Do-It-Yourself Prospect Research: Discovery Exciting and Innovative Research Methods You Can Take Back to Your Shop Today!

Transcription

1 Do-It-Yourself Prospect Research: Discovery Exciting and Innovative Research Methods You Can Take Back to Your Shop Today! Tracey Church, MLIS, Tracey Church & Associates November 22, 2017 Metro Toronto Convention Centre

2 Who am I? And who are you? Tracey Church, MLIS Who is in the room? New to prospect research? New to fundraising? Less than 6 months in position? Research is a full-time or part-time part of your position? One man shop? Zero researcher shop?

3 Agenda Recognition What is Prospect Research? Organizational considerations for big and small shops Service levels Time expectations Metrics What are some prospect considerations? Research Staging Prioritizing What common resources are used for researching Foundations Corporations Individuals Capacity and linkages What should be tracked in the database? Summary Questions

4 Recognition We wish to recognize and acknowledge that we meet today on the traditional territories of the Mississauga and Haudenosauenee nations and within the lands protected by the Dish With One Spoon wampum agreement.

5 What is prospect research? Prospect researchers are hired by their organizations to find major giving donors for their organization through background research on individuals, corporations and foundations to find which will be the most likely to give to your organization BUT, smaller organizations that don t have the resources to have their own researcher can still do some basic research before meeting a prospect Apra: Association of Professional Researchers for Advancement Ongoing education: conferences, webinars, regional meetings Mentors, publications, websites, networking Job listings Apra (US $195/year) Apra-Canada ($45/year)

6 Now available! Business card draw today! Available today at: -research-in-canada Apra-Canada & student discount price: $65 Non Apra-Canada member price: $85

7 The promise of prospect research Every charity deserves targeted, relevant, well-timed asks Research is necessary for a development team to meet their goals with wellmatched prospects Researchers work strategically with development teams to provide the right prospects for the right programs, at the right gift amount, at the right time Use your research resources to find: individuals, corporations & foundations that match a charity s mission & financial goal Manage the database to be able to easily add your prospects, rate them, and extract them according to fundraising needs Part of a researcher s worth is steering the fund development team AWAY from those prospects who have neither the capacity NOR the affinity to give to your organization!

8 Organizational considerations Align prospect research for impact Small fundraising organizations Focus on day-to-day donor-driven data (Annual Fund, $ cheques in door, Tribute) Large fundraising organizations Focus on qualification of high-value prospects (capacity, interest, affiliation) Generational research / Founder family engagement Webbing Board Directors, Trustees, volunteers Purge fundraiser s portfolios

9 Research Stages - don t try and do it all at once or you will become overwhelmed!

10 The Cultivation Cycle How a Prospect Researcher Sees it: Research Identification Stewardship Research Research Qualification Solicitation Research Research Cultivation

11 Levels of Service You don t always need a full profile: Full or long profile Short profile / Snap Shots Research memo/briefing note Capacity rating Database update Focus on keeping the database updated with the latest research and reserve classic profiles for senior volunteers on a call, if needed.

12 Levels of service can be determined in a variety of ways: By the person requesting the information, e.g., the organization s president might receive different information than a major gift officer Where you are in the relationship cycle with a prospect, e.g., do more detailed research when the organization is ready to solicit the donor than when you are at the cultivation stage The level of prospect, e.g., spend more time researching high-level prospects versus donors with a lower capacity Priority goes to the solicitor who has booked a meeting!

