Tag Archives: major gift

3 Steps To Social Media Major Gift Prowess

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Were you aware that social media is a competitive edge in major gift fundraising? You must have heard by now how organizations are leveraging giving days and crowdfunding as well as incorporating social media into annual fund drives – but what about major gifts?

As a fundraiser who asks wealthy individuals to make gifts to your organization, deliberate and professional use of social media will not only separate you from the pack, it could put you in league with your prospects. It’s time to own your participation in social media!

Start with Prospect Research

If you have a prospect research professional on staff, it’s time to have a talk about social media. Agree on the social media sites you want to know about and ask your researcher if channel participation and user ID can be added to the profile, or better yet, put into a database field that can be pulled into a report.

prospect-research-perspectives

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To get on the same page with your colleagues, you could order copies of the Prospect Research Perspectives: On Social Media and have informal discussions about articles over lunch or coffee.

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Every organization has a unique constituency. Global and national statistics on social media use may or may not apply to your donors. As your prospects get researched, you will begin to see which social media channels are preferred.

Audit Your Personal Social Media Presence

You are probably on social media already. It’s time to audit your presence. Accept that there is no privacy online, no matter how diligent you are with your privacy settings. Decide how you want to be perceived – what your personal brand is – and make that uniform across every platform from LinkedIn to Facebook and beyond. Don’t underestimate the power of a professional head shot.

Consider what would happen if a seven-figure prospect invited you to connect on Facebook. What will your Facebook presence communicate to the prospect? You should also expect that prospects will explore your work history in places like LinkedIn.

You can get ahead of the requests and craft an action plan that will best demonstrate your personal brand and interests and your organization’s brand and giving priorities.

What does that mean? Take one channel at a time. Following are two easily accomplished examples that demonstrate channel-appropriate activity:

  • LinkedIn: Liz picks two days a week when she catches up on industry reading, posts about something she has read, and links to the article or commentary. Whenever she learns new information about a giving priority, she shares the related press release, video, or other content. She decides to write a short article this year about integrity in major gift fundraising to post on Pulse and have it show on her profile page.
  • Facebook: Liz uses Facebook to connect with friends and family, but colleagues and donors have requested to friend her. She’s a foodie and a country music fan so she decides that each time she goes out to eat or hear music she will find something unusual about the experience to share on Facebook. She also shares related articles, videos, and pictures on those topics. She still shares things like family and vacation items, but she’s careful not to share deeply personal information, saving that for offline. She posts occasional pictures from work events and office fun, too.

Now Get Your Edge On!

Once you know which social media channels have a critical mass of your prospects and donors, make sure you have an account on those social media sites. You can’t be everywhere, so choose carefully based on the data.

Now you are poised to use social media for cultivation. Many fundraisers successfully reach prospects through LinkedIn, but you could do much more.

When you discover a prospect is very active on one or more social media channels, connect with him or her there and regularly post content that is of interest to the prospect, as well as engage the prospect by sharing his or her content and making comments. This builds trust and rapport through genuine interactions – and all from your laptop, tablet, or smart phone.

Social media isn’t the way to reach out to every prospect, but if you polish your online brand and use prospect research to guide your social media activity you can sharpen your major gift edge.

5 Reasons Public Company Insiders are Great Prospects

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Unless you are fundraising for a prestigious business school, you probably don’t come across a whole lot of private company insiders as prospects. Maybe you wonder what all the excitement is about. Securities and Exchange Commission (SEC) filings are complex. Why bother understanding that world if you have those prospects so infrequently?

Apart from the noble pursuit of continual learning, following are five reasons public company insiders make such good prospects.

Continue reading 5 Reasons Public Company Insiders are Great Prospects →

Forbes Billionaire List Alert: What you’re missing

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dancingwomensmWomen may be just under half of the world’s population, but they represent 11% of the 2015 Forbes World’s Billionaires List. Of the 197 women on the list, 29 are self-made billionaires. These may not sound like inspiring numbers, but consider the women on the rise.

