Data Driven Major Giving

Data Driven Major Giving:
How Analytics Can Move Your Prospects
from Indifferent to Invested

Agenda

Data is the Foundation of Strategy
Using Data to
– Identify Major Gift Prospects
– Optimize Major Gift Portfolios
– Define Ask Amounts
The Prospect Management Process
– Commonly Measured Metrics and Suggested
Benchmarks
– Forecasting Major Giving Results Based On Pipeline
Analysis
– Reporting Results

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Data is the Foundation of
Strategy

What is Analytics?

Analysis
The process of breaking a complex topic or substance into
smaller parts to gain a better understanding of it.

Analytics
The process of developing optimal or realistic decision
recommendations based on insights derived through analysis

Analytics + Analysis = Data Informed Decision Making

4

Data Leads to Actionable Insight

Wisdom
Evaluated understanding
Wisdom
Knowledge
Application of data and
information; answers "how”
Knowledge & “why” questions

Information
Data that are processed to
Information be useful; provides answers
to
"who", "what", "where", and
"when" questions

Data Data
Symbols


All Strategy Derives from Organizational
Objectives and Goals

Vision Answer
A world without hunger
“Why?” Feed the hungry
Mission Questions

Increase capacity to
Objectives Answer transport excess food to
“What?” those in need
Increase major gift
Goals Questions revenue by 20%

Strategies Answer Invest in screening data

“How?” Use data to optimize
portfolios and ask
Tactics Questions values


Capacity and likelihood to
give data identify the best
major gift prospects…

Use Data to Optimize Portfolios by Finding
the Best Prospects

Based on Capacity and
Likelihood to Give (or
Affinity), an entire
constituency can be
segmented for application
of distinct strategies:

Capacity
For major gifts, constituents with
high capacity and high affinity
are shaded in green for
immediate assignment and
cultivation
Constituents in shaded in blue are
second tier prospects and should
be engaged in high-touch
cultivation at the annual giving
level
Likelihood to Give


Use Data to Optimize Portfolios by Finding
the Best Prospects

Based on Capacity and
Likelihood to Give (or
Affinity), an entire 2 2 47
constituency can be
segmented for application
of distinct strategies:

Capacity
For major gifts, constituents with
high capacity and high affinity
41 30 525
are shaded in green for
immediate assignment and
cultivation
Constituents in shaded in blue are
second tier prospects and should
be engaged in high-touch
3,626 2,397 8,328
cultivation at the annual giving
level
Likelihood to Give


Data Appends (Wealth, Demographic and Lifestyle
Attributes) Allow Evaluation of All Constituents
Likelihood to Give

Capacity Range Very Low Low Moderate High Very High Total

$5M+ 1 3 2 6

$1M up to $5M 2 1 19 23 45

$500K up to $1M 7 11 50 39 107

$250K up to $500K 34 19 301 135 489

$100K up to $250K 139 60 905 358 1,462

$50K up to $100K 6 490 469 2,155 774 3,894

$25K up to $50K 186 795 1,037 1,288 761 4,067

$15K up to $25K 132 464 498 607 365 2,066

Up to $15K 127 278 67 216 146 834

Unrated 525 484 266 466 287 2,028

Total 976 2,693 2,429 6,010 2,890 14,998


Quickly Identify the Best Prospects for Major
Gift Cultivation
Likelihood to Give


$5M+ 1 3 2 6
28 shaded green have high
$1M up to $5M capacity, high likelihood to give
2 1 19 23 45

$500K up to $1M 7 11 50 39 107

$250K up to $500K 34 19 301 135 489

$100K up to $250K 139 60 905 358 1,462

$50K up to $100K 6 490 469 2,155 774 3,894

$25K up to $50K 186 795 1,037 1,288 761 4,067

$15K up to $25K 132 464 498 607 365 2,066

Up to $15K 127 278 67 216 146 834

Unrated 525 484 266 466 287 2,028

Total 976 2,693 2,429 6,010 2,890 14,998


Identify Second Tier Prospects for High-Touch
Leadership Giving Program
Likelihood to Give


$5M+ 1 3 2 6

$1M up to $5M 2 1 19 23 45

$500K up to $1M 544 shaded in blue 7 also
are 11 50 39 107
good major gift candidates
$250K up to $500K 34 19 301 135 489

