Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Building StrategyUsing Data-DerivedInsights: Major Gifts800.933.4446 | www.wealthengine.com | info@wealthengine.com
Presented By                            Sally Boucher                            Director of Research, WealthEngine Instit...
Building Strategy Using Data and Analytics                            This presentation is based on                       ...
WealthEngine Helps Nonprofits Find theRight People for the Right Purpose                  Who are my best donors and prosp...
Use Analytics to Drive Strategy
What is Analytics?                Analysis                The process of breaking a complex topic or substance into       ...
Data Leads to Actionable Insight                                          Wisdom                                          ...
All Strategy Derives from OrganizationalObjectives and Goals         Vision               Answer                          ...
Capacity and likelihood togive data identify the bestmajor gift prospects…
Use Data to Optimize Portfolios by Findingthe Best Prospects Based on Capacity and Likelihood to Give (or Affinity), an en...
Use Data to Optimize Portfolios by Findingthe Best Prospects Based on Capacity and Likelihood to Give (or Affinity), an en...
Data Appends (Wealth, Demographic and LifestyleAttributes) Allow Evaluation of All Constituents                           ...
Quickly Identify the Best Prospects for MajorGift Cultivation                                                            A...
Identify Second Tier Prospects for High-TouchLeadership Giving Program                                                    ...
Portfolios are often selected basedon past giving history…
The Current Portfolios Under Managementhave a Total Value of $46MM                                                        ...
Potential soars when portfoliosare selected based on capacityand likelihood to give ratings…
243 Optimal Prospects @$286MM(Selected Based on Capacity and Likelihood Ratings)                                          ...
Strategy Grows Out of Analysis      All else being equal, if 20 gifts close at 10% of capacity, this      change in portfo...
Ask amounts are often based oninstinct, “gut” feelings, or thecomfort level of the solicitor…
Data including Capacity Estimates AllowAnalysis of Major Gift SolicitationsProspect                      Average          ...
This Organization Receives on AverageOnly 10% of Potential Gift Value                      Average                    % of...
Gift Officers May be Defaulting to theMinimum Major Gift Level                      Average                    % of       ...
With Gifts Closing at Just 56% of Asks, ThereMay be Money Left on the Table                      Average                  ...
If 20 Gifts are Closed with Gifts Averaging 10% ofCapacity, the Organization will Realize $263,324                      Av...
If ask amounts are adjusted toreflect capacity on an individualbasis, fundraising potentialincreases…
Adjusting Average Ask Amount Up to 25% ofCapacity on Average Leads to Higher Asks                    Average              ...
Higher Asks Lead to Higher Closed GiftAmounts                    Average                      % of                        ...
If 20 Gifts are Closed with Gifts Averaging 15% ofCapacity, the Organization will Realize $394,986                    Aver...
Strategy Grows Out of Analysis      All else being held constant, If 20 gifts close at 15% of capacity on      average, th...
Organizations that invest inanalytics and data developstrategies that realize untappedfundraising potential
Key Takeaways from Today’s Presentation:      By analyzing file capacity and modeling likelihood to give, this      organi...
More wealth and fundraisingintelligence
Knowledge Center & Thought LeadershipWe support innovation and advancement in the field…                        Growing In...
Questions? Contact Us!If you’d like to learn more about how you can implementdata driven solutions in your nonprofit, cont...
Upcoming SlideShare
Loading in …5
×

Building Strategy Using Data-Derived Insights: Major Gifts

5,273 views

Published on

This presentation is based on information in WealthEngine Institute’s workbook, Growing Individual Gifts: An Analytic Approach to Data-Driven Success. For more strategies on using data and analytics, join WealthEngine Institute (www.wealthengine.com/institute).

