Domain 1: Current & Prospective Donor Research

Question 1

Prospect Research is:

Answer 1

-Ongoing: Donor info is constantly changing, maintain accurate and up-to-date records.
-Selective: Donors and their interests should be segmented for efficiency and relevance.
-Confidential: Protect donor data and confidentiality.
Accurate: Info should be attributable and verified.
-Personal: Percentage of info that is supplied and verified by the donor themselves should increase over time.
-Relevant: Research should coincide with funding needs.

Question 2

Contact reports typically include:

Answer 2

-Date
-Place and reason for last contact
-Result of last contact
-Next steps and assigning tasks

Question 3

Questions to ask when profiling a donor:

Answer 3

When profiling a donor, prioritize current information, assess wealth indicators, understand giving capacity, identify linkage to your organization, and determine the best person for relationship cultivation.

Question 4

Donor rating best practices:

Answer 4

-Donor rating is part of the ongoing evaluation of your donor base.
-Donor rating is typically done by staff and separately by volunteers in order to validate the findings.
-The donor rating process is not focused on what a donor may give or will give, rather on what a donor can give.
-During the volunteer rating process, staff may be present to record the findings, but should not be involved in the discussion.
-These can be conducted in a variety of ways, but the most common are:
-Group discussions, group/ individual ratings, and individual evaluations.
-Evaluations should be done by knowledgeable individuals and not rely on second-hand information.

Question 5

When a fundraising professional is ready to solicit a major gift, the most important factor to be considered is the prospective donor’s:

Answer 5

Giving Record

Question 6

A prospective donor’s net worth is determined by deduction all expenses and debts from the value of:

Answer 6

All holdings

Question 7

The most favourable prospects for an organization for annual gift support are:

Answer 7

Individuals

Question 8

When evaluating personalized information from a survey, what can a nonprofit professional most reasonably expect to determine:

Answer 8

????

Question 9

The most successful method of foundation fundraising is to submit:

Answer 9

A request to foundations whose interests and financial data identify them as prospective donors.

Question 10

The most effective method for qualifying major gift prospects is to:

Answer 10

Invite a select group to a review meeting to discuss people they know.

Question 11

The most important attribute of a promising prospective donor is:

Answer 11

Interest and involvement in the donor-seeking organization.

Question 12

The prospective donor is the head of a large publicly held corporation. One indication of the prospective donor’s ability to make a gift might be found in the corporation’s:

Answer 12

Proxy statement

Question 13

When a fundraising professional is ready to solicit a major gift, the most important factor to be considered is the prospective donor’s:

Answer 13

Giving record

Question 14

Providing a tax deduction is:

Answer 14

NOT a role of philanthropy

Question 15

Two definitions of market research:

Answer 15

i. Formal definition = The process of gathering, recording, and analyzing information pertaining to the marketing of goods and services.
ii. Simpler definition = The process of finding the wants and needs of current and potential markets.

Question 16

Three key areas supported by research:

Answer 16

i. Ensures appropriate resource allocation.
ii. Helps build staff and volunteer confidence.
iii. Adds an element of joy and discovery to prospecting.

Question 17

Five key sources of information:

Answer 17

i. Personal contacts
ii. Participation records
iii. Public information
iv. Peers/advisors/experts
v. Publications/reports

Question 18

• Creating a useful prospect profile

Answer 18

i. Complete contact info.
ii. Biographical data.
iii. Business history (for corporations and foundations).
iv. Giving history to organization.
v. Cultivation/solicitation contact records.
vi. Publicly available giving information from other organizations.
vii. Sources of information checked for the prospect, and most recent review dates.
viii. General and specific interests.

Question 19

The most effective organizations have: an ongoing system of research that informs planning up front AND supports modifying and updating strategies as conditions change

Answer 19

An ongoing system of research that informs planning up front AND supports modifying and updating strategies as conditions change.

