Early Funnel Prospect Research (or How to Find New Donors)

Sometimes prospect research is about looking at list of names and determining propensity, affinity and capacity. This is typically how things work at larger organizations. A near endless stream of names pouring in due to brand recognition, marketing campaigns, event attendee lists, and alumni and patient databases, means that some prospect researchers are never without a name to work on.  

For prospect researchers without that level of inbound traffic, early funnel research is an essential part of the prospect research process. After all, you can’t qualify or disqualify prospects you don’t have yet.

In this guide, we will discuss early funnel prospect research and show you how to find new names you can convert into donors.

Donation Records

Searching donation records is the best place to find early funnel prospects. Full stop. Donation records tell you three extremely valuable things:

  1. The causes and organizations the prospect gives to
  2. The dollar ranges the prospect gives in
  3. The geographic location the prospect gives in

A prospect is well on the way be being qualified if he or she is:

  1. Giving to organizations with missions similar to yours
  2. Giving in dollar ranges that meet your objectives
  3. Giving in the geographic area your organization positively impacts

Location

Proximity based prospect research mainly relies on a single assumption: If my prospect lives in the area my organization positively impacts, he or she is more likely to make a gift than some who does not live in the area my organization positively impacts.

Follow the link for more on proximity based prospect research.

Biography

Reviewing biographies (especially if they are electronic and searchable) is a fantastic place to find early funnel prospects for two reasons. One, people who have biographies tend to be wealthy, influential, or both. This is especially true of biographies found in collections such as Canadian Who’s Who. Two, a biography can give you useful information that will help you qualify or disqualify the prospect.

The following questions are instructive when searching and reading biographies:

  • Was the person born in the city or town my organization is active in?
  • Does my organization have a strong group of supporters that attended that same school as the person? Is there anything about this person’s education history that connects him or her to my organization?
  • Does this person currently live in the same city my organization is active in?
  • Is there anything about this person’s career highlights that suggest a possible connection with my organization? Keep an eye out for phrases that indicate the person championed certain causes at his or her organization. If your mission ties into those causes you could be well on your way to finding a new prospect.
  • Is there anything about this person’s personal life that suggests a possible connection with my organization? Phrases such as “lifelong interest in the arts” and “strong commitment to at risk youth” are what you want to look for here.

Connections

Mining your organization’s connections is an extremely effective way to find early funnel prospect. Almost all boards have a fundraising mandate, even if it isn’t explicit. Talk to your board members. Ask them about their personal and professional networks. Relationship mapping is a fantastic way to both mine and visualize those connections. Follow the links below for more on relationship mapping:

 

  1. Relationship Maps
  2. Relationship Paths  

Setting a Default Organization

The ability to set a default organization is a new feature in CharityCAN that impacts both the prospect profile builder and relationship path searches. In this short guide, you will learn how to set a default organization and a few ways it can help you use CharityCAN more effectively.

How do I set a default organization?

There are two ways to set a default organization:

  1. Go to My Prospect Profiles and on the right side of the screen select Select Default Organization. Type in the name of any registered charity or profiled corporation to set it as your default organization. You will notice a list of suggested prospects will populate. Cool and super interesting right? I agree. More on this later.

  2. Go to Relationship Paths and type in the name of any registered charity or profiled corporation to set it as your default organization.

Okay, I’ve set a default organization. Now what?

Suggested Prospect Profiles

Now that you’ve set a default organization you will notice My Prospect Profiles looks a little different. Setting a default organization allows CharityCAN to suggest potentially interesting prospect profiles to you based on the strength of the connection to your default organization. If you are looking for new people to add to your pipeline, setting your organization as the default organization and looking through the profiles CharityCAN pushes to you is an awesome place to start.

Alternatively, you could set a granting foundation or corporate sponsor who has been a major friend to your organization as the default organization. CharityCAN will then suggest a list of profile with connections to the granting foundation or corporate sponsor.

Easier Relationship Path Searches

Once an organization has been set as the default organization it will auto-populate in the from section of all relationship path searches.

If you would like more information on this or have any questions please email us at info@charitycan.ca

New Profile Relationship Editing and Relationship Graph Engine

Today we’re announcing that we’ve supercharged the engine that powers our relationship mapping features. A lot of those changes have happened under the hood here at CharityCAN, and aren’t immediately apparent. While you can’t see some of the differences to the platform yet, we’re also announcing the first of the new features that this new engine enables: the ability to modify a saved profile’s relationship map by adding or removing charity and corporate board positions.

On saved profiles that currently have charity boards listed, you can add and remove board positions by hovering over the position you’re interested in:On saved profiles without current board positions, you can now add different profile sections – corporate and charity board positions, as well as a FullContact social media summary:Since our relationship maps are built on these charity and corporate board connections, as you add and remove board positions, you’ll see the saved profile’s relationship map update in real time.

The best part about this new relationship graph engine is all the new possibilities that it opens up. We’ve got a few more features that use the new engine in the pipeline that we’re excited to share with you soon! If you have an idea about how you’d like to use our relationship map data, please let us know!

