Tag Archives: prospect research

Solicitation Approach for Distressed Donors

4Fundraisers, Focused Fundraising, , , , , , ,

[Jan 2011 E-Newsletter Article]
I recently had the opportunity to meet up with Suzanne Nixon, State Director of Development for Devereux in Florida. We had such an interesting conversation that I asked her if I could share some of it with Aspire Research Group readers. Wouldn’t you know it, she said yes. Thanks Suzanne!

ARG: You have a lot of small and family business owners and other donors who have suffered with shrinking income and assets. Have you changed your solicitation approach with these donors?

Nixon: Yes, and I can give you an example. Some of Devereux Florida’s best and most passionate donors have found themselves struggling to meet their own and their peers’ expectations of giving. Thankfully, fundraising is not accounting so I have been able to help some of our donors reach a desired giving level by “stacking” their gift. One donor was able to make a gift by adding together several resources. She included a smaller than typical personal gift, adding that to one from her business and a third one from her family foundation. I was able to recognize her gift under the combined amount, which put her in a much higher giving level than any one of those gifts alone.

ARG: When do you use prospect research? 

Nixon: We are in a campaign to build a gymnasium and after my campaign cabinet has a brainstorming session I request a solicitation profile on the top four or five prospects that have surfaced. These are prospects my cabinet members already know, or know someone who knows them. Getting a solicitation profile at the identification stage makes sense for me because I have so little time. I need to know right away whether the prospect is philanthropic and what size gift might be possible. The solicitation profile gives me all the information I need to plan a strategy for cultivation or to disqualify early. When I’m ready to solicit for a gift I just ask for a profile update.

About Devereux:

The Devereux Foundation helps empower children and adults with intellectual, emotional, developmental, and behavioral challenges to lead fulfilling and rewarding lives. Devereux is a nationwide organization, headquartered in southeast Pennsylvania, positively impacting the lives of tens of thousands of individuals and families each year.

Devereux Florida operates nearly 50 programs in 38 counties statewide and is the largest non-profit provider of these services in the state of Florida. In 2012, we will celebrate 100 successful years nationally and 25 years of service in Florida.

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.

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.

There's a new blogger in town!

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There is a lot to be said about the prospect research and fundraising community. People are saying it all the time– on blogs, on Facebook, in news articles, and just about everywhere else that writing can be published. All of these opinions, facts, and experiences are out there waiting to be digested…so who gets the job?

Me! I’m Jakki, the new Marketing Intern at Aspire Research Group.

My job is to take a deep look into how prospect research is at work in the fundraising community, digest the material, and present it to you, the people who want to know, right here on this blog. My goal is to give you insight into others’ experiences in the field, feature real-life stories about landing major gifts, and hopefully give you an idea of the kinds of benefits that can be gained from using the services that Aspire Research Group provides.

So keep an eye out for my weekly guest-blogs. Feel free to comment with feedback, or your own opinions on whatever I cover for the week. The fundraising community is full of people looking to add on to what they already know…so why don’t we learn together?

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!

Capacity and Ask Amount – Magic Numbers!

Discussion, Focused Fundraising, , , , , ,

In the “On Fundraising hosted by AFP” LinkedIn group, a fundraiser was asked by her board to assess the capacity of other board members and she was looking for a formula or strategy that has worked for others. The conversation that ensued fascinated and delighted me. I sent her to my free worksheet on capacity ratings, but the different approaches and opinions in response to her question are well worth discussing.

There were two basic paths that diverged from the “simple” question of assessing capacity. The first had to do with what stage the prospects were in. Was she identifying, qualifying, or ready to solicit and was it a first gift, second gift or big-hairy-scary gift? The second was whether she was also considering affinity, or how close the prospect felt to the organization, and inclination, whether the person liked to give gifts to nonprofits generally. Lots of good comments and advice on these aspects.

Prospect researchers often tie these two pieces of prospect assessment into a prospect tracking or moves management system. And although she was not asking about anything other than capacity, readiness to give and likelihood of giving matter (dare I say) much more than capacity. I’ve known nonprofit employees who give big gifts on modest salaries. The prospect’s passion matters!

And then there was some confusion and some clarifications on what does capacity mean when used in fundraising? Similar to one of the comments posted, Aspire Research Group uses the following language in its profiles when providing capacity ratings:

  • This rating is a major gift dollar range for a gift over 5 years if only one gift was made. It is strictly based on wealth indicators and not on affinity or inclination. The capacity rating suggests ability to give without considering unknown liabilities and is NOT a solicitation amount.

The overall consensus was that determining capacity (and ask amount too) is a mix of art and science. Prospect research can’t uncover every asset and liability so assessing capacity turns out to be an informed guess.

If the question was about determining the ask amount and not capacity, I’ve got strong feelings on that. Unless you are so close to your prospect that s/he opens up his/her finances to you, not having in-depth research done on your prospect is a costly mistake. If you ask for too much you can probably flatter your prospect, but if you ask for too little you won’t hear a prospect say, “Oh gee, and here I was ready to give you $5 million – I’m so glad you only need $1 million.”

Yes, capacity matters in major gift fundraising. Yes, your prospect can have more money than god and refuse to give you any. And yes, determining capacity and ask amounts involves some art and science.

But the exciting part of this particular LinkedIn group discussion was hearing from fundraisers who, with or without dedicated prospect research staff, give their prospects the respect they deserve by taking time to know them in-person and through tried-and-true prospect research techniques. Cheers!

So how do you determine the magic numbers of capacity and ask amount? Do you give more weight to affinity and inclination to give or more weight to capacity or ability to give? I’d love to hear your thoughts!

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

Resource Links, , , ,

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!).