Wealth screening versus Yoda and The Force


yodaI came across a cool infographic from DonorSearch thanks to Bloomerang’s Monthly Nonprofit Wrap-up digest of blogs and fundraising resources. After digesting the data in the infographic, I couldn’t help but conjure up an image of Yoda talking to a fundraising professional and saying “Use your donor database you shall.” Hahaha! OK, maybe this thought was a result of Force Friday and all the marketing hype around the soon-to-be-released newest Star Wars movie. Regardless, please keep reading . . .

While there was lots of data embedded in the infographic (and you want to click-through to see that graphic), here are two no-brainers:

  • The donors most likely to donate in the future are those who have previously donated
  • Philanthropic giving to other nonprofit organizations is the second most predictive sign of future giving

Looking at these two predictive data points, Yoda would probably say:

  • To find donor prospects for your year-end giving appeal and 2016 annual campaign use your donor database.  Herh herh herh.”
  • For new prospects, look around at other organization’s annual reports, newsletters,  websites and donor honor rolls.

Having worked with non-profit organizations who use wealth screening tools, I share the following observations:

  • these tools are powerful
  • they are expensive
  • they are great for major gift planning, endowment prospecting and capital campaign evaluation and qualification work
  • it is like using a bazooka to kill a fly if you’re using it for annual campaign purposes
  • too often fundraising professionals view wealth screening as a perfect science whereas it should be seen as complimenting the human intelligence gather exercises associated with prospect identification – evaluation – qualification work

What has been your organization’s experience with donor databases, wealth screening, prospect identification/evaluation (e.g. setting targeted ask amounts) exercises? Please share your thoughts and experiences in the comment box and try to do so in Yoda-speak. Let’s have some fun today.

To your health, here is!

Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com 
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

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About DonorDreams

Erik got his start working in the non-profit field immediately upon graduation with his masters degree in 1994. His non-profit management and fundraising experience numbers nearly 20 years. His teachable point of view around resource development is influenced by the work of Penelope Burk and those professionals subscribing to a "donor centered" paradigm. Donors have dreams and it is our responsibility to be dream-makers because donors are not ATMs.

Posted on September 29, 2015, in Fundraising, nonprofit, resource development, technology and tagged , , , , . Bookmark the permalink. Leave a comment.

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