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By chris

[Guest Post] Using Research to Jumpstart your Major Gift Program

This blog focuses on the world of prospect research and various related fundraising topics. To diversify our subject matter, we like to feature the work of our friends and colleagues in the community. With that said, join me in welcoming Chad Peddicord, the Executive Vice President at Averill Fundraising Solutions. Please enjoy his post on research and major gift programs.

Using Research to Jumpstart your Major Gift Program

It’s no secret that a successful, cost-effective fundraising program is built on a foundation of major gifts.  But what are the elements of an effective major gift program?  At its core, the keys to major gift success are the right people, asking the best prospects for the right amount, for the right project, at the appropriate time, often enough to generate sufficient activity that results in gifts to meet the identified needs.  But if someone gave me that as an answer, I would ask for some specific action steps.  Following are seven results-proven strategies for using research to jumpstart your major gift program:

1. Prioritize donors in the database

The first step for an efficient major gift program is segmenting and prioritizing the donors in the database. Previous major gift donors are obvious – keep them on the priority list.  But do a little digging and look for donors that have been consistent over the past 5 years and have increased their giving.  This is a signal they believe in what you are doing and might have more capacity.  Is there an individual in the database that has made at least one gift annually during the past 5 years and started at $50 and is now at $500?  Or maybe their first gift was $500 and now they give $2,500 annually?  That’s a clue, and they should be marked as a potential major gift prospect because of their increasing affinity.

2. Find the capacity

Affinity alone is not enough to prioritize efficiently. Discovering which donors or prospects have the capacity for a major gift is important.  The simplest and most effective way to determine that is through an electronic screening.  If done right, the screening will create more work, but it will also narrow the field of donors and prospects that you have to include to create an efficient major gift portfolio.  Focus on philanthropic behavior and political giving – data shows these two indicators most accurately reveal major gift capacity and willingness.

3. Do the research and develop a strategy

Once donors and prospects with major gift capacity have been identified through screening, the real work begins. The screening helps to narrow the field, but now research is required to confirm that the screening information matches the person in your database. (If you have very clean data and several components of personal information on each individual prior to the screening – you will save a tremendous amount of time in research and get much better results from the screening.)  With more information from research, narrow the major gift pool further and begin to develop individual cultivation and solicitation strategies for each prospect that can then be implemented.  The strategy step is where the right people, the right project, the right ask amount, and the appropriate request timing need to be discussed.

4. Don’t work in a vacuum – talk to people

The real research begins as you have conversations with individuals about exciting projects. Invite potential donors for a tour, or talk to them about the strategic plan, or get their advice on a new idea.  This opens the door for discussions on how to accomplish the important mission at hand and the gifts required for success.  Nothing can replace the “shoe leather” research and the most helpful information always comes from asking questions and dialogue.  These personal conversations then inform the strategy moving forward and determine how to ask for a major gift.

5. Add prospects to the list

In addition to your current donors and prospects, take this opportunity to add new prospects to the list. There is a plethora of ways to find individuals that might be prospects for your organization and this process could be its own blog post.  But an easy way is to use a database that catalogues charitable gifts to not-for-profits and will allow a search to find individuals with philanthropic interest and demonstrated giving to “relevant” organizations to your mission.

6. Assign the donors and prospects

Now that the major gift prospect pipeline is narrowed, each must be assigned to “someone” to manage the relationship. I say “someone” because depending on the size of your professional fundraising staff – “someone” could mean many things.  For example, with a small staff, major gift prospects might be assigned to board members or volunteers.  And while the professional fundraiser will play a role in the process, the board member might be doing all of the outreach to the prospect and building the relationship.  The data is clear, in order to successfully cultivate and solicit a major gift – the prospect has to be managed by someone.