Question 20

Software tools to aid research and tracking:

Answer 20

• Donor data entry
• Gift processing
• Donor communications and acknowledgement
• Commitment and membership tracking
• Reporting

Question 21

Standard Donor Database Reports:

Answer 21

i. Comparison Report: Compare giving totals and donor population for the current and previous years.
ii. Pledge Report: Analysis of pledge amounts, completion, and past due status.
iii. Productivity Report: An analysis of month-to-month giving results, year-to-year giving results, and previous three fiscal year giving comparison.
iv. Giving Analysis: Listing of the number of donors and total giving at all giving levels that the organization tracks during the past year.
v. Multi-Year Giving Trends: Long-term analysis of donor population and giving amounts.

Question 22

Proactive Research:

Answer 22

**i. Geodemographic Segmentation: Comparing the donors in your database against the characteristics of their region (neighbors, ZIP/postal code, town, county, etc.) and consumer behavior models to assess their lifestyles, giving trends, and interests.
ii. Asset Screening: Comparing your donor database to publicly reported stock holdings, property ownership, and company ownership (private & public).
iii. Financial Rating: A staff/organization driven rating of a donor’s potential to give and the probable gift size.
iv. Peer Screening: A donor rating process facilitated by staff but conducted by volunteers (board members) to rate their peer’s potential and probability to give. During the process volunteers also discuss what relevant information they have on the donors in question.
v. Digital Sources: Online sources such as Linkedin and other social media sites can be used to gather information about donors, their philanthropic interests, and their linkages to members of your board, leadership, and staff.

Question 23

Reactive Research:

Answer 23

Linkage: The extent to which the prospect is connected to your organization.
Ability: The prospect’s capacity to give now and in the future.
Interest: The level to which your organization’s mission aligns with the philanthropic goals of the prospect.

Question 24

Accurate donor records are critical to development efforts:

Answer 24

Especially when it comes to acknowledging gifts and tracking giving patterns.

Question 25

Donor information to track:

Answer 25

i. Historical: info about level of support and kinds of campaigns supported.
ii. Planning: how to contact the donor (phone, email, etc.); appropriate info about the donor that will aid in strategy planning.
iii. Accounting: for the organization, governing agencies, and the donor.

Question 26

Ensure effective record storage:

Answer 26

i. Accurate and timely updates.
ii. Security and confidentiality of donor files, including limited access to files.
iii. Discussion of donors and their information occurs only withing the organization.
iv. Ethical considerations: what types of data should be collected and why, including info that could be considered “invasive” or anything we wouldn’t feel comfortable having the donor see.

Question 27

Reasons for acknowledgement:

Answer 27

i. Donors need to feel appreciated; underlying that appreciation has to be a solid system for tracking and acknowledging gifts.
ii. There are two additional and essential reasons to include this critical component in planning and execution:
Ensure the donor’s intentions for use of funds are clear.
Through the research and solicitation process, find out enough about the prospect/donor to determine how to connect with them.

Question 28

Key tracking and software capabilities to consider:

Answer 28

i. Ability to track restricted and unrestricted funds.
ii. Interfacing with donor files to record the date and amount of gifts.
iii. Recognition of different giving levels to ensure donors are recognized appropriately.
iv. Capability to quickly access donor history and status.

Question 29

Common Research Pitfalls:

Answer 29

i. Putting off research until you have time (there’s never time for it!).
ii. Expecting interns or inexperienced volunteers to know what information to gather.
iii. Sending out volunteer cultivators/solicitors with incorrect prospect information.
iv. Trying to find out everything about everybody (figure out what you need!).

Question 30

Rosso’s Model Explained:

Answer 30

i. At the centre: primary stakeholders:
 Major donors, Board management, staff
ii. Radiating out from the centre are lesser stakeholders:
 General donors, volunteers, employees, clients, members
iii. Beyond the lesser stakeholders are:
 Former participants
iv. In the outer circle are people with:
 People with similar interests
v. …and beyond them, the total reachable universe.

