Soapbox Engage Blog

When thinking about prospect research, preparing to launch a capital campaign or soliciting new major donors may be the first applications you think of. And while those use cases are extremely valuable, the power of prospect research can be applied across many more large-scale fundraising activities your nonprofit undertakes, from online giving to corporate sponsorships.

Prospect research, according to DonorSearch, is a "technique used by nonprofit fundraisers, major gift officers, and development teams to identify high-impact donors within and beyond an organization's current donor pool." In the identification process, tons of valuable information about current and prospective supporters will surface, which you can leverage to generate revenue and build stronger relationships.

In this guide, we'll break down how to get started with gathering that data and a few ways that you can implement it right away.

Getting Started with Prospect Research

Anytime you begin prospect research, it's important to take two initial steps:

• Set clear goals and make a plan. Understand what data or prospects you're looking for and what resources you currently have at your disposal. This might include procuring additional tools to ensure your process is scalable and reasonable.
• Clean up your database. Take the time to make sure your current donor information is in top shape. Consolidate duplicate profiles, flag any missing information, and standardize data entry. This isn't a one-and-done activity. Because you use your donor database on a daily basis, schedule time to clean it up regularly.

While in some instances you may be researching individuals, prospect research works best when it is scalable. Having the right tools for prospect research is a game changer, and when evaluating what software is a good fit for your nonprofit, also consider:

• Precision. Incorrect or outdated data will be worthless to your donor engagement efforts. Look for a solution with a high accuracy rate that verifies and validates results in multiple ways. Check the solution's accuracy rate — you'll want one that achieves a 90% accuracy rate or higher.
• User-friendliness. Request demos from providers for a "test drive" and make sure your team is comfortable with the tool.
• Innovation. You'll achieve better results if you capture the power of emerging technology, like AI, in your tool, so check that the software is contemporary and updated regularly.

Alongside your dedicated prospect research tool, there are also additional free resources you can use to find individual data points on a particular supporter. You may not have thought of websites like LinkedIn, Facebook, or Zillow as prospect research tools, but you can learn valuable insights about donors' personal and professional history there.

Once your prospect research tools have screened your data, transfer it back into your CRM, so it's easily accessible for your entire development team. Working with a prospect research tool that integrates with your fundraising tech stack makes that process easy and minimizes the risk of siloing your data or losing valuable information through manual uploading errors.

Existing Donors

Let's say you have a meeting on the calendar with a major donor who's been supporting your nonprofit for a long time. You have a great relationship with her, but as you're preparing for the meeting, you realize it's been a couple of years since you last updated any of her information or looked at screening findings, even though you communicate regularly.

By gathering updated prospect research data, you might learn she's recently retired or discover a significant change in her stock holdings. This data should shape your goals for the meeting and influence the ask you make.

Prospect research definitely helps uncover new potential supporters, but don't overlook its power to strengthen your existing relationships with major donors. Regularly screen your current donors to update their information and understand how changes might open up new opportunities to partner further with current donors.

Planned Giving

Within your application of prospect research to existing donors, there is another giving opportunity to screen for and take action on: planned gifts. Also known as legacy giving, these gifts are pledged now and made at a later date, often after the donor passes away.

Here are a few tips for making the most of planned giving:

• Establish a dedicated planned gift program. Give this type of donation the attention it deserves. Planned giving conversations look a little different from typical major gift meetings and there are legal complexities, so invest in creating resources and policies that will support your team in securing these often substantial contributions.
• Screen for specific indicators. Different data points are strong indicators of a potential planned gift prospect than those used for major giving. Planned giving prospects are often loyal, long-term supporters who have given to your nonprofit regularly and strongly believe in your mission. Alongside wealth indicators, demographic factors — like being older in age, single or widowed, and having no children — are data points to screen for.
• Market your planned giving program. Send tailored communications to identified planned giving prospects to increase awareness of this opportunity to leave a lasting legacy.

Corporate Philanthropy

Another application of prospect research is checking if supporters' employers have corporate philanthropy initiatives like matching gifts or volunteer grants. Include all supporters (donors at any level and volunteers) when you screen for employment details.

For example, you may have a volunteer who shows up every other Saturday for a shift, but has never made a financial contribution. This individual is one of your most engaged volunteers, and you're incredibly appreciative of how they've donated their time and skills to further your organization's mission. On top of the value of this supporter's volunteer efforts, if their company has a volunteer grant program, your nonprofit could also receive a monetary donation from their employer.

The biggest barrier to accessing corporate philanthropy is awareness. Most employees don't know about these benefits their employer offers, so double-check for yourself and include relevant messaging in your nonprofit's marketing plan. When promoting new giving opportunities like this, Cornershop Creative recommends sticking to simple, clear messages and leveraging calls to action. Make it easy for supporters to submit your organization for volunteer grants and matching gifts by letting them know it's available to them.

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Prospect research should be an ongoing activity at your nonprofit. Learning more about your donors is necessary for building authentic, engaged relationships that will help you achieve your mission. With the right prospect research tools, you can develop a data-driven strategy for all of your major fundraising initiatives and tap into the power of prospect research.