bbcon 2013

1. 10/04/2013 #bbcon 1
Addressing the Second Level Donor
Pyramid
PRESENTED BY PAGE BULLINGTON,
DIRECTOR PROFESSIONAL SERVICES
TARGET ANALYTICS

2. 10/04/2013 #bbcon 2
TARGET ANALYTICS
Leading Provider of Supporter Insight & Analytics to the Nonprofit Sector
Division of Blackbaud, Inc.
7,000+ Customers, Across All Nonprofit Segments
Key Assets:
Cooperative Database - Industry’s largest donor database; over 2B
philanthropic transactions from 80M+ households
NOZA Database - Industry’s largest searchable database; over 65M
uniquely identified gift records
donorCentrics – Nonprofit’s largest & most established performance
benchmarking practice, with more than 530 participating organizations
Key Product Lines:
Direct Marketing Solutions
Major Gift Fundraising Solutions
Data Enrichment Services
Performance Benchmarking & Reporting

3. ά
10/04/2013 #bbcon 3
THE SCREENING PROCESS
You
Industry/
External
Target
Analytics
We apply the models to
pinpoint supporters with the
likelihood and capacity to
give to your mission
We perform detailed screening
to uncover actual wealth,
career and philanthropic
connections on the individuals
most likely to be annual,
major and planned gift
prospects
We utilize your
organization’s unique giving
records, proprietary and
external data, and our
proven statistical analysis to
create custom models
Model types
MAJOR
PRINCIPAL
PLANNED
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$
$
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WHY A SECOND LEVEL?

5. ]
10/04/2013 #bbcon 5
Major
Mid
Annual
SECOND LEVEL DONOR MOVEMENT
Principal
Non Donors

6. 10/04/2013 #bbcon 6
• Designed to jump start the campaign
• Could equal roughly 80% of the dollars raised
• Help demonstrate campaign leadership and capacity
• Elevate individuals to (and provide examples of) pace setter status
• Ability to influence later giving at all levels
• Will provide a vehicle for publicity
PRINCIPAL GIFT DONORS

7. 10/04/2013 #bbcon 7
• Designed to jump start capital campaigns
• Could equal roughly 80% 90% of the dollars raised
• Help demonstrate campaign leadership and capacity
• Elevate individuals to (and provide examples of) pace setter status
• Ability to influence later giving at all levels
• Will provide a vehicle for publicity
And
“Of the nearly $300 billion donated [in 2011] more than
70 percent was given by individuals, of which
roughly half was given by the wealthiest 3 percent
of American households.”
WHY PRINCIPAL GIFTS?

8. )
10/04/2013 #bbcon 8
Additional Note:
The most common
motivations for stopping
support are an
organization soliciting
the donor too
frequently or asking for
an inappropriate
amount.
BIGGEST MOTIVATIONS FOR GIVING
Bank of America Merrill Lynch/ Center on Philanthropy at Indiana University Center for Philanthropy
http://www.philanthropy.iupui.edu/research-by-category/the-2012-study-of-high-net-worth-philanthropy ; accessed on 11/5/12

9. )
10/04/2013 #bbcon 9
WHO ARE THEY?
Inclination
Giving history is
trending positively
Confirmed patterns
of philanthropic
donations
Capacity
Well educated
and belong to
affluent
demographic
segments
Live in areas
where a higher
quality of life
index is present
Asset
Valuation
Purchase
expensive homes
and vehicles
Long-established
credit history
High real estate
valuation
Wealth
Indicators
Benchmarked
against peers
giving principal &
lead gifts
Higher incomes
and known public
assets including
stock

10. 10/04/2013 #bbcon 10
HOW DO WE FIND THEM?
PRINCIPAL GIFT LIKELIHOOD
What is Principal Gift Likelihood?
Scores a donor based on their likelihood to
give a principal gift, typically $250k or more.
What does Principal Gift Likelihood do?
The model identifies ultra-high-value
prospects who have the means, passion, and
commitment to make game-changing
principal gifts to a non-profit
How does Principal Gift Likelihood work?
By utilizing a proprietary archive of principal
gift contributions, along with a wide array of
financial, demographic, and lifestyle attributes
linked to each analyzed constituent.

11. )
10/04/2013 #bbcon 11
WEALTH DOESN’T TELL ALL
The following assets can often
be discovered in publically
available data sources:
The following assets can often
be discovered in publically
available data sources:
Real estate values
Public company “insider” stock
holdings
Some private company
affiliations
Federal political donations
above $250
Charitable donations
cataloged from online sites
These assets are usually well-
hidden and will not be
discovered:
These assets are usually well-
hidden and will not be
discovered:
Debts and most Mortgages
Bank Account Holdings
Retirement Assets
Non-”insider” stock holdings
Business Assets not
voluntarily disclosed
Detailed wealth screening uncovers roughly 40% of assets.
You must do more to uncover these prospects.