Elizabeth A. Holmes is the youngest self-made woman billionaire – ever.

And she happens to be female. And she founded a company using her scientific prowess. So if you’ve been reading all the nasty headlines about how women suffer from misogynists harassing them in the tech field, consider that some uber-successful women have simply stepped around that hot mess!

Ms. Holmes is 31 years old, has retained 50% ownership of her company Theranos valued at around $9 billion, and makes time for philanthropy:

  • Board President for Improve International, an organization launched by fellow Georgia Tech alumna Susan Davis, which is devoted to education, partnership, and monitoring the sustainability of water and sanitation projects worldwide
  • Active mentor for young professionals within Elavon, a payment processing company
  • Volunteer at Georgia Tech, participating annually as a judge for TAG’s Educational Collaborative
  • Member of Women in Technology and On Board
  • Financial supporter of Girls Inc.

The real question is this: If Ms. Holmes wasn’t on the Forbes list, would you even know she existed?

Because I bet there are many sweet major gift prospect gems inside your databases and within your organization’s social circle, but you have no clue.

How Do Women Hide in Your Database?

Of the 168 non-self-made female billionaires on the list, many inherited their wealth from fathers and husbands. But don’t let that fool you. They own it! Did you pay attention to those women before their fathers and husbands died? You should have.

Even before they are widowed these women are usually the influencers and even the drivers behind household philanthropic decisions.

In her debut publication What About Women? prospect research professional Preeti Gill suggests you take a walk through your database …as a woman.

  • When a couple makes a gift, do you credit them both?
  • When you have a couple as donors, do you create a separate record for the woman?
  • What salutation does the woman have?
  • Are you paying attention to how she wants her name listed?

How Do Women Hide Among Your Organization’s “Family”?

Perhaps the easiest way wealthy women are hidden and not recognized by the organizations they love is when they are never entered into the database to begin with. Way too many organizations do not track and include volunteers in their fundraising vision and plans. Your prospect research professional can’t find major gift prospects in your database if they aren’t in there.

And what do we know about women? They do their due diligence before investing! And part of that due diligence is often volunteering for the organization.

Wealthy Women are Still Women

Ignore women in your fundraising at your own peril! Women are different from men. They think about money differently. They want different interactions with your organization from men. And they might even give differently from men.

Fundraising with a focus on women will require adjustments and adjustments require time, money and resources.

But very wealthy women are on the rise and they bring rewards:

  • Quick to make referrals through word of mouth
  • Frequently give unrestricted gifts, small and large
  • Loyal donors who advocate to others within their network

Are you interested in learning more and staying current on women in philanthropy? Click here to sign-up for the What About Women? email list.

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Innovate or Die: Post-Recession Impact on Finding Donors

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Broken LightbulbThe future has a way of entering slowly, day-by-day. But sometimes the writing is on the wall. The words I see on the fundraising wall are Data Analytics. Sure, you say, we all know that. But what does it mean to your organization? To you? Answer: Innovate or die.

That may sound extreme. And it is. But it doesn’t make it any less possible. Before you dismiss that answer, let me tell you how I arrived at it.

The economic environment is affecting our donors – dramatically.

My favorite magazine of all time is The Economist. Lately they have been writing frequently about the growing inequality around the world and in America. How capital is taking a far greater share of wealth and how income, in the form of wages, is stagnating. Companies froze wages pre-recession, but even though profits have returned wages have not risen.

In his blog post “Where have all the donors gone?” Mark Noll makes the case that the result of these economics is the missing middle donor. Post-recession, people may be employed again, but too often at a lower wage. Where will our gifts come from?

In her book, Nonprofit Essentials: The Development Plan (2007), Linda Lysakowski, ACFRE is but one of many fundraisers talking about how Pareto’s 80/20 principle has turned into the 95/5 principle or worse. Way too much of our funding is coming from a tiny sliver of very wealthy. And where do the very wealthy like to give their gifts?

According to the Million Dollar List maintained by the Lilly Family School of Philanthropy, fifteen of the twenty largest multi-million dollar gifts by value were from individuals to private foundations associated with their families. Higher education receives the highest number of million dollar gifts.

