3 Easy Steps to Simplify the Prospect Research Process

Many nonprofit professionals view prospect research as overly complicated and time-consuming. That’s because, for a long time, it was! Using multiple research databases, combing through social media, and exploring philanthropic reports consumed time and energy. 

However, the days of complex, manual research processes are behind us. Nowadays, AI tools and nonprofit CRM platforms offer simple solutions to help organizations streamline donor prospecting and earn more through major gifts.

Let’s explore three simple steps you can take to reduce the complexity of your prospecting efforts and find more new donors for your nonprofit organization. 

Step 1: Clarify the shared traits of your nonprofit’s major donors 

The prospect research process becomes much simpler when you first identify common characteristics among your nonprofit’s major donors. Doing so allows you to guide the prospecting process using hard data by applying historical knowledge to current research. 

Bloomerang’s guide to major donors outlines the following common traits of major giving prospects: 

• High giving capacity: The exact giving amount that qualifies a major donor varies from nonprofit to nonprofit, but many organizations consider those who can give $10,000 or more as major prospects. 
• Recent donations: Recent involvement with your nonprofit effectively indicates which supporters are currently engaged in your mission and may respond well to larger giving requests. 
• Support related causes: Donors contributing large sums to similar organizations may be more inclined to support your cause. For example, donors contributing to local schools may also be interested in supporting an educational-focused nonprofit. Or, major donors to an advocacy-minded nonprofit may have also made significant political donations to candidates with similar beliefs. 
• Have a long-standing relationship with your nonprofit: Donors who have previously been involved with your mission as volunteers, peer-to-peer fundraisers, advocates, or beneficiaries demonstrate a higher level of commitment to your organization. 
• Have relationships with current donors: The friends and family members of current major donors may have a favorable view of your organization and be more likely to start giving in significant amounts. 

Ultimately, major donor traits fall into two categories: wealth indicators demonstrating a high giving capacity and affinity or warmth indicators indicating a personal passion for your cause. Both types of indicators must be present to consider an individual as a major giving prospect. 

Step 2: Leverage AI-driven donor prospecting directly in your CRM

After clarifying what you’re looking for in major donor prospects, it’s time to put your technology to work for you. Invest in a donor management software system that offers wealth and warmth insights directly within your nonprofit CRM.

Today’s top CRMs incorporate AI tools to automatically conduct prospect research and help nonprofits quickly identify which individuals in their donor databases will most likely become major donors. Use your CRM solution to: 

• Screen donors based on the criteria you identified in Step 1. AI prospecting tools can automatically screen your database to identify individuals who exhibit common major donor traits. 
• Enrich donor profiles with generosity information. Add any missing information to your database with data appends. For example, you can incorporate details about which similar nonprofits donors have given to or reference a timeline of every event the donor has attended. 
• Identify prospects you may not yet have a relationship with. Robust CRM platforms can even help your nonprofit identify potential donors who may not have connected with your organization yet. You can learn more about these individuals and access tailored insights into how to communicate with them. 

Your CRM should be able to automatically pull information from your other software solutions, such as your fundraising platform or marketing tools, to enrich your current data. Many CRMs offer multiple tools in one platform, or you can use integrations to manage this process. 

Step 3: Prioritize prospects with the help of predictive modeling

Once you’ve leveraged your CRM to identify possible major donors, use predictive AI solutions to organize and sort prospects based on their potential value. We recommend working with a consultant or AI tool specifically designed to help you manage every step of this process. Here’s what the predictive modeling process looks like: 

• Set up a lead-scoring system. This numerical system will help you organize your prospect list based on which individuals will most likely give large gifts. Prioritize donors with a high giving capacity, strong affinity for your cause, and recent participation in your campaigns or programs. 
• Focus on donors in the top 2-3% of prospects. Set your sights on prospects at the top of your donor pyramid. Doing so enables you to maximize your return on investment (ROI) by focusing most of your time and attention on your most likely prospects.

At this point, you’re ready to move on to the next step in the prospect research process: building relationships with top prospects!

Next Steps: Steward your prospects

From here, the prospect research process transitions into a donor stewardship campaign. Use these quick tips to kickstart prospect stewardship and engagement: 

• Use donor data to improve outreach and storytelling. Incorporate the information you’ve learned through prospect research into your messages to potential donors. Identify programs they’ve engaged with, events they’ve attended, or campaigns they’ve supported. Then, send emails, letters, or texts that reference their interests. 

• Invite donors to get involved with opportunities that match their interests. Encourage donors to register for volunteer opportunities, advocacy campaigns, peer-to-peer fundraising events, and other experiences that align with their passions and skills. 
• Schedule in-person or virtual meetings. Invite prospective donors to one-on-one in-person or online meetings to cultivate personal connections. Get to know them by asking about their lives and exploring what draws them to your cause. 

Your prospect research and stewardship processes should run simultaneously. Continually update your donor management system with fresh, accurate data about current donors and prospects, including their interests, motivations, and giving patterns. Creating this recurring process allows you to maintain a strong major donor program with a healthy influx of new large gifts.