Published in: Education
  • Be the first to comment

Building Strategy Using Data-Derived Insights: Major Gifts

  1. Building StrategyUsing Data-DerivedInsights: Major Gifts800.933.4446 | www.wealthengine.com | info@wealthengine.com
  2. Presented By Sally Boucher Director of Research, WealthEngine Institute Sally Boucher, CFRE, is the Director of Research at WealthEngine with a 15-year background in higher education, the arts, and human services development. She has provided professional services to hundreds of non-profit organizations. Sally is the primary author of the Growing Individual Gifts Workbook, the Best Practices for Prospect Research in Higher Education Fundraising Report, and a contributor to the Measuring Fundraising Return on Investment and the Impact of Prospect Research white paper. She regularly presents on analytics, return on investment, research and major giving.wealthengine.com | Page 2
  3. Building Strategy Using Data and Analytics This presentation is based on information in WealthEngine Institute’s workbook, Growing Individual Gifts: An Analytic Approach to Data-Driven Success. For more strategies on using data and analytics, join WealthEngine Institute.wealthengine.com | Page 3
  4. WealthEngine Helps Nonprofits Find theRight People for the Right Purpose Who are my best donors and prospects? Analytics allows you to draw conclusions and make informed decisions. What can I learn about these people? In-depth, contextual information to better understand each of your prospects. How can I find more prospects just like them? Leading tools to build your prospect pipeline and thoughtfully expand your reach. What strategies should I use to reach them? Customized insight and advice to develop and execute your fundraising strategy with precision. Fully integrated. Scalable. Best in class. Your results are ready.wealthengine.com | Page 4
  5. Use Analytics to Drive Strategy
  6. What is Analytics? Analysis The process of breaking a complex topic or substance into smaller parts to gain a better understanding of it. Analytics The process of developing optimal or realistic decision recommendations based on insights derived through analysis Analytics + Analysis = Data Driven Decision Making 6wealthengine.com | Page 6
  7. Data Leads to Actionable Insight Wisdom Evaluated understanding Wisdom Knowledge Application of data and Knowledge information; answers "how” & “why” questions Information Data that are processed to Information be useful; provides answers to "who", "what", "where", and "when" questions Data Data Symbolswealthengine.com | Page 7
  8. All Strategy Derives from OrganizationalObjectives and Goals Vision Answer A world without hunger “Why?” Feed the hungry Mission Questions Increase capacity to Objectives Answer transport excess food to “What?” those in need Increase major gift Goals Questions revenue by 20% Strategies Answer Invest in screening data “How?” Use data to optimize portfolios and ask Tactics Questions valueswealthengine.com | Page 8
  9. Capacity and likelihood togive data identify the bestmajor gift prospects…
  10. Use Data to Optimize Portfolios by Findingthe Best Prospects Based on Capacity and Likelihood to Give (or Affinity), an entire constituency can be segmented for application of distinct strategies: Capacity For major gifts, constituents with high capacity and high affinity are shaded in green for immediate assignment and cultivation Constituents in shaded in blue are second tier prospects and should be engaged in high-touch cultivation at the annual giving level Likelihood to Givewealthengine.com | Page 10
  11. Use Data to Optimize Portfolios by Findingthe Best Prospects Based on Capacity and Likelihood to Give (or Affinity), an entire 2 2 47 constituency can be segmented for application of distinct strategies: Capacity For major gifts, constituents with high capacity and high affinity 41 30 525 are shaded in green for immediate assignment and cultivation Constituents in shaded in blue are second tier prospects and should be engaged in high-touch 3,626 2,397 8,328 cultivation at the annual giving level Likelihood to Givewealthengine.com | Page 11
  12. Data Appends (Wealth, Demographic and LifestyleAttributes) Allow Evaluation of All Constituents Affinity ScoreCapacity Range Very Low Low Moderate High Very High Total$5M+ 1 3 2 6$1M up to $5M 2 1 19 23 45$500K up to $1M 7 11 50 39 107$250K up to $500K 34 19 301 135 489$100K up to $250K 139 60 905 358 1,462$50K up to $100K 6 490 469 2,155 774 3,894$25K up to $50K 186 795 1,037 1,288 761 4,067$15K up to $25K 132 464 498 607 365 2,066Up to $15K 127 278 67 216 146 834Unrated 525 484 266 466 287 2,028Total 976 2,693 2,429 6,010 2,890 14,998wealthengine.com | Page 12
