Strategic planning Archives - Page 5 of 6

March 26, 2013 By Helen Brown 6 Comments

Prospect Research for Fundraisers – the Book!

Book Look at what arrived by special delivery today!

It’s an advance copy, meaning that for all of you who pre-ordered (and thank you for that, by the way!), yours will be arriving very soon.

If you haven’t already ordered it, now’s the time to get your very own copy hot off the presses! Just click that little book cover over there on the right to buy it at a discount (!). It will be on your doorstep in no time. This book has got everything anyone working in fundraising needs to know about prospect research. You’re going to love it.

Thank you to everyone who was involved: those who agreed to be interviewed, who were the subjects of case studies, who provided quotes and who read (and re-read!) drafts and offered sage advice and suggestions. And the biggest thank you to my co-author, the awesome Jen Filla.

February 14, 2013 By Helen Brown 2 Comments

Send your best researcher home

office distractions

Tell me the top 3 things that you love about working here.

Now tell me the top three things you don’t like.

When I work with a client to audit their prospect research department, the answers to those two questions tell me a lot about both the nonprofit and the person I’m interviewing. When I review the answers of 10 or 20 employees, I start to see patterns of strength and gaps to be filled. Taken across several organizations, I hear a lot of the same things. From prospect researchers, I almost always hear

I wish they would let me work from home.

I would like flexible hours.

When I bring this up with their supervisors or leadership, I often hear “Yeah, yeah. Employees always say that. It’s never going to happen. They’re not living in the real world.”

Here’s Real World: A recent survey by career-management firm Right Management found that 86% of the people they polled said that they planned to actively search for a new job in the coming year, up 26% since 2009. A combination of work-place stress and doing more for the same salary were the major contributing reasons.

The reality of a typical prospect research professional’s work environment is that it’s a 90 percent computer-based job. If researchers and front-line fundraisers in medium to large shops communicate, it is mainly through email, forms, or on the telephone. Face-to-face time is generally a very small part of the relationship, maybe a couple of hours a week.

Research requires concentration – a lot of it. Have you ever tried to add up a column of figures while someone else is carrying on a conversation in the next cubicle over? It doesn’t matter if they’re discussing a work project or dishing about Downton Abbey, a constant background hum like that is distracting. The more distractions, the more on-the-job stress there is.

On Marketplace Radio, Stephen Dubner, the Freakonomics co-author, told the story of C-trip, the Chinese equivalent of Expedia. In order to save money on expensive office space, the C-trip CEO, James Liang, PhD (Economics, Stanford) decided to try an experiment. C-trip allowed 255 workers that wanted to work from home to try it out for 9 months. The company figured that they would save money on office space and attrition, but lose money on productivity. They hoped that those factors would balance each other out.

What they found was that productivity from the work-from-home group was actually 13% higher than their in-office peers. Employees’ stress from commuting was eliminated, they took fewer sick days and they got to work on time more often than their office-commuting colleagues.

In fundraising, we all know that it’s always cheaper to retain a donor than it is to acquire one, and the same is true for workplace talent. Some people prefer (and thrive in) an office work environment, and working from home is certainly not for everyone. At-home workers have a responsibility to track and maintain their same (or increased!) productivity levels, and the arrangement does require a commitment to communicate well. But for the manager of a valued, reliable prospect researcher, the flexibility of offering that worker the opportunity to work from home even a few days a week might be just the perk that not only retains them, but increases their job satisfaction, their loyalty to the organization, and their overall health.

Here at HBG, we have a new and beautiful main office where I and two other colleagues work most days, but the rest of my senior staff work from home. It works out well for all of us, and I think it’s one of the reasons why my staff work hard, produce great research, and stay with the company.

Does your nonprofit allow you or others to work from home? If so, what are the positives and negatives that you’ve found?

For further reading:

The Brown university white paper on the C-trip experiment can be found here.

Richard Branson’s recent blog post: Give People the Freedom of Where to Work

Forbes blog guest post by Gary Swart, CEO of oDesk: Marissa Mayer Is Wrong: Freedom For Workers Means Productivity For Companies

February 1, 2013 By Helen Brown 2 Comments

Going to Harvard in a Maserati…or not

I hear a lot of comments from fundraisers at small shops that they simply can’t afford prospect research. I participated in a terrific Twitter chat for fundraisers earlier this week on the topic of prospect research where a few folks underscored this refrain: “We’re small, we have no money, and prospect research is just too darned expensive.”

But isn’t that like saying “That Maserati is one sweet ride, but it’s too fast and expensive so I’m going to walk instead”?

Not all prospect research costs like a Masarati. Some of it does, but most of it doesn’t. If you work in a small organization, you probably don’t need the Masarati research anyway. But it’s hard to know what to purchase if you don’t know what you need. And there are a lot of tools available in prospect research that can help, from prospect identification to profiles to relationship management to data mining and more. Lots more!

