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Identifying your best potential donors According to research on fundraising and philanthropy, each person in your database has an ultimate gift potential for your organization. For many, the ultimate gift potential may be $0. Perhaps they are not charitably inclined — or an alumnus only gives to his graduate school, or a former patient paid a large bill and does not think of your hospital as a charitable entity. Other people in your database, however, may be loyal donors, giving approximately the same amount year after year. According to the concept of ultimate giving potential, there is a third category of people in your database: those who are likely to make a large donation. These are the people you should analyze most closely and with whom your organization should build relationships. They include three types of donors: Those who will make a major gift (however defined by the organization); Those who will make some form of planned gift; and Those who will do both Statistics show that this last category is typically comprised of the 15% of prospects at the top end of your donor list who know your charity the best. As you look at your donors, their lifestyles, and their giving histories in order to identify your best prospects, it is important to avoid using misleading data. Investing in reliable prospect research allows organizations to keep prospect and donor information at their fingertips. Use a custom modeling service to mine the data housed in your fundraising system to develop profiles of the best potential annual fund, major gift, and planned giving prospects. Further enhance donor profiles by incorporating information on stock ownership, real estate, and other wealth indicators that indicate capacity to give. Data mining and predictive modeling are proven methods for the identification of your best potential donors. Application of these techniques to your existing data yields exciting and actionable results. Although it is important to identify who your best potential donors are, this knowledge does not instantly translate into fundraising success. Once you’ve put your finger on those prospects most likely to give, remember that you must put the information to work within your organization. » back to Blackbaud Fundraising Solutions