In the Agitator blog, Roger Craver writes:

“Giving USA 2013 is but the latest report to make pretty clear that sitting on the sidelines waiting for recovery [from the Great Recession] is a strategy only for the suicidally inclined…demands on charities [is] rising at the same time giving is nearly flat….”

 

 

 

 

 

 

It’s pretty clear that if fundraisers fail to innovate the organizations they serve will suffer.

So what does all this gloom and doom have to do with data analytics?

Data analytics is the cold method behind a warm philosophy: listen to people when they tell you something. And when thousands of people are telling you something, not only listen, but start digging deeper and ask more questions.

Data analytics allows us to “hear” from our constituents in ways we are physically incapable of hearing. If the data tells us that a large number of constituents click through on messages about one of our program outcomes regardless of where we put those messages (social media, print, etc.), but are not responding to messages about another program we planned to make our strategic direction for the next year – we should re-think that direction, right? Maybe.

Analytics alone is not enough.

It’s pretty amazing that we can “hear” our constituents through data, but don’t be mesmerized by all that glitters. We also need innovation in our approach to attracting donors, finding the “best” out of those and asking them for gifts. If the reality is that we will mostly have very large and very small gifts, how can we change our approach?

In 2012 the Chronicle of Philanthropy featured the Kauffman Center for the Performing Arts in Missouri, which raised $416-million, in part by attracting modest gifts such as $1,000 multi-year pledges. This gave smaller donors the opportunity to express their interest and commitment and to be recognized. Crowdfunding is a similar approach, but might be improved upon to become less transactional. People want to give; people take pride in giving. It’s our job to figure out how to make it easy to give while building affinity.

In addition to gift size there are other changes we need to adapt to. Population changes cannot be ignored. Preeti Gill has written a provocative piece about identifying women philanthropists. In “Hey, Ladies! Thanks for giving. Sorry we missed you,” she notes that many multi-million dollar bequests come from women who are “outside of our databases and away from the corporate and media glare”. In other words, traditional prospect research techniques are failing to identify them.

International donors can’t be ignored either. Harvard University just announced a $350 million dollar gift from a wealthy Hong Kong family. Have you looked at population trends and predictions for your organization?

Are your donors from the local community? Are they international graduating students? You need fundraising programs that meet the needs of the constituents you have and will have in the future, not the ones you wish you could have. Data has to come from outside your organization as well as inside.

It’s All About the People

Data analytics helps us find answers and sometimes it can even help us ask questions, but most of the time data analytics requires someone with curiosity and creative problem-solving skills to direct it.

Fundraisers need to shake themselves awake from the traditional and begin interacting with the data so that they can better meet the philanthropic desires of (all) real people.

Organizations need to be willing to take risks, fail a little and ultimately win.

Ask Kodak or IBM about listening and innovating in the face of change. Innovate or die. It doesn’t sound so extreme now does it? And it is doable.

More Resources:

Top Secret! How to Bulk up your Prospect Pool

Prospect Identification, Prospect Research, Resource Links, , , , , , , , , , , , ,

HappyKeySMIn this article I’m going to share the secrets of finding great prospects. Maybe you’re one of those fundraisers who is always reading the Business Journal scouting for a lead, but they don’t pan out. Do you wonder how those other organizations pull in the big gifts? Or maybe you’re new and all the best prospects are assigned to senior fundraisers. You can get great prospects too!

If you read a lot of blogs (like I do) now is where you get skeptical. Is she just going to give me theory I already know (and hasn’t yet helped me find good prospects) or will I get at least a couple of nuggets I can actually use? I’m aiming for the latter. The “trick” is that you still have to work hard!

Fundraising research theory tells us that you need to know who you are looking for so you can spot them. We use jargon like linkage, ability and affinity. And there are tools that give you a competitive edge with that. But you can do it even without bright, shiny tools.

