Using research effectively

PROSPECTING FOR GOLD LTD
Wealth Intelligence Services™

Using Research Effectively
March 2013

Kerry Rock

Wealth Intelligence Services

Today is about developing an effective prospect
research

•  Your fundraising strategy

•  Your fundraising case

•  How many prospects?

•  Your prospect research plan

•  Managing the pipeline

•  Resource requirements

How many wealthy people in the UK?


There are various estimates

Barclays Wealth Insights 2011 619,000

Capgemini World Wealth Report 2012* 441,000

MDRC High Net Worth Market 2010 575,000

Prospecting for Gold 2011 500,000

Coredata 2010 284,317

Why do so few fundraisers know the answer to this question?

* $1m


Your Fundraising Strategy

What type of fundraising do you focus on?

Gifts can come from anywhere...
*Direct marketing Community fundraising *Grants fundraising
Direct mail *Events Trusts & foundations
Internet fundraising Branches Lottery
Face-to-face Street collections Public sector

*Major donors Gaming Social enterprise
Capital fundraising Social lotteries Charity shops
Legacies Internet gaming Charity trading
Competitions Social business
Co-operatives
*Corporate Emergencies Property development
Sponsorship
CSR Media fundraising *Special events
Donations Advertising Concerts
Inserts Auctions
Broadcast appeals Balls & galas
Challenge & trek
* Can any Services GOLD LTD
PROSPECTING FOR events
Wealth Intelligence others be researched?

Strategies

Fundraising
Approaches Typical Gifts
Capital campaigns £50,000 +
Major gifts £1,000 - £20,000
Legacies £15,000+
Companies (directors) £5,000 - £50,000
Annual giving £5,000+
Trusts £1,000 - £100,000+
Special events £250 - £1,000 ticket
Direct marketing £500+


Your case for support

You also only want those who
are interested in your case.


Case questions for prospect researchers

1.  Will enough millionaires like your case to achieve the target?

2.  Can we research them?

3.  Can we test the fundraising case with a sample of them?

4.  Can we improve the case to make it attractive to more
millionaires?


How many prospects do you need?


A Table of Gifts

What is it for? How does it help?
Number of
% of Target Gift Size Total Value
Donations
10% 1 £400,000 £ 400,000
20% 2 £200,000 £ 400,000
36% 4 £100,000 £ 400,000
52% 8 £ 50,000 £ 400,000
68% 16 £ 25,000 £ 400,000
84% 80 £ 12,500 £1,000,000
100% 160 £ 6,250 £1,000,000
TOTAL 271 - £4,000,000


But not everyone will give….
Number of Number of
% of Target Gift Size Total Value
Donations Prospects
10% 1 £400,000 £ 400,000 12
20% 2 £200,000 £ 400,000 24
36% 4 £100,000 £ 400,000 48
52% 8 £ 50,000 £ 400,000 96
68% 16 £ 25,000 £ 400,000 192
84% 80 £ 12,500 £1,000,000 960
100% 160 £ 6,250 £1,000,000 0
TOTAL 271 - £4,000,000 1332


Prospect Typical Fundraising
Description
Category Comment

They can afford to give but we
Cold We're not yet on their
don't yet know whether or not
Prospects radar
they are interested in giving

Alumni, members, mail
Lukewarm They have the ability to give
donors, other
Prospects and are on our database
audiences
Warm We think they will give, given Screened and we have
Prospects the right treatment a plan to get to them
We have met them, they are
Further meeting with a
Hot Prospects interested, and can make a big
peer is imminent
gift


Campaign Targets

Target Prospects

% of No Hot Warm Cold
Gift Size Total Value Total Value
Target Donations Prospects Prospects Prospects

10% 1 £400,000 £400,000 £400,000 3 12 72

20% 2 £200,000 £400,000 £400,000 6 24 144

36% 4 £100,000 £400,000 £400,000 12 48 288

52% 8 £50,000 £400,000 £400,000 24 96 576

68% 16 £25,000 £400,000 £ 400,000 48 192 1152

84% 80 £12,500 £1,000,000 £1,000,000 240 960 5760

100% 160 £6,250 £1,000,000 £1,000,000 0 0 0

TOTAL 271 - £4,000,000 £4,000,000 333 1332 7992


Donor Groups

High Value Mid Value
Donors Donors
£100 - £1,000 £1,001 -
£99,999

Major Donors
£100,000+


So, which type of millionaire do you need?

Wealthband Wealth Gift Capacity
Wealthband E £1-5m £10,000 - £50,000
Wealthband D £5-10m £50,000 - £100,000
Wealthband C £10-25m £100,000 - £250,000
Wealthband B £25-50m £250,000 - £500,000
Wealthband A £50m+ £500,000 +

Because there are far more E than A


Your prospect research plan


Prospect Research Plan Headings

Background to the campaign Staffing
Research brief Resources required
Defining types of prospects Budget
How many prospects?

Identifying new prospects Managing prospect research
Screening Database
Desk research Monitoring & evaluating
Prospecting Appendices
Research process


Finding prospects
Finding prospects

We know how many – but where do
we find them?


