Wealth Engine Advancement Partners Summer Seminar 2013

Making Major Gifts Major
Letting Data Drive
Vicki Claussen
August 1,2013

wealthengine.com | Page 2
Agenda
Where are you now?
– Fund Raising Activity
– Donor Management Software
– Staff
Making the Case for Data
Using Data to
– Identify Major Gift Prospects
– Optimize Major Gift Portfolios
– Define Ask Amounts
Using Data Screening to Get to the Capacity Factor

Prospect Identification Metrics
3
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Number of Prospects Time Invested
Insights:
• Peer referral yields
relatively few
prospects for time
invested
• Wealth Screening
yields a high
number of
prospects for time
invested

Capacity and likelihood to
give data identify the best
major gift prospects…

Use Data to Optimize Portfolios by Finding
the Best Prospects
Based on Capacity and
Likelihood to Give (or
Affinity), an entire
constituency can be
segmented for application
of distinct strategies:
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
Capacity
Likelihood to Give

Use Data to Optimize Portfolios by Finding
the Best Prospects
2 2 47
41 30 525
3,626 2,397 8,328
Capacity
Likelihood to Give
Based on Capacity and
Likelihood to Give (or
Affinity), an entire
constituency can be
segmented for application
of distinct strategies:
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

Data Appends (Wealth, Demographic and Lifestyle
Attributes) Allow Evaluation of All Constituents
Likelihood to Give
Capacity 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 2,066
Up to $15K 127 278 67 216 146 834
Unrated 525 484 266 466 287 2,028
Total 976 2,693 2,429 6,010 2,890 14,998

Likelihood to Give
$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 2,066
Up to $15K 127 278 67 216 146 834
Unrated 525 484 266 466 287 2,028
Total 976 2,693 2,429 6,010 2,890 14,998
Quickly Identify the Best Prospects for Major
Gift Cultivation
28 shaded green have high
capacity, high likelihood to give
3 2
23

Likelihood to Give
$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 2,066
Up to $15K 127 278 67 216 146 834
Unrated 525 484 266 466 287 2,028
Total 976 2,693 2,429 6,010 2,890 14,998
Identify Second Tier Prospects for High-Touch
Leadership Giving Program
19
50 39
301 135
544 shaded in blue are also
good major gift candidates

Portfolios are often selected based
on past giving history…

Affinity Score
$5M+ $7,983,010 $7,983,010
$1M up to $5M $10,481,105 $10,481,105
$500K up to $1M $4,120,173 $4,120,173
$250K up to $500K $370,479 $341,000 $440,241 $6,786,036 $7,937,755
$100K up to $250K $601,489 $332,565 $1,545,482 $6,350,829 $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 $272,430
Up to $15K $40,226 $10,961 $36,692 $87,880
Unrated $27,383 $15,889 $11,409 $9,571 $64,252
Total $161,868 $1,513,087 $1,143,353 $3,378,469 $40,155,653 $46,352,430
The Current Portfolios Under Management
have a Total Value of $46MM
243 prospects are currently under management
(assigned to a gift officer or volunteer)
These were selected based on total giving
Values in the cells are the sum of the capacity
of each individual who falls within the range
$46,352,430
The total capacity of the prospects under
management is the total number in the lower
right-hand corner ($46MM)

Potential soars when portfolios
are selected based on capacity
and likelihood to give ratings…

243 Optimal Prospects @$286MM
(Selected Based on Capacity and Likelihood Ratings)
Affinity Score
$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 $25K
Up to $15K
Unrated
Total 159,175,725 126,525,788 285,701,513
Selecting the 243 optimal prospects yields $286MM
under management
This is 6 times the capacity under management
89,015,427 19,223,723 108,239,150
35,938,650 48,700,146 84,638,796
34,221,647 27,739,460 61,961,108
30,862,459 30,862,459
285,701,513

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, spend your time with high-likelihood,
high-capacity prospects not under management by an individual
staff or volunteer should be assigned
Most of the time when you are cultivating lower capacity people
it’s because of the likelihood scores. Goal is to move them to
close or decrease your time with them
The second tier of prospects with high capacity and likelihood
scores should be ―fast-tracked‖ in high-touch annual
giving/cultivation program