$100K up to $250K 139 60 905 358 1,462

$50K up to $100K 6 490 469 2,155 774 3,894

$25K up to $50K 186 795 1,037 1,288 761 4,067

$15K up to $25K 132 464 498 607 365 2,066

Up to $15K 127 278 67 216 146 834

Unrated 525 484 266 466 287 2,028

Total 976 2,693 2,429 6,010 2,890 14,998


Portfolios are often selected based
on past giving history…

The Current Portfolios Under Management
have a Total Value of $46MM
Affinity Score

$5M+ $7,983,010 $7,983,010

$1M up to $5M 243 prospects are currently under management $10,481,105 $10,481,105

$500K up to $1M
(assigned to a gift officer or volunteer) $4,120,173 $4,120,173
These were selected based on total giving
$250K up to $500K $370,479 $341,000 $440,241 $6,786,036 $7,937,755
Values in the cells are the sum of the capacity
$100K up to $250K of each individual who falls within the range $6,350,829
$601,489 $332,565 $1,545,482 $8,830,365

$50K up tp $100K $196,430 $243,806 $712,639 $3,133,520 $4,286,395

$25K up to $50K $94,259 $289,513 $201,514 $583,946 $1,119,834 $2,289,066

$15K up to $25K $39,287 $24,468 $73,790 $134,884 $272,430

Up to $15K $40,226 $10,961 $36,692 $87,880

Unrated The
$27,383 total $15,889
capacity of the prospects under
$11,409 $9,571 $64,252

Total management is the total number in the lower
$161,868 $1,513,087 $1,143,353 $3,378,469 $40,155,653 $46,352,430
right-hand corner ($46MM)


Potential soars when portfolios
are selected based on capacity
and likelihood to give ratings…

243 Optimal Prospects @$286MM
(Selected Based on Capacity and Likelihood Ratings)
Affinity Score


$5M+ 89,015,427 19,223,723 108,239,150

$1M up to $5M 35,938,650 48,700,146 84,638,796

$500K up to $1M 34,221,647 27,739,460 61,961,108

$250K up to $500K 30,862,459 30,862,459

$100K up to $250K

$50K up tp $100K

$25K up to $50K

$15K up to $25K

Up to $15K

Unrated Selecting the 243 optimal prospects yields $286MM
under management
Total 159,175,725 126,525,788 285,701,513
This is 6 times the capacity under management


Strategy Grows Out of Analysis

All else being equal, if 20 gifts close at 10% of capacity, this
change in portfolio value would result in an additional $2MM
($2,351,452 vs. $381,501)
To activate this potential, any high-likelihood, high-capacity
prospects not under management by an individual staff or
volunteer should be assigned
Currently assigned prospects with lower capacity/likelihood scores
should only be kept under management if they are close to or in
the solicitation phase
The second tier of prospects with high capacity and likelihood
scores should be “fast-tracked” in high-touch annual
giving/cultivation program


Ask amounts are often based on
instinct, “gut” feelings, or the
comfort level of the solicitor…

Data including Capacity Estimates Allow
Analysis of Major Gift Solicitations

Prospect
Average % of % of
Manager or AverageAsk Average % of Ask
Capacity of Capacity Capacity
Major Gift Amount Gift Amount Received
Prospects Asked Received
Officer

Jocelyn $95,617 $24,286 25% $10,242 42% 11%

Sarah $167,708 $24,167 14% $16,667 69% 10%

Total $131,662 $24,226 18% $13,455 56% 10%


This Organization Receives on Average
Only 10% of Potential Gift Value

Average % of % of
Prospect AverageAsk Average % of Ask
Manager Amount Gift Amount Received

Jocelyn $95,617 $24,286 25% $10,242 42% 11%

Analysis shows gifts received are valued
Sarah $167,708 $24,167 14% $16,667 69% 10%
at approximately 10% of capacity

Total $131,662 $24,226 18% $13,455 56% 10%


Gift Officers May be Defaulting to the
Minimum Major Gift Level

Average % of % of

Jocelyn $95,617 $24,286 25% $10,242 42% 11%

With a minimum major gift amount of
Sarah $167,708 $24,167 $25K, it looks like prospect managers 10%
14% $16,667 69% may
be satisfied asking for gifts of $25K