Screening vs. Mining - some definitions

•  Tend to be used interchangeably - but shouldn’t be!

•  Screening compares an organisation’s database to a known
database of wealthy individuals, trustees, company directors,
influential or legacy prospects.

•  Data mining, data modelling, predictive analysis and several
other often interchangeable terms, refer to creating statistical
models to identify trends in your data, sometimes with the
same aim.


Wealth screening – a research shortcut?

•  A quick glance at your database shows you
―  very high profile people
―  some tell tale signs – titles, addresses

•  Screening: Take your supporters/ donors/ members
and systematically identify those have the potential
to make a significant gift

•  Enables you to target through research and analysis
to build your pipeline and implement fundraising


What happens when you screen

•  On average expect 1-3% match rate – but we rarely
find average!
•  4,600 current and lapsed donors: 374 matches (8%)
•  575 people who have donated at some time: 136 matches
(24%)
•  45,000 current and lapsed donors: 2,227 matches (4.9%)
•  278,000: 6,037 matches (2.2%)
•  146,000 supporters: 1,196 matches (0.8%)
•  2,400 members: 210 matches (8.8%)

•  Check your likely match rate:
http://prospectingforgold.co.uk/database-screening-services/

What’s next

•  Prioritise those to start researching and then
developing
―  draw out the people using your knowledge (e.g. giving
history)
AND
―  objective data on wealth and other characteristics


New prospects

•  New name research
―  New Name from Proactive Research
―  Reactive research into new name from director/trustee/
external suggestion
―  New name from screening (not previously identified as a
major donor prospect)


Ranking & Rating

Ability

Affinity Attachment


The Grid

Close to you
Further from you
and wealthy
but wealthy

£

Further from you Close to you
but merely affluent but less wealthy

PROSPECTING FOR GOLD LTD Affinity

Managing the pipeline


Moves Management

•  Select your steps for solicitation

•  View each one as a ‘move’ to log on your database

•  Each activity is planned and scheduled

•  One person is responsible for the moves of that prospect
(not necessarily the fundraiser)

•  Prospect strategy meetings – led by the researcher

Wealth Intelligence Services Have as few stages as you can

Prospect Pipeline
•  Might take 18-24 months
•  Knowing how many prospects are at each stage
•  Making sure there are enough prospects at each stage
•  Making sure time is made for new prospects to enter the pipeline
•  Making sure there are leaks to drop prospects out of
•  Giving the researcher the power to be the tap that feeds the flow
rather than the blockage which holds up the pipeline
•  Protecting prospects

The researcher can control this process as they have the information
available to them and can see the overall picture


Prospect Pipeline Essentials

Keeping the Pipeline Flowing

Prioritise

Regularly Review

Push Progress


How do you manage the Prospect Pipeline?

Prospect
Management
Project Software
Access
Management
Database
Software

PROSPECT CRM
Database
PIPELINE Software

Hand
Excel
written
Spread sheet
List
File
Cards

Prospect Management
% of Target

Total Value
Number of

Number of

Number of
Donations

Prospects

Prospects

Prospect
Gift Size

Needed
Raised

Deficit
Found
Warm
Gifts
10% 1 £400,000 £400,000 1 3 3 0
20% 2 £200,000 £400,000 0 6 0 6
36% 4 £100,000 £400,000 0 12 4 8
52% 8 £50,000 £400,000 0 24 0 24
68% 16 £25,000 £400,000 0 48 0 48
84% 80 £12,500 £1,000,000 0 240 0 240
100% 160 £6,250 £1,000,000 0 480 0 480
TOTAL Intelligence Services
Wealth 271 - £4,000,000 1 813 7 806

Staffing and budgets


Resources required – information, equipment,
databases
Staff Salaries Internet
•  Staff overheads •  Connection
•  Expenses •  Subscription
•  Training/mentoring •  CD Rom/online sources

Database Publications
•  Purchase •  Directories CD Rom
•  Annual license fee •  Newspapers &
magazines
•  Cleaning
•  Books
•  Maintenance
•  Data entry
Others?


The process in action

•  A case study of a team working together post screening to
prioritise and allocate prospects.


Save the Children: Screening to create their research
pipeline – an example of cross team working

•  Why screen?
•  Who to screen?
•  What information to send?
•  Understanding who might make a good prospect
•  Behaviour/responsiveness
•  Geodemographics
•  Loyalty
•  Attitude
•  Value
•  Net promoter


Planning first steps

•  Lots of matches!

•  Presentation with all key stakeholders

•  Meeting individual teams to understand where this
might fit within their priorities

•  Mapping potential overlap

•  Phased approach

Qualifying and allocating

•  Phase 1: potential corporate leads, potential trust leads
and potential key volunteers

•  Internal qualification/research

•  Negotiating over multiple next best actions

•  Phase 2: experiment with mid-level donors; Phase 3: more
major donor prospects

•  Next step: results??

Any Questions?


Contact Us
Kerry Rock
kerry@prospectingforgold.co.uk
Tel: 07913028195


Using research effectively

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