  13. Quickly Identify the Best Prospects for MajorGift Cultivation Affinity ScoreCapacity Range Very Low Low Moderate High Very High Total$5M+ 1 3 2 6 28 shaded green have high$1M up to $5M capacity, high likelihood to give 2 1 19 23 45$500K up to $1M 7 11 50 39 107$250K up to $500K 34 19 301 135 489$100K up to $250K 139 60 905 358 1,462$50K up to $100K 6 490 469 2,155 774 3,894$25K up to $50K 186 795 1,037 1,288 761 4,067$15K up to $25K 132 464 498 607 365 2,066Up to $15K 127 278 67 216 146 834Unrated 525 484 266 466 287 2,028Total 976 2,693 2,429 6,010 2,890 14,998wealthengine.com | Page 13
  14. Identify Second Tier Prospects for High-TouchLeadership Giving Program Affinity ScoreCapacity Range Very Low Low Moderate High Very High Total$5M+ 1 3 2 6$1M up to $5M 2 1 19 23 45$500K up to $1M 544 shaded in blue 7 also are 11 50 39 107 good major gift candidates$250K up to $500K 34 19 301 135 489$100K up to $250K 139 60 905 358 1,462$50K up to $100K 6 490 469 2,155 774 3,894$25K up to $50K 186 795 1,037 1,288 761 4,067$15K up to $25K 132 464 498 607 365 2,066Up to $15K 127 278 67 216 146 834Unrated 525 484 266 466 287 2,028Total 976 2,693 2,429 6,010 2,890 14,998wealthengine.com | Page 14
  15. Portfolios are often selected basedon past giving history…
  16. The Current Portfolios Under Managementhave a Total Value of $46MM Affinity ScoreCapacity Range Very Low Low Moderate High Very High Total$5M+ $7,983,010 $7,983,010$1M up to $5M 243 prospects are currently under management $10,481,105 $10,481,105$500K up to $1M (assigned to a gift officer or volunteer) $4,120,173 $4,120,173 These were selected based on total giving$250K up to $500K $370,479 $341,000 $440,241 $6,786,036 $7,937,755 Values in the cells are the sum of the capacity$100K up to $250K of each individual who falls within the range $6,350,829 $601,489 $332,565 $1,545,482 $8,830,365$50K up tp $100K $196,430 $243,806 $712,639 $3,133,520 $4,286,395$25K up to $50K $94,259 $289,513 $201,514 $583,946 $1,119,834 $2,289,066$15K up to $25K $39,287 $24,468 $73,790 $134,884 $272,430Up to $15K $40,226 $10,961 $36,692 $87,880Unrated The $27,383 total $15,889 capacity of the prospects under $11,409 $9,571 $64,252Total management is the total number in the lower $161,868 $1,513,087 $1,143,353 $3,378,469 $40,155,653 $46,352,430 right-hand corner ($46MM) wealthengine.com | Page 16
  17. Potential soars when portfoliosare selected based on capacityand likelihood to give ratings…
  18. 243 Optimal Prospects @$286MM(Selected Based on Capacity and Likelihood Ratings) Affinity ScoreCapacity Range Very Low Low Moderate High Very High Total$5M+ 89,015,427 19,223,723 108,239,150$1M up to $5M 35,938,650 48,700,146 84,638,796$500K up to $1M 34,221,647 27,739,460 61,961,108$250K up to $500K 30,862,459 30,862,459$100K up to $250K$50K up tp $100K$25K up to $50K$15K up to $25KUp to $15KUnrated Selecting the 243 optimal prospects yields $286MM under managementTotal 159,175,725 126,525,788 285,701,513 This is 6 times the capacity under management wealthengine.com | Page 18
  19. Strategy Grows Out of Analysis All else being equal, if 20 gifts close at 10% of capacity, this change in portfolio value would result in an additional $2MM ($2,351,452 vs. $381,501) To activate this potential, any high-likelihood, high-capacity prospects not under management by an individual staff or volunteer should be assigned Currently assigned prospects with lower capacity/likelihood scores should only be kept under management if they are close to or in the solicitation phase The second tier of prospects with high capacity and likelihood scores should be “fast-tracked” in high-touch annual giving/cultivation programwealthengine.com | Page 19
  20. Ask amounts are often based oninstinct, “gut” feelings, or thecomfort level of the solicitor…
  21. Data including Capacity Estimates AllowAnalysis of Major Gift SolicitationsProspect Average % of % ofManager or Average Ask Average % of Ask Capacity of Capacity CapacityMajor Gift Amount Gift Amount Received Prospects Asked ReceivedOfficerJocelyn $95,617 $24,286 25% $10,242 42% 11%Sarah $167,708 $24,167 14% $16,667 69% 10%Total $131,662 $24,226 18% $13,455 56% 10%wealthengine.com | Page 21
  22. This Organization Receives on AverageOnly 10% of Potential Gift Value Average % of % ofProspect Average Ask Average % of Ask Capacity of Capacity CapacityManager Amount Gift Amount Received Prospects Asked ReceivedJocelyn $95,617 $24,286 25% $10,242 42% 11% Analysis shows gifts received are valuedSarah $167,708 $24,167 14% $16,667 69% 10% at approximately 10% of capacityTotal $131,662 $24,226 18% $13,455 56% 10%wealthengine.com | Page 22
  23. Gift Officers May be Defaulting to theMinimum Major Gift Level Average % of % ofProspect Average Ask Average % of Ask Capacity of Capacity CapacityManager Amount Gift Amount Received Prospects Asked ReceivedJocelyn $95,617 $24,286 25% $10,242 42% 11% With a minimum major gift amount ofSarah $167,708 $24,167 $25K, it looks like prospect managers 10% 14% $16,667 69% may be satisfied asking for gifts of $25KTotal $131,662 $24,226 18% $13,455 56% 10%wealthengine.com | Page 23
