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Understanding Prospect Ratings: Insights for Fundraising Success

Explore the intricacies of prospect ratings and how to effectively interpret them in fundraising efforts. This guide clarifies the purpose of ratings, including determining wealth levels, gift capacity, and propensity to give. Learn about the different types of ratings, how they are calculated, and the importance of research in refining these assessments. With insights from the PRIZMNE and GGA systems, discover how to categorize prospects and strategize your fundraising approach, ensuring you maximize potential donations to your organization.

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Understanding Prospect Ratings: Insights for Fundraising Success

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  1. Prospect Ratings Demystified Or How to read that “stuff” in Wizard

  2. Special Thanks Lai Lonne Fong Dorothy U. Oluonye Jessica Messerschmitt

  3. Why have ratings? • Determine Wealth Levels • Gift Capacity • Propensity to Give • Frequency of Giving • Likely Gift Type (CRT, Bequest, etc.)

  4. Who has ratings • All Domestic Alumni (unless they are deceased) • Many Foundations and Corporations (older records—no longer reviewed) • Certain Friends (most at this point)

  5. The LIFETIME RATING Explained Making a recommendation based on an analysis of financial and other factors about the range of gift possible from a prospect. (Cecilia Hogan; Prospect Research—a Primer for Growing Nonprofits; Jones and Bartlett, c. 2004)

  6. What it Means • Definition 1: 3% to 5%, conservatively calculated, of Demonstrated Net Worth • Definition 2: What a prospect can be expected to expend philanthropically over the course of his or her lifetime—to any charitable institution (not just CWRU)

  7. Why? • Prospects need to be “binned” in categories by wealth on an absolute scale—Who is the richest and what percentage can we get? • Propensity is NOT at issue here, just wealth

  8. Where to Find it • On the front Screen in the Purple Quadrant • NOT THE WHOLE PICTURE—Drill down!! • Three types of rating: • LIFETIME • NEEDS RESEARCH APPROVAL • NO LONGER VALID

  9. How is Lifetime Rating Calculated • Balance Sheet Model • Assets – Liabilities = Net Wealth • Industry Standard Formulas for Calculating Net Worth—Several Scenarios Formulated • Most likely scenario is used based on combination of “hard” and “soft” data (contact reports, news articles –other giving, etc.)

  10. Ratings Control • Research Office has last word…BUT! • Ratings will be changed if proof is offered • Propensity to give to CWRU not a factor • Ratings are reviewed from time to time

  11. How Ratings Stack Up • Up to $100M: 3 Alumni, 24 Friends • Up to $50M: 2 Alumni, 6 Friends • Up to $25M: 20 Alumni, 26 Friends • Up to $10M: 45 Alumni, 54 Friends • Up to $5M: 213 Alumni, 137 Friends • Up to $2.5M: 60 Alumni, 54 Friends • Up to $1M: 224 Alumni, 99 Friends • Ratings from $100K - $500K not fully approved: there is much room for growth!!

  12. Expectation Field • Found on Prospect Screen • Intended for Fundraiser use • Completely user-defined

  13. The PRIZMNE System • Classifies thousands of neighborhoods in 66 lifestyle segments, each a distinct marketplace group • Provides a highly accurate measure of socioeconomic standing, philanthropic tendency, and lifestyle indicators (Source: GGA presentation, 2005)

  14. PRIZMNE Variables • Social Rank (income, employment, education) • Household Composition • Mobility (length of residence, car ownership) • Ethnicity • Housing • Urbanization (urban/rural, housing densities) (Source: GGA presentation, 2005)

  15. Where to Find PRIZMNE • Found in Demographic Profile section • Codes of Importance: • 1 Upper Crust (6,613 hits) • 2 Blue Blood Estates (3,357 hits) • 5 Country Squires (5,513 hits) • 6 Winner’s Circle (2,160 hits) • 7 Money & Brains (6,326 hits) • 9 Big Fish, Small Pond (6,294 hits) • 10 Second City Elite (2,104 hits)

  16. Grenzenbach Glier& Associates The GGA ratings

  17. GGA Explained • Almost all individuals in Wizard were rated in 2005 • Three, Four or Five ratings, found in Evaluations • GGA Major Gift: A, B, C, D, E (A being the best) • GGA Annual Giving: 1 through 6 (1 being the best) • GGA Planned Giving: P, S, T, X (P being the best) • NL (Nothing to Lose): High wealth but no giving • GGA Gift Capacity Estimate (not very many records)

  18. Blackbaud Analytics The next wave in prospect ratings!

  19. What is Blackbaud? • A Predictive Model • Charts Capacity AND Likelihood • Most Detailed Product Available on Market • As Many as 26 Records per Prospect

  20. Blackbaud Ratings Broken Down • University as a whole analyzed for: • Major Gift Likelihood ($2,500 or more) • Annual Giving Likelihood • Annuity Likelihood • CRT Likelihood • Bequest Likelihood • Target Gift Range (capacity) • Each school analyzed separately: • Major Gift Likelihood (school specific) • Target Gift Range

  21. Where to Find • Found in Evaluations • Target Gift Range (TGR’s) Scores are from 1 to 15 (University) and 1 to 12 (schools) • Likelihood Scores are from 1 to 1,000 (1,000 being the best score) • Mapped into Wizard in file-specific Quartiles • Ignore the $ sign on actual rating—it is a hard code

  22. Ratings Not (Yet) in Wizard • From Blackbaud Wealthpoint Screening: • Estimated Wealth • To be mapped to a wealth field • Annual Giving Capacity ($ range) • Annual Giving Capacity Value ($ value) • 1% of Wealthpoint total assets • Major Giving Capacity ($ range) • Major Giving Capacity Value ($ value) • 5% of Wealthpoint total assets • YOUR GUT INSTINCT!!!

  23. How-to Section (the fun part) Looking up ratings; reports, etc.

  24. Reports where Ratings Matter • File-Print-Other • Brief Biographical Summary • Executive Snapshot • Wizard In-depth Profile • High Profile Summary Report • Proposal List – Entity NEW (choose school for Blackbaud) • Proposal List – Prospect NEW (choose school for Blackbaud) • Not all ratings appear on all reports

  25. Ratings in Advanced Look-up • Tab PT (A-N) • Evaluation sub-tab • Use Type and Rating fields • To look up Blackbaud data: • Best interpreted as a combination of MGL and TGR • You must do two searches and use intersecting clipboards • For PRIZMNE • Tab PT (A-N) • Demographic Profile sub-tab; use Level field

  26. Thanks for Coming dso@case.edu duo1@case.edu jlm67@case.edu

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