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10/04/2013 #bbcon 12
CASE STUDY – HIGHER EDUCATION

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The Challenge
• $250 million dollar campaign
• Gap analysis reveals campaign
pyramid gaps at the highest giving
levels
CASE STUDY #1
Goals & Objectives
• Identify new prospects of Ultra-High Wealth
• Increase size of current donor’s gift amounts
• Increase response rates across all gift levels

14. )
10/04/2013 #bbcon 14
CASE STUDY #1
• 600 previously-assigned prospects
• Tripled prospects rated at $1M+ for multi-year commitments
1,843 TOTAL IDENTIFIED PRINCIPAL GIFT PROSPECTS
Segmentation
Capacity to
Client
Number of
Prospects
Tier 1 $1M+ 188
Tier 2 $750K - $1M 199
Tier 3 $500K - $750K 416
Tier 4 $250K - $500K 1,040

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IMPLEMENTATION STRATEGY
Focused on realignment of major gift officer portfolios:
Review Of
Assigned
Prospects
Team
Pre-Qualifies
Unassigned
MGO Portfolios
Revised
Old Prospects
Dropped & New
Prospects Added
Tier 1 Assigned
For Exec
Cultivation
Tier 2 Assigned to
MGOs, Personal
Solicitation Plan
Tier 3 Assigned
for 2nd Phase of
Personal
Cultivation
Tier 4 Received
Higher-End
Mailings & Calls
Moved To Primary
Cultivation With
“Self Selects”

16. )
10/04/2013 #bbcon 16
CASE STUDY #1 - RESULTS
• Major Gift portfolios realigned to represent larger capacity
• More value in portfolios, fewer constituents
• Streamlined system for managing lower-level prospects;
ensures contact is made and initial cultivation begins
• Lower potential prospects moved from the assignment pool
• Development officers focused on the right individuals
Individual
accepted;
following the
event he made a
commitment for a
$500K gift.
Individual
accepted;
following the
event he made a
commitment for a
$500K gift.
Prior to new Tier
rating, the
individual was in
higher-end
direct mail pool
Prior to new Tier
rating, the
individual was in
higher-end
direct mail pool
Cumulative
lifetime giving
prior to the
invitation was
only $30,000
Cumulative
lifetime giving
prior to the
invitation was
only $30,000
Previously
underrated
prospect
received personal
invitation to
cultivation event
Previously
underrated
prospect
received personal
invitation to
cultivation event

17. )
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CASE STUDY 2 - CULTURAL

18. )
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The Challenge
• Large # of low-level donors (< $1K)
• Sub-optimal response rates
• Upcoming budget cuts & streamlining
OVERVIEW OF CHALLENGE
Goals & Objectives
• Uncover regular monthly donors that should
be upgraded
• Develop pipeline that will support multi year
capital campaign
• Discover new previously overlooked principal
gift prospects

19. )
10/04/2013 #bbcon 19
INITIAL RESULTS – 21,220 TOTAL RECORDS
$50,000
$100,000
$250,000
$500,000+
P
P
P
P
P
P
P
P
P
P
P
P
P
P
PP
P
74
6,248
5,431
9,467

20. )
10/04/2013 #bbcon 20
FURTHER PRIORITIZATION OF RESULTS
USING ADDITIONAL SCORECARD METRICS FOCUSED ON PHILANTHROPY AND
GIVING TO ORGANIZATION PROSPECTS WERE FURTHER SEGMENTED INTO 10
TIERS:
Group/Wave Record Count Rationale
1 2044 Tier 1 and Tier 2
2 1859 Tier 2
3 2419 Tier 2
4 1962 Tier 3
5 1760 Tier 3
6 1709 Tier 3
7 2151 Tier 4
8 1959 Tier 4
9 2157 Tier 4
10 3200 Tier 4

21. Ի䞠
10/04/2013 #bbcon 21
INTERESTING OBSERVATIONS
Only 961 of these
prospects have a
Solicitor assignment
<1/2 have made a gift
to in the past three
years
Top States:
• NY (13,883)
• CT (2,301)
• NJ (1,436)
• CA (1,521)
• FL (417)
• MA (340)
• TX (209)
~2,800 have never
made a gift
21,220
Records

22. Զ㖐
10/04/2013 #bbcon 22
PRINCIPAL GIVING SOLUTION: INITIAL
NEXT STEPS
Wave 1
• Prospects for immediate review
• Confirm that all prospects in these groups have assigned solicitors, are
disqualified or there is a plan in place for prioritizing qualification
• Some qualified prospects should be surfaced to executives for cultivation
Waves 2 & 3
• Use these pools for initial portfolio refinement over time
• Interim engagement should be assessed using mid-level or leadership
level programming opportunities
• Begin monitoring activity of un-assigned prospects to help with
prioritization
Waves 4 – 10
• Further prioritization should occur using special cohorts, geography and
other factors
• Consider pre-cultivation engagement strategies to help prospects ‘self
select’

23. Ձ꾐
10/04/2013 #bbcon 23
CONCLUSION

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IN SUMMARY
Well Designed & Executed Analytics .
• Uncover supporter insights that aren’t
easily derived from wealth screening
alone
• Streamline the process of interacting
day-to-day with supporters
• Direct our investment towards the
constituents & initiatives which yield
the highest ROI
• Produce results that far surpass past
performance, in terms of revenue and
efficiency

25. Ժ
10/04/2013 #bbcon 25
TWEET ABOUT YOUR SESSION
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#PRESENTER