13 Learn How to Prioritize! 1. Record All Activities this will also help you during performance review season Good thing we have a database for this! Or, create a work spreadsheet 2. Determine Primary Goals You can even rank them A, B & C A = high priority/asap, B = medium, C = low (when/if you can get to it) 3. A Different 80/20 Rule Which 20% of my activities will yield 80% of my results? 4. What s Important versus Urgent Deadlines, reaaaallll deadlines! Is a major giving officer going out on a call? 5. Create a schedule and stick with it! 6. Revisit Goals and Adjust what has changed? 7. Purge sometimes you can get rid of stuff! Share your research queue with MG team can anything come off? Dale Carnegie Time Management Guide, 2011

14 Simple Research Request Queue Better yet, set these up as Research Actions in your database

15 How long does research take? This needs to be shared (in a Lunch & Learn is best) with the fund development team priority always goes to MGO with a meeting booked! Rule of thumb don t go down the rabbit hole! Research Task Quick Turn-Around (gifts to other orgs) Scheduled Time* 1 hour Snap-Shot Profile (1-2 pages) Foundation Profile Corporate Profile Individual Profile 3 hours 4 hours 5-6 hours 8 hours * doesn t mean this will all be in one day, depends on research queue!

16 Prospect Considerations: Stage of Life

17 Generational Impact

18 Prospecting Steps 1. Qualify those currently giving to your organization These could be lapsed major giving donors, mid-level giving donors, and/or donors who have given frequently at the annual giving range Do they qualify to give at a major giving level, and, are they interested in meeting with a development officer? Can you establish a scoring system for qualification? 2. Identify those who may be potential new donors These could be identified through your network of executives, senior volunteers, committee members, and major donors Or, those who have an affinity to your organization (alumni, grateful patients, family of clients) who may not have given yet Or, those who support other like causes Or, those who have identified certain areas of support in their corporate or foundation documentation

19 People, people, people! First and foremost! Do research which looks within at LINKAGES to : Staff Members Board Members (key volunteers) e.g.) Peer Screening Committee Members Event Volunteers Event Attendees Sponsors Vendors Current Major Donors Advisory Groups Professional Groups And your database: RFM* *recency, frequency, monetary

20 Key Elements in Foundation Research Foundation Name Contact Information How do they like to be contacted? Contact Person(s) Key Board Members & Staff Foundation Overview Philanthropic Interests Which ones align with your mission Geographic Focus Examples of Gifts to Other Organizations And your organization if applicable Possible Linkages to Your Organization And past activity with your organization Application Process & Guidelines Follow these! Initial Estimated Capacity Rating Date of Research Person Who Completed Research Sources Used

21 Foundations Private Foundations Non-profit giving entities formed by individuals or families to serve as the primary vehicle for charitable giving Community Foundations Non-profit giving entities that amalgamate the giving of groups of usually unrelated donors Company Foundations Non-profit giving entities established and administered by companies

22 Favourite Resources: Foundations Imagine Canada Grant Connect (fee) Charity Village Directories Funders (free) Canadian Charities Listings (CRA) T3010s (free) BIG Online Foundation Search (fee) iwave PRO Prospect Research Online (fee) CharityCAN (fee) Ajah Fundtracker (fee) Philanthropic Foundations Canada Topical issues (free) US GuideStar (free, basic) 990s US Foundation Center (free, basic) 990s Foundation websites (~25% have their own website) Public or university libraries (free)

23 Grant Connect Funder Search

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27 Key Elements in a Corporate Research Corporation Name Contact Information Address, phone, , social media, regional (Community) Contact Person(s) Key Board Members & Staff Corporate Overview Do they have a foundation as well? Include annual revenue Philanthropic Interests Geographic Focus Is it just in regions in which they operate? Recent & relevant news Examples of Gifts to Other Organizations And your organization if applicable Sponsorship History Possible Linkages to Your Organization And past activity with your organization Application Process & Guidelines Community giving site? Online application form? Initial Estimated Capacity Rating Date of Research Person Who Completed Research Sources Used

28 Types of Companies in Canada A corporate prospect may be: A publicly-traded Canadian company A private Canadian company A subsidiary of another company

29 Corporate Ways of Giving Companies financially support their communities in various ways, including: Donations Sponsorships Deep discounts Collection from the public (scan when buy) Strategic partnerships (CRM cause-related marketing e.g.)

