In the “On Fundraising hosted by AFP” LinkedIn group, a fundraiser was asked by her board to assess the capacity of other board members and she was looking for a formula or strategy that has worked for others. The conversation that ensued fascinated and delighted me. I sent her to my free worksheet on capacity ratings, but the different approaches and opinions in response to her question are well worth discussing.

There were two basic paths that diverged from the “simple” question of assessing capacity. The first had to do with what stage the prospects were in. Was she identifying, qualifying, or ready to solicit and was it a first gift, second gift or big-hairy-scary gift? The second was whether she was also considering affinity, or how close the prospect felt to the organization, and inclination, whether the person liked to give gifts to nonprofits generally. Lots of good comments and advice on these aspects.

Prospect researchers often tie these two pieces of prospect assessment into a prospect tracking or moves management system. And although she was not asking about anything other than capacity, readiness to give and likelihood of giving matter (dare I say) much more than capacity. I’ve known nonprofit employees who give big gifts on modest salaries. The prospect’s passion matters!

And then there was some confusion and some clarifications on what does capacity mean when used in fundraising? Similar to one of the comments posted, Aspire Research Group uses the following language in its profiles when providing capacity ratings:

• This rating is a major gift dollar range for a gift over 5 years if only one gift was made. It is strictly based on wealth indicators and not on affinity or inclination. The capacity rating suggests ability to give without considering unknown liabilities and is NOT a solicitation amount.

The overall consensus was that determining capacity (and ask amount too) is a mix of art and science. Prospect research can’t uncover every asset and liability so assessing capacity turns out to be an informed guess.

If the question was about determining the ask amount and not capacity, I’ve got strong feelings on that. Unless you are so close to your prospect that s/he opens up his/her finances to you, not having in-depth research done on your prospect is a costly mistake. If you ask for too much you can probably flatter your prospect, but if you ask for too little you won’t hear a prospect say, “Oh gee, and here I was ready to give you $5 million – I’m so glad you only need $1 million.”

Yes, capacity matters in major gift fundraising. Yes, your prospect can have more money than god and refuse to give you any. And yes, determining capacity and ask amounts involves some art and science.

But the exciting part of this particular LinkedIn group discussion was hearing from fundraisers who, with or without dedicated prospect research staff, give their prospects the respect they deserve by taking time to know them in-person and through tried-and-true prospect research techniques. Cheers!

So how do you determine the magic numbers of capacity and ask amount? Do you give more weight to affinity and inclination to give or more weight to capacity or ability to give? I’d love to hear your thoughts!