When it comes to major gifts, how do you know you’re asking the right person for the right amount? Prospect research, of course!
In an ideal world, you’d have time to sit down with each and every one of your prospects. You’d get to know them personally and ask them when you felt the time was right.
In the real world, you have to make sure you’re using your time effectively by soliciting the folks who have real potential to support your organization.
Prospect research provides important indicators to help you focus your efforts:
Asking the Right Person
At Front Range Source, we say this all the time: fundraising is not evangelism. If a person is not philanthropic by nature and they don’t care about your cause, move on.
We know from experience that your best major gift prospects are those that already know and love you. We also know that a history of giving to any nonprofit makes for a better prospect.
Individuals who have made a gift of $10,000 - $25,000 to a nonprofit are 10 times more likely to make a charitable donation elsewhere than the average person. (Source: DonorSearch)
Prospect research can help you reach out to the person who has a demonstrated history of making charitable contributions and who has shown interest in causes like your own.
Asking for the Right Amount
It’s true. You will raise more money if you ask for specific dollar amounts. Prospect research is an essential part of understanding a person’s potential based on their philanthropic track record, their history of giving to political campaigns, and yes, even their real estate and stock holdings.
The strongest wealth-based indicator of future philanthropy is real estate ownership. The value of real estate owned is an excellent predictor of philanthropy, with greater wealth connected to greater giving. (Source: DonorSearch)
Some people get squeamish about prospect research, but we know from experience and research that when done properly, it produces a far more respectful ask than if you just go in there and start guessing. In fact, studies back it up. Donors don’t respond well to an inappropriately-sized ask.
So, know before you go! Use research to professionalize your major gifts program and raise more money.
Our tactical team at FRSolutions can help you scan your database for the best prospects or prepare a donor profile for a major gifts prospect. We’d love to help you be more confident in making the right ask to the right person at the right time.