30 Identifying Corporate Prospects 1. Locate, understand and align charity programs with stated donation guidelines Corporate giving sites can be called: Corporate Social Responsibility (CSR) Community Commitment / Investment Community Giving Social Responsibility In the Community 2. Identify alignment with corporate interests (e.g. Ronald McDonald House and family friendly marketing). 3. Take note of senior executives and board members and their areas of interest

31 Corporate Websites Business Interests Business Locations Executive Speeches Press Releases Gift announcements Executive and board changes Financial situation Corporate developments Regional news Philanthropic and community involvement Corporate Responsibility Reports

32 Favourite Resources: Corporations Google Finance or Globe Investor (free) Canadian Business Resource (CBR) (basic free, also by subscription) CNW (Canadian Newswire) (free, track your prospects using RSS feed) Charity Village (free) D&B Canada (dun & bradstreet): Hoover s Business Directory (fee) Also available in iwave PRO Scott s Ontario Manufacturers (fee) smaller businesses Industry Canada (free) has contact names SEDAR (free) Canadian public company reports SEDI (free) Canadian public company shares EDGAR (free) U.S. public company shares LEDC (free) City of London directory (new businesses & contact names) BIG Online Corporate Directory (fee) iwave PRO Prospect Research Online (fee) ZOOMInfo & D&B CharityCAN (fee) Corporate Canada Directors PUBLIC or university libraries (free!) *Tracey s rule of thumb: Have ONE really good business directory you don t need them all. Or better yet, see what you can get through a library

33 Example: CBR

34 Example: D&B (iwave PRO)

35 Key Elements in an Individual Research Biographical Details Career / Employment Other Philanthropic Activity Wealth Indicators Connection / Link to your Organization Other Research Rating & Gift Rating Age, Family, Contact Information, other relevant information Highlights focus on current & recent employment, corporate directorships Donations, personal/family foundation, volunteer activity Rating in Canadian Business, Salary & Compensation, known stock holdings, private company ownership, real estate, inheritance, other notable indicators of wealth, i.e. art collection, private school tuition Summary of Giving, relationship connections, current assignments, summary of recent activities Honours & Awards, Education, details on the research itself (when compiled, by who, for who, sources) Estimated capacity, affinity, and likelihood

36 Favourite Resources: Individuals Canadian Business Resource - by executive (some free and by subscription) CharityCan (fee) Canadian Who s Who*, Donations to Other Orgs, Political Donors, Corporate Canada Directors, ZoomInfo, Public Sector Salaries, Charity Directors, Profiles, Relationship Mapping, ProspectPRIME iwave PRO Prospect Research Online (fee) ZOOMInfo, D&B, Donations to Other Orgs, Real Estate, Wealth Ratings, Political Giving, Foundations, Matching Gifts, SEC Filings, PROScore and PROScreen Alumni directories (some free to alumni, or in libraries, online & print) Obits - for family connections (free) Financial Post Directory of Directors* (some free and by subscription) Who s Who in Canadian Business (defunct 2005) Print & CD* Top 100 s (some free and by magazine subscription) Realtor.ca / MLS & ZooCasa - for real estate information (free) SEDAR (online) holdings/info for each public company (free) SEDI (online) share holdings in public companies (free) EDGAR (online) - US Securities (free) Charity Village News Newsbytes (free) PUBLIC or university libraries (free) * = older directories are good for retired people Warning! For all resources check if they are auto-generated, when last updated, and double-check family connections.

