Identifying, Qualifying And Rating Prospective Donors I


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Identifying, Qualifying And Rating Prospective Donors I

  1. 1. Identifying, Qualifying and Rating Prospective Donors<br />Alumni, Foundations and Friends of <br />Jarvis Christian College<br />
  2. 2. There are five effective ways of identifying potential donors<br />Watch for people who self identify. They’ll send a large gift in response to a direct mail appeal, or even better they’ll send it for no reason; they are saying with their donation that they love the organization and are prime for cultivation.<br />Information on checks sent by donor's should be noted and saved. If the check is written out of a trust or special giving account, this could be an indication of their capacity to give.<br />Read annual reports or trade publications to see if your donors are listed in their major donor lists. It will give you an indication of other charities they give to and how much.<br />Cross reference current donor list with board of directors to determine what information you may be missing.<br />Network, Network, Network: MySpace, Facebook, Twitter, LinkedIn, Special Events, etc.<br /> PRO-Prospect Research Online <br /> www.IWAVE.COM<br />.<br />
  3. 3. E-Marketing & Fundraising Integrating<br />Acquire Direct Mail Donors<br />Utilize email address as much as possible, they are 150% more valuable<br />Effective use of integration (website, social media, letter campaigns, etc) shortens time to 2nd gift, increases retention, and more than doubles one time first year givers<br />Typically the second gift averages 65% more than previously given<br /> SMS Messages about a direct mail renewal increases response rates by 25%<br />A prompt personal acknowledgement followed by a video of accomplishments increases retention by 25%<br />Emails from friends get a 90% open rate and adding a Tweet increases giving by up to 300%<br />Donors want to hear from friends/people they know<br />In every channel possible communicate the problem/need + solution + success<br />Be consistent with the message<br />Breakdown Silos- depends on size of organization<br />With the amount of media there are many choices and several crossover opportunities, utilize all of them<br />Give the constituent more control, they prefer the “Show Me” vs. “Tell Me” approach in asking<br />The ability to quickly measure and rate prospect is necessary<br />
  4. 4. Sources:<br />Noza and Ctelligence are the world’s largest searchable databases of charitable gifts and offer a myriad of services to be utilized by non-for-profits. <br />PRO subscribers can quickly and easily search more than 38 million US donation records, including over 1.5 million Canadian donor records. <br />These records include individuals, donations made by corporations and Foundations<br />
  5. 5. Gateways to Major Gifts Programs<br /><ul><li>Qualifying the Prospect
  6. 6. First Contact or Point of Contact
  7. 7. Tracking, Cultivating and Strategizing
  8. 8. Recommending the Ask
  9. 9. Stewardship Tracking and Initiatives</li></ul>Qualifying the Prospect<br />1) Affiliation 2) Capacity3) Interest 4)Rating<br />Affiliation:<br />Before considering someone a prospect, you must establish, through research, that the “potential prospect” is affiliated to organization or institution, or has a reasonable likelihood of forming such a link. The potential prospect will be a person who has participated in previous programs or events, responded to a request for support in the past, served as a volunteer or is related to, or is friendly with someone connected to institution; faculty, staff, parents or grandparents of alumni.<br />
  10. 10. Capacity:<br />Initial identification of a new prospect calls for a general assessment of financial capacity. Simply put “ What is the potential, monetary or in-kind gift a person can make to Institution”? This can be acquired through their occupation, title, contributions made in the past from an analysis of association & other charitable organizations they’ve given to.<br />Interest:<br />Can we identify what the essence of the prospective donor’s philanthropic leanings are, what his/her passions are? The best way to uncover their interests is to ask. Often in the first contact meeting, the donor reveals his/her interests and possibly their capacity to give.<br />Rating <br />Aprospect, although challenging, gives you an opportunity to determine if the constituent is a major gift and/or planned giving prospect, which can aid you in utilizing the moves management process. With additional financial information, including giving history with other organizations, allows you to elevate the prospect from the qualifying category.<br />