Total $131,662 $24,226 18% $13,455 56% 10%


With Gifts Closing at Just 56% of Asks, There
May be Money Left on the Table

Average % of % of

Jocelyn $95,617 $24,286 25% $10,242 42% 11%

Sarah
On average, $24,167
$167,708
they are 14% $16,667 69% 10%
receiving gifts of $10K-$15K

Total $131,662 $24,226 18% $13,455 56% 10%


If 20 Gifts are Closed with Gifts Averaging 10% of
Capacity, the Organization will Realize $263,324

Average % of % of

Jocelyn $95,617 $24,286 25% $10,242 42% 11%

$131,662 x 10% x 20 Gifts =
$131,662 x 10% x 20 Gifts
Sarah $167,708 $263,324 14%
$24,167 $16,667 69% 10%

Total $131,662 $24,226 18% $13,455 56% 10%


If ask amounts are adjusted to
reflect capacity on an individual
basis, fundraising potential
increases…

Adjusting Average Ask Amount Up to 25% of
Capacity on Average Leads to Higher Asks

Average % of % of

Jocelyn $95,617 $24,286 25% $10,242 42% 11%

Sarah’s asks are adjusted from
14% to 25% of capacity,
Sarah $167,708 $41,927 25% $28,929 69% 17%
resulting in an average ask of
$41,927
Total $131,662 $32,915 25% $19,585 59% 15%


Higher Asks Lead to Higher Closed Gift
Amounts

Average % of % of

Jocelyn $95,617 $24,286 25% $10,242 42% 11%

Sarah $167,708 $41,927 25% $28,929 69% 17%
This leads to a 17% of capacity
average gift for Sarah and 15%
Total $131,662 $32,915
overall
25% $19,585 59% 15%


If 20 Gifts are Closed with Gifts Averaging 15% of
Capacity, the Organization will Realize $394,986

Average % of % of

Jocelyn $95,617 $24,286 25% $10,242 42% 11%

$131,662 x 15% x 20 Gifts =
$131,662 x 15% x 20 Gifts
Sarah $167,708 $394,986 25%
$41,927 $28,929 69% 17%

Total $131,662 $32,915 25% $19,585 59% 15%


Strategy Grows Out ofAnalysis

All else being held constant, If 20 gifts close at 15% of capacity on
average, this will result in $394,986 in revenue
This represents an additional $131,662 in revenue over prior asks
Ask amounts do not need to be a set and static percentage of
capacity, but should be evaluated on an individual basis
Questions to ask include:
– Are we one of this prospect’s top three priorities?
– Is this prospect enthusiastic about a particular project or program?
– Do we have a funding need that meshes with this prospect’s interests?
– What other current commitments do they have?
If gift officers default to a low ask amount, consider training to
boost confidence in the ratings and/or confidence in the process


Realize Untapped Fundraising Potential

By analyzing file capacity and modeling likelihood to give, this
organization was able to increase capacity under management and
(without closing more gifts) increase potential funds raised by
$2MM
By analyzing ask amounts in relation to capacity, this organization
was able to identify a weakness in their major gift program and by
encouraging each gift officer to ask for a minimum of 25% of
capacity, increases fundraising potential by $131,662
If this organization realizes even 10% of this potential $2.1MM gain,
they will have realized a Return on Investment (ROI)of 740% based
on a $25,000 investment in data and analytics


The Management Process

Plan Implement Monitor Adjust Report
Develop Deploy Check Results Make Report
Strategies Resources Against Adjustments to Progress to
Design Tactics Benchmarks Plan / Tactics Stakeholders
Determine Monitor Metrics Implement as
Metrics & needed
Benchmarks
Assign
Resources

“Management is concerned with ensuring plans and strategies are
implemented, that progress is monitored, that corrective action is
taken when required and that results are reported and stakeholders
are kept informed.”


Major Gift Maturation Process

“It can take 18 to 24 or more months to cultivate and secure a major
gift. Therefore, it is as important to measure and manage the
activities that lead to major giving as to measure dollars in the door.”


Evaluating Major Gift Activities

Are your portfolio’s balanced?

