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1
Hiding  In  Plain  Sight  
!
Identifying  the  major  donors  on  your  donor  lists  
!
4/17/14  
11am  EDT
Your  Presenter
3
Ryan  Woroniecki  
Executive  Director,  Partnerships  -­‐  DonorSearch  
• 3+  years  working  with  no...
!
1. Introduction
2. Quiz – philanthropic trends
3. Who is a great donor?
4. Markers of philanthropy and wealth
5. Questio...
!
2011-2012
1. Total US Charitable contributions:
A. Less than $100 billion
B. $300-$400 billion
C. $500-$700 billion
D. L...
5
Philanthropic Overview
Who Gives, Who Gets, Industry Trends
DonorSearch.Net 410-670-7880
Information from
USA Giving
!
2011-2012
1. Total annual individual giving as a percentage of all giving (pre-
inflation adjustment).
A. 50%
B. 98%
C. ...
7
Who Gave in 2012
DonorSearch.Net 410-670-7880
Information from
USA Giving
8
Who Received in 2012
DonorSearch.Net 410-670-7880
Information from
USA Giving
9
What’s Up, What’s Down
2012 vs. 2011
DonorSearch.Net 410-670-7880
Information from
USA Giving
10
Giving Compared to Gross
Domestic Product (GDP)
DonorSearch.Net 410-670-7880
Information from
USA Giving
11
Good Prospects:
!
• Have the capacity to give at the level you ask
• Have the inclination and understanding to give
Dev...
12
Who are in the top 20% for your nonprofit?
How do you know them when you see them?
Dollars
Raised
80%
Number
of Donors
...
13
Back Testing the Data
!
400 nonprofits
2 million donors
$5 billion in giving
DonorSearch.Net 410-670-7880
13
DonorSearc...
Who are the Top 20% - The Best Marker:
!
Analysis of previous giving to your organization is the single best predictor of ...
15
“Recency”
(Last Gift)
Frequency
(# of Gifts)
Money
(Total $)
100% 100%100%
65%
82%
43%
R+F+M = RFM or 82+43+65=190
Mark...
Who are the Top 20% – 2nd
Best Marker:
!
Your prospect’s giving to other nonprofits is the second best marker of future ph...
17
www. DonorSearch.Net 410-670-7880
• Free - Do It Yourself – Make a list of whom you compete with in
your market area fo...
Who are the Top 20%? – 2nd
Best Marker:
18
% of Rec % of $$$ Predictive
Strength
!
Benchmark - 2 million donors in study 1...
Who are the Top 20% - 3rd
Best Marker:
!
Your prospect’s participation as a foundation trustee is more valuable than findi...
Who are the Top 20% - 4th Best Marker:
!
Your prospect’s lifetime giving to Federal political campaigns is an excellent pr...
15 of the Top 20% = 74.3% of Lifetime Giving:
21
Back Testing Database % of Rec % of $$$ Predictive
Strength
All FEC and C...
22
www. DonorSearch.Net 410-670-7880
3% of the donors predicted 54.6% of all dollars
Charitable and Political Giving in Ex...
Real Estate
Broadest Publically Available Wealth Marker
23
Real Estate % of recs % of $ Predictive Strength
$2+ million 1....
24
www. DonorSearch.Net 410-670-7880
Markers of Philanthropy and Wealth:
Business Wealth Markers and Philanthropy:
25
Back testing Database % of Rec % of $$$ Predictive
SEC Yes and Maybe 2.0% 15....
Business Wealth Markers and Philanthropy:
26
www. DonorSearch.Net 410-670-7880
  %  of  Rec
%  of  $$$      PredicVve
Mark...
Now we know who gives. How do we find them?
27
www. DonorSearch.Net 410-670-7880
28
Search Engines
Google, Yahoo, Bing
!
Directories
!
Public databases
BRBPublic Records (brb.com)
EDGAR (freeedgar.com)
S...
29
www. DonorSearch.Net 410-670-7880
Markers of Philanthropy and Wealth:
Questions?
Ryan Woroniecki
DonorSearch.net
ryan@donorsearch.net
410-702-4223
Upcoming  Webinar:  
!
Best  Foot  Forward:  Avoiding  
Common  Capital  Campaign  Mistakes  
!
4/24  1pm  EDT  
!
Brent  ...
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Hiding In Plain Sight - Identifying the Major Donors On Your Donor List

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Most development officers look to the traditional markers of philanthropy, such a real estate ownership, to target major donors. This presentation will highlight some of the best predictive data points that many development officers miss, and provide tips on what to look for in internal and publicly available databases to find major gift donors.

