Using Data To Identify Donors

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Using Data To Identify Donors

  1. 1. Using Data to Identify Potential Donors Governor’s Conference on Service and Nonprofit Capacity Building October 3, 2013 Carol Lukemeyer, CFRE
  2. 2. Scope of Session • Role of Prospect Research • Ethical Considerations • What Data Says about Wealth • Using Data Sources to Build Prospect Lists • Individual Research • Ratings
  3. 3. Role of Prospect Research Find prospects with Ability to make a major gift Interest in your mission Links to your organization Who exhibit Philanthropic behavior
  4. 4. Role of Prospect Research AND organize, record, protect, analyze, package and disseminate relevant prospect and donor information. Take the long view!
  5. 5. Professionalize Prospect Research  Centralize all donor and prospect information  Invest in a database designed to store information that can be accessed and analyzed.  Invest in database training (or you will end up with Excel spreadsheets)  Establish written policies to protect donor information  Establish written procedures governing database usage
  6. 6. Prospect Research Ethics
  7. 7. Ethical Considerations AFP’s “Donor Bill of Rights” APRA’s “Statement of Ethics” •Confidentiality •Accuracy •Relevance •Self-responsibility •Honesty •Conflict of Interest A donor has a right to see any information you have collected
  8. 8. Major Gift Cultivation Cycle
  9. 9. Levels of Research Discovery – Enough information to merit initial contact • Capability, Interest, Linkage Cultivation – Spot research as needed – Much of the research is done through contact with the prospect Pre-solicitation (0 to 6 months) – Full profile, everything that will influence successful solicitation
  10. 10. Role of Prospect Research Prospect Indicators MAJOR GIFT PROSPECT – Interest/Linkage -- Gift history, volunteer activity, shared values, membership, family link, beneficiary – Philanthropic behavior -- Gifts to any organization, political contributions, religious affiliation – Wealth Indicators -- insider, private company ownership, occupation, real estate, private equity, club membership, foundation or donor advised fund, gifts to other orgs
  11. 11. Prospect Indicators PLANNED GIFT PROSPECT – Income often is not relevant • nine out of 10 planned gifts are bequests. – Consistent annual fund donor – Volunteer – Age 40-60 – Educated – bachelors degree or higher – Motivated by helping others, religious beliefs and giving back
  12. 12. Prospect Indicators PLANNED GIFT PROSPECT cont’d. – Single or widowed – Married with few or grown children – Wants to provide for loved ones – Concerned about retirement income – Tax concerns Bequest Donors: Demographics and Motivations of Potential and Actual Donors. Prepared for Campbell & Company by Center on Philanthropy at Indiana University, March 2007.
  13. 13. Where is the Information? Your database – gleaned from annual fund – Gift history – recentcy, frequency, size – Event attendance – Volunteer activity Prospect contacts – staff, board members and other volunteers Publicly available resources – Commercial databases – Commercial screening and data append services – Free resources online and through libraries
  14. 14. Wealth Studies • Center on Wealth and Philanthropy • Giving USA: The Annual Report on Philanthropy • Bank of America Study of High Net Worth Philanthropy • The Millionaire Next Door by Thomas J. Stanley (1996) • Rural Policy Research Institute • Transfer of Wealth in Indiana Study
  15. 15. Wealth Respondents by source of wealth • Some or all from inheritance/gifts -- 50.9% • Some or all from business or professional efforts - 89.1% • Some or all from investment -- 75.5% • All from inheritance/gifts -- 3.6% • All from business or professional efforts -- 11.8% • All from investment -- 0.9% Source: "Extended Report of the Wealth with Responsibility Study / 2000." Paul G. Schervish and John J. Havens, Boston College, March 2001
  16. 16. Wealth • “There is a growing body of evidence on the critical role that entrepreneurs and small businesses play in driving local and national economies. • The structure of rural economies is essentially composed of small enterprises, which are responsible for most of the job growth and the innovation. Moreover, small businesses represent an appropriate scale of activity for most rural economies. “ Rural Policy and Research Institute website http://www.rupri.org/entrepreneurship.php
  17. 17. Identifying Potential Donors in Your Community 1) Compile list of successful small business 2) Identify stakeholders 3) Conduct initial research to verify capability and philanthropy 4) Conduct peer screening
  18. 18. Wealth – Small Business Business Directories USA Chamber of Commerce Directory Directory of Local Chambers of Commerce and Visitors Bureaus
  19. 19. Wealth – Small Business Zoominfo – “Free” source, need to register & share contacts for more information. Paid version sometimes has biographies Dun & Bradstreet Hoover’s Online Reference USA Demographics Now A to Z Databases Commercial resources that may be available through your library.