  24. With Gifts Closing at Just 56% of Asks, ThereMay be Money Left on the Table Average % of % ofProspect Average Ask Average % of Ask Capacity of Capacity CapacityManager Amount Gift Amount Received Prospects Asked ReceivedJocelyn $95,617 $24,286 25% $10,242 42% 11%Sarah On average, $24,167 $167,708 they are 14% $16,667 69% 10% receiving gifts of $10K-$15KTotal $131,662 $24,226 18% $13,455 56% 10%wealthengine.com | Page 24
  25. If 20 Gifts are Closed with Gifts Averaging 10% ofCapacity, the Organization will Realize $263,324 Average % of % ofProspect Average Ask Average % of Ask Capacity of Capacity CapacityManager Amount Gift Amount Received Prospects Asked ReceivedJocelyn $95,617 $24,286 25% $10,242 42% 11% $131,662 x 10% x 20 Gifts = $131,662 x 10% x 20 Gifts$16,667Sarah $167,708 $263,324 $24,167 14% 69% 10%Total $131,662 $24,226 18% $13,455 56% 10%wealthengine.com | Page 25
  26. If ask amounts are adjusted toreflect capacity on an individualbasis, fundraising potentialincreases…
  27. Adjusting Average Ask Amount Up to 25% ofCapacity on Average Leads to Higher Asks Average % of % ofProspect Average Ask Average % of Ask Capacity of Capacity CapacityManager Amount Gift Amount Received Prospects Asked ReceivedJocelyn $95,617 $24,286 25% $10,242 42% 11% Sarah’s asks are adjusted from 14% to 25% of capacity,Sarah $167,708 $41,927 25% $28,929 69% 17% resulting in an average ask of $41,927Total $131,662 $32,915 25% $19,585 59% 15%wealthengine.com | Page 27
  28. Higher Asks Lead to Higher Closed GiftAmounts Average % of % ofProspect Average Ask Average % of Ask Capacity of Capacity CapacityManager Amount Gift Amount Received Prospects Asked ReceivedJocelyn $95,617 $24,286 25% $10,242 42% 11%Sarah $167,708 $41,927 25% $28,929 69% 17% This leads to a 17% of capacity average gift for Sarah and 15%Total $131,662 $32,915 overall 25% $19,585 59% 15%wealthengine.com | Page 28
  29. If 20 Gifts are Closed with Gifts Averaging 15% ofCapacity, the Organization will Realize $394,986 Average % of % ofProspect Average Ask Average % of Ask Capacity of Capacity CapacityManager Amount Gift Amount Received Prospects Asked ReceivedJocelyn $95,617 $24,286 25% $10,242 42% 11% $131,662 x 15% x 20 Gifts = $131,662 x 15% x 20 GiftsSarah $167,708 $394,986 25% $41,927 $28,929 69% 17%Total $131,662 $32,915 25% $19,585 59% 15%wealthengine.com | Page 29
  30. Strategy Grows Out of Analysis All else being held constant, If 20 gifts close at 15% of capacity on average, this will result in $394,986 in revenue This represents an additional $131,662 in revenue over prior asks Ask amounts do not need to be a set and static percentage of capacity, but should be evaluated on an individual basis Questions to ask include: – Are we one of this prospects top three priorities? – Is this prospect enthusiastic about a particular project or program? – Do we have a funding need that meshes with this prospect’s interests? – What other current commitments do they have? If gift officers default to a low ask amount, consider training to boost confidence in the ratings and/or confidence in the processwealthengine.com | Page 30
  31. Organizations that invest inanalytics and data developstrategies that realize untappedfundraising potential
  32. Key Takeaways from Today’s Presentation: By analyzing file capacity and modeling likelihood to give, this organization was able to increase capacity under management and (without closing more gifts) increase potential funds raised by $2MM By analyzing ask amounts in relation to capacity, this organization was able to identify a weakness in their major gift program and by encouraging each gift officer to ask for a minimum of 25% of capacity, increases fundraising potential by $131,662 If this organization realizes even 10% of this potential $2.1MM gain, they will have realized a Return on Investment (ROI)of 740% based on a $25,000 investment in data and analyticswealthengine.com | Page 32
  33. More wealth and fundraisingintelligence
  34. Knowledge Center & Thought LeadershipWe support innovation and advancement in the field… Growing Individual Gifts Workbook Tools you need to grow your fundraising results ProspectResearchResources.com Free tools for every research request WealthEngine Institute Free education, knowledge sharing and networkingwealthengine.com | Page 34
  35. Questions? Contact Us!If you’d like to learn more about how you can implementdata driven solutions in your nonprofit, contact us! 800.933.4446 www.wealthengine.com info@wealthengine.com Read more about WealthEngine’s Analytics for Nonprofits here.wealthengine.com | Page 35

×