those that want to identify major gift prospects and those that want research on identified prospects. No matter which service I provide, sometimes my clients get stalled on the next steps. You might have the donor prospect right there in front of you, but over time the path to a gift gets as lost as Hansel and Gretel’s bread crumbs in the forest of development activities.

Prospect research consultants (including me) often talk about moves management or relationship management systems. These are powerful tools capable of catapulting your major giving to a new level. But there is another tool you can easily customize that gives you a laser-like focus on one donor prospect at a time. Just like the one you have in front of you right now. 

Creating a Cultivation Strategy document is easier than you might think. This document should highlight key considerations such as capacity to make a gift, when you expect to ask for a gift (average is 18 months out), primary giving motivations and other vital pieces of information. But the true beauty of a Cultivation Strategy document is the action steps section.

Using everything you know about the donor prospect you have to sketch out the actions and completion dates that take you to the day you solicit the gift (just like a roadmap). If you have just identified a prospect these actions might be vague and the dates might just have the month. In the worksheet I created  each action requires you to list the objectives. Those objectives are the lasers!

When you sketch out your actions for the first time you will immediately recognize just how short the time really is between your start date and your solicitation date. Yikes! Knowing the objective, the outcome you desire from each action, ensures you stay on track. No meandering. None of the “let’s just pick another prospect” because you dropped the ball on the first one.

At Aspire Research Group we want you to close more major gifts. Gifts reward your donors, the people you serve and you. Call or email us today to find out how we can help you close more major gifts.

Raising Money for the Arts – with Crowdfunding

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Never heard of crowdfunding? Me either. But it’s raising millions from tiny gifts for artists around the world. The September 4, 2010 issue of the Economist featured a story, “Putting your money where your mouse is” that described the crowdfunding phenomenon quite clearly. People’s comments on the article were even more illuminating.

Going beyond social media and “tip jars” on websites, crowdfunding takes advantage of both of those methods to fund creative works through a defined dollar goal, within a specific time. If the minimum amount is not raised, no funds are collected. Interesting, huh?

Let’s say I need seed funding to create a documentary about the dynamics of homelessness in Tampa Bay, Florida. Using an intermediary like Kickstarter, IndieGogo or Sellaband (yes, they collect a fee), I create a campaign to raise $5,000 minimum within six months. I promote the campaign on my website, Facebook, Twitter, MySpace and anywhere else I have built a fan following. Once I reach $5,000 committed I can keep raising money until the time limit. Funds successfully raised for projects have ranged from under $5,000 to as much as $200,000.

The reality is that the funds raised many times do not meet the full project funding needed. Most projects have grant or other funding secured as well. What crowdfunding does is give artists the social leverage they need to secure additional funding and give their fans the chance to be a part of the creation.

Fans getting the opportunity to be part of the creation. Wow! Doesn’t that sound familiar? C’mon! Let’s re-phrase that into language familiar to the fundraiser. Donors getting the opportunity to be part of the campaign. Hah! Now that I’ve got you on that thought-train, doesn’t it highlight how important it is to start with our donors when we are looking to raise funds? They have already given to us, they like us, and they want to help.

Helping fundraisers prioritize the donors in their databases is a service Aspire Research Group is proud to offer its clients. Sometimes we get so excited about the big dollars we hear in the news we forget that there is gold right inside of our own well-nurtured donor base, just waiting to be called upon. Call on yours today!

A challenge to prioritize a LARGE list of donors

Focused Fundraising, Fundraising Analytics, , , , ,

I spoke on the phone with a prospective client. She described a type of fundraising I have never had contact with before and yet we came up with a guerilla prospect research strategy to help her meet her goal.

She is a gift officer for a regional affiliate of a national organization tasked with getting 10 new major gifts before the end of the fiscal year in June. Her research budget is under $2,000.

The donors at the gift levels below major gift in her geographic area number in the thousands. There was a wealth screening performed, but no ratings for likelihood to give. Other affinity indicators are just now being recorded, such as event attendance, but have not been recorded in the past. Choosing among thousands based on capacity alone has not yielded good donor prospects. She needed help!

