Prospect Research on Women Donors: How to Research Female Major and Planned Gift Donors

Samantha Cohen & Katherine Swank, J.D.

Sponsored byThe Greater New York Chapter Association of Fundraising Professionals

Your Presenters

• Samantha Cohen, Associate Director, Principal Gifts, American Civil Liberties Union– Currently manages a nationwide portfolio of 100+ donors with

capacity of 6-figures+

• 15 years as a development officer, including– Toronto Symphony Orchestra and Canada’s National Ballet School– Kentucky Opera– Created major and planned gift programs for that saw year-over-year

growth in double digits

• Fundraising consultant and project manager at Blackbaud– Specialized in donor loyalty and major gifts

Your Presenters• Katherine Swank, J.D., Senior Consultant, Target Analytics, a

Blackbaud Company, 2007 - current• Author and Frequent Presenter on Planned Giving, Major Gifts,

Prospect Research and Industry Topics • Law degree, Drake University School of Law

– Member, State Bar of Arizona• Over 20 years as a development officer, including

– National healthcare, public broadcasting, law school– National Director of Planned Gifts $300M healthcare organization– Raised over $215 Million in career

• 12 years, affiliate faculty for Regis University’s Masters in Global Nonprofit Leadership program

Our Agenda

• Overview of Women’s Giving Objectives• Women and Planned Gifts• What is Prospect Research?• What Sources of Data Are Available?• Case Studies• Resources• Q&A

Another Session on Women and Giving

• Success Stories: Got Women Donors?– Executive Leadership Track: 10:45 AM – NOON• Understand why targeting women donors pays off• Increase your effectiveness with women donors• Encourage women to become philanthropic leaders

DemographicsPopulations Facts Women Men

Number in the U.S. (latest, 2007 figure) 153.6 Million 149.4 Million

Age is less than 42 Fewer More

Age is 42 or greater More Fewer

Age is 85 or older Twice as many Half as many

Married 62.4 Million

Widowed, Divorced or Never Married 59.8 Million

Mothers (children of all ages) 82.8 Million

Percentage that Volunteer 30% 23%

Bachelor Degrees Obtained among 25-29 Year Olds 32% 25%

Wealth in the U.S.

Top 1% of population• 3 million individuals• 49% of U.S. wealth• Total wealth = $27 trillion• Investable assets per family >$10 million

Top 9% of population• 28 million individuals• 41% of U.S. wealth• Total wealth = $22 trillion• Investable assets per family $1 – 10 million

Women and Wealth

• ~ 70% are employed – ~ 40% are the breadwinner

• > 50% of Boomers• Control 60% of the

nation’s wealth– Increased investments in

stocks and bonds

• 46% of top wealth-holders– Average net worth - $1.7M

• 3.4 MM have gross assets of $675,000+

• 10.4 MM privately-held women-owned firms– Accounts for 2 out of 5

U.S. businesses

• 15 FORTUNE 500 companies are run by women

• 90% of S&P 500 companies have >= 1 female director

Women and Giving

• Often make philanthropic decisions independently

• Want to shape their lives and communities to their deepest values– Organizations that serve the

needs of children and opportunities for women

– Education– Health issues– The Arts– Environment

• Self-made women donate 7% of their annual income– Self-made men donate 5%

• Donate ~ 3.5% of their wealth• Men donate 1.8%

• Donated $109 MM to 2008 presidential candidates in checks of $200 +– Triple the amount in 2000

Women & Planned Gifts

• Women distribute the final estate– Nearly 60% of wealthy

women leave charitable gifts

• Research indicates that women build relationships with the organization– They want to feel that they

share experiences and values with the development officer and leaders

• Cumulative giving opportunities are common and comfortable– Beneficiary designation gifts

• Retirement plans• Liquid Asset Accounts• Insurance

– Bequests• Wills and Trusts

– Endowments that build over time

– Charitable gift annuities• Single or series of contracts

over a period of time

Asset Mix of the Wealthy

• The top 10% keep less than 10% of wealth in liquid assets

• Great opportunity for philanthropy– Look for other assets such as real estate, art,

royalties, patents• Look for evidence of pending liquidity events

What Prospect Research Does• Prospect research can:– Identify a pool of capable prospects for

your organization’s campaign, major and planned gifts

– Categorize prospects by gift type– Prioritize prospects capable of making

the largest gifts– Segment top prospects who should be

approached on a personal level– Provide concrete guidance on

appropriate capacity amounts at a prospect-by-prospect level

What Prospect Research Doesn’t Do

• It doesn’t guarantee an interest in:– Your organization– A specific campaign, appeal or project