The First Thing…

The first thing any good fundraiser (and prospect researcher) needs to do is learn what it looks like to be wealthy. Watching soap operas may seem like a good education here, but much better is reading through some of the wealth reports like the Knight Frank Wealth Report 2014. You’ll find links for other reports in the sidebar on your right.

And the second first-thing-any-good-fundraiser-needs -to-do is get in front of people, especially donors. You should read and get in front of donors at the same time. Start with known donors because they are the most likely to give (again) and it’s always better to get a gift, right?

Call, visit, and read.

When you are reading about the wealthy at the same time as you visit prospects you’ll start making the connections. When the prospect talks about how he and his wife are taking classes in gemology and he has a watch collection, you’ll remember what you read about this being an investment hobby for the very wealthy. And when a different prospect brags about taking regular trips to Europe on mileage points you’ll recognize that what you thought were luxury vacations probably aren’t.

You can do that without any tools except your eyes and ears. Well, I guess you need to use your mouth to place the phone call…and, okay, guide the conversation. But you get it, right? Recognizing the wealthy – the truly wealthy – takes an education.

Get Your Toolbox Dirty

Getting an education on spotting the wealthy still isn’t likely to fill your prospect pool with GREAT donors – those with linkage, ability and affinity. If you have tools that assign ratings to the prospects in your database, use them! Don’t be discouraged if it doesn’t work out perfectly the first few times.

For example, you might pull a report of people who rate high for ability and likelihood to make a gift, but find most won’t take your phone call. You may need to add additional criteria depending on your organization. Maybe it’s “donor within the past two years” or “attended an event in the past two years” or some other criteria that makes it more likely they will let you visit with them.

Keep track of your efforts so you can repeat what works best. And, yes, this does mean you will have to make a lot of phone calls that end in “no thank you I don’t want a visit”.

It’s the same even if you don’t have tools that provide ratings. Without tools you have to get more of an education. You might use a free tool like the Washington Post’s interactive map** of the nation’s super zips to identify wealthy zip codes to search for in your donor database and combine that with “donor within the past two years” or other criteria that suggest a “warmness” toward your organization.

The Secret Weapon

If you are really lucky, you have a trained prospect researcher on staff. Use all your fundraising powers of relationship building to get this prospect research wizard on your side!

HOT TIP: your researcher is likely to get the most excited about searching out top prospects if you reward her with feedback from your calls and face-to-face visits.

With a prospect researcher on your team you are more likely to out-produce even seasoned professionals in the race for fundraised dollars. Really, really!

…and if you can’t support a trained prospect researcher full-time, you can always outsource. Just sayin’!

**Julie, Prospect Research Analyst in Pennsylvania and Groundbreaking Student at the Prospect Research Institute, shared this fantastic resource with the class!

Did you get a nugget or two?

I hope you found a useful tip you can apply in your office. Maybe you have great suggestions you’d like to share with others. Please comment and share!

Jenz Favorite Wealth Reports

Common Prospect Research Myths

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magicLampSM
For best results, rub vigorously!

I sent a request out to prospect researchers on the APRA PRSPCT-L list-serv asking them to share common prospect research myths. Following is a summary of my favorite responses!

Myth: Everyone over age 60 is a planned gift prospect.

Fact: While age is a factor, affinity is also an important predictor of planned giving and statistical data modeling is even better at predicting who is a likely planned giver.

Myth: Lots of real estate holdings makes someone a major/planned gift prospect.

Fact: We have a lot of real estate investors, large and small, in the Pacific NW.  People buy a few apartment or commercial buildings as a retirement investment and they accrue in value, so development officers think the prospects can give big.  I have to educate them that, unless they are giving us the building, capacity is based on income from the building and that I calculate capacity differently for personal real estate and income-generating real estate.

Myth: We need to know the prospect’s net worth.

Fact: Net worth is all of someone’s assets minus all of their liabilities. We can’t know all of either, because that includes a lot of private information.

Myth: Prospect researchers can find anything about anyone, including: how much is in their bank accounts; personal tax records; credit history; social security numbers; or wills.

Fact: Much information is private, like the examples above, and is not available to us legally or ethically.