7. Ask for the gift

The last piece to an effective major gift program is as simple as asking for the gift. If all the above steps have been accomplished, there is nothing left but to ask.  Capitalizing on all of the work done to prepare for soliciting major gifts requires creating some activity benchmarks that drive the program.  The benchmarks are different for every organization, but they always involve personal visits and requests.  Track the activity against your goals and the major gifts will follow. For more information, read our other resources on major gifts

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By chris

5 Ways to Use Mobile Fundraising Solutions For Your Next Event

Spring is around the corner, which means now is the time for nonprofits to start planning their spring events! From run/walks and luncheons to golf tournaments and galas, there’s no doubt that events of every kind are a great way to fundraise for your cause. However, many nonprofits are missing out on a key solution that can help make their event more successful than ever: mobile fundraising. Incorporating mobile giving has been shown to increase donations by 35% and is easier to integrate into your fundraising event planning than you might think. Mobile giving provides a true, end-to-end solution for event fundraising that can help reduce admin time for your organization while boosting donations and engaging supporters. From invites to donation thank-yous, here are 5 ways you can use mobile fundraising solutions for your next event:
  1. Send invitation and reminders with text messaging
  2. Allow supporters to register for events and purchase tickets from their smartphones
  3. Promote live pledging with an on-screen fundraising thermometer and text-to-donate keywords
  4. Collect out-of-town donations
  5. Follow up with donors after the event
Are you ready to amp up your fundraising events with mobile giving? Let’s get started!

1. Send invitations and reminders with text messaging

Did you know that text messages have a 98% open rate in the first 3 minutes? Since texts are so regularly read, they are the easiest (and most effective!) way to reach out to your network of supporters. If your organization has a list of phone numbers, you can easily upload them to your mobile giving software and start sending supporters updates and alerts. Additionally, you can expand your organization’s contact list by conducting prospect research to find even more potential donors. Text messages are the perfect medium to keep donors in the know about: 
  • Upcoming fundraisers
  • Ways to register for events
  • Send invites to guests
Using links to content and donation forms, videos of your organization in action, and messages that engage your supporters, you excite your donors and get them interested in attending your events. Tip: Searching for a text messaging software for nonprofits. Look for a tool that lets you not only communicate with donors but also accept contributions via text message.

2. Allow supporters to register for events and purchase tickets from their smartphones

There’s a common misconception that people don’t respond to event invites on mobile devices. The truth is nearly 20% of event registrations come from mobile devices, meaning your registration form needs to be mobile responsive and accessible from any device or you’ll be missing out on potential RSVPs. When setting up an event registration page, keep in mind that donors on all devices should be able to easily fill out your forms and purchase tickets. Here are a few things to consider:
  • Limit your registration forms to one page. A single page form not only reduces your donor abandonment rate but also requires less scrolling for mobile users.
  • Avoid large visuals. While having stunning visuals can look great when your forms are viewed on a desktop, they can cause a mobile user a lot of frustration.
  • Capture only essential information. Filling out forms on a mobile device can be difficult and time-consuming, so you should only make donors enter information that is absolutely necessary.
Make purchasing tickets easy with mobile-friendly forms that use AutoFill on Android and iOs devices to process and fulfill ticket sales as they happen.

3. Promote live pledging with an on-screen fundraising thermometer and text-to-donate keywords

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By chris

5 Ways Prospect Research Can Help You With Donor Solicitation

Prospect research is a valuable tool that many nonprofits use to learn more about their donors, their prospects, and their giving patterns.
  • It helps fundraisers determine who to invite to a fundraising event.
  • It allows nonprofits to discover hidden connections between donors and potential major gift contributors.
  • It helps nonprofits fill in the blanks with their existing, and perhaps incomplete, donor data.
But one of the main ways that prospect research serves nonprofits is with donor solicitation. Whether you’re asking for donations via email, on the phone, or in person, prospect research can help give you the edge when making those appeals.

Here are five ways prospect research can help with donor solicitation.

=&0=&
  1. Fill in the blanks.
  2. Segment your asks.
  3. Know how much to ask.
  4. Determine other giving opportunities.
  5. Find major gift donors and planned giving donors.