• It won’t:– Establish a relationship between you and the

prospect(s)– Make the ask for you

Types of Prospect Research

Predictive Giving Behavior Analytics

• Establishes a unique “Ideal Profile”• Compares each prospect to the

profile• Predicts each individual’s level

of likelihood to exhibit the behavior being predicted• i.e., Make a certain type of gift to

your organization, respond to a particular appeal, etc.

– Most customized approach available

Ideal Profile

Types of Prospect Research

Individual Screening Services

• Search public hard asset, corporate and personal data sources simultaneously• Returns detailed results on

individual prospects• Household level information

• Append household estimates such as liquid assets and income– Data will be either at the household

or Zip+4 level– Some sources are exact– Some sources are estimates

TM

Wealth & Bio

Data Sources

Common Screening ServicesIncome, Hard Assets & Indicators of Wealth

WealthPoint Screening* 11 data sources in one place : corporate, philanthropic, political biographical and hard asset searches

Dunn & Bradstreet Business ownership; Business connections

Lexis-Nexis & Fidelity Real estate and multiple property ownership; property held in trust

Larkspur List of Wealthy Presence of luxury items like planes, yachts, and other wealth indicators

SEC Filings Public Company Insider Lists and Stock Holdings

Echelon & Income360* Estimates of household income and liquid assets

Age and Life Stage IndicatorsWho’s Who Biographies Self-reported biographical information; interests; career

Equifax Niches 26 household clusters that define age, income, interests,

Philanthropic & Political Interests GuideStar Affiliations to non-profits, private and family foundationsNOZA & DonorBank* 60MM+ charitable gifts such as Gift Type, Size, Date, and RecipientFEC 527 Political Donations Federal elections contributions including amount and recipient

* Products are proprietary to Target Analytics

Types of Prospect Research

Data Enrichment Overlay Services

• Demographic Overlays provide data specific codes, levels or yes/no factors• Household specific or derived

by neighborhood summarization

• Depending on data and its source

• Examples:• Age, Gender, Presence of

children, Religious affiliation, much more….%

Demographic &

Data Overlays

Case Study #1 – Giving History

# Gifts: 22Total Giving: $5,400

First Gift: $50 4/13/93Last Gift: $500 4/23/10 Largest Gift: $500 4/23/10

National Giving: $5,350Affiliate Giving: $50

Case Study #1 – The Research

• Real Estate– Home in CA valued at $1M+– Commercial property, Marina Del Rey, CA valued at $2M+

• Political Giving– $12,000+ since 2006 election cycle to Democratic recipients

• Philanthropic Giving– $5,000 - $9,999, Sinai Medical Center, 2005– $1,000 - $2,499, AIDS Project Los Angeles, 2007

• Notes– Privately owned company by donor with annual sales $62M– News article: Opened business 17 years ago; saw the need for a

woman's perspective in industry limited by its male-dominated market

Case Study #1 – The Meeting

• First meeting with anyone from ACLU• 35-minutes– 5 minute overview of the organization– 15 minute discussion of why she supports us– 5 minute discussion of philanthropic priorities– 5 minute ask: $25K/year for 4 years + planned gift– 5 minute discussion: about the potential of a

501(c)(4) contribution; corporate and/or individual gift

Case Study #1 – The Outcome

• Proposal sent 3 days after meeting• 2 weeks after meeting received $10,000 as a

tax-deductible gift from the company• 4 weeks after first gift received $2,500 non-

deductible gift from the individual• Note received from donor stated that there is

more to come

Case Study #1 - Comments

• Ask questions• Research may not find all giving history• Biographical comments are as helpful in

developing strategy as identifiable assets• For women-owned businesses, it is valuable to

know why the company was founded• Do not make assumption about program

interests solely based on giving

Case Study #2 – Giving History

# Gifts: 10Total Giving: $44,725

First Gift: $225, Union, 6/24/04Last Gift: $7,500, Affiliate, 12/16/10Largest Gift: $10,000, Affiliate, 12/28/09