Myth: Google. You can find everything on Google. Researching is really just Googling a prospect. “I don’t need you—I use Google.” “If you just look harder, you can find out everything about him.”

Fact: Internet search engines can only find about 20% of what is available on the internet. Just ask Mike Bergman who coined the phrase.

Myth: You can just get a report from the “database” with everything, right?

Fact: While software companies that pull information together for us have gotten very sophisticated, there is no “one” database.

Myth: A prospect can be fully researched in less than half an hour, especially with one of those fancy research services we subscribe to—just push a button and a complete profile comes out, right?. Or better yet, do a “quick 10 minute profile” on a prospect. (Sorry, but is this ever possible — ten minutes?)

Fact: Searched, verified, and synthesized information barely starts with an hour. Anything less risks being haphazard, which might help in a pinch, but is far from ideal.

Myth: Very little data about a prospect is needed in order for the researcher to produce a comprehensive profile (such as: name spelled correctly, address, occupation, how someone is related to our organization).

Fact: Names are far more common than most people suspect and a good match requires as much starting information as possible.

Myth: When asked for “a little more information about so-and-so,” true prospect researchers intuitively know exactly how much more information is enough.

Fact: Good communication is a two-way street between the requestor and the researcher. Some process or structure usually helps too.

…And the last MYTH? Well, it isn’t one really. It’s a FACT: In ancient times, before the discoveries of electricity, personal computers, and the internet, prospect researchers lived in lamps and responded to vigorous rubbing.

Other Post You Might Like:

Can you really trust prospect research? 10 things you should know

Do Your Own Research? You Bet!

An “Insider” Peek at Executive Compensation

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dollararrowup.thumbI thought it might be worthwhile (and fun!) to explore a well-known public company executive’s compensation package to illustrate a few of the many and creative ways executives are compensated. Sometimes I forget that the Wall Street world of finance and juicy executive compensation packages is a mystery to many, even in prospect research. My career began as a legal secretary and included editing proxy filings just as the Securities and Exchange Commission (SEC) transitioned to its electronic filing system called EDGAR. Filings can be tedious, but that’s partly because they are packed with information.

Public Company Insiders

Carol Meyrowitz is the president, Chief Executive Officer, and director of TJX Companies, which operates stores like T.J. Maxx, Marshall’s, and Home Goods. TJX Companies’ stock is traded on the New York Stock Exchange (NYSE) under the ticker TJX. Meyrowitz is both a top executive and a director, which qualify her to be a public company insider. If she owned 10% or more of the company’s stock, that would also qualify her. Any of those three roles qualifies someone as a public company insider.

For the most part, the only people who are required to report their stock holdings in public filings with the SEC are insiders. And when you stop to think about it, there are very few public company insiders compared to the large number of people who own stock. This means that many of your wealthy prospects who own substantial portfolios of stock will not be found in any SEC filings.

Incentive Plans in Public Companies

The SEC requires public companies to detail their compensation packages for top executives. Each company decides on its own how to reward executives for their performance. Especially since the 1970’s, theory has it that executives – and directors too – need much more than salary to keep them interested in the company’s success and achievements.

Below is a chart of Meyrowitz’ compensation in fiscal year  2013. We are going to walk through each type of compensation she received. Keep in mind that I am no tax expert! This is meant to be a big picture, brief explanation with tips on applying the information to fundraising.

Fiscal Year

Salary

Bonus

Stock Awards

Stock Option Awards

Non-Equity Incentive Plan Comp

Change in Pension Value & Non- Qualified

Deferred Comp Earnings

All Other Comp

Total

2013

$1,426,924

–

$10,872,000

$654,630

$6,050,370

$2,716,326

$48,550

$21,768,800

 Salary and Bonus

Just like you and I, insider executives receive a salary, paid in cash, for doing their job every day. They might also receive a bonus based upon their job performance, which may also called a short-term incentive. Notice how Meyrowitz has not received a bonus in the past three years? The word “bonus” took a real beating during the recession. Even though she didn’t receive a bonus, there are still some really big numbers in her compensation package.

