We’ve distilled over twenty-five years of experience into the ultimate guide to prospect research for schools and universities.
As we start another school year, with rising educational costs and increasing demand for resources, many schools and universities are struggling to fund all their initiatives.
Building a sustainable major gift programme can help schools and universities to support their academic and extracurricular activities. However, effective major gift fundraising extends far beyond securing a donation. It’s about understanding your supporters’ motivations and building strong, long-lasting relationships.
This is where prospect research comes in. Educational institutions can create impactful fundraising campaigns by gathering relevant information about potential donors. Drawing on over twenty-five years of experience, this guide will help you navigate the process of prospect research for educational fundraising.
Understanding prospect research
At its core, prospect research involves identifying and learning about potential donors or ‘prospects.’ Understanding who they are, what drives their giving and how likely they are to support your educational institution. This information helps you develop a personalised and targeted fundraising approach. The perfect prospect will have the ability to donate (capacity), a genuine interest in your school or university’s mission (affinity), and be accessible for engagement (proximity).
Steps to effective prospect research for educational institutions
Identify potential donors
The first step in effective prospect research is identifying who your potential donors could be. Consider alumni, parents (current and past), local businesses, community leaders, foundations, and trusts interested in supporting education. Look for people who have previously contributed, those involved in similar educational causes, or those who have shown an interest in your institution’s activities. Exploring your existing network of alumni and current parents can reveal connections to potential donors.
Understand your prospects
Once you’ve identified potential donors, the next step is to better understand them. Gather information that provides insight into their interests, motivations and financial capacity. Are they passionate about supporting education, scholarships, or research initiatives? Do they regularly contribute to educational causes or institutions? Understanding their giving history, financial capability, and any personal or professional connections to your institution can help tailor your fundraising strategy.
Analyse donor potential
After understanding your prospects, evaluate their potential. Some individuals may have a high capacity to donate but less interest in your institution, while others may be passionate about education but have limited financial means. Analyse the balance between their capacity to give and their affinity with your school or university. This analysis will help you prioritise your outreach efforts and focus on prospects with the highest potential for engagement and support.
Develop personalised strategies
Create a personalised approach for each potential donor based on your prospect research. Tailor your communication to match their interests and preferences, plan your donation requests according to their giving capacity, and consider organising personalised events or campus tours for high-potential donors. Personalisation is key to building meaningful relationships that encourage long-term support.
Getting the most out of your prospect research
Stay organised
Prospect research involves managing a large amount of information. Stay organised by using systems to record and categorise your findings. Whether through a simple spreadsheet or specialised donor management software, having a structured approach will make your research more efficient and effective.
Adhere to ethical standards
Transparency and ethics are key to best-practice fundraising, especially when collecting and using personal data. Adhere to data protection regulations like GDPR (General Data Protection Regulation) to ensure compliance. Inform potential donors about the types of research you’re undertaking and how their data will be used. Respecting privacy helps build trust and fosters long-term relationships with donors.
Keep information updated
Prospect research is not a one-time task. People’s circumstances, interests, and financial capabilities can change over time. Regularly updating your research ensures that your information remains accurate and relevant, allowing you to adapt your strategies as needed.
Consider professional help
If prospect research seems daunting, consider seeking assistance from professionals. Consultancies specialising in donor research, wealth screening, consultancy, and regulatory compliance can provide valuable support, making your fundraising efforts more efficient and successful.
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.