1. Fill in the blanks

It’s going to be tricky to ask for a donation if you don’t have a prospect’s phone number, email address, or home address. =&1=& Let’s say that Donna Donor submitted her email address at your last gala as part of a raffle that night. But an email appeal doesn’t seem to be the best way to ask Donna to give to your organization. She might have the potential to be a major gift donor and would need an in-person meeting if you really want to make an impression. =&2=& Besides, it’s a good idea to have accurate donor data anyway. When you send out invites to fundraisers, volunteer opportunities, or other events, you’ll want to make sure that you’re sending out those invitations to the right addresses. =&3=&
  • Address a donor by their correct name.
  • Have the right address on the envelope.
  • Include relevant information that is appropriate for that particular donor (i.e., an acknowledgement of a previous donation)
=&4=&Use prospect research to fill in the blanks on your donor data when sending out those event invitations and when you go to make your donation appeals.

2. Segment your asks

Not every donor is going to respond in the same way to an email or a direct mail appeal.
  • Some people prefer the ease of donating online.
  • Others like giving over the phone.
  • Still others prefer more traditional methods, like sending checks by mail or giving in person.
=&5=& Once you’ve filled in the blanks on your donor data, you’re in a better position to segment your supporters into different groups depending on their giving preference. If you notice that some of your donors regularly respond to the email appeals you send out, continue sending them those email appeals. You might notice, on the other hand, that some donors have never responded to an email appeal but donate every year when you send out your annual appeal in the mail. You’ll know that you can take them off your email appeal list and make sure they receive the annual appeal and other campaign information in the mail. =&4=&Use prospect research to learn more about which communication channels donors prefer and segment your donation appeals accordingly.

3. Know how much to ask

Not every donor is going to give the same amount on a regular basis. Some may prefer donating $10 a month while others might be able to give $5,000 in one annual check. Knowing how much donors have given in the past to your organization, other organizations, and political campaigns can give you a pretty solid indication of how much to ask in your future appeals. And prospect research can give you all of that information! Donors are always going to have the final say when it comes to actually making a donation. But having information about their past giving patterns puts you in a great position to make suggested giving amounts that are appropriate. Additionally, knowing how much a supporter has given to your organization in the past allows you to thank them for that donation before making your appeal for another contribution. Being thankful is one of the most important facets of donor solicitation. Before asking for another donation, make sure that you’re saying thank you for those previous contributions! =&7=&

By chris

Mobile Fundraising Campaigns: The Basics

With mobile fundraising technology, your organization never has to worry about not knowing when to send a message.

Using the data collected during a text-to-give campaign, your nonprofit can learn everything it needs to know (well, maybe not every fundraising metric) about present and future donors, volunteers, and event attendees.

In this article, you’ll learn all about 6 things your nonprofit can learn about donors and 5 things donors can learn about you through a text-to-give campaign:

#1. Preferred Donation Channels

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By chris

Perfect Your Prospect Profile Templates [Free Examples]

Developing prospect profiles on your various high-quality giving candidates is a necessary step in managing a fluid transition from prospects to donors. Your prospect profiles will contain all of the relevant data you gathered during the screening process. With comprehensive profiles, your team can easily transition prospects from one person to the next, without risking miscommunication and information getting lost in the shuffle. The prospect researcher is responsible for completing as much information as possible before passing on the details to a gift officer. Once the gift officer begins the donor cultivation process, he or she then tracks any additional input and changes as the relationship develops. That way, if a new officer were to step into the role, he or she would be automatically brought up to date. Prospect profiles are going to vary from organization to organization, but we wanted to give you an idea of what to expect. With that being said, this blog post will talk you through the various components you may or may not want to include in your profiles. The level of depth for your various profiles will be largely dependent on how extensive your prospect research is and what you learn during cultivation.

DonorSearch’s Prospect Profile Template Sample is divided into seven categories.

  1. Introductory Details
  2. Basic Details
  3. Personal History
  4. Familial Information
  5. Professional Affiliations
  6. Organizational Connections
  7. Philanthropic Ties
Let’s discuss each of these one-by-one.

1. Introductory Details

This category is largely designed to quickly catch a reader up on the current status of the prospect. Its sections include:
  • Prospect Name
  • Date
  • Giving Status
  • Past Interactions
  • Next Moves
Whenever a prospect is interacted with, that should be noted here and future plans should be listed under “Next Moves.” If someone were to briefly open the profile, you want that person to be able to read through these first five sections and recognize where in the donor pipeline the given prospect falls.