  11. 11. Philanthropic guru Harold J. Seymour divides potential prospects into five distinct categories:<br />Those who see a need and respond without being asked<br />Those who respond when told to do so<br />Those who will respond when persuaded<br />Those who may or may not respond, even when strongly encouraged<br />Those in the inert fifth—nothing could ever get them to give<br /> Further defined, a good prospect must have an interest in the mission of the college, <br /> the capability to make a major gift and a relationship with the college. <br /> Finding persons with these qualities is the function of advancement research.<br /> However, once identified, the prospect should be rated according to giving level.<br />
  12. 12. The Gateway to Success with Donors, Friends and Corporate Sponsors<br />Beginning May to August 2009, the following strategic plan will be executed. This plan will include a collaboration of efforts from officers of the Institution of Advancement, alumni, donors and volunteers; leading into the upcoming Capital Campaign, January 2010. Consistent dialogue, meetings and cross referencing with members, modifying plan as needed.<br />
  13. 13. Targeting On-Line Givers<br /><ul><li>Fundraising thru on-line giving has grown 35%, this growth is at a rate that has beat the increases in traditional giving
  14. 14. In 2010, $20 billion was given online in the US
  15. 15. International Relief and National Disasters receive more funding than other non-for-profit organizations
  16. 16. Peer-to-Peer On-line Fundraising is critical for the success of events</li></ul> Amount of funding through on-line giving<br /><ul><li>Top 25% of non-for-profit organizations receive most gifts in the amt of $1,000+ on-line.
  17. 17. 45% of donors give $1,000 to $45K
  18. 18. Largest online gift has been $100,000
  19. 19. Although more donors are making significant contributions online, they aren’t as loyal as traditional donors</li></ul>Dominant channel of giving today is online. Thinking donors won’t give online <br />is a big mistake and could cost you thousands. With effective cultivation,<br />online targeting and giving will significantly improve.<br />
  20. 20. Short Term Goals and Objectives:<br />Consistent telephone contact<br />Engage constituent base by scheduling face-to-face contact<br />Include letter from person/s and or department who benefitted from their donation or contribution<br />Prompt and thoughtful thank you letter, via email, direct mail, or SMS messaging<br />Follow up thank you from President and or Board member (either written or via telephone)<br />Distribute New Donor Welcome Kits after contribution is made with other opportunities to donate<br />Five Strategies To Ensure a Second Gift<br />Personal Note that includes “Welcome To Our College” letter<br />Donor Bill of Rights<br />Letter from President<br />Fact Sheet About Institution<br />Outline “How to Get Started” and “Ways to Get Involved” <br />Second Gift Appeal<br />Offer Stronger Renewal Appeal based on moves management<br />New-donor-1st-year-anniversary campaign that may include luncheon or dinner acknowledging donors<br />
  21. 21. “The Virtual Campaign" <br />Option I. Create a one-page website specific to campaign goals, with a "Donate Now" button, (in red) featured prominently, along with actual benefits for those who donate and inclusion or sponsors, donor and major corp. donors.<br />Implement a "challenge" or “contest” or “deadline” to create urgency for donors to contribute. This may motivate board members and volunteers to exert concentrated energy for a fixed period of time, which translates into <br />greater participation from board members and volunteers. <br /> Option II. Sign up for any number of search engines or shopping portal sites (for example, or eBay GivingWorks) that contribute a certain amount, or percentage of sales for each person that uses the site or product or service.<br />The benefit of the second option allows persons with a vested interest in Jarvis to support the institution without making a monetary contribution. Their support comes from everyday purchases they buy or sell. Ex. Macy’s, Target, Gaylord Hotels, have been involved in campaigns as such. This challenge motivates people to change their habits - for example, searching through goodsearch instead of Google.<br />
  22. 22. A Donor Bill of Rights<br />Philanthropy is based on voluntary action for the common good. It is a tradition of giving and sharing were sharing is primary to the quality of life. To assure that philanthropy merits the respect and trust of the general public, and that donors and prospective donors can have full confidence in the not-for-profit organizations and causes they are asked to support, we declare that all donors have these rights:<br />I.<br />To be informed of the organization’s mission, of the way <br />the organization intends to use donated resources and of <br />its capacity to use donations effectively for their <br />intend purposes.<br />II.<br />To be informed of the identity of those serving on <br />the organization’s governing board, and to expect the <br />board to exercise prudent judgment in its steward-<br />ship responsibilities.