This document discusses how analytics and data can be used to optimize major gift fundraising. It recommends using data on donor capacity and likelihood to give to identify the best major gift prospects. It also suggests defining ask amounts based on individual donor capacity rather than using a standard minimum. Analyzing past solicitation results shows the organization typically receives around 10% of donor capacity, leaving potential funds unrealized. Adjusting ask amounts upward to a standard percentage like 25% of capacity could significantly increase funds raised.
1. Data Driven Major Giving:
How Analytics Can Move Your Prospects
from Indifferent to Invested
2. 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
wealthengine.com | Page 2
4. 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
wealthengine.com | Page 4
5. 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
wealthengine.com | Page 5
6. 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
wealthengine.com | Page 6
8. 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
wealthengine.com | Page 8
9. 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
wealthengine.com | Page 9
10. 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
wealthengine.com | Page 10
11. Quickly Identify the Best Prospects for Major
Gift Cultivation
Likelihood to Give
Capacity Range Very Low Low Moderate High Very High Total
$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
wealthengine.com | Page 11
12. Identify Second Tier Prospects for High-Touch
Leadership Giving Program
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 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
wealthengine.com | Page 12
14. The Current Portfolios Under Management
have a Total Value of $46MM
Affinity Score
Capacity Range Very Low Low Moderate High Very High Total
$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)
wealthengine.com | Page 14
15. Potential soars when portfolios
are selected based on capacity
and likelihood to give ratings…
16. 243 Optimal Prospects @$286MM
(Selected Based on Capacity and Likelihood Ratings)
Affinity Score
Capacity Range Very Low Low Moderate High Very High Total
$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
wealthengine.com | Page 16
17. 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
wealthengine.com | Page 17
18. Ask amounts are often based on
instinct, “gut” feelings, or the
comfort level of the solicitor…
19. 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%
wealthengine.com | Page 19
20. This Organization Receives on Average
Only 10% of Potential Gift Value
Average % of % of
Prospect AverageAsk Average % of Ask
Capacity of Capacity Capacity
Manager Amount Gift Amount Received
Prospects Asked 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%
wealthengine.com | Page 20
21. Gift Officers May be Defaulting to the
Minimum Major Gift Level
Average % of % of
Prospect AverageAsk Average % of Ask
Capacity of Capacity Capacity
Manager Amount Gift Amount Received
Prospects Asked Received
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%
wealthengine.com | Page 21
22. With Gifts Closing at Just 56% of Asks, There
May be Money Left on the Table
Average % of % of
Prospect AverageAsk Average % of Ask
Capacity of Capacity Capacity
Manager Amount Gift Amount Received
Prospects Asked Received
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%
wealthengine.com | Page 22
23. If 20 Gifts are Closed with Gifts Averaging 10% of
Capacity, the Organization will Realize $263,324
Average % of % of
Prospect AverageAsk Average % of Ask
Capacity of Capacity Capacity
Manager Amount Gift Amount Received
Prospects Asked Received
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%
wealthengine.com | Page 23
24. If ask amounts are adjusted to
reflect capacity on an individual
basis, fundraising potential
increases…
25. Adjusting Average Ask Amount Up to 25% of
Capacity on Average Leads to Higher Asks
Average % of % of
Prospect AverageAsk Average % of Ask
Capacity of Capacity Capacity
Manager Amount Gift Amount Received
Prospects Asked Received
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%
wealthengine.com | Page 25
26. Higher Asks Lead to Higher Closed Gift
Amounts
Average % of % of
Prospect AverageAsk Average % of Ask
Capacity of Capacity Capacity
Manager Amount Gift Amount Received
Prospects Asked Received
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%
wealthengine.com | Page 26
27. If 20 Gifts are Closed with Gifts Averaging 15% of
Capacity, the Organization will Realize $394,986
Average % of % of
Prospect AverageAsk Average % of Ask
Capacity of Capacity Capacity
Manager Amount Gift Amount Received
Prospects Asked Received
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%
wealthengine.com | Page 27
28. 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
wealthengine.com | Page 28
29. 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
wealthengine.com | Page 29
31. 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.”
wealthengine.com | Page 31
32. 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.”
wealthengine.com | Page 32
33. 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.”
wealthengine.com | Page 33
34. 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)
wealthengine.com | Page 34
35. 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
wealthengine.com | Page 35
43. 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
wealthengine.com | Page 43
44. Which Has More Impact?
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%
wealthengine.com | Page 44
45. Which Has More Impact?
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
wealthengine.com | Page 45
46. Which Has More Impact?
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
wealthengine.com | Page 46
47. 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.”
wealthengine.com | Page 47
48. WealthEngine Institute
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research professionals Free Webinars
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Free Membership
Join WealthEngine Institute:
Virtual Networking
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Contact WealthEngine Institute:
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49. Contact Us
800.933.4446
www.wealthengine.com
info@wealthengine.com
Tony Glowacki Sally Boucher
President & CEO Director of Research
WealthEngine WealthEngine
glowacki@wealthengine.com sboucher@wealthengine.com
wealthengine.com | Page 49
Editor's Notes
As before, if they close 20 gifts at the current ratios, they will raise $263,000 for the major gift program.
Now let’s see how capacity estimates can help guide gift officers and development managers towards higher, yet appropriate, ask amounts.