37 Canadian Who s Who* *also available in CharityCAN

38 Realtor.ca

39 iwave PRO: US Real Estate

40 SEDAR: Executive Compensation

41 CharityCAN: Executive Compensation

42 Public Salary Disclosure (above $100K) Only Ontario has the salaries available in 1 location: BC Government of Ontario site The Sunshine List (new searchable site). BC (via Vancouver Sun $75,000+): Quebec & Nova Scotia through multiple sites through organizations Manitoba through multiple sites MB: Public Sector Compensation (Government) MB: Hydro MB: Winnipeg Regional Health Authority MB: City of Winnipeg

43 People Resources influence their peers! Social Media: not just for the young at heart, or those light in the wallet! As of the 3 rd quarter of 2017 Facebook had 2.07 billion monthly active users Twitter, 330 million monthly active users LinkedIn, 467 million members Instagram, 800 million monthly active users Source: Statistica.com

44 Is Heather Reisman on your prospect list? then shouldn t you be following her on Twitter?

45 Other Sources Online news, media scans, RSS Feeds Reader (e.g. Feedly.com push) Regional Newspapers & Magazines National Newspapers & Magazines That s my Globe & Mail prospect! National Post & Financial Post Canadian Business Canadian Jewish News Canadian Immigrant Magazine Regional Directories Public (& university) libraries TSX & Dow Jones (what s trending) Chronicle of Philanthropy (US online) Canada411 (online) Reverse Look-Up Google News alerts, Street View StatsCAN reports & tables And many more

46 What activity is expected of your fundraisers? This relates directly to research activity, proposal writing and stewardship needs

47 Pipeline Metrics how many prospects do you need?

48 Calculating Wealth Wealth indicators help to determine the right ask amount. We use the word indicator because this is based on small amounts of information. This does not provide a complete financial picture of a prospect. The sources to use include: Prospect review: meeting with staff and volunteers. Peers would understand the circumstances of their situation therefore have a good idea how much they can give Donation history: to your organization and other organizations. Wealth lists: e.g.) Canadian Business Rich 100 Articles: such as those detailing a sale of a private business, etc. Information circulars: provide information of directors and top executives of public companies Real estate holdings estimates Salary estimates

49 Common Formulas Total Philanthropic Capacity (TPC) is an estimate of the amount an individual can give to all charities over 5 years. You know The Estimate / Rule of Thumb is.. Sample Calculation Net Worth Total Philanthropic Capacity is 5% of an individual s Net Worth. Annual Income Primary Real Estate Holdings (i.e. value of home) Annual Income (salary + bonus) represents 10% of Net Worth. Real estate holdings represent 20% to 25% of an individual s Net Worth Net worth of $10 million X 5% = $500,000 TPC Annual Income of $300,000 / 10% X 5% = $150,000 TPC *works better for higher income prospects Real Estate of $3.5 million / 20% X 5% = $875,000 $3.5 million / 25% X 5% = $700,000 TPC range is $700,000 - $875,000 Stock Holdings Stock holdings represent 30% to 35% of an individual s Net Worth Stock holdings of $3 million / 30% x 5% = $500,000 $3 million / 35% X 5% = $430,000 TPC range is $430,000 to $500,000

50 Estimating Giving Capacity Other formulas exist including: By Private Company sales, it is calculated that: TPC = [Company value or annual sales] X ownership percentage X 5% Traditionally, total philanthropic capacity was considered known assets times 5% and this has been the basis for many a campaign formula However, fundraisers know that philanthropic capacity increases with age and studies have supported that, therefore, an adaptation of the 5% formula for giving rates is shown as: Age 21-39: 1% Age 40-49: 2% Age 50-59: 3% Age 60-69: 4% Age 70+: 5% Of course we also know that someone s giving rate also fluctuates with an affinity to the organization and often increases during a campaign or program which may resonate with the donor

51 You can create tables for TPC calculations Estimating Giving Capacity (TPC) Formulas Prospect Name Prospect ID Based on 5% Based on 5% Published Net Worth $10,000,000 Real Estate Value Estimate $3,500,000 Capacity (TPC) Based on 5% of Known Net Worth $500,000 Estimated Net Worth Based on 25% $14,000,000 Estimated Net Worth Based on 20% $17,500,000 Annual Salary $250,000 Capacity (TPC) Based on 25% $700,000 Bonus $50,000 Capacity (TPC) Based on 20% $875,000 Total Compensation $300,000 Net Worth Based on Salary as 10% $3,000,000 Private Company Sales $25,000,000 Capacity (TPC) Estimate Based on Salary $150,000 Ownership Percentage 30% Capacity (TPC) Based on % Ownership $375,000 Stock Holdings Value Estimate $4,500,000 Estimated Net Worth Based on 35% $12,857,143 Estimated Annual Giving Range Estimated Net Worth Based on 30% $15,000,000 Estimated Major Giving Range Capacity (TPC) Based on 35% $642,857 Capacity (TPC) Based on 30% $750,000