<br />III.<br />To have access to the organization’s most recent <br />financial statements.<br />IV.<br />To be assured their gifts will be used for the purposes <br />for which they were given.<br /> V.<br />To receive appropriate acknowledgement and recognition. <br /> VI.<br />To be assured that information about their donations <br />is handled with respect and with confidentiality to the <br />extent provided by law.<br /> VII.<br />To expect that all relationships with individuals <br />representing organizations of interest to the donor <br />will be professional in nature.<br /> VIII.<br />To be informed whether those seeking donations <br />are volunteers, employees of the organization or <br />hired solicitors.<br />IX.<br />To have the opportunity for their names to be deleted <br />from mailing lists that an organization may intend to share<br />X.<br />To feel free to ask questions when making a donation and <br />to receive prompt, truthful and forthright answers<br />
  23. 23. Emphasize volunteering and participating in public events, good networking opportunities to meet other donors at no cost. Include a pre-paid post card with a pre-written message they can send to a prospective donor , i.e. friend that they know, along with welcome kit. Sample letter following.<br />Dear Friend:<br />I wanted you to know that I recently learned that Jarvis Christian College is a higher learning institution nestled in the heart of East Texas, serving many underserved students throughout the region. I thought you would be interested in learning more about their mission and vision for the communities it serves. Please take a few moments and check out their website and learn more. I think you will find it fascinating as I have. I’ve included a brochure that highlights the benefits of supporting this thriving institution.<br />Sincerely,<br />Your Friend<br />The potential prospect signs the unassuming letter, addresses it to their friend and or family member and you’ve already assisted them to become promoters for a Jarvis fundraiser. It can be sent as an email, or text message.<br />
  24. 24. Donor Retention and Why It Is Critical<br /><ul><li>More cost effective in the short term
  25. 25. Yields greater ROI per donor in the long term
  26. 26. Exponentially increases overall growth
  27. 27. Recurring donors are our best prospects for new donors:
  28. 28. Acquisition is a form retention for the original donor. By cultivating a strong relationship with a center of influence, they will not only provide you with their time and treasure, ($), but with access to their influence, this deepens the original donor’s ties to organization.</li></li></ul><li>These are some examples of helping a donor build their legacy through Jarvis. Do not focus on the end-of-life gift, but on cultivating their connections in THIS life for the college. The signs of a thriving relationship with a donor are when the donor’s friends and family make gifts to Jarvis in honor of the donor’s birthday, anniversary, etc.<br />Our ultimate goal would be to engage donors and secure monetary gifts to the college, however, we need to intrinsically link Jarvis to their legacy.<br />Ways to Accomplish this:<br /><ul><li>Build a strong foundation based on trust, mutual respect and consistent outreach.
  29. 29. Advanced stages of gift cultivation
  30. 30. Volunteer engagement</li></li></ul><li>Effective ways to communicate Jarvis’ mission and goals to prospective donors and cultivate prospects in a manner that meet the expectation of the VP of Institutional Advancement, the President of Jarvis, members of the Institute of Advancement and the students.<br /><ul><li>Convert Prospects to Donors by engaging in weekly meetings: telephone, e-mail and/ events. Leverage suggestions and volunteering opportunities that will enable them to become more closely affiliated with the college.
  31. 31. Convert Donors to Fundraisers; Educate them on philanthropy and how Jarvis and other prominent institutions have been built on a philanthropic foundation from inception. Thru training they can create awareness, as well as articulate Jarvis’ mission and goals to others, they are known as Promoters.
  32. 32. Create more promoters by considering agents that are willing and able to spread the news about Jarvis and its future mission and goals. Careful consideration should be made to those who have already made contributions to Jarvis.
  33. 33. Convert donors who give in small increments to major gift donors by consistent communiqué and progress and news about Jarvis.
  34. 34. Acknowledge donors through stewardship initiatives, those donors whose cumulative investments have made an impact on Jarvis’ mission and goals.
  35. 35. Capture their vision for Jarvis in a PR opportunity, publication and or newsletter
  36. 36. Annual Gift Challenge for their legacy, which they have already initiated by becoming a donor</li>