Prospect research and annual giving go together like peanut butter and jelly, like Simon and Garfunkel, like Turner and Hooch.
What I mean to say is that prospect research and annual giving are a great pair, and prospect research should certainly be used to assist your annual giving campaigns.
To best explain how the two fundraising components fit together, we’ve provided detailed answers to the 4 most common questions regarding the relationship between prospect research and annual giving.
Radio is a cultural stalwart. It has outlasted its naysayers.
When television came along people thought radio would disappear. It survived.
As the internet rose to prominence, people tried to knock radio once again. It survived.
Listeners can now find their favorite radio stations in the car, on the computer, and even on their phones.
Radio has diversified itself as it has grown, and public radio stations are no exceptions.
For most nonprofits, annual giving campaigns generate the highest number of gifts though major giving campaigns can provide more total revenue. Annual giving campaigns can generate loyalty as well as revenue, and are flexible and relatively cost-effective.
Certain philanthropy and wealth markers can predict the best prospects for annual giving campaigns, including previous giving, giving to other nonprofits, high dollar real estate ownership, and other factors.
Because annual giving and major giving campaigns have different goals, strategies, and resources, both can be managed concurrently:
Annual Giving Defined
Annual gifts are gifts solicited and given on a regular, on-going basis, and are typically unrestricted (that is, available to a nonprofit for any use). Some organizations conduct a campaign annually, some quarterly, and some follow a different schedule.
Unlike a capital campaign, which is typically a campaign to raise funds for a specific, tangible goal (new equipment, new facility, new program), or a major giving campaign, which cultivates only large gifts, an annual giving campaign concentrates on generating a large number of smaller gifts. Usually, funds from annual giving campaigns are used for day-to-day operations, paying debts, and other ongoing budgetary needs.
For many nonprofits, annual giving represents the majority of gifts received, surpassing the number of gifts received from major and planned givers and events.
Benefits of Annual Giving
Donations are normally unrestricted and can be used for any purpose
Campaigns can be conducted at any time
Prospects can be segmented, and multiple strategies can be used to involve board members, staffers, and volunteers
Campaigns offer opportunities for ongoing communications with prospects
Annual campaigns build donor loyalty
Annual campaigns are the best introduction to the nonprofit for a new donor
Income is relatively predictable in terms of amount and timing
Pledges and other strategies can provide an ongoing revenue stream