WhitePaper_ToScreenOrNotToScreen

8/8/2019 WhitePaper_ToScreenOrNotToScreen

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ntroduction

t is a simple question: When is the best time or your organization to conduct a prospect

creening project? For some organizations, providing the answer may seem easy:

“We will screen when we have the budget to do so.”

But even that answer may not be appropriate or your organization. Certainly, in a perect

world with the necessary budget available, it would be benecial to engage in ongoingata mining and screening projects. Your donors, your prospects, and your database are

ll dynamic; thereore, your eorts to identiy those individuals who are most likely and

apable o making specic types o gits should be dynamic as well. (Tis “perect world,”

nortunately, has yet to be discovered by astronomers or nonprot proessionals alike, so this

aper will ocus on a realistic assessment o the timing o a screening project.)

o, in the absence o a perect world, the answer to the question is most likely to be situational

n nature. Just like the results o a data mining or predictive modeling project highlight the

nique attributes o your constituents and your organization, so should the timing reect

he specic needs o your screening project. In truth, your organizational circumstancesrovide the best indications or the appropriate time to screen your database, and since

here are multiple scenarios to be considered, there is more than one answer to be discussed.

Accordingly, this paper is more than one page!)

setting the parameters

or the purposes o this paper, “prospect screening” describes a process that is much more expansive

han “wealth screening,” which is requently and incorrectly used interchangeably with “prospect

creening.” My view o prospect screening is more comprehensive, and includes an analysis o

oth propensity and capacity to make an individual git, as well as a study o the relationships that

will acilitate the giving process. When you read “prospect screening” in this paper, I include in its

enition: data mining and predictive modeling, wealth screening, and peer screening.1

One nal point o clarication will help set the parameters o this paper. Inherent in the title

this paper is a critical point: I assume that periodic prospect screening is a necessity or

Contents

I n t r o d u c t i o n . . . . . . . . . . . . . .

Setting the Parameters . . . . . . .

Prospect Screening and Annual

Giving . . . . . . . . . . . . . . . . . . . .

Prospect Screening and Capital

C a m p a i g n s . . . . . . . . . . . . . . .

Conclusion . . . . . . . . . . . . . . . .

To Screen or Not to Screen “When” is the Questionawrence Henze, Managing Director o Target Analytics, a Blackbaud Company

Executive SummaryMany nonprot proessionals

wonder i their organizations

should perorm prospect screen

The truth is, in a perect world,

nonprots would be perorming

ongoing screening, since it’s a

necessity or promoting greater

undraising success. But becaus

this isn’t a perect world, the

best plan o attack is to perorm

prospect screening only when

it would be most benecial

and eective. But how do you

determine that? Here, developm

proessional Lawrence Henze

explores how to assess your

nonprot’s situation to discove

how and when to apply prospe

screening or maximized results

To Screen or Not to Screen: “When” is the Questio

To be clear, I do not mean that every prospect screening activity must include all o these elements each and every time.owever, I am strongly suggesting that prospect screening be viewed as a comprehensive and long-term plan that includes

onsistent use o all o the aorementioned tools in order to maximize the positive benefts o data that supports your dynamic undraising needs and strategies.



romoting greater undraising success. Once considered a luxury, prospect screening is now

roperly viewed as a key component o an eective and efcient undraising operation.

prospect screening and annual giving

Did you think I was going to start with prospect screening or capital campaigns? In a

ampaign-centered proession, it might be appropriate and tting.

Well, the annual und ows deep within my veins, and rarely does a day go by that I am not

aying to some development proessional, “Data mining begins with the annual und.” (I also

ay, “Because I am your ather” nearly as oten, with seemingly less eect and certainly zero

elevance to this paper). For most organizations — I will note the exceptions later — annual

iving or membership comprises the vast majority o git transactions with the organization.

t is almost always the beginning o the donor relationship, and rom this beginning, there are

many possible paths to be taken. Prospect screening will provide you with a road map to these

aths; it can be a virtual undraising navigation system.