  20. 20. Wealth – Small Business http://www.imcpl.org/
  21. 21. Wealth • FC Online – limited free searching. Good contact information. • Guidestar – more info with paid subscription • National Center for Charitable Statistics – advanced search features to find private foundations and charitable trusts (browse NTEE codes) – Register (free) to get more results – On 990 form, look for “contributors”
  22. 22. Wealth – Private Foundations and Trusts
  23. 23. Click through to PF990 to identify trustees and grant recipients
  24. 24. T90 is for named trusts such as charitable remainder trusts – wealth indicator
  25. 25. Drilling Down • • • • • • Further Wealth and Philanthropic Information Contact information Career information Circles of Influence Biographical details Interests
  26. 26. Philanthropy --Political Contributions Data shows there is a correlation between political contributions and philanthropic giving. Open Secrets Faster but less detail FEC Political Contribution Filings Can drill down to filing Useful for additional addresses and sometimes spouse information.
  27. 27. Philanthropy --Political Contributions
  28. 28. Philanthropy --Political Contributions
  29. 29. Philanthropy --Political Contributions By drilling down to the form you can find occupation and sometimes home address.
  30. 30. Philanthropy – Google Search
  31. 31. Individual Income Public Company Executives SEC -- • Compensation, stock holdings, options activity of corporate insiders • Read the help section, know forms • Look for DEF-14A Yahoo Finance -• Financials, charts, historical information, news, insider rosters, stock ownership and recent activity Morningstar • Compensation, stock holdings and activity
  32. 32. Individual Income Public Company Executives
  33. 33. SEC Edgar System
  34. 34. SEC Edgar System
  35. 35. SEC Edgar System
  36. 36. Once you have opened the DEF14A, do a search (Control F) for “Executive Compensation”
  37. 37. Individual Income Public Company Executives •Go to Morningstar.com •Search for the company •Click on the “Insiders” tab to get compensation and recent transactions.
  38. 38. Individual Income Occupation / Salary SEC – public company executives Salary.com Jobstar.com Physicians (Hope for orthopedic surgeons, heart surgeons &neurosurgeons) Indiana Professional Licensing Agency
  39. 39. Wealth Indicators Property NETROnline Identify county by town Marion County Assessor http://maps.indy.gov/PropertyAssessmentViewer/ Beacon Schneider http://beacon.schneidercorp.com/ Zillow – sales figures and estimates based on like sales Purdue Extension Farmland Values
  40. 40. Wealth Indicators Property
  41. 41. Wealth Indicators Property Drill down on parcel number for assessed value
  42. 42. Searching Tips Not all search engines and databases use the same search language • Natural language – terms as you would use them in speech. • Boolean Language uses connectors AND, OR, NOT, sometimes Proximity indicators: NEAR, w/1, * Parenthesis to group the order and use of parenthesis can change the outcome of the search – quotation marks for exact phrases – – – –
  43. 43. Standard Google Search
  44. 44. Standard Google Search
  45. 45. Advanced Google Search
  46. 46. Google Searches • Google Search Guide Operator Result “” - Exact word or phrase Eliminates word (no spaces) Searches for synonyms (no spaces) Finds either word or phrase Range such as numerical Wild card to match one or more words in a phrase ~ OR or | .. *
  47. 47. Search Engines Misc. • Alerts • Fagan Finder – lists alternative search engines, blog search engines and Q&A search sites
  48. 48. Search Engines Misc.