2. Basic Details

Basic details are essentially contact information. Its sections include:
  • Full Name
  • Nickname
  • Phone Number
  • Address
  • Email
  • Birthdate
It is critical that your team ensures that these fields are accurate. Successful donor communications rely on current and correct contact information. The first step to building a relationship with someone is to call them by their preferred name. Nothing will get you off on the wrong foot by calling someone by the wrong name when you’re asking for a donation. It makes them feel like you don’t care about them as a person. Special note: if you’re an advocacy organization also using an advocacy-specific CRM like CQ Engage, you might also want to keep things like social media handles and voting districts in this section. These identifiers will allow you to more easily target your donors and supporters with personalized communication strategies for region- or online-specific grassroots campaigns. These details will also make it easier for you to mobilize your advocates because they can champion your cause in their own neighborhoods with your help.

3. Personal History

As important as it is to know how to reach your donors, you have to understand them on a deeper level. That understanding begins with the personal history category. Its sections include:
  • Alma Mater(s)
  • Degrees(s)
  • Connections to Foundations
  • Real Estate Holdings
  • Public Stock Holdings
  • Social Club Memberships
  • Community Involvement
As you can ascertain from looking at the above list, personal history involves a combination of wealth markers and other characteristics that will help your fundraisers better get through to your prospects. You want to know a donor’s interests and history, as well as his or her giving capacity. The personal history category helps on both fronts.

4. Familial Information

As you can probably guess from the title, familial information is all about what details you have collected on your prospect’s families. Its sections include: 
  • Name of Spouse
  • Spouse’s Philanthropic Ties
  • Spouse’s Professional Affiliations
  • Key Details on Children
  • Key Details on Other Pertinent Relatives
The significance of familial data can change according to what kind of organization is seeking the information. Two types of fundraising programs could certainly benefit from learning more about their prospects’ families. Those programs are: Each piece of data broadens the scope of the level of personalization your organization can cover when communicating with a prospect. Your nonprofit should know a spouse’s name, so that you can address invites to the couple, rather than your donor and guest, for example. Your donors’ families are important to them. They should be important to your nonprofit too.

5. Professional Affiliations

Professional affiliations, just like familial information, can render pivotal details. Its sections include:
  • Employer
  • Employer Address
  • Position
  • Work Email
  • Work Phone Number
  • Estimated Salary
  • Years with Employer
  • Relevant Employment History
  • Relevant Business Contacts
With professional affiliations right in front of you, you can not only gain a firmer understanding of a prospect’s giving capacity, but also uncover potentially valuable connections. One of your board members, for instance, could work with a high-quality prospect. When you realize that, you can then ask your board member to make an introduction for you. Additionally, a donor might be employed by a company with a generous corporate giving program. Imagine the potential gift size if you notify a major gift donor that their contribution will gladly be matched by their company! Some companies also offer volunteer grant gifts, which would donate funds to your organization based on hours that an employee has spent as a volunteer for your nonprofit. As you can tell, the opportunities stemming from researching this list of facts for a donor are varied and plentiful.

6. Organizational Connections

This is the point in the profile where you delve into exactly what motivates your prospects’ philanthropy and how strong their bonds with your specific cause and nonprofit are. Its sections include:
  • Date of Last Gift
  • Amount of Last Gift
  • Total Number of Donations
  • Average Gift Size
  • Board Membership
  • Hours Volunteered
  • Relationships with Others Involved in Your Organization
For a brand new prospect, this category might be completely blank. You’ll want to revisit it as you cultivate the prospect and the prospect becomes more engaged in your organization. Past giving is the strongest indicator of future giving

