With individual giving taking a hit in recent years, fundraisers are seeking out a more research-heavy approach to major gift fundraising. Enter wealth screening.
In this article, we break down what exactly wealth screening is and what not to do if you want to remain GDPR compliant.
The most important thing to remember is that wealth screening is completely lawful, and you should be transparent with your supporters if you plan to do it. Like any other data processing, you just need to carefully plan your approach to minimise the privacy impacts and give your supporters the option to opt out of data processing.
Here are three mistakes you might be making when it comes to complaint wealth screening.
Not putting privacy design at the heart of your relationship with your supporters
Building open and honest relationships with your donors and supporters is a vital part of best-practice fundraising. Transparency is key. Having a plan of how to abide by the principles of GDPR every step of the way is keeping privacy by design the heart of your fundraising.
Your supporters will appreciate open communication about why research and wealth screening is a fundamental part of good fundraising. This helps build better donor relationships and allows you to educate supporters on the impact of their philanthropy.
Not reviewing and documenting your legal basis for the research
The most common legal grounds for processing data for fundraising-related purposes are:
- Legitimate interest. This is likely to be most appropriate where you use people’s data in ways they would reasonably expect and which have a minimal privacy impact or where there is a compelling justification for the processing. This must be balanced against the rights of the individual and has to be combined with the provision of fair processing to inform people about what you are doing. The vast majority of charities rely on legitimate interest to conduct prospect research.
- Consent. Where the data subject has given their consent to your processing of their data. The data subject must also be informed about their right to withdraw consent at any time, and the withdrawal must be as easy as giving consent. Consent is required for activities such as email marketing.
One is not legally better than the other, but they may be appropriate to rely on at different times.
If you are relying on legitimate interest, make sure you do a Legitimate Interest Assessment (LIA). This includes a balancing test to ensure that your research won’t infringe on the rights of the individuals that you are researching.
Not being clear in your privacy notice about the research you are doing
Make sure your privacy policy is fit for purpose and informs your supporters how their data might be processed in line with GDPR guidelines. Your privacy notice needs to be clearly accessible to your supporters on your website and on any sign-up forms or mailing lists that collect their data. Keep supporters in the loop when you make any changes to your privacy notice, and make sure it’s easy for them to opt out of any specific aspects of your processing.
Make sure your privacy notice includes the following:
- Why you’re carrying out the research and the importance of it for your fundraising.
- The types of research you undertake, e.g. wealth screening, prospect research, financial analysis.
- Your data sources, including a brief outline of any public information you use.
- Any use of third parties, possibly naming them and specifying the activities they undertake for you.
- Your legal basis for the activity, ie a summary of your legitimate interest.
- Details of how people can opt out of the processing.
At Prospecting for Gold, we specialise in research, wealth screening, consultancy and regulatory compliance, making fundraising more effective and successful.
Wealth screening can help you expand your donor base and boost your fundraising. By understanding your supporters, you can personalise your approach, making your fundraising efforts more effective and efficient.
Successful major gift fundraising isn’t just about securing a donation. It’s about building relationships, understanding people’s motivations and aligning their interests with your cause.
Ready to transform your major gift fundraising? Get in touch with us today.