WHY FOCUS ON MAJOR GIFTS?
"The American economy is so diversified; you can't look at it as a whole," says Michael Dimengo, arguing that segmenting for major gifts fundraising can prove promising during a soft economy. Dimengo is President of Sage Fundraising Solutions¹. Major gifts tend to be more insulated from the vagaries of economic cycles and, therefore, can serve as a buffer against recessionary forces. There are several reasons this may be so:

First :  Major and planned giving donors are often your most loyal or have other close ties to your organization. They are the ones who will understand that, especially in tough financial times, your organization needs their support.

Second:  Many wealthy individuals do not feel the pinch of shrinking incomes or rising prices to the same extent the general population does. True, their asset base may not be growing as quickly as it was in more prosperous times, but the well-to-do can afford to take a longer view of the economy. For them, there is always food on the table and gas in the tank. They know business cycles come and go and, in the long run, markets smooth out and grow. According to Dimengo, the very wealthy also often set aside giving budgets each year for tax benefits and desire opportunities to make a difference in the community.

Lastly :  Once an organization's program is established, major giving is among the most cost-effective methods of fundraising. With primarily fixed cost expenses (salaries, overhead, etc.) and low variable costs, the opportunities for return on investment with major gifts are potentially enormous.

FOCUS ON THE RIGHT PROSPECTS,
WITH THE RIGHT ASK, AT THE RIGHT TIME
Dimengo describes why a manufacturing business owner who recently expanded into the European market is "going gangbusters" despite the current economic landscape in the U.S.: "Because the dollar is weak against the Euro, buying power is strong in Europe and this company has more customers than they can shake a stick at." According to Dimengo, businesses such as this one make for excellent major gift prospects. So how can organizations identify the right prospects and make the right ask, at the right time?

One way to enhance your major gift fundraising operation is to invest in data mining. The right combination of external and internal data can tell you all you need to know about your best prospects. Knowing which have both the capacity and propensity to give allows you to deploy your limited resources where they have the opportunity for the greatest return on investment.

CALCULATING CAPACITY & ABILITY TO GIVE
A good data mining vendor uses a robust selection of data sources that provide a window into each prospect's capacity to give, hard assets, and connections to your organization. You will learn who owns valuable real estate, which constituents are entrepreneurs (among the most generous of donors!), which are public company "insiders," and who has a family foundation. A reputable vendor will provide all of this information and more to help you determine who has the capacity to give.

Ability to give is only part of the equation; data on giving interests are important, too. Data mining will provide insights into your constituents' philanthropic habit and inclination. It can uncover which of your constituents has made gifts to other organizations and to which organizations they've given, as well as which have given to state or federal political campaigns. It will also reveal if they are sitting on boards of other nonprofit organizations.

"The key is drilling deep to get to know your prospects," says Dimengo. "WealthEngine has provided a lot in the way of prospecting by providing state-of-the-art profiles," he continued. Even when dealing with corporate gifts, Dimengo stresses the importance of understanding what motivates the individual contact.

UNDERSTAND INCLINATION & GIVING HABITS
In addition to identifying new prospects, successful nonprofit organizations are - now more than ever - focusing on relationships within their existing constituencies. Data mining can uncover previously unknown relationships between your constituents and those closest to your organization - your board members, your leadership, your top donors. No single piece of information has greater potential to transform your major gifts effort than uncovering a relationship between a trustee or VIP and a wealthy, philanthropic prospect.

The benefits of data mining don't stop there, as a quality vendor will use predictive modeling to flag those prospects that have the right combination of attributes for major gifts - capacity, inclination and a connection to your organization. So when researching vendors, look for one that provides a scoring system that indicates your constituents' propensity to give to your cause.

Cutting back on fundraising efforts in a weak economy is not only counter effective, but it also can depreciate your long run, overall return. Current investments in prospect research and donor cultivation affect the pipeline of future gifts for many years to come, so consider the consequences of cinching your belt too tightly (see illustrative chart below). Instead, use this time to strategically position your nonprofit by creatively meeting the challenges of fundraising in a weak economy.

Consider an investment in data mining to help you build the pipeline for successful fundraising in the days and years to come - whatever the financial climate. Happy prospecting!

¹Sage Fundraising Solutions offers fundraising, strategic planning, and organizational development consulting services to a nationwide client base of economic development, chamber of commerce, education, museum, and other nonprofit organizations. More info at: www.sagefundraisingllc.com.