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By chris

[Guest Post] Maximize Your Donor Solicitation’s Response Rates

This blog focuses on the world of prospect research and various related fundraising topics. To diversify our subject matter, we like to feature the work of our friends and colleagues in the community. Join me in welcoming Marvin Dawson, Vice President of MMI Direct, for his thoughts on how to improve donor solicitation response rates. You’ve agonized over every word in the copy, spent hours working with your designer to make sure the layout is perfect, and tested multiple calls to action.  You’re finally ready to mail your incredible donor solicitation, right? Before you do, you should ask yourself one more question — have you used the same care to choose which potential donors to solicit as you have in designing the mail piece itself?  Many marketers aren’t aware that their list management decisions can have just as powerful an effect on results as choosing the best creative. There are three important questions you need to ask yourself to ensure you are mailing to the right recipients: 1. Is every address deliverable? Nothing is more wasteful than paying to mail something that is never going to arrive. The first step in improving your list’s deliverability is to run it through CASS Certification to standardize the address, append a 9-digit zip code and add a delivery point barcode.  With over 11% of all Americans moving in a typical year, the second thing you should do is to match your updated list against the National Change of Address (NCOA) database to make sure it contains the latest addresses.  Finally, since as many as 40% of Americans who move don’t bother to file a change of address notice with the USPS, you should also consider using the Proprietary Change of Address (PCOA) database to update your list with the correct addresses for this group. 2. Are there addresses you should exclude from the mailing? We almost universally recommend not mailing to jails or prisons, military bases, nursing homes, trailer parks, vacant lots, disaster areas, and addresses on acquisition lists that are also on the DMA Do Not Mail list.  Depending upon your organization’s target audience, records with no names or only company names may or may not be worthwhile for you to send, as might records going to unique zip codes like the Pentagon or a large university.  Finally, you may want to exclude mailing to records on an acquisition list that have been flagged as deceased (though you should test these names a few times first, as sometimes they continue to respond, presumably from a surviving spouse!). 3. Is more than one copy of a mailing going to a particular person and/or address? Optimizing your merge purge operations to eliminate duplicate mailings can be surprisingly complex, but often pays out in higher returns. Want to learn more about how to maximize the response rate to your donor solicitation?  Our free eBook, How to Use Data Hygiene to Maximize Your Direct Mail’s ROI, explains in simple terms what you need to know.  Download it here!   Marvin Dawson (marvin@mmidirect.com), VP of MMI Direct, has been managing data hygiene and merge purge operations for a wide variety of companies for decades.  He eats, breathes and dreams about data, and would love to help your company improve the ROI of your direct mail!      

By chris

[Guest Post] Why You Should Pay More Attention to These Forgotten Donors

This blog focuses on the world of prospect research and various related fundraising topics. To diversify our subject matter, we like to feature the work of our friends and colleagues in the community. Join me in welcoming Mary Cahalane of Hands-On Fundraising and please enjoy her post on mid-level donors.

Why You Should Pay More Attention to These Forgotten Donors

They’re the stalwarts of your annual giving program. They’ve been giving for years. They’re obviously committed. So how well do you really know your mid-level donors? I can’t tell you how to define “mid-level”. Just like “major gift donor” it will depend on your organization’s size and donor base. But if you take a good look at your list, you’ll know who they are. Not your biggest donors – who are hopefully being engaged as major donors. Not your smaller donors – though your smallest donors may be very loyal. And I’m a huge fan of recognizing loyalty at any level. They’re the donors in the middle of your file. They might be new, or among your longest-giving donors. And you’re losing money if they’re not getting special attention. Jeff Schreifels of Veritus Group explains why in this post. He tells us that mid-level donors are very loyal. They make your direct response program strong (you’d need a lot of $25 gifts to make your goals, right?) And they may be your future major donors. Mid-level donors are definitely a hybrid. They’ll fall somewhere between the high-touch care of major donors and your direct response program. And that’s how you’ll need to treat them – a little of both.

How to find them.

Begin with your database. Find the mid-point and select a group of donors whose giving hovers near that. Start your mid-level program with these donors. But don’t stop there. Mid-level donors may be hiding among your smaller donors. Do a little sleuthing. Then look below your mid-point and create a special solicitation. Offer a great case (why should they give more?), a more personal touch (first class stamps, hand-written notes, an upgraded response device) and a higher ask. You may find people who were just waiting to be asked to give more!

How to keep them.

Offer them their own representative. Veritus recommends something I’d done years ago – offer these donors a personal representative at your organization. Designate someone on your staff to be their contact – to answer questions, to sort out problems, to listen. This is a win-win because you want these donors to be in touch! Upgrade their recognition.

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