At first I suggested looking at recency and frequency and the consultant who had brought me to the table recommended identifying high lifetime giving. It felt like a slap on the face to me to learn that none of those were good affinity indicators for her. Her organization was a direct mail machine operating as if it were selling widgets instead of asking for gifts. The only donors kept in the database and solicited were those who gave every single year. If you stop giving you are dropped from the list. New donors are acquired every year.

Recency is irrelevant because otherwise the donor is not solicited. Frequency is a given or the donor is dropped from the list. Lifetime giving is high because those that stop giving are dropped from the list.

Think about that for a minute. Imagine yourself, a gift officer, alone in the ocean treading water watching a huge wave of donors approaching you. There is no shallow water of engagement to allow donors to walk closer to the organization’s shore. No surf to get donors excited about being the ones who can change the landscape of the cause. Instead it feels enormous and insurmountable. She will be swallowed by all that water – all those donors that look the same.

And she needs 10 new donors giving cash at a certain level or higher. In eight months.

Lucky for her, there is one prospect researcher on staff. Not so lucky is that he supports the entire national organization. And a wealth screening did add capacity ratings to each donor record. But how can she identify affinity to get a good prospect list?

In order to narrow the list on a very small budget, I suggested pulling all donors at two levels below the target gift level who also have a high capacity rating AND high lifetime giving. The cream of the crop from that list can be checked, one at a time if necessary, to see if a gift at the desired level has been made to any charity using NOZA or DonorSearch.

She will start with a small number, around 50, and begin calling each one to get a visit. Starting small ensures narrowing the list this way actually yields good prospects and gives her a chance to tweak her approach. The consultant had some strategies for getting that first visit including a warm-up letter. I can support her with donor prospect profiles when she is close to a large gift.

When a prospect researcher works intimately with a gift officer the results can be magical. I enjoy being part of a team. Knowing that the pleasure I take in data can be translated by gift officers into a donor’s love affair with a worthy organization keeps me LOVING my job!

If you are looking for a prospect researcher to work with you to reach your fundraising goal, click here to contact me.

5 ways to use donor ratings

Focused Fundraising, , , , ,

No matter how we get donor ratings into our databases (vendors like DonorSearch or WealthEngine or even *gasp* Aspire Research Group :-)) sometimes we forget to use them. It’s sort of like carefully selecting coupons for the store and then forgetting to pull them out when you get to the cashier. We all do it. Okay, I can’t speak for you but I have certainly done that!

Let’s start with the most forgotten and work our way to the least forgotten:

(1)  Choosing people to solicit a gift from for a specific project or initiative

(2)  Choosing people to invite to a specific event

(3)  Pulling a list of planned gift prospects or high-end annual appeal prospects to schedule visits with

(4)  Pulling a list of best prospects for an annual appeal (fewer people, less cost, higher return)

(5)  Populating a major gift or campaign prospect pool

For some tasks, combining the best rating scores with other criteria in your database, such as event attendance or interest in a program, gets you the sweetest list. Whenever you pull a list out of your database, ask yourself if you should include donor ratings as part of your strategy. The results will delight you!

Fundraisers like you are busy, creative people.

Have you ever used donor ratings to raise more money and maybe even lessen expenses at the same time?

We’d love to hear about it – please share!

Videos on the Art of the Ask

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The American College has made a series of five videos that walk you through the cultivation and asking of a donor prospect. They are called “Donor Dialogues: The Art of the Ask” and they are AWESOME! Really, really!

Don’t even let me hear you think it: FIVE videos, Jen? I’m not sitting through FIVE YouTube videos. But I bet that once you see the first one you’ll be hooked. We’re talking some great discussion *and* role-play. Yes, you read that correctly: ROLE PLAY. And you don’t even have to get up in front of an audience. Told you it was good.

And of course video #3 talks about the importance of prospect research as you get closer to asking for a major gift. Granted he calls it “legal stalking” which has an awful connotation, but I’m going to let that slide because overall the series is very professionally produced, pleasant to watch, and grossly informative (touché!).