Over the weekend I realized that I had just launched right into this series on ratings assuming that they are a given in every fundraising office. That everyone is already clear on the types of ratings that are out there and how they are used in a relationship management system for fundraising.
Capacity Ratings – get informed for better results
In my early days as a prospect researcher, I used to be a “Just the facts, ma’am” kind of researcher and report writer. A “here’s what I can see. I have no idea what the rest looks like so I can’t even guess for you” kind of gal. I was so afraid to be wrong.
Except I already was wrong.
Ratings – The Myth of 5% Over Five
We’ve been dead wrong in our calculations of gift potential for major donors.
We don’t have the right information. And we’re using what we do have the wrong way.
Let me set the stage: normally when we’re calculating a major donor’s capacity to give we look at their total visible assets and calculate that they will give 5% of that over five years to charity. Where does that ratio come from? The IRS, the Chronicle of Philanthropy and Giving USA are the three big resources for philanthropic giving information in the US.
The 5% figure we’ve been using isn’t real
Five percent over five
Over the weekend, a friend and fundraising consultant emailed me to ask: “Do you typically see prospects rated for a campaign at 5% of visible assets per year or 5% over 5 years?” I shot back, “Over 5.” He sent back a speedy “thanks!”
I had a quick image of him looking at the still snow-topped mountains over the screen of his laptop, working on a campaign plan for a client. I pulled on my oven mitts and eased a steaming pork pie out of the oven and started setting the table.