Organization Integrated Search

This post is on the second of two new features we’re announcing today in CharityCAN. Our first post was all about our new FullContact Data Enrichment that we’ve added to prospect and company profile pages. This post focuses on another exciting new feature: Organization Integrated Search.

While we were adding the great new FullContact data to our corporate profile pages, we realized we had a problem: there was no good way to quickly find these company profiles to view the data! They were buried deep within the Corporate Canada search results.

To solve the problem, we added a new section to our Integrated Search tool which performs the same kind of Integrated Search you’re used to for individual prospects but for organizational prospects instead. With one search you can see donation records, charity and corporate profiles, and ZoomInfo company search results, all in one place!

Just like our Prospect Integrated Search, from each of the results lists above you can export records or dive deeper into an advanced search of any data set.

You can find this new search tool by clicking on Integrated Search and then the Organization Search tab. Give it a try and let us know what you think!

CharityCAN’s Guide to Prospect Research

Prospect research is necessary for fundraising organizations of all sizes. Identifying, understanding, and connecting with potential donors – whether they are individuals, granting foundations, or corporations – is critical to the success of modern charities and non-profits. Fundraising without prospect research is like travelling without directions. If you do get to your destination, your trip was certainly more difficult than it had to be. Fundraising without prospect research consumes unnecessary resources, is less predictable, and perhaps most importantly, brings in fewer dollars. 

Successful prospect research means being able to answer the following questions about your prospective donors as efficiently and accurately as possible: 

  1. Do they engage in philanthropy?
  2. What are their philanthropic focus areas?
  3. Do they have the ability to make a gift that fits the goals of my organization?
  4. Does my organization have a connection to them we can use to create a meaningful relationship?

In this guide, we will introduce you to the fundamental elements of prospect research by looking at propensity, capacity, affinity, and connection.   

Propensity 

Propensity is the inclination or tendency to behave a certain way. As it relates to prospect research and fundraising, it refers to the inclination or tendency to make donations to charitable causes and organizations. Simply put, if someone has never given a charitable gift their propensity to make charitable donations is a quite low, whereas if someone is a monthly donor to a variety of causes their propensity to make charitable donations is quite high. 

The easiest way to quickly gauge propensity is by examining donation history. This is best accomplished by examining internal donation records so you have a sense of how often the prospect gives to your organization and external donation records so you have a sense of how often the prospect gives to other organizations.  

Another useful way to gauge propensity is by looking at how your prospect spends his or her time. This method is less useful with corporate or granting foundation prospects, but can be invaluable when assessing an individual’s propensity. The following questions are instructive: 

  • Has my prospect spent any time on the board of a charity or a non-profit? 
  • Is my prospect politically active?
  • Is my prospect active in the community? 

These questions will help determine if your prospect has the inclination to donate a valuable a resource – time – to pursuits beyond self-interest. Public service can be a powerful indicator of how an individual views his or her role in society and his or her propensity for charitable engagement. 

Affinity 

Affinity is best described as fondness or liking. In fundraising, affinity can be understood as a fondness for your mission or organization. If 100% of a foundation’s grants have been awarded to organizations supporting animal welfare, that foundation has a strong affinity for organizations that support animal welfare. As with propensity, donation records are great way to begin to gauge affinity.  

When considering affinity, it is important to understand the difference between mission and organization. Consider the following: an individual has a donation history that is comprised entirely of gifts to her alma mater. Does this individual have an affinity for education as a cause or mission or an affinity for this specific institution? It is probably inaccurate to say she has an affinity for post-secondary education as a cause, it is far more likely she has an affinity for the place she went to school.  

Capacity 

In fundraising, capacity refers to a prospect’s ability to give. Typically, capacity is measured by wealth. The wealthier a prospect, the greater the capacity to give. When looking at an individual donor, prospect researchers examine things like compensation, real estate holdings and other assets (and liabilities if possible) to determine capacity. For granting foundations, prospect researchers will look at revenue and expenses and assets and liabilities. Corporations get a little trickier, especially if private, but yearly revenue, cash, and assets and liabilities are all ways prospect researchers will determine capacity. 

A major challenge prospect researchers face when determining capacity is total wealth. Unless you have access to a prospect’s entire financial history or he tells you (and you have reason to believe him), it is almost impossible to determine exact wealth.  

Consider the following scenario. You are researching two prospective donors and have access to the reasonably accurate information about the market value of their homes. Prospect A owns a home with a market value of $2 million. Prospect B owns a home with a market value of $500,000. Simple enough, right? Prospect A has a greater capacity to give than prospect B. But what if prospect A has a mortgage of $1.7 million remaining on the home and prospect B paid for the home in cash and doesn’t carry a mortgage? Some of back of the napkin math shows that dwelling value minus mortgage for prospect A is $300,000 and dwelling value minus mortgage for prospect B is $500,000. Perhaps prospect B has the greater capacity after all.  What if you also have compensation data for both prospects and last year prospect A received a total compensation package (salary, bonus, stock) from her employer of $600,000 and prospect B received a salary of $120,000? It looks like prospect A is back in the lead.  

