Prospect research is a powerful tool that can help your charity identify new donors and raise more funds. However, some organisations may have concerns and fears about using prospect research and making sure they stay within the requirements of GDPR when they do so. Your trustees and leadership team may also be worried that prospect research will not lead to successful fundraising or they may be wary that the organisation’s reputation could be put at risk.
In this article, we’ll address these concerns and offer some tips on how to use prospect research effectively and ethically to boost your major gift fundraising.
What is prospect research?
Prospect research is not about invading people’s privacy or violating any laws or ethical standards. It’s simply a way of gathering information from publicly available sources to identify potential donors who are likely to be interested in supporting your cause. This information can include a person’s wealth, giving history, philanthropic interests and connections to your organisation or other charities. By using this information, you can create more targeted and personalised fundraising campaigns that are more likely to appeal to your donors. It can help you build a strong respectful relationship with your donors.
GDPR and prospect research
To avoid any potential privacy concerns, it’s essential you follow data protection regulations such as GDPR (General Data Protection Regulation) and ensure that donors are informed about the types of prospect research you may be conducting. Even though you are likely to be relying on legitimate interest for your research, you still need to give your supporters the opportunity to opt out of the research. You should be clear about the types of data you are collecting for research and how you plan to use it. Being transparent and respectful of people’s privacy is not only the right thing to do, but it will help build trust and develop an ongoing relationship with your donors.
Maximise resources
Your trustees and leadership team may also be concerned that prospect research will result in wasted resources on ineffective campaigns. Prospect research can save you time and money in the long run by helping you target the right donors with the right messages. By identifying donors who are more likely to support your cause, you can focus your resources on building strong relationships with them, rather than trying to reach out to everyone. By outsourcing your prospect research to prospect research specialists, you will gain additional insights and be able to draw on their experiences of how to use research to build successful major gift programmes.
Measuring success
To make the most of your prospect research, it’s important to have a clear strategy in place. Before getting started, define your goals, identify your target audience and create a plan for how you will engage with them. Regularly review and update your strategy based on the results you achieve and be open to trying new tactics and approaches.
Build trust with donors
Finally, some organisations may be wary of the potential impact of prospect research on their reputation. They may fear that they could be seen as intrusive or unethical. However, as long as you’re transparent about your methods and respectful of people’s privacy, there is no reason why prospect research should harm your reputation. In fact, by using prospect research to create more personalised and targeted fundraising campaigns, you can demonstrate that you are a responsible and effective charity that cares about its donors and its cause.
With the right approach, prospect research can transform your fundraising, leading to successful fundraising campaigns and deepening your relationship with your major gift donors.
Struggling to get your project over the line?
Join Kerry Rock for a webinar on pursuing sensitive projects – getting prospect research over the line. This free webinar will explore developing the case for good, robust and compliant prospect research and how you can dispel any doubts your organisation might have about the process.
There will be plenty of time for questions and to explore your own challenging projects. Register here.