Stage of Prospect Development
Prospect Manager Discovery Cultivation Solicitation Stewardship Total

Jocelyn 27 56 33 36 152

Sarah 16 42 4 3 65

Total 43 98 37 39 217

Percent in Stage 20% 45% 17% 18% 100%

“Depending on your stage of campaign, seniority of gift officers, and
age of major gift program, you may want to manage the prospect
pipeline by emphasizing movement from cultivation into solicitation,
or increased activity qualifying new prospects.”


Common Major Gift Officer
Performance Metrics
Number of
For Full-time MGO: 100-150
Personal Visits

Percentage of
50% to 75% depending on stages of portfolio
Unique Visits

Proposals
15 to 25, varies by wealth of portfolio
Submitted

Number of Gifts
5 to 20, roughly 30% to 60% of asks
Closed

Amount of Gifts
60% to 85% of “ask” or solicitation
Closed

Provides incentive for teamwork and discourages hoarding and poaching of
Assists prospects

ROI Dollars raised/costs of fundraising (including salaries)


Major Gift Metrics and Benchmarks

Standard Benchmarks* Organization Benchmarks
Metric
Low High Example Your Historic Your Goal
Portfolio Size 100 200 150
% in Discovery 10% 30% 18%
% in Cultivation 30% 60% 40%
% in Solicitation 20% 30% 25%
% in Stewardship 10% 20% 17%
# of Solicitations per Year 38
% of Solicitations Closing per Year 33% 66% 50%
# of Solicitations Closing per Year 19
Time to Close a Major Gift 12 months 30 months
% of Ask Received 60% 85%
# of Research Rated Leads per Gift 30
# of Prospects in Discovery per Gift 6
# of Prospects in Cultivation per Gift 3

*Benchmarks were obtained from a literature review and represent our best estimates from internal and external sources.

Percentages and values will vary by organization depending on maturity of program, stage of campaign, geographic region, wealth profile of constituency, level of
affinity of constituency and many other factors. Benchmarks should be used with caution, and it is always best to benchmark against your historic results


Forecasting Major Gift
Results with Pipeline
Analysis

Campaign Pipeline Report

Gift Number Dollars Cumulative Cumulative Cumulative $ Value of Pipeline $ Value of Future Total
Levels of Gifts Needed Total Total Percent Proposals Expected Proposals Pipeline Expected
Needed Per Level Needed Received Received Submitte Yield Planned Expected Pipeline
d (40%) (1-3 Yield
months) (20%)
$400,000 1 $400,000 $400,000 $500,000 25% $0 $0 $0 $0 $0

$200,000 1 $200,000 $600,000 $700,000 35% $0 $0 $0 $0 $0

$100,000 2 $200,000 $800,000 $800,000 40% $200,000 $80,000 $0 $0 $80,000

$50,000 3 $150,000 $950,000 $850,000 43% $50,000 $20,000 $50,000 $10,000 $110,000

$30,000 3 $90,000 $1,040,000 $910,000 46% $30,000 $12,000 $30,000 $6,000 $128,000

$20,000 10 $200,000 $1,240,000 $1,070,000 54% $20,000 $8,000 $20,000 $4,000 $140,000

$15,000 12 $180,000 $1,420,000 $1,160,000 58% $45,000 $18,000 $15,000 $3,000 $161,000

$10,000 15 $150,000 $1,570,000 $1,210,000 61% $60,000 $24,000 $10,000 $2,000 $187,000

$5,000 20 $100,000 $1,670,000 $1,230,000 62% $20,000 $8,000 $30,000 $6,000 $201,000

$3,000 30 $90,000 $1,760,000 $1,242,000 62% $3,000 $1,200 $75,000 $15,000 $217,200

$2,000 40 $80,000 $1,840,000 $1,274,000 64% $12,000 $4,800 $36,000 $7,200 $229,200

$1,000 50 $50,000 $1,890,000 $1,299,000 65% $10,000 $4,000 $15,000 $3,000 $236,200

Varies Many $110,000 $2,000,000 $1,333,000 67% $0 $0 $76,000 $15,200 $251,400



d (40%) (1-3 Yield
months) (20%)
$400,000 1 $400,000 $400,000 $500,000 25% $0 $0 $0 $0 $0