52 Setting up Capacity & Affinity Ratings Capacity estimates what a prospect is able to give (think predictive & external) Researchers may look at what donations, if any, a prospect has given to other organizations or foundations. An individual s salary may be found on SEDAR, if he or she is a top executive of a public company. Corporations often have written commitments to community support on their web pages or in their annual reports. Foundations usually list their totals assets and also their gift ranges. From all of these sources, and more, a researcher may be able to estimate how much a prospect is able to give to any organization.

53 Setting up Capacity & Affinity Ratings Affinity rates how likely a prospect is likely to give to your organization based on a closeness or connection with your organization. In health-care organizations, a grateful patient may have a high affinity to your institution. Unfortunately, or fortunately, because of the privacy laws in Canada, unless a grateful patient comes forward to declare his strong affinity, we may never know it. But, there are other ways to see affinity: Past donations to your own organizations or others like it Volunteer activity in your organization or others like it Common business associations with your organizations, and so on.

54 Setting up Capacity & Affinity Ratings For capacity, researchers & solicitors can set up potential gift ranges, such as: Under $1,000 $1,000 4,999 $5,000 9,999 $10,000 24,999 $25,000 49,999 $50,000 99,999 $100, ,999 $500, ,999 $1 million or more Similarly, affinity ratings can be created, such as: 0 Unknown 1 Low 2 Moderate 3 Excellent

55 Capacity vs Affinity High Capacity Low Affinity Move High Capacity High Affinity Major Giving Potential Needs Cultivation Major Giving Potential High Priority MG Prospects Giving Potential Low Affinity Low Don t Waste Resources Major Giving Potential Low Affinity High Good Planned Giving Prospects Low Capacity Low Affinity Low Capacity High Affinity

56 Notes on Capacity & Affinity Ratings In addition to rating prospects for capacity (wealth) and affinity (to your organization), you can also add in ratings such as: Linkages (to your organization) Likelihood (e.g., is this a good time?) Inclination (very subjective based on solicitation) Capacity and Affinity ratings are always dynamic and change throughout solicitation. Often prospects are given a general capacity rating (in the ratings area of the database) and then a specific capacity rating for each particular ask.

57 Linkages Becoming more and more important in solicitation Peer to peer screening is used regularly with senior volunteers Both iwave PRO (RelSci) and CharityCAN (Relationship Paths) have added a linkage feature to their tool boxes Universities subscribe to the highest subscription of LinkedIn to work with linkages Imagine Canada Grant Connect (higher subscription) has added (your) LinkedIn connections to their records Linkages are now expected for full prospect research

58 iwave PRO RelSci

59 CharityCAN Relationship Paths

60 Grant Connect - LinkedIn

61 What should be tracked in the database? Everything!

62 As review: where are we going with this? A charity deserves targeted, relevant, well-timed asks Research is necessary for a development team to meet their goals with well-matched prospects Researchers work strategically with development teams to provide the right prospects for the right programs, at the right gift amount, at the right time Use your research resources to find: individuals, corporations & foundations that match a charity s mission & financial goal Manage the database to be able to easily add your prospects, rate them, and extract them according to fundraising needs Part of a researcher s worth is steering the fund development team AWAY from those prospects who have neither the capacity NOR the affinity to give to your organization!

63 Business Card Draw Time! Available at: -research-in-canada Apra-Canada & student discount price: $65 Non Apra-Canada member price: $85

64 Questions? Tracey Church, MLIS