Hiding In Plain Sight - Identifying the Major Donors On Your Donor List

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Hiding In Plain Sight
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Identifying the major donors on your donor lists
!
4/17/14
11am EDT

Your Presenter
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Ryan Woroniecki
Executive Director, Partnerships -‐ DonorSearch
• 3+ years working with nonprofits
• Worked with hundreds of nonprofits
• APRA-‐MD Board Member
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DonorSearch
• Prospect Research
• Over 500 nonprofit clients

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1. Introduction
2. Quiz – philanthropic trends
3. Who is a great donor?
4. Markers of philanthropy and wealth
5. Questions and answers
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DonorSearch.Net 410-670-7880
Markers of Philanthropy and Wealth:

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2011-2012
1. Total US Charitable contributions:
A. Less than $100 billion
B. $300-$400 billion
C. $500-$700 billion
D. Less than $300 billion
2. Grow or decrease of charitable donations between 2011 and 2012 (not
adjusted for inflation):
A. Increase of 2%
B. Increase of 3.5%
C. Decrease of 1%
D. Decrease of 3.25%
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!
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Quiz time!

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Philanthropic Overview
Who Gives, Who Gets, Industry Trends
Information from
USA Giving

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2011-2012
1. Total annual individual giving as a percentage of all giving (pre-
inflation adjustment).
A. 50%
B. 98%
C. 83%
D. 72%
2. A. 15% B. 6% C. 72% D. 7%
___Foundations ____Individuals ___Bequests ___ Corporate
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!
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Quiz time!

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Who Gave in 2012
Information from
USA Giving

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Who Received in 2012
Information from
USA Giving

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What’s Up, What’s Down
2012 vs. 2011
Information from
USA Giving

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Giving Compared to Gross
Domestic Product (GDP)
Information from
USA Giving

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Good Prospects:
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• Have the capacity to give at the level you ask
• Have the inclination and understanding to give
Development is building the relationship with these prospects.
• What are the markers you should look for to find these
prospects?
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Who are in the top 20% for your nonprofit?
How do you know them when you see them?
Dollars
Raised
80%
Number
of Donors
20%
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Back Testing the Data
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400 nonprofits
2 million donors
$5 billion in giving
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Who are the Top 20% - The Best Marker:
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Analysis of previous giving to your organization is the single best predictor of future
philanthropy.
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This is common sense. This is why you solicit the people who gave to you before.
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PROS
• The data is free if you have collected it over the years
• The predictive capabilities are not usually impacted by the average recording
errors or inconsistencies
• The calculations are simple: RFM (Recency, Frequency and Money (RFM)
CONS
• Limited to the success or failures of previous marketing efforts. You may not have
many donors
• Difficult to project opportunity outside of previous performances
!
!
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www. DonorSearch.Net 410-670-7880
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“Recency”
(Last Gift)
Frequency
(# of Gifts)
Money
(Total $)
100% 100%100%
65%
82%
43%
R+F+M = RFM or 82+43+65=190
Analysis of previous giving - Methodology

Who are the Top 20% – 2nd
Best Marker:
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Your prospect’s giving to other nonprofits is the second best marker of future philanthropy.
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Ideally, the prospect has made a gift of the same size or larger elsewhere in the last five
years. Some people feel that gifts made to similar interests are the best prospects.
Others feel that the giving to other interests is better because there is less competition.
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PROS
• Much of the data is free and easy to understand. Nonprofit annual reports and
recognition documents are readily available
• Many of the largest nonprofits use the Internet to recognize donors
CONS
• Some Internet-based annual reports are taken down after time
• The data available publicly is just a fraction of all gifts made. Publishing giving
information is not a regulatory requirement
• It can be difficult to find older giving reports.
• Printed donor recognition documents are not usually readily available when you
need them. You have to find an old copy.
• Some reports show a name, but do not show gift amounts
• Can’t always determine if a listed name is your constituent
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• Free - Do It Yourself – Make a list of whom you compete with in
your market area for philanthropic dollars.
• Check their websites looking for annual reports and donor list.
Paper copies are okay, too. No list is too old.
• Combine them into one large PDF document. (Scanner) Search the
document as needed, update quarterly.
% of $$ # of Rec

Who are the Top 20%? – 2nd
Best Marker:
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% of Rec % of $$$ Predictive
Strength
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Benchmark - 2 million donors in study 100.0% 100.0% 1.00
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Where $100k is largest gift elsewhere 0.7% 24.1% 32.67
Where $50k-$100k is largest 0.5% 13.5% 25.02
Based on a study of 2 million records with
$5 billion of known lifetime giving to 400 nonprofits.