Ask amounts are often based on
instinct, ―gut‖ feelings, or the
comfort level of the solicitor…

Data including Capacity Estimates Allow
Analysis of Major Gift Solicitations
Prospect
Manager or
Major Gift
Officer
Average
Capacity of
Prospects
Average Ask
Amount
% of
Capacity
Asked
Average
Gift Amount
% of Ask
Received
% of
Capacity
Received
Jocelyn $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%

This Organization Receives on Average
Only 10% of Potential Gift Value
Prospect
Manager
Average
Capacity of
Prospects
Average Ask
Amount
% of
Capacity
Asked
Average
Gift Amount
% of Ask
Received
% of
Capacity
Received
Jocelyn $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%
Analysis shows gifts received are valued
at approximately 10% of capacity
11%
10%
10%

Gift Officers May be Defaulting to the
Minimum Major Gift Level
Prospect
Manager
Average
Capacity of
Prospects
Average Ask
Amount
% of
Capacity
Asked
Average
Gift Amount
% of Ask
Received
% of
Capacity
Received
Jocelyn $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%
With a minimum major gift amount of
$25K, it looks like prospect managers may
be satisfied asking for gifts of $25K
$24,286
$24,167
$24,226

With Gifts Closing at Just 56% of Asks, There
May be Money Left on the Table
Prospect
Manager
Average
Capacity of
Prospects
Average Ask
Amount
% of
Capacity
Asked
Average
Gift Amount
% of Ask
Received
% of
Capacity
Received
Jocelyn $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%
On average, they are
receiving gifts of $10K-$15K
$10,242
$16,667
$13,455

If 20 Gifts are Closed with Gifts Averaging 10% of
Capacity, the Organization will Realize $263,324
Prospect
Manager
Average
Capacity of
Prospects
Average Ask
Amount
% of
Capacity
Asked
Average
Gift Amount
% of Ask
Received
% of
Capacity
Received
Jocelyn $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%
$131,662 x 10% x 20 Gifts
$131,662 10%
$131,662 x 10% x 20 Gifts =
$263,324

If ask amounts are adjusted to
reflect capacity on an individual
basis, fundraising potential
increases…

Prospect
Manager
Average
Capacity of
Prospects
Average Ask
Amount
% of
Capacity
Asked
Average
Gift Amount
% of Ask
Received
% of
Capacity
Received
Jocelyn $95,617 $24,286 25% $10,242 42% 11%
Sarah $167,708 $41,927 25% $28,929 69% 17%
Total $131,662 $32,915 25% $19,585 59% 15%
Adjusting Average Ask Amount Up to 25% of
Capacity on Average Leads to Higher Asks
Sarah’s asks are adjusted from
14% to 25% of capacity,
resulting in an average ask of
$41,927
$41,927 25%

Prospect
Manager
Average
Capacity of
Prospects
Average Ask
Amount
% of
Capacity
Asked
Average
Gift Amount
% of Ask
Received
% of
Capacity
Received
Jocelyn $95,617 $24,286 25% $10,242 42% 11%
Sarah $167,708 $41,927 25% $28,929 69% 17%
Total $131,662 $32,915 25% $19,585 59% 15%
Higher Asks Lead to Higher Closed Gift
Amounts
This leads to a 17% of capacity
average gift for Sarah and 15%
overall 15%
17%

Prospect
Manager
Average
Capacity of
Prospects
Average Ask
Amount
% of
Capacity
Asked
Average
Gift Amount
% of Ask
Received
% of
Capacity
Received
Jocelyn $95,617 $24,286 25% $10,242 42% 11%
Sarah $167,708 $41,927 25% $28,929 69% 17%
Total $131,662 $32,915 25% $19,585 59% 15%
If 20 Gifts are Closed with Gifts Averaging 15% of
Capacity, the Organization will Realize $394,986
15%$131,662
$131,662 x 15% x 20 Gifts
$131,662 x 15% x 20 Gifts =
$394,986

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 should be evaluated on an individual basis
– What is the constituents capacity
– What is their Likelihood
• Are we one of this prospect’s 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?
Data can give you the confidence to ask for the right amount
Strategy Grows Out of Analysis

Realize Untapped Fundraising Potential
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 analytics

WealthEngine
To Get to Capacity
Helping You Reach the Right People for the
Right Purpose