Knowing what kind of research you need and using it smartly and efficiently will get you to success a lot faster. And by success, I mean that you’ll be able to draw a direct line from research well used to increased dollars and pounds in the door.

So here’s one solution: If you’re a fundraiser who isn’t sure what prospect research can do for you, or if you think that the only thing it has to offer is expensive profiles or databases that cost a lot, then you really need to read this book. If you don’t find that it gives you solutions that help you increase donations, let me know and I’ll refund the money you spent on it.

Prospect research is useful for all sizes of organization, from teeny tiny Mini startups to super huge land yachts, like Harvard. Read the book and network with researchers to help draw up a plan to include prospect research in your budget.

December 19, 2012 By Helen Brown Leave a Comment

They’re going to leave (unless you keep them)

This year’s AFP/Urban Institute Fundraising Effectiveness Project reported that for every 100 new donors that supported a small-to-medium sized nonprofit in the United States last year, 107 donors left. Even more starkly, “every $100 gained in 2011 was offset by $100 in losses through gift attrition.”

Every year small-to-medium nonprofits are working harder just to break even.

Overall the study found that the largest gains come from new donors and the largest losses came from lapsed new donors.

Lapsed new donors.

These are the friends that should be easiest to keep. You’re still in the honeymoon phase. They’re excited about your organization enough to make a first gift. Sure, some of them will have given because of a road race or a golf tournament or in memory of someone. But most of those new donors should spell opportunity, not the promise of future loss. And as we’ve been told a hundred times, it costs less to retain a donor than it does to acquire one.

For larger nonprofits (organizations raising $500,000 and more) the figures are very different. For the most part, the more money an organization raises per year, the less likely they are to have donors leave them. Their losses due to attrition are cut by half.

So what’s the difference between small organizations and large ones? How are the larger ones able to keep their new donors?

A stronger fundraising infrastructure makes a big difference; overhead isn’t a bad thing when it is used effectively. The report strongly recommends building internal capacity overall and then annually providing extra budget support to the areas showing the greatest opportunities and success. Most of the larger organizations use prospect research to identify the new and renewing donors that have the highest potential to be upgraded. If yours doesn’t do that already, now is a good time to start.

What can you do now?

We’re swiftly coming up to year-end and your organization will, with luck, have an influx of brand new donors that you don’t want to lose next year.

This January, use prospect research – do an electronic screening of those new year-end donors. Apply data analytics to find the hidden gems in your database. Research the ones with the most potential to find their interests and philanthropic capacity. If you don’t have internal capacity, hire a professional. Prospect research may be an overhead expense, but it’s more expensive to keep treading water year after year.

Resolve to keep more of your new donors next year. You can start now.

November 11, 2012 By Helen Brown Leave a Comment

When do you use prospect research?

I’m preparing a web seminar for fundraising consultant Lori Jacobwith’s Ignited Online Fundraising Community this Thursday to introduce her group to prospect research. Lori has been providing coaching and continuing education to her clients through the Ignited Online community for over four years, and I’m impressed at her dedication to capacity building within the fundraising profession. I’m looking forward to sharing what prospect research can do and when to use it.

As I’m putting together my presentation, I was thinking about how to graphically show when prospect research is most helpful, and created this image.

We may identify new prospects with a wealth screening, with data analytics, by happenstance, in conversation with our volunteers or a number of other ways. Something in our identification methods tells us that a prospect is a good fit, but most of these ways don’t involve intensive one-by-one research.

As the relationship progresses with mutual interest on the part of the donor and the nonprofit, Research is used intensively help build a deeper connection. Information gathering is both primary (in conversation with the donor) and secondary (using online and offline resources to collect information).

After the gift is given fundraisers tend to need very little information; much is already known about the donor and their interests. Research may be used to help with stewardship of the donor or their family. For example, news alerts may be used to send a note of congratulations for a birth in the family, a company sold or a marriage announced.

Does this match your experience? When does your organization use research the most?

August 30, 2012 By Helen Brown 1 Comment

Are you ready for ‘Back to School’?

When there’s a kid in your house, ‘tis the season for starting fresh. New notebooks, new pencils, a new calculator…it’s equal parts thrilling and daunting to look at the pile of brand new things and imagine them being used. Even though I’m long out of school, for me September always brings with it a sense of excitement and nervous anticipation about what’s ahead, even more so than January 1st.

In fundraising (or really in any field that uses reports), now’s a good time to take a fresh look at how we share information with each other to be sure that we’re doing it well.

What might that mean for you?

Are the reports you created during the last campaign still working for the between-campaign period?
Do you have new leadership that has a lot of information needs (but you’re giving them reports their predecessor helped you create)?
What do frontline fundraisers and leadership need to know to do their best work? Is it different than four years ago when the profile format was created?