Attendees will learn how to:

- Identify the best predictive markers for major gifts to your organizations

- Find major donors hiding in your constituent lists

Time will be given for a lively Q&A session.

Published in: Technology
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Hiding In Plain Sight - Identifying the Major Donors On Your Donor List

  1. 1. 1 Hiding  In  Plain  Sight   ! Identifying  the  major  donors  on  your  donor  lists   ! 4/17/14   11am  EDT
  2. 2. Your  Presenter 3 Ryan  Woroniecki   Executive  Director,  Partnerships  -­‐  DonorSearch   • 3+  years  working  with  nonprofits   • Worked  with  hundreds  of  nonprofits   • APRA-­‐MD  Board  Member   ! DonorSearch   • Prospect  Research   • Over  500  nonprofit  clients
  3. 3. ! 1. Introduction 2. Quiz – philanthropic trends 3. Who is a great donor? 4. Markers of philanthropy and wealth 5. Questions and answers 3 DonorSearch.Net 410-670-7880 Markers of Philanthropy and Wealth:
  4. 4. ! 2011-2012 1. Total US Charitable contributions: A. Less than $100 billion B. $300-$400 billion C. $500-$700 billion D. Less than $300 billion 2. Grow or decrease of charitable donations between 2011 and 2012 (not adjusted for inflation): A. Increase of 2% B. Increase of 3.5% C. Decrease of 1% D. Decrease of 3.25% ! ! 4 DonorSearch.Net 410-670-7880 Quiz time!
  5. 5. 5 Philanthropic Overview Who Gives, Who Gets, Industry Trends DonorSearch.Net 410-670-7880 Information from USA Giving
  6. 6. ! 2011-2012 1. Total annual individual giving as a percentage of all giving (pre- inflation adjustment). A. 50% B. 98% C. 83% D. 72% 2. A. 15% B. 6% C. 72% D. 7% ___Foundations ____Individuals ___Bequests ___ Corporate ! ! 6 DonorSearch.Net 410-670-7880 Quiz time!
  7. 7. 7 Who Gave in 2012 DonorSearch.Net 410-670-7880 Information from USA Giving
  8. 8. 8 Who Received in 2012 DonorSearch.Net 410-670-7880 Information from USA Giving
  9. 9. 9 What’s Up, What’s Down 2012 vs. 2011 DonorSearch.Net 410-670-7880 Information from USA Giving
  10. 10. 10 Giving Compared to Gross Domestic Product (GDP) DonorSearch.Net 410-670-7880 Information from USA Giving
  11. 11. 11 Good Prospects: ! • Have the capacity to give at the level you ask • Have the inclination and understanding to give Development is building the relationship with these prospects. • What are the markers you should look for to find these prospects? DonorSearch.Net 410-670-7880 11 DonorSearch.Net 410-670-7880
  12. 12. 12 Who are in the top 20% for your nonprofit? How do you know them when you see them? Dollars Raised 80% Number of Donors 20% Markers of Philanthropy and Wealth: DonorSearch.Net 410-670-7880 12 DonorSearch.Net 410-670-7880
  13. 13. 13 Back Testing the Data ! 400 nonprofits 2 million donors $5 billion in giving DonorSearch.Net 410-670-7880 13 DonorSearch.Net 410-670-7880
  14. 14. Who are the Top 20% - The Best Marker: ! Analysis of previous giving to your organization is the single best predictor of future philanthropy. ! This is common sense. This is why you solicit the people who gave to you before. ! PROS • The data is free if you have collected it over the years • The predictive capabilities are not usually impacted by the average recording errors or inconsistencies • The calculations are simple: RFM (Recency, Frequency and Money (RFM) CONS • Limited to the success or failures of previous marketing efforts. You may not have many donors • Difficult to project opportunity outside of previous performances ! ! 14 Markers of Philanthropy and Wealth: www. DonorSearch.Net 410-670-7880 14 DonorSearch.Net 410-670-7880