Stock Awards

Stock awards represent the value of the stock Meyrowitz was given by the company when they gave it to her. The idea is that when she meets her performance goals, she gets to share in the rising value of the company through its stock. There may be all kinds of confusing language around this. She might be given restricted stock that do not vest (become fully owned by her) unless she meets certain goals. And she might be required to own a certain number of shares of stock as long as she is an executive.

HOT TIP: Just because this stock awards number is high, it does not mean that all of the stock is available to her to gift or sell. Her salary, the paycheck she cashes just like you, is $1.4 million. Some or all of the $10.9 million stock awards could be untouchable.

Notice how stock is the biggest part of her pay package? That’s no accident. Cash payments are taxed as income. Stock is not. When Meyrowitz sells her stock she will pay capital gains tax on money she makes as a result of the sale (the gain). Can you guess which tax rate is likely to be higher – income or capital gains?

Stock Option Awards

Stock options give Meyrowitz the option to buy stock at a future date. These options are valued in the compensation table, but that dollar figure is more of an accounting mechanism and is not the current value.

The idea is that Meyrowitz will be more focused on the company’s financial improvement if she stands to make significant financial gains if the company’s stock price increases. So she is given an option to buy stock at a future date (the exercise date) at a locked-in price (the exercise or strike price).

For example, today she gets an option to buy 100 shares of stock at $70 per share. The stock is currently trading at $62 per share. If she buys those 100 shares today, she would have to pay $70 but could only sell them for $62. She would lose money! But if we give her options today as an incentive, we’re going to tell her she can’t exercise her options until next year. Now she has a year to get the company’s stock higher than $70 per share.

A year later, she can buy the 100 shares of stock for $70, and hopefully, the stock is trading at $71 or higher. She spends $7,000 and can turn around and sell them for $7,100 ($71 per share), earning $100 on the sale. When the exercise price is lower than the market price and she can sell at a profit, we say her options are in-the-money. If we turned it into a formula, it might look like this:

($market price – $exercise price) x number of shares = $value
($71 – $70) x 100 = $100

HOT TIP:  When trying to determine if Meyrowitz might use her options to make a gift to my organization, I want to know when she will be able to exercise her options and if they are in-the-money. If she can’t exercise them yet or they are without value, we can’t get a gift.

Non-Equity Incentive Plan Compensation

Non-equity means that it is a non-stock incentive. For TJX Companies, this means it is part of its short-term cash incentive plan and its long-term cash incentive plan. So Meyrowitz receives cash for doing a good job in the current year, and even more cash if she keeps it up over a certain number of future years. It’s possible that she could get fired today and still be owed cash under the long-term incentive plan if the company continued to perform!

HOT TIP: You might be saying to yourself, “Cash incentive – isn’t that the same thing as a bonus?” Pretty much. But the word “bonus” has gone out of fashion.

Change in Pension Value & Non- Qualified Deferred Compensation Earnings

The IRS closely regulates retirement plans and there are many vehicles for stashing your cash for retirement. A pension is usually tied to the employee’s salary and years of service. I didn’t dig deep to find out details about Meyrowitz’ pension, but it’s in the SEC filings. Non-qualified money is money that does not receive tax-favored status from the IRS for retirement. Deferred compensation is owed but not paid to the employee until a later date, typically to reduce the amount of individual tax paid in a particular year. Changes in regulations have lessened its popularity.

All Other Compensation

These are the perks! And while some might seem extravagant to us ordinary folk, there are some good reasons behind a few. For example, having life insurance on a key executive provides a cash cushion if the company has to replace her on short notice. Very high-profile executives might need the personal protection a private jet provides. Below is a table from the SEC filing that gives us the detail behind the other compensation for Meyrowitz.

Automobile
Benefit

Reimbursement
for Financial
Planning and
Legal Services

Employer
Contributions  or
Credits Under
Savings Plans

Company Paid
Amounts for Life
Insurance

Total
All Other
Compensation

$36,594

$5,940

$4,881

$1,135

$48,550

HOT TIP:  Other compensation is not cash and that means it doesn’t factor in directly to the prospect’s ability to make a gift.