Question 31

The Wheel of Roles and Responsibilities (roles and responsibilities that influence giving):

Answer 31

The roles and responsibilities include family, career, religion, education, recreation, politics, and social life.

Question 32

The most likely donors are identified by three characteristics: Linkage, Ability & Interest – LA

Answer 32

iii. Linkage is contact. Often such contact is person to person, with peers of current donors. The personal contact, the linkage, makes possible a personal visit to the potential donor for the organization to make its case for a gift. Linkage can also be geographical, emotional, or professional. Think of it as networking. Linkage is determining who know whom and who can arrange and carry out the visits necessary for successful solicitations.
iv. Ability is a gauge of the gift source’s financial capacity to give a gift at the level the non-profit deems appropriate.
v. Interest in the non-profit and its work is essential. Even the most financially able gift sources will not make gifts to an organization in which they have no interest.** Interest follows information and precedes involvement. **

Question 33

Prospecting

Answer 33

The systemic acquisition and recording of data that forms the basis for establishing, maintaining, and expanding the long-term gift relationship, with the ultimate goal of converting donors into major donors.

Question 34

The Constituency

Answer 34

A set of interested persons serving the cause with passion. A synonym for constituency is interested parties.

Question 35

Seven Points of Constituency Development:

Answer 35

1. Identify fundable projects – part of the organizations strategic plan and objectives.
2. Match prospects to projects (consider using Rosso’s model).
3. Conduct thorough, realistic research – based on the organization’s needs and resources.
4. Conduct cumulative, ongoing research – keep prospect information current.
5. Conduct organized research – to enable development and tracking of cultivation and solicitation strategies.
6. Conduct research ethically and confidentially – following ethical standards to manage information.
7. Conduct research with the involvement of prospects – Involvement is key to prospect willingness to provide financial leadership and support; research provides clues to the type of cultivation and volunteer opportunities most likely to get the prospect involved.

Question 36

Prospect vs. Qualified Prospect – What’s the Difference?

Answer 36

• Prospect (suspect) = A possible source of support whose philanthropic interests appear to be a match with your organization, whose ability to give, interests, and linkages have not been qualified via research.
• Qualified Prospect = A prospect who continues to qualify as a logical source of support for the organization throughout a research, evaluation, and cultivation process.

Question 37

Profiles support:

Answer 37

The development of cultivation strategies. They can allow the org to:
i. Plan communications and special events targeted at the particular interests of the prospects/donors.
ii. Design involvement opportunities to match the talents of your best prospects/donors.
iii. Determine the highest realistic amount for the “ask” by reviewing financial data and giving patterns.
iv. Identifying the prospect’s/donor’s affiliations before choosing the appropriate solicitor.

Question 38

Researching Foundation Prospects:

Answer 38

For Foundations, the list of inquiries to consider includes:
i. Does the foundation give support to similar agencies?
ii. Is there clearly stated support for the type of project and/or contribution that is being sought?
iii. Is funding provided in the organization’s geographic area?
iv. Is the amount of the request compatible with the foundation’s prior giving history to similar organizations?

Question 39

Researching Corporate Prospects:

Answer 39

For Corporations, the questions are similar with a clear understanding that corporate “giving” is in terms of enlightened self-interest for the corporation and its stakeholders.
i. Are any of the organization’s board members affiliated with the company?
ii. Do company employees and dependents use any of the organization’s services?
iii. Are any current donors or volunteers employed by the company, or do they have other affiliations with it?
iv. Does the organization purchase any of the company’s products?
v. Is there a match between corporate interests and the products and/or services offered by the organization?
vi. Is there a decision-making structure, and is it local or at the corporate office?
vii. Is there an alignment between the organization’s needs and stated corporate priorities, and between community service benefits and the corporation’s public image?

