AFP CFRE Study Group 2012
Module II: Current and Prospective Donor Research (16.5% / 33 Items)
What is Prospect Research?
According to APRA successful fundraising begins with accurate, timely and relevant information.
Information gleaned through prospect research will enable non-profit organization to approach all
fundraising prospects in a business -like manner.
Key Premise of Prospect Research:
Understanding a prospective donor’s financial capacity, passion, and motivations will enable
organizations to raise more meaningful gifts.
The rule of “Rights” in Fundraising:
“The best solicitation occurs when the right prospect is asked for the right gift by the right solicitor at
the right time in the right way.





The Right Prospect --------Affinity
The Right Gift --------------Capacity & Project
The Right Solicitor ---------Linkages & Connections
The Right Time -------------Capacity, Strategy
The Right Way --------------Strategy
One of the most important elements in the fund-raising process is determining all of these rights.
For that to occur, research is essential.”
I. Laying the Foundation & Shaping the Environment for Philanthropy
The Case for Research:
This section examines the importance of good research which provides the foundation for all
fundraising, from finding and keeping donors to soliciting funds to establishing and maintaining
relationships. There are different reasons for conducting research and different ways to approach it.
Definition of Market ResearchSince constituencies and stakeholders are the organizations “market” most of the research could be
deemed market research. This will be further discussed in the market and communication module as
there is a lot of overlap with research.
What types of things do you need to know about your constituencies and stakeholders?’
Following including what is listed on page 11-6
- social history
- memberships
- relationships within your own organization
- what boards they sit on
- surveys are great – help us collect information and are great door opener
Yunis Kariuki 1
AFP CFRE Study Group 2012
In Hank Russo’s Achieving Excellence in Fund in Raising: in Chapter 5: Developing a Constituency
for Fund Raising (pages 41-48) the following is discussed;
Identifying the Constituency:
- Every organization has a constituency
A Constituency Model:
Hank Rosso's concentric circles/ The constituency model
- Centre of the circle is the core (bonds are the strongest) which holds everything together and is
made up of primary stakeholders who include;
 Board of Directors- responsible for mission, vision, and policies of the organization
 Management- carry out the organization’s programs and articulates the mission of
the organization.
 Major donors- demonstrate their commitment to the cause through their
contributions
- In the second circle includes the following constituency;
 Volunteers
 Receiver of services/clients
 Employees
 General donors
 Members for membership based organization
 Vendors
- The third circle is made up of
 Former participants
 Former board members
 Former donors
- The fourth circle consisting of constituencies who not really known by the organization and
direct mail is the FR strategy that is use to engage these individuals.
 People with similar interests
- The very last circle in the concentric model is the organization’s universe. The involvement of
individuals in this circle is minimal. Gifts usually are made on annual basis.
- Others include:
 Corporation
 Foundation
 Government
Identifying and Attracting Likely Donors:
- Three indicators that you should look for as you size up your donors- Linkage Ability and
Interest (LAI)
 Linkage: involves the following;
 Networking/Personal contact
 Geographical, emotional or professional information
 Ability
 Financial capacity to give (research helps determine this)
 Interest
 Connection and involvement to the organization
- Special events are also used to track likely donors/prospects
Yunis Kariuki 2
AFP CFRE Study Group 2012
Research allows ongoing discovery:
Research also allows you to discover what you need to know in order to plan and implement
campaigns.
Box on page 11-8 explains the type of exchanges that take place as a result of ongoing research.
What are the Critical Factors for a philanthropy-friendly environment?:
 donor-focused research-involves analyzing the market and prospecting groups that are
aligned with your organization.
 targeted cases, constituencies, methods- this ensures donor and organization case are
aligned when approaching prospective donor.
 strategic communications stewardship – the most important of all- timely acknowledgments, reporting on gift and
recognizing the donor.
The Critical Balance:
Is about remembering in the end philanthropic process is more about relationships and less about the
money. It is a critical balance the Development Professional must work within as explained in on page
II-7.
II. Prospecting for Donors
This section focuses more on the detail aspect of prospect research by examining the definition of
prospecting and its connection to research.
Definition of Prospecting
see page 11
One way to reach and acquire prospects is through constituency development on page II-9 which
describes the:
Seven points of Constituency Development
1. Identify fundable projects – the strategic plan and organizational objectives must be
established first and this is point is further discussed in management module.
2. Match prospects to projects – use Rosso’s constituency model
3. Conduct thorough and realistic research- research is based on organization needs and
resources. Therefore it is important to focus on prospective donors who can make large
gifts to your organization.
4. Conduct cumulative and ongoing research-keep research fresh as information is always
changing.
5. Conduct organized research-well organized research leads to successful tracking ,
cultivation and solicitation strategies
6. Conduct research that is Ethical and confidential7. Identify opportunities to involve prospects- involves seeking out engagement opportunities
for prospective donors
The difference between a prospect and a qualified prospect?
Yunis Kariuki 3
AFP CFRE Study Group 2012
There are several types of research methodologies available, and choosing the best methods to use will
depend on the organization.
Page II-10 discuss the Four sources of financial information and motivations
 Personal contacts
 Publications/reports
 Participation records
 Public information
 Peers/advisors/experts
 Websites sourced in the Module II appendix
Organizing the research function:
There four areas that should be included in any research function
Also see Appendix page 9 “Sources of information on Prospect Research”
“Beware of the Research Pitfalls!”:
When setting up an ongoing research program there are certain pitfalls to beware of on page II-12
those pitfall are described in detailed.
Perform periodic progress checks:
Another critical step to ensuring research remains an ongoing activity is to perform periodic progress
checks.
III. Using Research Information from Prospect and Donor Profiles
Prospect/donor profiles help you
Using donor profiles help in the solicitation process in the follow ways;
 provide critical information about prospects and donors in order to move them through the
fundraising pipeline.
 prepare gift officers for individual face to face visits
Appendix page 13 shows a sample Donor Profile Anatomy
IV. Researching Foundation and Corporate Prospects
Prospect research for Foundations involves research the following;
 Looking for foundations that fund organization similar to yours
 Fund projects in your subject area and geographic area
 Foundation granting criteria
 Foundation granting capacity
Prospect for Corporations involves researching the following;
 Board connection
 Employee/dependant connection
 Donor/volunteer connection
 Corporate interests
Yunis Kariuki 4
AFP CFRE Study Group 2012
According to Barbara L. Ciconte, Jeanne Gerda Jacob, in Fundraising Basics, there are three basic steps
to follow when researching foundations and corporations:
For Foundation:
1. Develop a prospects list-include foundations that have shown an interest in funding some
aspect of your program. Look for foundations that fund organizations similar to yours
2. Refine your list- remove foundations from your list that are not able to fund your subject
area and geographic area
3. For the remaining foundations investigate the following;
 Foundation Staff and Board of directors
 Annual Reports and Financial statements
 Application procedures
 Recent grant making activities
For Corporations:
 Any Board, staff, volunteer or donor connection
 Recent granting activities
 Granting criteria
 Subject area and interests
 Community image of the corporation
 Granting decision procedures and processes
According to James Greenfield in his book, " Fund Raising: Evaluating and Managing the Fund
Development Process chapter on "The Middle Tier: Gifts from Institutions, focuses on gifts from
institutions.
Greenfield provides insight on how to research corporations and foundations prospects. The boxes in
our manual on page II-14 about corporation and foundation research is drawn out of Greenfield’s book
word for word.
V. Keeping Track of Donors & Prospects-Data Management Systems
This section focuses on data management systems that help organize and track prospect research info.
Internal Sources