$200,000 1 $200,000 $600,000 $700,000 35% $0 $0 $0 $0 $0

$100,000 2 $200,000 $800,000 $800,000 40% $200,000 $80,000 $0 $0 $80,000

$50,000 3 $150,000 $950,000 $850,000 43% $50,000 $20,000 $50,000 $10,000 $110,000

$30,000 3 $90,000 $1,040,000 $910,000 46% $30,000 $12,000 $30,000 $6,000 $128,000

$20,000 10 $200,000 $1,240,000 $1,070,000 54% $20,000 $8,000 $20,000 $4,000 $140,000

$15,000 12 $180,000 $1,420,000 $1,160,000 58% $45,000 $18,000 $15,000 $3,000 $161,000

$10,000 15 $150,000 $1,570,000 $1,210,000 61% $60,000 $24,000 $10,000 $2,000 $187,000

$5,000 20 $100,000 $1,670,000 $1,230,000 62% $20,000 $8,000 $30,000 $6,000 $201,000

$3,000 30 $90,000 $1,760,000 $1,242,000 62% $3,000 $1,200 $75,000 $15,000 $217,200

$2,000 40 $80,000 $1,840,000 $1,274,000 64% $12,000 $4,800 $36,000 $7,200 $229,200

$1,000 50 $50,000 $1,890,000 $1,299,000 65% $10,000 $4,000 $15,000 $3,000 $236,200

Varies Many $110,000 $2,000,000 $1,333,000 67% $0 $0 $76,000 $15,200 $251,400


Campaign Pipeline Analysis

$2,000,000

Goal
$1,800,000

$1,600,000 Pipeline + Receipts
$1,400,000
Receipts
$1,200,000

$1,000,000

$800,000

$600,000

$400,000
Pipeline
$200,000

$0

Year One Year Two Year Three
Study & Planning Phase Quiet Phase Public Phase
9-12 Months 12-15 Months 6-12 Months


Reporting Results For
Maximum Impact

Reporting for Maximum Impact


Which Has More Impact?

If you are demonstrating a trend, use a graph

% of donors renewing after 1st gift
% of donors 16%
Year renewing after
1st gift 14%

12%
2007 14%
10%
2008 13%
8%
2009 11%
6%
2010 12%
4%
2011 10%
2%

0%
2007 2008 2009 2010 2011

Year



If you are demonstrating parts of a whole, use a pie chart

Funding by Constituency
Funding by Constituency 0

Board 17% 17%
25%
Volunteers 20%
Funding by Constituency
Members 15% Board
Volunteers
Service Recipients 19% Members
4% 20% Service Recipients
Event Particpants
Event Particpants 4% Friends

Friends 25%
19%
15%



If you are showing information in two dimensions, use a matrix

Segments Number
1500 Annual 317 Major
Low Giving Gift
Affinity/Low 2,500 Prospects Prospects
Capacity Affinity
High
Affinity/Low 1,500
Capacity
Low 962 High
Affinity/High 962 2500 Do Not Touch
Solicit Cultivation
Capacity Prospects
High
Affinity/High 317
Capacity
Ability



If you are showing information in time, use a timeline
Average time from Identification to closed gift: 36 months
Average number of face to face contacts: 6
Average number of touch points (non-substantive contacts): 8

Touch Point Touch Point Touch Point

Meeting 5
Meeting 2
Identification Touch Point Touch Point Present
Attend Event
Proposal

2009 2010 2011
Q1 Q2 Q3 Q4 Q1Q2 Q3 Q4 Q1 Q2 Q3 Q4

Touch Point Touch Point Touch Point Meeting 6
Gift Closed
Meeting 3 Meeting 4
Identification Meet Discuss Gift
Leadership Option

Key: Avg # of touch points = 6 Avg face-to-face contacts = 6 Avg time to close a gift= 36 mos


Presenting Information Visually

When working in Excel™, take the next step to explore
charts
In PowerPoint™, use Smart Art options
When explaining a process, use a flow chart
When explaining a trend, use a graph
When comparing categories, use a bar chart
When explaining history, use a timeline
When explaining progress in a project, use a Gantt
Chart

“How you present information can be as important as
what you present.”


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info@wealthengine.com

Tony Glowacki Sally Boucher
President & CEO Director of Research
WealthEngine WealthEngine
glowacki@wealthengine.com sboucher@wealthengine.com


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