This example helps illustrate the primary challenges prospect researchers face when determining capacity: availability of information. Data on the market value of the properties is one piece of information that will likely paint an inaccurate portrait of the prospects’ capacity. Data on the market value of the properties plus mortgage liabilities gives us two pieces of information and our portrait starts to get more accurate. Data on property values, mortgage liabilities and compensation gives us three pieces of information and, probably, a reasonably accurate portrait of both prospects’ capacity to give.  

Connections  

Traditionally, prospect research has focused strictly on determining propensity, affinity and capacity and supplying research and data that supports those determinations. Connecting with potential donors has been left to fundraisers. This is changing. Data that reveals organizational connections and relationships is becoming more readily available. This is helping to make relationships and connections more quantifiable than they have ever been. Compare “a member of our board served on the board of a company we would like to approach for a sponsorship from 2009-2015” versus “I’m pretty sure they used to golf together.” The availability of objective data about connections is pushing relationship research under the purview of prospect researchers.  

When researching relationships, your most important concern should be verifiable data. Treat relationship data like you would donation or compensation data and look for the best data available. T3010 data (the T3010 is the tax form required by the Canada Revenue Agency to be filed yearly by every registered charity and lists the individuals on the charity’s board of directors) and management proxy circulars (securities regulators require publicly traded companies to file circulars that list key officers, executives and board of directors members) are a great place to start researching connections and relationships. Both are legal documents listing the key people at the organizations; analyzing them can help you determine – from a wholly verifiable source – who knows who and how they are connected.  

A very fruitful place to start looking for connections is your own board of directors. Almost all board members have – at the very least – an implicit fundraising mandate. Also, many board members serve on multiple boards, both charity and corporate. Mining the connections of your board of directors for relationships with people who sit on the boards of large companies or granting foundations can be the difference between an accepted sponsorship, gift or grant request and a rejected one.   

Conclusion 

Imagine you are tasked to create a list of donors with the potential of making a $10,000 gift to your organization. First, you need to determine propensity. You can do this by examining your list of prospects eliminating those that have never made a charitable gift. Second, you need to determine affinity. To do this, eliminate the names on the list who only give to organizations with dissimilar missions or have a well documented history of only giving to a single organization. Third, you need to determine capacity. To do this, use real estate, financial holdings, and compensation data to eliminate the names on the list who do not have the capacity to make a $10,000 gift. The names left on your list are reasonably well-qualified prospects to make a $10,000 gift to your organization. Finally, research connections and relationships to determine if your organization is linked in any way to the remaining names. The names you do have connections with should be prioritized for approach. They have the propensity to give, an affinity for your cause, the capacity to make a gift you are pursuing, and connections to your organization you can utilize in your approach. They are well-qualified prospects. 

Understanding the fundamental aspects of prospect research will help you direct your research more efficiently. You will spend less time chasing down information of questionable value and more time finding verifiable data that helps answer the necessary questions about propensity, affinity, capacity, and connection.  

Personal Prospect Profiles

Save, append, export, repeat

Today we’re announcing a new way of using prospect profiles in CharityCAN! Instead of just viewing our automatically created profiles, you can now save them to your own workspace for easy access for you and your team.

Once a profile has been saved to your workspace, you can start adding donation records search results to it to give your team a verified view into their giving history.

We’ve also added the ability to export any prospect profile, saved or otherwise, in a Microsoft Word document format, and improved the look of profiles when they’re printed directly from the website. This will let you get a headstart on your profile creation and make sure you’ll always have the most up-to-date information on a profile at your fingertips.

This is just the start of our work on personal prospect profiles, so stay tuned for more announcements!

The how-to

To save a profile, first search for a name in our Prospect Profile or Integrated search. You can add a profile by using the “Save to profiles” button directly from the search results table, or click “View CharityCAN profile” for a closer look. While viewing a CharityCAN-created profile, there will be another “Save to profiles” button that you can use.

Once a profile has been saved, it will be available in My Prospect Profiles for anyone on your team to view. You can filter saved profiles on the My Prospect Profiles page by searching by name or city.

You can append donation records to any saved profile anywhere you see donation record search results, either from Integrated search, the dedicated Donation Records search, or the results at the bottom of the profile itself. Select all the records you’d like to append and then click “Add to saved profile” at the top of the results table. Search for and select the profile you’d like to append the records to, and voila! You’ve now got verified donation records as a part of your saved profile.

To export a profile as a Word document, just click “Export” at the top of any profile page. You’ll get most of the profile details in a format that can be easily saved or modified offline.

We hope you find this new feature useful! If there’s more you’d like to see, or if you’d like a tutorial, please contact us. If you’re new to CharityCAN and want to see how these profiles can help your major gift pipeline, sign up for a free trial!