  15. 15. 15 “Recency” (Last Gift) Frequency (# of Gifts) Money (Total $) 100% 100%100% 65% 82% 43% R+F+M = RFM or 82+43+65=190 Markers of Philanthropy and Wealth: www. DonorSearch.Net 410-670-7880 Analysis of previous giving - Methodology
  16. 16. Who are the Top 20% – 2nd Best Marker: ! Your prospect’s giving to other nonprofits is the second best marker of future philanthropy. ! Ideally, the prospect has made a gift of the same size or larger elsewhere in the last five years. Some people feel that gifts made to similar interests are the best prospects. Others feel that the giving to other interests is better because there is less competition. ! PROS • Much of the data is free and easy to understand. Nonprofit annual reports and recognition documents are readily available • Many of the largest nonprofits use the Internet to recognize donors CONS • Some Internet-based annual reports are taken down after time • The data available publicly is just a fraction of all gifts made. Publishing giving information is not a regulatory requirement • It can be difficult to find older giving reports. • Printed donor recognition documents are not usually readily available when you need them. You have to find an old copy. • Some reports show a name, but do not show gift amounts • Can’t always determine if a listed name is your constituent 16 Markers of Philanthropy and Wealth: www. DonorSearch.Net 410-670-7880
  17. 17. 17 www. DonorSearch.Net 410-670-7880 • Free - Do It Yourself – Make a list of whom you compete with in your market area for philanthropic dollars. • Check their websites looking for annual reports and donor list. Paper copies are okay, too. No list is too old. • Combine them into one large PDF document. (Scanner) Search the document as needed, update quarterly. %  of  $$ #  of  Rec Markers of Philanthropy and Wealth:
  18. 18. Who are the Top 20%? – 2nd Best Marker: 18 % of Rec % of $$$ Predictive Strength ! Benchmark - 2 million donors in study 100.0% 100.0% 1.00 ! Where $100k is largest gift elsewhere 0.7% 24.1% 32.67 Where $50k-$100k is largest 0.5% 13.5% 25.02 Where $25k-$50k is largest 0.6% 6.5% 11.79 Where $10k-$25k is largest 0.7% 7.0% 10.73 Where $5k-$10k is largest 1.1% 5.4% 4.98 Based on a study of 2 million records with $5 billion of known lifetime giving to 400 nonprofits. www. DonorSearch.Net 410-670-7880 Markers of Philanthropy and Wealth:
  19. 19. Who are the Top 20% - 3rd Best Marker: ! Your prospect’s participation as a foundation trustee is more valuable than finding any wealth marker. PROS • IRS requires all foundation to file an IRS 990PF form annually that contains the amount of money the organization gave away and the names of board members • Many foundations list their trustees on their website • PGuidestar offers a free service that lists trustees and other info. The Foundation Center, Big Online and Guidestar all have paid services where you can see more CONS • IRS 990PF reports often lag two or more years ! • Free - Do It Yourself – Register for the free guidestar.org account. Search 990s and 990 PFs. Search individual foundation websites for grant recipients. 19 www. DonorSearch.Net 410-670-7880 Markers of Philanthropy and Wealth:
  20. 20. Who are the Top 20% - 4th Best Marker: ! Your prospect’s lifetime giving to Federal political campaigns is an excellent predictor of future philanthropy. The FEC regulates political giving to Federal campaigns. It requires that the campaign report the donor’s name, address and occupation, as well as the date and amount PROS • A single lifetime FEC gift of $250 puts your constituent in the top 6% of the US population. A single gift of $1,000 puts your constituent in the top 1/10th of 1% • Virtually every FEC donor with lifetime political giving of $10,000 is wealthy and has the capacity to make a major gift • Virtually every FEC donor with lifetime political giving of $15,000 has made a 4,5,6, or 7 figure charitable gift somewhere • Political giving is readily available from multiple free internet sources CONS • Not all charitable donors are political donors • The reason large political donors are large charitable donors is not known so fundraisers are skeptical ! • Free - Do It Yourself www.opensecrets.org is one of the most popular. www.fec.gov/finance/disclosure/norindsea.shtml is the government site. 20 www. DonorSearch.Net 410-670-7880 Markers of Philanthropy and Wealth:
  21. 21. 15 of the Top 20% = 74.3% of Lifetime Giving: 21 Back Testing Database % of Rec % of $$$ Predictive Strength All FEC and Charitable Giving above $2,500 3.8% 54.6% 14.48 All FEC and Charitable Giving above $1,000 11.0% 70.7% 6.43 All FEC and Charitable Giving above $500 14.4% 74.3% 5.17 www. DonorSearch.Net 410-670-7880 Markers of Philanthropy and Wealth:
  22. 22. 22 www. DonorSearch.Net 410-670-7880 3% of the donors predicted 54.6% of all dollars Charitable and Political Giving in Excess of $2500 14.4% of the donors predicted 74.4% of all dollars Charitable and Political Giving in Excess of $500 Markers of Philanthropy and Wealth:
  23. 23. Real Estate Broadest Publically Available Wealth Marker 23 Real Estate % of recs % of $ Predictive Strength $2+ million 1.4% 25.0% 17.55 $1-2 million 3.2% 13.2% 4.17 $750k-$1 million 2.5% 5.7% 2.25 $500k-$750k 5.4% 6.8% 1.25 $250k-$500k 12.8% 8.6% 0.67 $125k-$250k 10.9% 4.8% 0.44 <$125k 8.4% 3.5% 0.42 www. DonorSearch.Net 410-670-7880 Markers of Philanthropy and Wealth:
  24. 24. 24 www. DonorSearch.Net 410-670-7880 Markers of Philanthropy and Wealth:
  25. 25. Business Wealth Markers and Philanthropy: 25 Back testing Database % of Rec % of $$$ Predictive SEC Yes and Maybe 2.0% 15.5% 7.76 Market Guide Yes and Maybe 3.0% 19.5% 6.56 D&B Yes and Maybe-$5 million+ 0.6% 5.1% 9.04 D&B Yes and Maybe $1-$5 million 0.7% 2.5% 3.53 D&B Yes and Maybe 6.5% 21.5% 3.32 www. DonorSearch.Net 410-670-7880 Markers of Philanthropy and Wealth:
  26. 26. Business Wealth Markers and Philanthropy: 26 www. DonorSearch.Net 410-670-7880  %  of  Rec %  of  $$$      PredicVve Markers of Philanthropy and Wealth:
  27. 27. Now we know who gives. How do we find them? 27 www. DonorSearch.Net 410-670-7880
  28. 28. 28 Search Engines Google, Yahoo, Bing ! Directories ! Public databases BRBPublic Records (brb.com) EDGAR (freeedgar.com) SEDAR (sedar.com) Canadian stock info ! Private (free) databases Hoovers (hoovers.com/free/) Zillow (zillow.com) Open Secrets (opensecrets.org) Follow The Money (followthemoney.org) GuideStar (guidestar.org) DonorSeries.com/integratedsearch ! Social media LinkedIn / Facebook / Twitter / Pipl / MyLife www. DonorSearch.Net 410-670-7880 Online Search Multiple Sources Pay Services Capital IQ WealthX DonorSearch IWAVE WealthEngine LexisNexis GGA – DonorScape Target Analytics ! Screening and Analytics – Automated Review of lists - Pay Services DonorSearch WealthEngine Target Analytics GGA IWAVE Fund Raising Consulting Firms Markers of Philanthropy and Wealth:
  29. 29. 29 www. DonorSearch.Net 410-670-7880 Markers of Philanthropy and Wealth:
  30. 30. Questions?
  31. 31. Ryan Woroniecki DonorSearch.net ryan@donorsearch.net 410-702-4223
  32. 32. Upcoming  Webinar:   ! Best  Foot  Forward:  Avoiding   Common  Capital  Campaign  Mistakes   ! 4/24  1pm  EDT   ! Brent  A.  Hafele,  M.A.   ! https://bloomerang.co/resources/webinars/

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