Annual giving screening may begin with the simple desire to understand the characteristics

the donors who are making small to medium contributions. Additional questions, however,

may be more ocused:

. You may ask yoursel, “What is the prole o acquired donors?” “From what sectors o our

society do our donors originate?” Or, or proessionals who work or organizations with

natural constituencies such as alumni, “Which groups o our alumni are most likely to give?”

. But question number one is only the rst part o the puzzle; you probably want to

know more. Maybe you really want a prole o the donors who are most likely to give

consistently so you have more than an acquisition prole; you have an “acquire to retain”

prole. And i your organization is only able to retain 30 percent o its new donors

annually, or example, do you really want lost donors to contribute to your prole o best

annual giving prospects? Tat might lead you in the wrong direction.

. Once you know the donors who are most likely to give consistently, the next item on the

agenda is to identiy donors likely and capable o upgrading their support. You might

wonder whom among those donors should you upgrade through an elevated ask amount,

and whom would need a more personalized approach.

. Does your organization successully track its donors’ responsiveness to specic

solicitation vehicles, such as direct mail, email, and telemarketing? I so, you might want

to know i those who respond to email prole dierently than direct mail responders, or i

telemarketing donors are most likely to mature into major donors.

. You might want to know, “I annual und growth at my organization is in decline or is

at a plateau, is it possible that we may have saturated the pool or unrestricted giving?”

“Do restricted git donors prole dierently, and whom among our non-donors t that

About the AuthorLawrence Henze , managing director

Target Analytics, has extensive experi

in undraising, market research, and

application o predictive modeling se

to the nonprot marketplace.

The ounder o Core Data Services, w

Blackbaud acquired in 2001, he has a

served as vice president o predictive

modeling services at USA Group Noel

Levitz and president o The Philanthr

Division o Econometrics, Inc.

Mr. Henze has 15 years o experience

development, raising more than $125

million, primarily or higher educatio

institutions. During his career, he has

personally reviewed the giving histor

o more than 30,000 planned givers

across the country. He holds a BA in

political science rom Carroll College

Wisconsin, and an MA in public policy

administration and a law degree rom

University o Wisconsin at Madison.



prole?” “I we want to increase our response rate among non-donors, perhaps we need to

ask or a dierent type o git?” “Are we able to create a distinct prole o donors that give

only or primarily to restricted unds?”

. And, o course, there is my personal avorite o commonly asked questions: “Once we

know who is most likely to give, as well as those unlikely to give, may we adjust our

requency o solicitation to be most eective and efcient?” “Will we react to our markets,reallocate undraising resources accordingly, and explore our real potential?”

sn’t it clear that, or any o these questions pertaining to annual giving or membership

rogram, the best time to do prospect screening is really now? But “now” may actually need to

wait until the ollowing is in place:

. Budgetary unds have been secured. (I think I channeled a rocket scientist when I thought

o this prerequisite.)

. Sta is ready. (Implementation is usually thwarted i key positions are unlled.)

. You have the commitment among implementation sta to use the results as guidelines

or revisions in current solicitation strategies. Tese revisions may include reduced

solicitations and successul upgrade strategies — both o which help to cover the budget

or subsequent prospect screening projects.

. I you are using an outside direct mail/marketing vendor, you have commitment rom

this agency to ollow your lead and directions on implementing new contact strategies

indicated by the screening results.

As I alluded to earlier, some nonprot organizations are less reliant on annual und and

membership activities to create their donor bases. Hospitals requently rely on grateul patient

rograms or the bulk o their support, and they oten struggle to establish a successul annual

und. Community oundations oten orgo a true annual und program altogether; perhaps it does

ot t their mission statements and also it may conict with other community-based organizations

o which they requently provide undraising support. For these and other organizations, data

mining and predictive modeling on the annual und may not be necessary at all.

prospect screening and capital campaigns

you’re not currently involved in a capital campaign, it’s highly likely you are in the planning

hase or the next campaign. Years ago, nonprot proessionals requently called these

orts “special git campaigns,” and as these have become an almost permanent part o the

undraising landscape, it has become much more difcult to truly call them “special.” (“Literal

awrence” strikes again!)

