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PROSPECT MANAGEMENT
This presentation was given at the CASE conference
on prospect research and the internet in 1997, and at the
Prospect Researchers of Eastern Pennsylvania conference
in the spring of 1998.
The 80 / 20 Rule
| In theory: |
• 80 percent of the donations come from |
| • 20 percent of the donors |
In practice: |
| • 90 percent of campaign gifts come from |
| • 10 percent of the donors |
Philanthropy
| Charitable Relationships take time: |
| • To develop trust. |
| • To understand the emotion. |
| • To earn the right to ask for support. |
Purpose of a system
Objectives of a system
| • Define the people with whom the organization's leaders should meet. |
| • Reinforce a thoughtful, disciplined approach to fund raising. |
Prospect Management
Stages in the cycle
| • Identification |
| • Research |
| • Strategic Planning |
| • Cultivation |
| • Identification |
| • Solicitation |
| • Acknowledgement |
| • Stewardship |
Major Gift timeline
| • 18 - 24 months to cultivate and solicit |
| • 7 - 8 personal meetings |
| • 3 - 4 prospects for each $100,000 + gift |
Pipeline concept
| • To run an effective campaign, you need prospects in every stage of the solicitation cycle. |
| • You also need to continually introduce new prospects and move existing prospects to the next level of engagement. |
Elements of a system
| • Prospect demographics |
| • Prospect interest |
| • Staff and volunteer assignments |
| • Prospect strategy |
| • Contact log |
| • Next steps |
| • Solicitation status |
Prospect demographics
| • Where do they live? |
| • Where do they work? |
| • What are their estimated income/assets? |
| • Where did they go to school? |
| • How old are they? |
| • Do they have children? |
| • If so, how many, what age? |
Prospect interest (research)
| • What is most important in their life? |
| • What is their religious outlook? |
| • To which charities do they give? |
| • With whom do they do business? |
| • With whom do they socialize? |
| • What do they do when not at work? |
| • What is their relationship with us? |
Assign staff and volunteers
| • Based on prospect demographics, |
| • Based on prospect interest, |
| • Based on case load, |
| Three roles: |
| • Account manager |
| • Coach |
| • Solicitor |
Average case load
| • Number of work weeks multiplied by |
| • Number of contacts per week multiplied |
| • By the number of staff, divided by |
| • Number of meetings per prospect |
| ((WW x C)) x D.O.) / 4 |
| ((48 x 6) x 5) / 4 |
Prospect strategic planning
| • Why are we asking the prospect? |
| • What are we going to ask the prospect to support? |
| • How much are we going to ask this prospect to invest? |
| • Who should ask? |
| • How will we engage the potential donor over the next 12 months? |
Contact log, (basic tracking)
Next steps (scheduled contacts)
| • At every meeting confirm the next meeting date. |
| • Determine whether the status changed. |
| • Decide what should be done next. |
| • There should always be a "next step". |
| • At every meeting confirm the next meeting date. |
| • Think long term, not just the next meeting or phone call. |
Features of a system
| • Prospect lists |
| • Solicitation schedules |
| • Activity reports for management and volunteers |
| • "Moves" management reports |
| • Gift charts |
Benefits of a system
| • Increased productivity |
| • Improved solicitation progress |
| • Improved communication between staff members |
| • Improved volunteer support |
| • Accurate historical record |
| • Increased accountability |
System Options
| • Manual System |
| • Databases |
| • Add-on option |
| •Integrated option |
Manual System (forms/spreadsheets)
| • Fast and easy |
| • Available |
| • Flexible, (can be created to meet your needs) |
| •Stored on paper in files or notebooks. |
| •Top out at 75 prospects. |
Databases
| • Easy to manipulate. |
| • Access to information is fast and efficient. |
| • Can handle large volume. |
| •Require an investment in computers and software. |
Add-on option
| • Linked to your primary constituent database for the sole purpose of prospect management. |
| • Design, and program your own for complete customization. |
| • Buy on off the shelf to save time and money. |
Integrated option
| • Prospect management is an integral component or aspect of your primary constituent database system. |
| • Keeps everything in one place |
| • May involve a higher end cost. |
| • Might involve a trade-off between prospect management and other features. |
Keep it simple!
| • Your system must be easy to use. |
| • Everyone must understand the key concepts and terms. |
| • Your system must reinforce the major gift process. |
| •Your system must support the fund raising activity, rather than create new activity (lost productivity or waste). |
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