  49. 49. Database Collections Access information not available through a web search – deep web INSPIRE Indiana Indianapolis Marion County Public Library Indiana State Library Old newspaper indexes, geneology resources, marriage records
  50. 50. Individual Research – Contact Information Directories • Switchboard • Zabasearch • Pipl
  51. 51. Individual Research – Contact Information
  52. 52. Individual Research Basic Biographical and Business Google Advanced LinkedIn INSPIRE INDIANA’s business databases IMCPL newspapers and business magazines, trade publications • Corporate websites – “about us” or “history” • • • •
  53. 53. Individual Research – Links • Obituaries – Family members • • • • LinkedIn Muckety Corporation Wiki Blue Golf – Identify club membership if they golf
  54. 54. Muckety.com
  55. 55. Muckety.com
  56. 56. What About Facebook? From APRA’s Statement of Ethics Integrity Members shall be truthful with respect to their identities and purpose and the identity of their institutions during the course of their work. They shall continually strive to increase the recognition and respect of the profession Accountability Members shall respect the privacy of donors and prospects and conduct their work with the highest level of discretion. They shall adhere to the spirit as well as the letter of all applicable laws and all policies of their organization. They shall conduct themselves in the utmost professional manner in accordance with the standards of their organization.
  57. 57. Ratings RATINGS FORMULAS are not SOLICITATION AMOUNTS The purpose of capability ratings is to identify, segment and prioritize prospects. It is a starting point. Solicitation amounts should be based on what is learned through building a relationship with the prospect.
  58. 58. Ratings BASED ON INCOME The average American contributes 2% of their income per year to charity. The percentage increases at higher levels of income. • $100,000-$499,000 x 2.7% x 5 = gift capability • $500,000-$999,000 x 2.9% x 5 = gift capability • $1,000,000+ x 4.3% x 5 = gift capability Source: Martz & Lundy
  59. 59. Ratings BASED ON REAL ESTATE • Real Estate x 3 x 5% = gift capacity BASED ON STOCK HOLDINGS • $100,000-$499,000 stock & options x 1% to 4% = gift capacity • $500,000-$999,000 stock & options x 5% to 9% = gift capacity • $1,000,000+ stock & options x 10% = gift capacity Source: Martz & Lundy
  60. 60. Ratings Rating Basis of Initial Rating Stock Holdings Private Co Sales* Property Holdings Gifts to Other Orgs $1M $40M $1.5M $1M $100K $10M $650K $100K $50K - $100K $50K $5M $350K $50K $25K - $50K $25K $3M $200K1 $25K 1M+ 100K - $1M Less than $25K * Where individual is owner, CEO, founder, principal or president Source: Benz, Whaley Flessner
  61. 61. Ratings Grid
  62. 62. Resource Review • Lists of Businesses and Business Info – – – – Chamber of Commerce Directories Zoominfo Dun & Bradstreet, Reference USA (through public library) • Wealth – For public company insiders : SEC, Yahoo Finance – For real estate: County Assessor’s websites, Zillow – For political contributions: FEC Political Contributions Filings, Open Secrets – For occupation/salary: Salary.com, Jobstar, Indiana Professional Licensing Agency, specific occupation surveys
  63. 63. Resource Review • Philanthropy – FC Online, National Center on Charitable Statistics, Guidestar, annual reports, general search engines such as Google, newspaper article search • Contact Information – Zabasearch, Pipl, Zoominfo, Anywho, Switchboard • Career / Biographical – Google and other search engines, INSPIRE, IMCPL databases, obituaries • Circle of Influence – Biographies, Newspaper/Magazine articles, Corporation Wiki, Muckety, LinkedIn, Blue Golf
  64. 64. And the number one all-time best prospect information resource?
  65. 65. Individual Research The Full Picture You are the most important source of information about the prospect / donor Get into the habit of filing contact reports and recording relevant information into your database.

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