Your Top 5 Take-Aways

If everything else about executive compensation was confusing to you, I hope you at least come away with these nuggets:

  • A public company executive’s total compensation is made up of many different items. The actual cash portion and number of shares of stock available for immediate gifting to your organization is likely to be much less than the total.
  • The current incentive plan fad is to not pay bonuses, and sometimes not even to pay a salary at all (see Meg Whitman), but you can bet the executive still receives hefty compensation in the form of stock.
  • Stock Options require the executive to shell out the cash to buy the stock first. The executive does not receive a profit unless she buys the stock at a discount and then sells it at the higher market price.
  • Stock Options might have zero value if the company stock price has fallen.
  • Other Compensation is not money available for gifting, even though it is reported as a dollar figure.

Do You Have a Proxy To Read?

Do you participate in a 401(k) plan at your work? Or maybe you own shares in a mutual fund. I hope this little bit of explanation has you really curious – curious enough to start reading some of the financial documents you receive in the mail. If you are new to SEC filings, the best one to read first is the proxy, also called SEC Form DEF 14a.

The proxy for TJX Companies is where I found all the information for this post. You can visit www.sec.gov yourself and look up that proxy online.

Do you have hot tips on executive compensation to share? Please add to the comments below!

Other Articles of Interest

Meg Whitman Agrees to Work for $1 – Or Does She?

US CEOs break pay record as top 10 earners take home at least $100m each

America’s Highest Paid CEOs

PRtakesWallStreet

Secrets of Top-Performing Major Gift Officers

4Researchers, Major Gift Teams, , , , ,

ShhhhDid you know that major gift officers who use prospect research raise more than their colleagues who go it alone? Prospect research is the secret sauce that has been helping some organizations out-perform others for years. Think about it. Can you name a higher-education fundraising powerhouse that does not employ prospect researchers? When I was working on the book, Prospect Research for Fundraisers, I had conversations with the very talented Nancy Lee, consultant and Executive Director for Donor Services at Thomas Jefferson University and Hospital in Philadelphia. She told me that fundraisers need to realize that it is the researcher who decides what goes in or stays out of a prospect profile, based on the request. Sounds kind of harsh, doesn’t it? But it fits right in with what we need most in this world of too much data – content curation. A good prospect researcher will sift through the overwhelming amount of information and give you what you need most. Or will she? The source of tension There is a natural tension between frontline fundraisers requesting prospect research and the researchers who deliver it. Requests for research are as varied as the organizations and the people within them. Requests might be emailed, left as voicemail or they might be a completed form or online request system. But even when requests are made face-to-face, there is room for misunderstanding. This causes tension. When you consider what is on the line – the success or failure of your major gift solicitation – it makes sense for you, the person talking with the donor, to take ownership of the requests you make for research. And you might be surprised how easy that can be. Two easy things you can do to get what you need 1. Be specific Any prospect researcher worth a grain of salt should be filtering prospect and donor data based on your organization’s mission, programs and overall culture. Beyond that you should be specific, regardless of what is or is not available on any form you are required to complete. By specific I mean that you should disclose what is worrying you, causing confusion, or has you excited. Let me give some examples.

  • I think she is related to the Moneybags family and could be a million+ donor!
  • I know he is a loyal donor to Knowledge University. I’m worried he has already made his stretch gift and there isn’t enough left to make a campaign leadership gift.
  • I have tried to figure out her interests, but she’s very reserved. Any clues on what might get her talking would help.

