Should you’ve labored within the nonprofit sector for a while, you understand that your group’s fundraising potential will depend on its skill to know and interact its donors. The significance of realizing your donors will increase with their giving degree—potential main donors, particularly, will solely wish to contribute to organizations that make them really feel like an integral a part of furthering the nonprofit’s mission.
Prospect analysis is one of the simplest ways to realize perception into these high-impact donors’ giving capacities, motivations, and preferences. On this information, we’ll reply a number of the most typical questions nonprofit professionals have about prospect analysis when getting began so you’ll be able to take advantage of this course of. Let’s dive in!
What’s prospect analysis, and the way is it used?
DonorSearch’s prospect analysis information defines this time period as “a way utilized by nonprofit fundraisers, main reward officers, and growth groups to determine high-impact donors inside and past a corporation’s present donor pool. By way of this course of, nonprofits collect an immense quantity of knowledge—details about donors’ backgrounds, previous giving histories, wealth indicators, philanthropic motivations, and extra particulars that assist decide prospects’ probability of giving.”
Prospect analysis is helpful for locating donors for a large number of initiatives that rely on massive presents, together with:
- Launching new mission-related neighborhood applications or increasing present ones.
- Securing the estimated 60% of annual fund income that comes from main presents on common.
- Finishing your reward vary chart throughout the quiet part of a capital marketing campaign.
- Constructing out your group’s legacy giving program.
Whereas most nonprofits use prospect analysis primarily to determine new potential donors at first of a fundraising initiative, it’s only when it’s an ongoing course of. When you’ve discovered a viable prospect, proceed researching to remain up-to-date on their wealth and philanthropic particulars as you domesticate relationships with them and solicit presents. Plus, periodically screening your donor database may help you discover main donor candidates amongst your present supporters.
What data are you able to study by means of prospect analysis?
Some of the widespread misconceptions round prospect analysis is that it’s synonymous with wealth screening. In actuality, prospect analysis is extra complete, making an allowance for not solely potential donors’ monetary capability to offer but additionally their willingness to make a major contribution to your particular group primarily based on their philanthropic tendencies and affinity on your mission.
As you display prospects, search for the next information factors (additionally known as markers or indicators):
- Capability indicators: Actual property possession, inventory holdings, enterprise affiliations, political giving historical past
- Philanthropic indicators: Earlier donations to your nonprofit or different comparable organizations
- Affinity indicators: Connection to or ardour on your trigger; nonprofit involvement historical past (occasion attendance, volunteering, board service, and many others.); private data akin to pursuits, values, and household ties.
In your group to think about somebody a viable prospect, they need to exhibit indicators from all three classes, demonstrating that they’d have the opportunity and keen to make a significant reward.
What instruments do you’ll want to conduct prospect analysis?
Typically talking, there are two kinds of software program you’ll want to conduct prospect analysis: databases and AI fundraising options. Let’s have a look at each classes in additional element.
Databases
These options kind the spine of prospect analysis, permitting you to search out capability, philanthropic, and affinity details about potential donors. Guarantee your crew has entry to the next instruments earlier than you start:
- Prospect analysis database: Supplies entry to third-party wealth and philanthropic information by compiling data from numerous trusted sources, starting from actual property information to different nonprofits’ annual experiences.
- Inside donor database: Serves as a place to begin for studying about present supporters’ main giving potential and a centralized place to retailer and set up prospect analysis information in particular person donor profiles.
- SEC funding information and FEC political contribution information: Complement wealth information on potential donors with a deeper dive into their inventory holdings and political giving historical past.
- Matching presents database: Lets you understand which prospects may have their contributions matched by their employers in addition to offers further perception into donors’ skilled connections.
Along with leveraging these platforms, merely googling your prospects and testing their social media profiles may give you a greater sense of their pursuits and values.
AI Options
When you’ve gathered your prospect analysis information, AI instruments may help you type by means of it extra effectively and improve your outreach. The very best kinds of nonprofit AI options to leverage for prospecting are:
- Prospect generator instruments: Make lists of prospects who’ve supported comparable causes to your group’s and create experiences summarizing a very powerful, actionable data on every prospect.
- Predictive modeling options: Price prospects’ probability of responding to outreach and turning into donors, set up your prospect lists accordingly, and make recommendations about which potential donors to achieve out to first for effectivity.
- Content material technology instruments: Allow you to create tailor-made outreach messages for every prospect primarily based on predictive modeling insights.
Though analysis exhibits that nonprofits are integrating AI into their operations even quicker than for-profit corporations, nonprofit AI remains to be an rising discipline. Work with trusted suppliers, comply with greatest practices for information safety and ethics, and be clear together with your neighborhood about how your group makes use of AI to forestall dangers and maximize the advantages of those instruments.
What are the following steps to take after conducting prospect analysis?
As NXUnite’s donor relations information explains, prospect analysis lays the muse for constructing a human-centered relationship with every potential donor. Whereas you will get a way of prospects’ motivations for supporting your mission and the initiatives they’d be considering contributing to, one of the simplest ways to make sure about these items is to listen to immediately from the donor. Plus, cultivation exhibits that your nonprofit values its donors as particular person individuals relatively than simply pondering of them as income sources.
After you’ve recognized potential donors by means of prospect analysis, begin cultivating them by:
- Assembly with them one-on-one to get to know them personally and introduce them to your group
- Establishing a daily communication cadence to maintain your nonprofit prime of thoughts and share related sources on present initiatives.
- Providing different engagement alternatives to offer prospects a firsthand have a look at your group’s work by means of volunteering, attending occasions, or consulting on initiatives.
Hold every prospect’s profile up to date in your donor database as you study extra about them by means of these relationship-building actions and your ongoing analysis. This fashion, when the time involves solicit a significant reward, you should utilize all of this data to request an quantity and recommend a designation that aligns with their distinctive giving capability and motivations.
As with different new processes at your nonprofit, getting your strategy to prospect analysis proper will doubtless take time and follow. Monitor the usefulness of the info you discover and the effectiveness of your research-driven outreach efforts. This fashion, you’ll be able to hone your course of over time and in the end carry in additional main presents on your mission.
In regards to the Writer
Sarah Tedesco
Sarah Tedesco is the Govt Vice President of DonorSearch, a prospect analysis and wealth screening firm that focuses on confirmed philanthropy. Sarah is liable for managing the manufacturing and buyer help division regarding shopper contract success, growing retention fee and buyer satisfaction. She collaborates with different crew members on a wide range of points together with gross sales, advertising and product growth concepts.