External Sources



Natural constituencies (students, alumni, user of services, patients, families, etc)
Connections to your volunteers/board members (directorships, colleagues, etc)
Peer screening
Data mining/predictive modeling/database analysis
Fee-based subscriptions (Canadian Directory to Foundations and Corporations, BIG
Online)
Supporters of similar organizations
Publications
- Media monitoring
Yunis Kariuki 5
AFP CFRE Study Group 2012
-
Annual lists (FP500, Rich List, Top 1000 Homes, Most Powerful Women,
etc)
Wealth Screening
Google first stop in the research process
Great.. but can result in way too much information to dig through.
In order to get the best results from Google, you need to tell it exactly what you need to find by using
advanced research methods.
What kind of software tools do you use in your organization?
VI. Rating Prospects to Prioritize and Plan Solicitations
What are the major characteristics to consider when rating prospects? How do they affect
solicitation and giving?
Best practices criteria for rating a prospect:
1. Known or estimated gift capacity
2. LAI-Closeness to and/or interest in your organization
3. Previous giving history
4. Other known philanthropic gifts to other organizations
5. Known interest in and involvement with other similar non-profits
6. Philanthropic priorities of the prospect
7. Affiliation with and status within a public and/or private corporation
8. Affiliations with private foundations (e.g., trustee, officer, donor, etc.)
9. Can give at levels needed to fit into your organization’s Gift Table model
10. Any data or other positive indications of interest given by the prospect in the feasibility study or
indirectly by others
11. Expected or anticipated gift amount by the proposed/assigned solicitor(s)
Please see two sample documents in the appendix pages 15-16 on prospect evaluation.” To Be
Interviewed” and “Sample Prospect Evaluation Grid.”
Key Terms:
Data Mining
Electronic Screening
Market Research
Prospect (Suspect)
Prospect List
Prospect Management
Prospect Profile/Donor
Profile
Prospect Rating
Prospect Research
Prospect Screening
Prospect Tracking
Qualified Prospect
Yunis Kariuki 6