So Your Mother Says Do a Screening
Have files in electronic format
How many records
– Alumnni: where do you start
– Parents
– Grandparents
– Business, community support
– Foundations
– Events
When
Before campaign
Before cultivation opportunities
Before the ask
With new gifts

Comprehensive Data from 30+ Sources
 Acxiom Household
Profiles
 Dun & Bradstreet
 Hoovers Business
Information
 Marquis Who’s Who
 Reuter’s Market Guide
 Airmen Certificate –
Pilot license
 Physicians Profiles –
AMA
 SSA Master Death
Index
 Do Not Mail Registry
Personal
Demographics
Business &
Organizations
Asset & Income
Philanthropic /
Giving
 D&B – Business
Profiles
 D&B – State Business
Registrations
 GuideStar Directors
 GuideStar Foundations
 Section 527 Political
Organizations
 Foundation Trustees
 Acxiom Household
Profiles
 DataQuick Real Estate
 LexisNexis Real Estate
 Aircraft Registration –
FAA
 Boat Owners – Coast
Guard & State Reg’s
 IRS Pension Holders
 Reuter’s Market Guide
 SEC – Insider Stock
(WealthID)
 Federal Election
Contributions
 State Political
Donations
 Section 527
Organization
Donations
 Donations to tax
exempt
organizations(IRS
Section 501 (C)(3))
The WealthEngine Advantage—our unique data sources provide deeper
insight on business ownership, lifestyle and overall affluence.

Leveraging Big Data for Maximum Results
Age
Birth Month/Year
Nationality
Marital Status
Presence of Children
Education and
Graduation Dates
Credit Card User
Ethnicity
Religious Affiliation
Demographics &
Contact Info
Occupation and Bio
Company Name
Start Date
Employees
Public/Private
Company
Sales Volume
Physician, Specialty
and Hospital
Information
Professional Awards
Certifications
Civic Information
Memberships
Business &
Organizations
Net Worth Estimate
Liquidity
Total Assets
Household Income
Pension
Real Estate Value
Stock Transactions
and Holdings
144 Stock Sale
Intentions
Options
Charitable
Contributions
Investment Interests
Wealth &
Assets
Travel
Sports (i.e. golf, ski)
Spectator Sport
Interests
Arts & Culture
Hobbies
Leisure Activities
Political Affiliations
Private Foundations
Aircraft Ownership
Boat Ownership
Clubs
Automobiles owned
Lifestyle &
Interests
WealthEngine leverages data from 60+ sources for insight on
business ownership, lifestyle and overall affluence

Bringing Together Data
from Multiple Sources
Extracting Value from
Data and Appending
Information
Identifying Top Prospects
for Cultivation
Screening Process
Knowledge
of wealth data
Scores
Extract greater insight
from data
Profiles
Complete the value of
data & intelligence
Parse
1|0
Transform
Clean
Normalize
& Append
LN
D&B
SEC
FEC
Income
GS

Scoring at the Household Level
Prevents one household with a multi-
million dollar income from skewing the
average incomes of other households in the
tract
Asset behavior varies dramatically by age.
Zip+4 level averages age, diminishing the
impact of varying behavioral characteristics
Avoids classifying renters as homeowners
and subsequently inflating actual assets
Prevents Estimation Error from Zip+4 Asset Variability

Propensity to Give (P2G) Score
Quickly Defines Potential
30% - 35%
45% - 50%
10% - 15%
< 5%
5% - 10%
15% - 25%
25% - 35%
40% - 45%
25% - 30%
< 1%
P2G successfully predicts 80% of major donors so
you can spend less time validating data
P2G looks at:
the predictive value of data sources
the quality of match to those sources
the estimated giving capacity
75% - 85% of your
total giving typically
comes from donors
in the P2G-1 & P2G-2
scoring categories

Analytics are the Heart of Wealth Intelligence
WealthEngine scores provide indicators of wealth & affluence
Total
Assets
Net
Worth
Cash on
Hand
WealthEngine Estimates the difference
between total assets
and total debt for a
household
Estimates the total value
of all financial and non-
financial assets held by a
household, derived from
varying asset components
Estimates financial assets
that are readily
accessible (e.g.,
checking, savings, money
market accounts, etc.)