In this pre-dawn period before the fall season really heats up with meetings and events and homecoming and all of that – now’s a great time to set aside a few hours to talk with end users of your work. Ask your clients…

Are we giving you too much information? Too little?
Can we create a variety of report types that meet different needs?
How can we help you be more self-sufficient?
What kinds of information would you like pushed to you?

Be creative! There are all kinds of cool tools out there now for you to try! Do a little fun research to find dashboards … mapping … analytics … apps … even something as simple as re-thinking report formatting can help breathe new life into the mundane. (In fact, I heard a little bit of gossip from the APRA conference: a certain university with an awesome name now formats profiles so they can be easily read on an iPad – how’s that for creative thinking!?)

What do you want to do differently this new school year?

March 30, 2012 By Helen Brown 2 Comments

For fundraisers working with a research team…

Are you sometimes waiting (and waiting!) to have research requests completed for you? Or getting completed research *after* the visit? Frustrating, isn’t it? Wish you had a way to get your research requests done first? It can’t work all the time, but there is a way…

I read a blog post by Rajesh Setty the other day called “Help is on the way.*” Setty’s an entrepreneur consultant and writes for the business market. It’s not long, and it’s worth a read if you have time. If you don’t have time now, here’s my interpretation of what he wrote with regard to prospect research in a typical mid-to-large size development office:

Generally speaking, good help is scarce because:
• People that are good at their jobs are busy becoming even better at their jobs.
• People gravitate toward people who are good at their jobs and ask them to help with their projects …
• …which makes people that are good at their jobs even busier…
• …which makes good help even more scarce.

So what do these good, busy people do to cope with the increased requests for help? Setty writes:

“1. They eliminate meaningless requests.

2. They eliminate requests that were made because the requester was lazy.

3. They eliminate requests that don’t deserve to be fulfilled.

4. They eliminate requests that are not meaningful to them.

They look at the remaining requests and choose the ones that will provide the highest ROI for their investment of time…[T]he odds change significantly depending on ‘who you are’ to them. If you are someone special to them, the terms and conditions section suddenly disappears.

The objective decision making walks out of the door replaced by subjective decision making in your favor.”

Prospect researchers don’t usually have the discretion to eliminate requests for reports. Normally it’s first come, first served… unless your job title gives you the cachet to jump the queue. Requests – both worthy and worthless – pile up. One person’s request for a full profile on a donor prospect they are merely curious about means that another’s truly hot prospect briefing goes further down the list.

Would a researcher prefer to work with a major gift officer that actively sought visits with prospects that that researcher identified for them? Sure. Might that MGO’s requests mysteriously move higher in the research queue from time to time? Mayyybe.

Would a prospect researcher work harder for a front-line fundraiser that came by their desk and said “Let me tell you about the great meeting I just had with that prospect you researched for me!!” Absolutely. Might that person’s requests mysteriously gain helium in the research queue from time to time? Mayyybe.

I know that I’ve done it. I worked with a fundraiser who made a fill-in appointment based on a gut feeling I had about a prospect I’d found. I knew the prospect had their own privately-held company and there were rumors the company was going IPO in the next six months, but that’s about all I had. Still, the fundraiser honored my gut feeling and set up the discovery meeting. That act of faith (and the subsequent major gift donation of stock – I’m not kidding – yay!) forged a great researcher/fundraiser team that communicated often from then on. I will admit to moving that fundraiser’s requests slightly higher in the queue from time to time because we were a team that was making things happen.

Research – good research – is a time-consuming job, and we all only have so much time. All of us want our work to be for something – to know that what we do has meaning. If you don’t have a fancy title after your name, consider internal stewardship to jump the queue. You’re a fundraiser, after all. You know all about relationship building.

March 9, 2012 By Helen Brown 1 Comment

Solutions for the frustrated

I’ve been thinking about Chris Cannon’s blog post “3 Solutions to Prospecting Problems” ever since I read it earlier this week. Chris’s solutions to common issues we face in the development office are these:

We need to respect our colleagues, honor their experience and their contributions…
…come up with a good plan …
…and stick to it. No personal or organizational distractions (to the degree that they can be avoided).

It’s not rocket science, but it’s true. We lose our tempers, we lose our focus, and then we lose our way.

Don’t we accomplish so much more on a personal level when we stick to those three things? Imagine what we could do as a development team.

For me, a lot of wasted potential I see in development shops comes down to communication and training.

“I’ve stopped requesting research,” said one fundraiser to me recently. “It just takes too long to get it back and by the time I get the profile, the visit’s already happened. It’s just too frustrating. Google’s my researcher now.”

