In today’s digital world, data protection is more important than ever. If you’re thinking about undertaking wealth screening to identify your best prospects and secure major gifts, you must also ensure that you comply with the General Data Protection Regulation (GDPR). In this blog, we’ll look at wealth screening and how charities can carry it out while complying with GDPR.
What is wealth screening?
Wealth screening is the process of systematically identifying potential donors who have the capacity to give significant gifts. This involves analysing publicly available data about individuals, including their estimated wealth, giving history and corporate and social interests. Wealth screening can help you identify your best prospects, engage with them and secure major gifts.
How does GDPR come into it?
Under GDPR charities must be transparent about how they collect and use personal data for fundraising activities. For wealth screening, you will generally be relying on legitimate interest. This means informing individuals about the specific purposes for which their personal data will be used (i.e. research) and providing them with the option to opt out of data processing is a critical part of your compliance process.
So, how can charities carry out wealth screening while complying with GDPR? The first step is to update your privacy notice so it reflects the type of research activities you plan to undertake. Your privacy notice should be clear and concise – a good way to ensure it’s fit for purpose is to have someone else read it and explain it back to you.
Data minimisation
One of the key principles of the GDPR is the concept of “data minimisation”, which requires that you only collect and process the minimum amount of personal data necessary to achieve your specific purpose. This principle applies to wealth screening, prospect research and all fundraising activities and organisations should only collect and process personal data that is necessary for their fundraising efforts.
You must ensure that your organisation has the appropriate measures in place to protect individuals’ data. This should include things like encryption, access controls and regular backups. Your data protection policy should outline how you will protect individuals’ data.
Communication is key
Ensure you are transparent about your data processing activities. Once you’ve updated your privacy policy, tell your supporters about the changes and provide them with the opportunity to opt out of data processing.
Wealth screening can be a valuable tool to help you identify your best prospects and secure major gifts. However, it’s important that you comply with GDPR when carrying out wealth screening. This means updating your privacy notice to reflect the research activities you plan to undertake, ensuring that you don’t hold more data than is necessary and being transparent about data processing activities. By following these guidelines, you can carry out wealth screening while maintaining the trust of your supporters and protecting their privacy.
Get the most out of your wealth screening
Join us for our free webinar on getting the most out of wealth screening. We’ll answer the most commonly asked questions about how to use this form of research to identify new major donors and cover:
- What you need to know about wealth screening and data protection.
- Planning your wealth screening to be GDPR compliant.
- The key steps for undertaking a screening.
- What comes out of a screening.
- How to make the most of your screening results.
- Convincing colleagues that screening is right for your organisation.