That’s not so difficult, is it? Recognizing why you decided to make the request and then clearly stating it to the researcher. If you do this you will get the information you need. Except that sometimes you still don’t get those info nuggets you were hoping for, right? It could be that your researcher needs more training, but you could try one more thing. 2. Feedback If you get a prospect profile that does not answer your questions, or that appears to be missing important stuff, take it back to the researcher and ask what happened. It might be that she could not find the information, but didn’t state that in the profile. There could be so many things going on. And the only way you’ll find out is if you ask. But you’re good at asking, right? Because it’s up to you to make the right ask to the prospect. Had any good conversations lately? It’s so easy for conversations between frontline fundraisers and prospect researchers to get negative. But I have worked with many frontline fundraisers who have helped me to help them. I love being part of the team that closes the big gift! If you have been reading this article and nodding your head the whole time because it validates what you have been doing so well already, won’t you comment and share your success? Need Help? Jen Filla helps fundraisers and researchers communicate and create process. Through Aspire Research Group she also provides organizations with outsourced prospect research. Call 727 202 3405 x700 or email jen at aspireresearchgroup.com

Other Resources You Might Like

Data Mining Resources

Fundraising Analytics, , , , , , , ,

I was poking around to see what I might find on the internet and thought I would share my favorite finds related to data mining. I hope you enjoy them too!

Five ways to promote in-house data mining
by Kevin MacDonell

5 reasons every nonprofit should use analytics for fundraising
by Joshua Birkholz

From Stories to Evidence: How Mining Data Can Promote Innovation in the Nonprofit Sector
by Technology Innovation Management Review

Fundraising Analytics ABCs
by Helen Brown

The Do’s and Don’ts of Data Mining in Nonprofit Fundraising
by Daniel Neel

Get Worried! About Asking for Too Little

4Fundraisers, Focused Fundraising, Major Gift Teams, , , , , , , ,

When was the last time you had a knot in your stomach because you were worried you were going to ask for too small of a gift? If you are like many fundraisers, the answer is not often enough!

  • $8 Million gift from Glenn Korff to University of Nebraska-Lincoln’s School of Music.
  • $2 Million gift from Gene Feaster, an inventor of Superflab to the University of Kansas.

How badly do you want gifts like these?

The wealth screening companies tell us – perhaps with some bias – that organizations which raise more money and get whopping big gifts, screen their donor database for wealth regularly. This does not surprise me. Does it surprise you?

Bias aside, large organizations are much more likely to worry about asking for too little. It’s a high-pressure, go-get-the-gift environment and the winners are those receiving the largest gifts. And large organizations invest in fundraising, including prospect research.

Research gives them the facts that can validate what they suspect, or disqualify a prospect, or find new information that impacts gift type and size.

But what can I do?
Hey! I heard that! “But we have no money for a screening.” “We can’t hire a prospect researcher anytime soon.” “Our leadership won’t invest in research.”

And I have a response! (It wouldn’t be much of an article if I didn’t, would it?)

Whether you are a smaller organization dreaming big or one of a hundred gift officers, you are in control of your own behaviors. And here’s a few winning behaviors to adopt – and maybe even influence others, like your leadership.

Get worried about asking for too little.
Words matter. When you talk strategy for a gift, state your target ask amount and then say, “But I’m worried that might be too low.” (That was easy!)

Get wealth-educated.
Pay attention to articles, blog posts, studies and conversations about wealth. Because when someone asks you – “why do you think that ask is too low? – you will need an answer.

  • He sold one company. Could there be others?
  • He seems like the kind of guy to have a vacation home, but I don’t have the tools to find out.
  • Jane board member says he owns a number of restaurants, but I don’t know for sure.

Get search savvy.

No, you don’t have to be a full-fledged prospect researcher, but every fundraiser should be able to find key information online about prospects. When was the last time you visited your county tax assessor’s online database? How about Zillow.com? Do you have rule-of-thumb formulas to create capacity ratings?

Wealth screenings are one tool in the research toolbox. Even so, I hope you are actively thinking about a future budget that includes a screening. You might not need it now, but you will need it sometime soon.

Your mission and the people and causes you serve deserve funding. And if for no other reason, that should get you concerned about asking for too little.

If you want help finding information about your prospects, click here to contact Aspire Research Group.


Other Resources You Might Like:

Fall Fundraising Trends by Preeti

Filla Fast Favorite Links – a categorized list with wealth studies at the bottom