“I don’t get it,” said a researcher. “I’m working for four fundraisers and each one asks me for full profiles on people they’ve never met. It takes me two days to do each full profile along with all the other stuff I’m doing, and then when I finally give it to the fundraiser I never hear anything back! It’s frustrating!”

“The researchers don’t understand what I need,” said another fundraiser. “I work with a very specific group of high-level donors in a particular industry. I get profiles back on people in the same industry with wildly varying capacity ratings. I know what people make in this industry and every rating is wrong! I need consistency from profile to profile and an understanding of this industry and what people make.”

“Sure, I would love to go to a training seminar on private equity compensation/lawyers/oil & gas futures” said a researcher to me recently. “We just don’t have the budget for training right now.”

There’s one really simple answer for each of these frustrated people. Do you see yourself in one of them?

Great teams communicate well together. We’re in the communicating and relationship building business, and the communicating and relationship building needs to happen both externally AND internally.

Talk to each other. Respect each other. Make a plan. Do it.

Update: Great infographic on exactly this subject:

Elevate Communication Between Your Colleagues

July 5, 2011 By Helen Brown 4 Comments

17 questions to ask before hiring a research consultant

The Showcase of Fundraising Innovation and Inspiration (SOFII) has curated a group of great articles on how to be an effective partner with consultants in our sector. As a riff on Alison McCants’ great web article sharing her experience, I thought I’d add some questions to ask before engaging a research consultant:

What resources do you use?
Do you purchase them yourself?
How often do you attend continuing education courses to keep up with the latest resources and trends?
Do you teach any training courses?
What types of organizations have you worked for?
What kinds of reports do you provide?
How much do they cost?
May I see samples of your work?
How long does it usually take for you to complete a report?
May I speak with three current/recent clients?
What is your privacy/confidentiality policy? (Thanks to Jen Filla for that one!)

Ask a consultant’s references:

How easy is this consultant to work with?
Do they provide good customer service when something goes wrong?
Do they deliver research when promised?
How do you feel about the quality of what you receive?
Is their work good value for the price?
Are they innovative?

Do you have more questions to add?

June 6, 2011 By Helen Brown 5 Comments

How to get a 500% increase in prospects

Here is a crazy-good story for you:

When Brown University began their “Boldly Brown” campaign in July 2003 they had 1,535 people identified as potential major donors. That may sound like a lot, but they had over $1 billion to raise to support scholarships, attract and retain faculty and to upgrade their facilities and research capability. The fundraisers, both paid and volunteer, had some serious work to do if they were going to reach that ambitious goal.

During the course of the seven years to follow, the Brown research team made sure that their alumni records were up-to-date and that the data was as free from error as possible. They used sophisticated screening tools to find people with the means and interest in supporting Brown. They segmented their data to identify new potential donors based on the characteristics of their current loyal supporters. And they researched and fine-tuned the information they had to be sure not to bother people who weren’t likely to be interested in supporting Brown at a higher level.

Because in addition to using these methods to identify future supporters, the other thing we researchers are trying to do is eliminate (to the degree possible) annoying people with unnecessary mail, phone calls and visits when they don’t want them. It’s good business to avoid irritating people, but it’s also a smart way to save money, trees, electricity, and peoples’ valuable time. To be good stewards of past donor dollars.

So what happened?

5,284 new major gift prospects were identified.

That’s more than a 500% increase in potential supporters!

Even more incredible, Brown University received $710 million in new gifts and pledges from those newly identified and upgraded prospects. If you’re thinking “Hmmm, that number looks eerily like it’s nearly three-quarters of the total campaign goal”- you’re catching on. That’s the impact of applied prospect research and analytics – it makes a huge difference.

What else?

Brown University reached their goal of $1.4 billion eighteen months early, and went on (during the worst recession of our lifetimes) to garner over $1.6 billion in total support by the time they stopped counting in December of 2010.

Can their success be yours?

Sure, Brown University is a huge organization. And yes, they have a crack research and analytics team headed by Elizabeth Crabtree, a brilliant leader in our field. But the techniques Brown used can be applied to your nonprofit and scaled to your needs. What are the building blocks?

A cause that provides measurable results and inspires loyal support;
A multi-faceted prospect identification program that is funded to scale;
Policies and metrics for prospect relationship management;
Highly skilled prospect researchers/analysts who are both strategists and tacticians;
Effective collaboration between the research team and frontline fundraisers;
Inspired and engaging fundraisers and leadership;
Inspired and engaged donors and volunteers;
Stewardship that surprises (pleasantly, of course).

All of this takes time and money as well as a serious commitment of your heart to achieve the kind of success they had. But the results are undeniable:

Increased participation…
Increased donations…
And a solid foundation for future support.

Even if you’re a small organization with a staff of one, you can do this. You’ll need help, obviously, but there’s no time like the present to get started.