have had the great pleasure o working with many o the best and brightest capital campaign

onsultants in North America. Te vast majority o these consultants recommend that

The demands o the orthcoming

campaign make it essential or yo

to analyze the potential existing

your database and it is likely to b

the easiest time or you to secure

the necessary budgetary unds to

underwrite the project.



rospect screening be completed several months in advance o the campaign’s quiet phase

nd in time or the easibility interviews they will conduct. Prospect screening results may

nuence the selection o individuals or easibility interviews and ultimately could impact the

iming or goal o the campaign.

re-Campaign Screening

et’s say you’re in the pre-quiet phase or your next capital campaign. It is so secret, hush-ush, that only your best donors — and most of your constituents — know that is on the

orizon. Come on, you don’t think that your best constituents are blind to your patterns and

roles, do you?

Without doubt, the time rame immediately preceding a campaign is an ideal starting point

or a major prospect screening eort. Why? Te demands o the orthcoming campaign

make it essential or you to analyze the potential existing in your database and it is likely to

e the easiest time or you to secure the necessary budgetary unds to underwrite the project.

However, i a primary motivator or the screening is to ll signicant holes in the pinnacle o

ampaign pyramid, that alone should give you pause as to your actual institutional readiness touccessully complete this campaign.

Certainly, using pre-campaign screening to conrm assets is quite common, but it may not

e necessary based on the quality o relationships you have developed with the “top o the

yramid” prospects in your database. It is appropriate to question whether you really need to

btain more wealth details on prospects selected or interviews during the easibility study,

ut it may be necessary to engage in wealth screening to assuage certain ears inherent in the

ampaign planning process.

n my estimation, the best use o pre-campaign screening is to identiy emerging mid- to

pper-level major and planned giving prospects who will take signicant roles in this and

uture campaigns. Predictive modeling, specically major giving and target git range models,

will successully identiy current low-level donors and perhaps even new prospects who

losely resemble the characteristics o your best donors. Te modeling results will provide

ou with a signicant number o prospects or current and uture cultivation. Among those

rospects identied or signicant upgrades, you may choose to include those with current

iving history or inclusion in the easibility study interviews.

n spite o the pressure to raise current cash during a capital campaign eort, do not orgo

his opportunity to identiy annuity, bequest, and charitable remainder trust prospects prior

o the beginning o the campaign. Identiying planned giving prospects now aords you the

pportunity to adequately cultivate these prospects and increase the likelihood that you will

ecure their git commitments during the course o the campaign.

Mid-Campaign Screening

n my 15 years o working as a consultant to prospect screening projects, most mid-campaign

modeling and wealth screening occur or one or two reasons.

In my estimation, the best use o

pre-campaign screening is to iden

emerging mid- to upper-level maj

and planned giving prospects wh

will take signicant roles in this a

uture [capital] campaigns.



irst, great successes achieved in the rst two years o the campaign have emboldened

eadership to consider an updated screening project based on the new major giving proles

roduced in the early phases o the campaign. Tis is a great use o prospect screening dollars,

s the optimism generated by the campaign success creates a strong willingness to act quickly

nd directly on the prospects the mid-campaign screening generates.

Te second reason is less positive: You have reached the mid-point o the campaign but earhat you have not identied a sufcient number o mid-range prospects to complete the

ampaign pyramid. However, a successul prospect screening project may help turn campaign

essimism into optimism, as it is likely to identiy the needed prospects or your success. Te

ainul reality may be that you may need to extend the time rame o the campaign in order to

roperly cultivate and solicit these new prospects.

Te aorementioned capital campaign consultants oten suggest their clients engage in a

econd screening at this time, or the same reasons mentioned in the two paragraphs above.