Question 40

The first step in securing a gift from a company is to understand the vehicle by which they make donations. Types of Corporate (or small company) Giving:

Answer 40

Foundations
Matching Gifts
Research & Development
Marketing & Advertising
Discretionary Budget

Question 41

Questions to Ask When Researching a Company:

Answer 41

o What is the financial health of the company?
o What are their products and services and how do they align with your organization?
o What existing relationships or linkages can be used to increase the likelihood of a gift?
o Has the company supported you in the past?
o What other organizations does the company support?
o What compelling aspect of your organization or mission would make this company likely to support you now or in the future?

Question 42

Steps in Developing a Cultivation Plan:

Answer 42

* Identify constituent groups.
* Undertake prospect research.
* Determine connection, capacity, and capability.
* Determine the best relationship to make the connection.
* Outline a moves management plan.

Question 43

Why Rate Prospects:

Answer 43

The primary purpose of rating prospective donors is to determine their potential to give to the organization.

Question 44

Prospect list needs to be segmented according to the likelihood prospects will give to different campaigns:

Answer 44

i. First-time donors & donors the org seeks to upgrade = Annual giving – an essential first stage preceding all others.
ii. New volunteers and donors – lays the groundwork for involvement and sets the stage for increased giving and involvement = Capital/major campaigns – limited “special needs” fundraising.
iii. Well-established prospects interested in long-term gifts = Planned Giving – outright or deferred gifts made as part of an estate plan or bequest.

Question 45

Donor rating best practices:

Answer 45

o Donor rating is part of the ongoing evaluation of your donor base.
o Donor rating is typically done by staff and separately by volunteers in order to validate the findings.
o The donor rating process is not focused on what a donor may give or will give, rather on what a donor can give.
o During the volunteer rating process, staff may be present to record the findings, but should not be involved in the discussion.
o These can be conducted in a variety of ways, but the most common are:
 Group discussions, group/ individual ratings, and individual evaluations.
 Evaluations should be done by knowledgeable individuals and not rely on second-hand information.

Question 46

Questions to ask when profiling a donor:

Answer 46

o Do we have the most recent & up to date information?
o Are there wealth indicators or financial assessments available on the donor?
o How does the donor/prospect use their wealth?
o Based on the current known information, what is the individual’s giving capacity?
o What is the prospect’s linkage & interest to your organization?
o Who is the best person or persons to establish and cultivate a relationship?

Question 47

Major characteristics for rating prospects:

Answer 47

i. Level of interest in the organization
ii. Your relationship to prospect
iii. Identify for each prospect the “best guess” range regarding the prospect’s maximum giving capacity (based solely on means) over the life of the campaign.
iv. Results should include each prospect’s level of interest in the organization and giving capacity. The information is determined from all the research available, including giving history and personal knowledge of the prospect.
The identified characteristics and ratings are reviewed by board members or other volunteers, and then prospects are prioritized for cultivation and solicitation activities.

Question 48

The highest priority is given to prospects with:

Answer 48

The greatest capacity AND greatest interest in the organization.

Question 49

When it comes to research, the focus of the organization needs to be on:

Answer 49

The process of matching donor interests and needs with the organization’s needs.

Question 50

Express organizational missions in ways that invite donors to participate in programs while meeting their needs, such as:

Answer 50

i. Desire for recognition
ii. Sense of belonging
iii. Making a difference

Question 51

Development professionals must find ways to balance…

Answer 51

The needs of community with the interests and needs of donors and the needs of the organization.

Question 52

Research provides the bedrock on which fundraising campaigns are built, so…

Answer 52

Its results will support and inform everything you do.

Question 53

Prospect research is:

Answer 53

• Ongoing: Donor information is constantly changing, and every effort should be made to maintain accurate up-to-date records.
• Selective: Donors and their interests should be segmented for efficiency and relevance.
• Confidential: Every effort should be made to protect donor data and confidentiality.
• Accurate: Information should be attributable and verified.
• Personal: The percentage of information that is supplied by and verified by the donor themselves should increase over time.
• Relevant: Research should coincide with funding needs.