Use WealthEngine Scores
to Identify Your Targets
An analytical approach lets you:
Extract More Value
Analyze Data Faster
Fundraise More Cost Effectively
Enjoy Greater Flexibility
Make More Informed Decisions
Maximize ROI
WealthEngine scores bring unmatched clarity into who they are.
Use to segment and target donors for every fundraising campaign
 Propensity to Give (P2G™)
 Total Assets
 Net Worth
 Liquidity
 Estimated Annual Donations
 Gift Capacity Range
 Gift Capacity Rating
 Influence
 Planned Giving: (Bequest, Annuity
& Trust)
 Inclination: Affiliation
 RFM
Wealth Ratings & Scores

Major Findings from Test File
1078 Major donor prospects in the files. 403 highly
qualified by WealthEngine P2G score and estimated
giving capacity
Middle initial updated on 767 records
Age obtained by through Acxiom on 1251 (suggest age overlay
if planning planned giving or b-day cultivation activity.)
1,680 total gift amount less than $500
―Same‖ number of $500 gifts from P2G 1-3
Total number of all gifts is a good number to capture as
it indicates commitment

P2G Distribution Your Org/WE Comparison
0%
5%
10%
15%
20%
25%
30%
35%
40%
P2G 1 P2G 2 P2G 3 P2G 4 P2G 5
WE
HF

Total File Results WealthEngine Results
P2G
Score # REC EGC Ttl Gift Org Gift $500+
P2G 1 358 $374,882,024 $7,499,919 $153,676 39
P2G 2 720 $267,489,621 $742,805 $149,891 36
P2G 3 699 $34,788,530 $561,634 $199,224 41
P2G 4 76 $4,073,449 $8,315 $8,315 2
P2G 5 144 $21,933 $21,933 8
Total 1997 $681,233,624 $8,834,606 $533,039

Best Prospects by P2G/Gift History

The Results
Determine affinity criteria
– Engagement type and score
– Donations- RFM
– Affiliation
Assign someone to be in charge
– Of the passwords
– Of access to the information
– Of the results file
Find your best prospects and assign or engage immediately
Begin to develop your table

Individual’s
record in DMS
WealthConnect
Connect to FWO
Profile
Calculate
Ratings & Scores
Bring Ratings &
Key Datapoints
into the DMS
Integrate Wealth Intelligence
Integrating wealth data into
your DMS/CRM helps you:
Prepare for a meeting
Refine ask amounts
Make informed decisions
Automate marketing and
donor outreach activities
Save time and streamline
workflows

Translating the Results to Action
Look at P2G 1-0 with high match
– Property value of $1.2 MM
– SEC
– Dun & Bradstreet with individual value greater than
$800,000
– Guidestar match with EGC greater than $250,000
Look at P2G 1 others
– Property value of $1.2 or more
– More than 2 properties
– High FEC contributions with one of the above
Look at Total Net Worth greater than $2,500,000
Look at Large Individual Gifts

Search Page for Prospect Research

Wealth Scores Key to Prospect Research Detail on
the Subscription- Quickly ID good donors

Circle of Friends or Connections

Individual’s
record in DMS
WealthConnect
Connect to FWO
Profile
Calculate
Ratings & Scores
Bring Ratings &
Key Datapoints
into the DMS
Integrate Wealth Intelligence
Integrating wealth data into
your DMS/CRM helps you:
Prepare for a meeting
Refine ask amounts
Make informed decisions
Automate marketing and
donor outreach activities
Save time and streamline
workflows

Free Publications
Free Tools and Resources
Original Research
Free Webinars
Free Roundtables
Free Membership
Virtual Networking
Research
Education
Networking
Dedicated to research,
education, and networking for
fundraising and research
professionals
Join WealthEngine Institute: http://info.wealthengine.com/Institute.html
Contact WealthEngine Institute: Institute@WealthEngine.com

Contact Us
Sally Boucher
Director of Research
WealthEngine
sboucher@wealthengine.com
Tony Glowacki
President & CEO
WealthEngine
glowacki@wealthengine.com
800.933.4446
www.wealthengine.com
info@wealthengine.com

Wealth Engine Advancement Partners Summer Seminar 2013

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Wealth Engine Advancement Partners Summer Seminar 2013

Notes de l'éditeur