Remember, undraising is a dynamic enterprise and ongoing or periodic screening captures

hat movement within your database.

ost-Campaign Screening

et’s say that you just completed a successul ve-year campaign and it exceeded the goals

et or your nonprot or educational institution. Your success puts you in the enviable

osition o now possessing the best, most current data on your donors in the history o your

rganization. From the perspective o predictive modeling, this great data is likely to lead to

he vast, most insightul proles available to organization. Not surprisingly, is a great time to

o prospect screening.

nternally, it is also a great time or you to conduct your own analysis on the segments o your

ampaign that outperormed its goals, or perhaps underperormed its goals, to gain urther

nsight into the constituency segments in your database. Although it is always important to

ucceed in your campaign eorts, it is also critical to understand the origin o that success and

he areas in which you need to continue to improve. Do not let undraising success lead to

ntellectual complacency; instead, use the great data you’ve accumulated to better understand

he donors and prospects or your institution.

inally, i you work or an institution that exists in a constant capital campaign mode, a post-

ampaign screening is tantamount to a pre-campaign screening. Please revisit the earlier

ection o this paper to afrm the numerous valid reasons or conducting a comprehensive

creening at this time.

New Directions” Screening

erhaps the ollowing situation has happened in your undraising career: Fresh rom a

oard o trustees meeting or visit to the chie executive’s ofce, your manager comes to

ou to share the new undraising priority that has been established or your advancement

fce. Te directive you receive is to nd additional prospects to support the eatured

undraising initiative.

I the new undraising initiative i

based on an existing program an

there have been previous donors

to this efort, you may have the

necessary data to conduct data

mining or predictive modeling

screening to identiy the addition

prospects sought.



© March 2009, Blackbaud, Inc.

This white paper is or inormational purposes

only. Blackbaud makes no warranties, expresse

implied, in this summary. The inormation con

in this document represents the current view o

Blackbaud, Inc., on the items discussed as o th

o this publication.

All Blackbaud product names appearing herein

trademarks or registered trademarks o Blackb

Inc. The names o actual companies and produ

mentioned herein may be the trademarks o th

respective owners.

About BlackbaudBlackbaud is the leading global prov

o sotware and services designed

specically or nonprot organizatio

enabling them to improve operatio

efciency, build strong relationship

and raise more money to support

their missions. Approximately 19,00

organizations use one or more o

Blackbaud products and services or

undraising, constituent relationshi

management, nancial managemen

direct marketing, school administra

ticketing, business intelligence, web

management, prospect research,

consulting, and analytics. Since 1981Blackbaud’s sole ocus and expertise

has been partnering with nonprot

and providing them the solutions th

need to make a dierence in their

local communities and worldwide.

Headquartered in the United States

Blackbaud also has operations in Ca

the United Kingdom, and Australia.

For more inormation about Black

solutions, contact a Blackbaud acc

representative. In the United State

Canada, call toll-ree 800.443.9441.

Europe, call +44 (0) 141 575 0000. V

us on the web at www.blackbaud.c

the new undraising initiative is based on an existing program and there have been previous

onors to this eort, you may have the necessary data to conduct data mining or predictive

modeling screening to identiy the additional prospects sought. With no prior giving history,

redictive modeling is a moot point, and you may have to rely on traditional hard asset or

wealth screening on prospects you believe to have an afnity to this new initiative. Proactive

onor and prospect surveys may also help you identiy interest in new initiatives.

Te scenario I have presented is an example o “situational” or “reactionary” advancement,

nd it is a reality that likely aces each and every one o us in the undraising proession at

east once in our career. Occasionally, the need or ast reaction eliminates the opportunity or

lanning in the manner to which we may be accustomed. I you choose to retain a vendor to

rovide the prospect screening services in this scenario, I encourage you to engage them in a

iscussion o how their expertise and experience may enable you to crat an implementation

lan that will promote your success.

conclusion

By now, you have learned that the best time to conduct a prospect screening is when your

endor tells you to do so! Did that get your attention?

n all seriousness, I believe that prospect screening should be part o a comprehensive long-

erm plan that addresses the anticipated undraising activities o your organization. In this

aper, I have addressed most o the common scenarios and oered some recommendations

or positioning your organization or prospect screening success.

When aced with a prospect screening situation that requires aster than normal review and

lanning, please consult with your vendor to get assistance in overcoming the time constraints

laced on you.

http://www.blackbaud.com/

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