Question 54

Prospect Data List. The following items are typically found in a donor profile:

Answer 54

• Name, nickname
• Salutation
• Home address
• Business name. job title, address
• Home phone
• Work phone
• Date & place of birth
• Education
• Job history
• Marital status
• Spouse name/business
• Number, name, ages of children
• Connections to the organization
• Connections to other organizations
• Board service & volunteer history
• Honors/achievements/awards
• Political affiliations
• Religious affiliations
• Personal interests
• Net worth
• Net salary
• Stock holdings
• Directorships
• Gift records
• Names of business associates (attorney/financial planner/admin assistant)
• Relevant friends

Question 55

Contact reports typically include:

Answer 55

• Date
• Place & reason for last contact
• Result of last contact
• Next steps and assigning tasks

Question 56

Questions To Ask When Profiling a Donor

Answer 56

• Do we have the most recent & up to date information?
• Are there wealth indicators or financial assessments available on the donor?
• How does the donor/prospect use their wealth?
• Based on the current known information, what is the individual’s giving capacity?
• What is the prospect’s linkage & interest to your organization?
• Who is the best person or persons to establish and cultivate a relationship?

Question 57

Donor Rating Best Practices:

Answer 57

• Donor rating is part of the ongoing evaluation of your donor base.
• Donor rating is typically done by staff and separately by volunteers in order to validate the findings.
• The donor rating process is not focused on what a donor may give or will give, rather on what a donor can give.
• During the volunteer rating process, staff may be present to record the findings, but should not be involved in the discussion.
• These can be conducted in a variety of ways, but the most common are:
  o Group discussions, group/individual ratings, and individual evaluations.
  o Evaluations should be done by knowledgeable individuals and not rely on second-hand information.

Question 58

Standard Donor Database Reports

Answer 58

• Comparison Report: Compare giving totals and donor population for the current and previous years.
• Pledge Report: Analysis of pledge amounts, completion, and past due status.
• Productivity Report: An analysis of month-to-month giving results, year-to-year giving results, and previous three fiscal year giving comparison.
• Giving Analysis: Listing of the number of donors and total giving at all giving levels that the organization tracks during the past year.
• Multi-Year Giving Trends: Long-term analysis of donor population and giving amounts.

Question 59

Proactive Research:

Answer 59

• Geodemographic Segmentation: Comparing the donors in your database against the characteristics of their region (neighbors, ZIP/postal code, town, county, etc.) and consumer behavior models to assess their lifestyles, giving trends, and interests.
• Asset Screening: Comparing your donor database to publicly reported stock holdings, property ownership, and company ownership (private & public).
• Financial Rating: A staff/organization driven rating of a donor’s potential to give and the probable gift size.
• Peer Screening: A donor rating process facilitated by staff but conducted by volunteers (board members) to rate their peer’s potential and probability to give. During the process volunteers also discuss what relevant information they have on the donors in question.
• Digital Sources: Online sources such as Linkedin and other social media sites can be used to gather information about donors, their philanthropic interests, and their linkages to members of your board, leadership, and staff.

Question 60

Reactive Research:

Answer 60

• Linkage: The extent to which the prospect is connected to your organization.
• Ability: The prospect’s capacity to give now and in the future.
• Interest: The level to which your organization’s mission aligns with the philanthropic goals of the prospect.

Question 61

Corporate Giving Research

Answer 61

The first step in securing a gift from a company is to understand the vehicle by which they make donations.

Question 62

Types of Corporate (or small company) Giving

Answer 62

• Foundations
• Matching Gifts
• Research & Development
• Marketing & Advertising
• Discretionary Budget

Question 63

Questions to Ask When Researching a Company

Answer 63

• What is the financial health of the company?
• What are their products and services and how do they align with your organization?
• What existing relationships or linkages can be used to increase the likelihood of a gift?
• Has the company supported you in the past?
• What other organizations does the company support?
• What compelling aspect of your organization or mission would make this company likely to support you now or in the future?