National Giving: $21,225Affiliate Giving: $23,500

Case Study #2 – The ResearchReal Estate

– Mr. Donor appears to own property valued at $6M+.– Mr. Donor appears to own property in Telluride, Colorado. Currently on the

market with an asking price of $3.8M+.– Mr. Donor appears to own property in CA valued at $2.7M+– Mr. Donor appears to own property in Irvine, CA valued at $616+– Mr. Donor appears to own property in Palm Desert valued at $308K+. According

to previous research this property was purchased in 2005 for $535K. Political Giving

– $41,000 since the 2006 election cycle to democratic candidatesPhilanthropic Giving

– Foundation was established in 1995 to support: children/youth services, education, elementary/secondary education, human services, and YM/YWCA’s

– The foundation reported assets of $6.5M+ and made gifts in excess of $368K for the year ending December 31, 2009.

– Note: Mr. & Ms Donor have made the following cash contributions to the foundation: $10,000 in 2009, $15,000 in 2008, and $5,000 in 2007.

Case Study #2 – The ResearchPhilanthropic Gifts• University of Washington, College of Arts and Sciences $2,000 -

9,999 2007• Ah Haa School for the Arts $250 2007• Giving via the donor’s foundation – Fullerton School District $125,000 2009– Fullerton Union High $120,000 2009 and $140,900

2005– Fullerton Kiwanis Charity $72,000 2009 and $51,000

2008 – Boys and Girls Club $35,000 2007 – Sunny Hills Foundation for Education $20,000 2009

Notes• From prior meetings, we know that these donors actively

support Planned Parenthood PAC, and a local chapter of a home for at-risk youth

Case Study #2 – The Meeting

• First real business meeting (3rd meeting with donors) lasted 90 minutes– 1/3 spent discussing current programs and issues– 1/3 spent discussing philanthropic priorities• Asked donors to list top 4, woman answered and

included ACLU• Asked husband if he shared his wife’s list, answer was

no. Shared 2 of 4, which included ACLU• Use very different criteria for making decisions

– 1/3 stating case and making ask for $100,000 outright

Case Study #2 – The Outcome

• Sent proposal and started phone and e-mail negotiations

• Committed to give $100,000 over several years

• In discussing pledge, set the stage to go back this summer for a planned giving discussion

Case Study #2 - Comments

• Research on philanthropy suggested different motivations

• Indicated the husband and wife were making different decisions

• Objective for this meeting was to determine how their gifts were structured and why they give

How to Get Started• Use your database• If possible, give every donor her own record• Collect and retain data:– Date of birth or age– Marital status– Business name, title– Education level– Household income or wealth indicators– Geographic indicators such as ZIP code or Cluster data

How to Get Started

• Use a professional data vendor to help you– Predictive giving likelihood analytic screening– Data appends– Wealth screening

• Do-It-Yourself– Append specific information to your entire

database of Individuals

OR BOTH

How to Get Started• Prioritize your pool of prospects as

appropriate for your caseload– Women only– Families or couples

• Employ specific prospect research on this Priority Group– Look for specific life stages that make

sense to your organization’s donor pool and mission

– Income events: retire or sale of business– Visible wealth

Summary & Take-away Points

• Research is valuable as an indicator

• Understand what the research is telling you

• Gain financial literacy• Make personal

interaction your key activity

• Ask Questions• Nothing replaces a

meeting• Understand the donor

and his/her/their motivations

• Engage him/her/them for lifetime involvement

Questions & Contact Information

Samantha CohenAssociate Director of Principal GiftsAmerican Civil Liberties Union212.284.7333 | scohen@aclu.org

Katherine Swank, J.D.Senior ConsultantTarget Analytics, a Blackbaud Company843-670-7278 | Katherine.swank@blackbaud.com

Resources

• Women, Wealth & Giving, Margaret May Damen and Niki Nicastro McCuistion, Wiley & Sons, 2010

• What Women Want: Understanding the Needs and Objectives of Women’s Philanthropic Giving, Katherine Swank, access at www.blackbaud.com/whitepapers, 2009

• Gender Differences in Bequest Giving, Stelter Donor Insight Report, access at www.bestowcommunity.org

• Read and listen to:– The Wall Street Journal -- NPR Market Place– Fortune Magazine -- NPR Planet Money

podcast– Forbes Magazine