Who are the Top 20% - 3rd
Best Marker:
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Your prospect’s participation as a foundation trustee is more valuable than finding any
wealth marker.
PROS
• IRS requires all foundation to file an IRS 990PF form annually that contains the
amount of money the organization gave away and the names of board members
• Many foundations list their trustees on their website
• PGuidestar offers a free service that lists trustees and other info. The Foundation
Center, Big Online and Guidestar all have paid services where you can see more
CONS
• IRS 990PF reports often lag two or more years
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• Free - Do It Yourself – Register for the free guidestar.org account. Search 990s
and 990 PFs. Search individual foundation websites for grant recipients.
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Who are the Top 20% - 4th Best Marker:
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Your prospect’s lifetime giving to Federal political campaigns is an excellent predictor
of future philanthropy.
The FEC regulates political giving to Federal campaigns. It requires that the campaign
report the donor’s name, address and occupation, as well as the date and amount
PROS
• A single lifetime FEC gift of $250 puts your constituent in the top 6% of the
US population. A single gift of $1,000 puts your constituent in the top 1/10th
of 1%
• Virtually every FEC donor with lifetime political giving of $10,000 is wealthy
and has the capacity to make a major gift
• Virtually every FEC donor with lifetime political giving of $15,000 has made a
4,5,6, or 7 figure charitable gift somewhere
• Political giving is readily available from multiple free internet sources
CONS
• Not all charitable donors are political donors
• The reason large political donors are large charitable donors is not known so
fundraisers are skeptical
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• Free - Do It Yourself www.opensecrets.org is one of the most popular.
www.fec.gov/finance/disclosure/norindsea.shtml is the government site.
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15 of the Top 20% = 74.3% of Lifetime Giving:
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Back Testing Database % of Rec % of $$$ Predictive
Strength
All FEC and Charitable Giving above $2,500 3.8% 54.6% 14.48
All FEC and Charitable Giving above $1,000 11.0% 70.7% 6.43
All FEC and Charitable Giving above $500 14.4% 74.3% 5.17

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3% of the donors predicted 54.6% of all dollars
Charitable and Political Giving in Excess of $2500
14.4% of the donors predicted 74.4% of all dollars
Charitable and Political Giving in Excess of $500

Real Estate
Broadest Publically Available Wealth Marker
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Real Estate % of recs % of $ Predictive Strength
$2+ million 1.4% 25.0% 17.55
$1-2 million 3.2% 13.2% 4.17
$750k-$1
million
2.5% 5.7% 2.25
$500k-$750k 5.4% 6.8% 1.25
$250k-$500k 12.8% 8.6% 0.67
$125k-$250k 10.9% 4.8% 0.44
<$125k 8.4% 3.5% 0.42

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Business Wealth Markers and Philanthropy:
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Back testing Database % of Rec % of $$$ Predictive
SEC Yes and Maybe 2.0% 15.5% 7.76
Market Guide Yes and Maybe 3.0% 19.5% 6.56
D&B Yes and Maybe-$5 million+ 0.6% 5.1% 9.04
D&B Yes and Maybe $1-$5 million 0.7% 2.5% 3.53
D&B Yes and Maybe 6.5% 21.5% 3.32

Business Wealth Markers and Philanthropy:
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% of Rec
% of $$$ PredicVve

Now we know who gives. How do we find them?
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Search Engines
Google, Yahoo, Bing
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Directories
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Public databases
BRBPublic Records (brb.com)
EDGAR (freeedgar.com)
SEDAR (sedar.com) Canadian stock info
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Private (free) databases
Hoovers (hoovers.com/free/)
Zillow (zillow.com)
Open Secrets (opensecrets.org)
Follow The Money (followthemoney.org)
GuideStar (guidestar.org)
DonorSeries.com/integratedsearch
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Social media
LinkedIn / Facebook / Twitter / Pipl / MyLife
Online Search Multiple Sources
Pay Services
Capital IQ
WealthX
DonorSearch
IWAVE
WealthEngine
LexisNexis
GGA – DonorScape
Target Analytics
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Screening and Analytics – Automated
Review of lists - Pay Services
DonorSearch
WealthEngine
Target Analytics
GGA
IWAVE
Fund Raising Consulting Firms

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Ryan Woroniecki
DonorSearch.net
ryan@donorsearch.net
410-702-4223

Upcoming Webinar:
!
Best Foot Forward: Avoiding
Common Capital Campaign Mistakes
!
4/24 1pm EDT
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Brent A. Hafele, M.A.
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https://bloomerang.co/resources/webinars/

Hiding In Plain Sight - Identifying the Major Donors On Your Donor List

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Hiding In Plain Sight - Identifying the Major Donors On Your Donor List