We’re eight years on from GDPR, but many fundraisers are still asking, “Can we do wealth screening?” The answer is a resounding yes; wealth screening is perfectly lawful under GDPR. Instead of thinking of GDPR as something that restricts the use of donor data, we should look at it as a way to build better relationships with our supporters.
Data protection compliance may sound dry, but it’s the best way to build public confidence in our sector. Let’s break down what it really means. Compliance is how you deal with personal data. This is usually detailed in your charity’s data protection policy and privacy notice, which should be easily accessible to supporters so they can understand how you handle their personal data and they have the opportunity to object to the processing.
Compliance builds trust with supporters
Relationships have always been at the heart of major gift fundraising, and relationships are built on trust. From the moment a supporter contacts you (and you then subsequently add their details on your database), they expect their personal data to be handled responsibly.
This doesn’t mean you can’t conduct wealth screening or prospect research, but you need to have the right guardrails in place before you do. By making sure your major gift fundraising policies are up to date, your high-level supporters will know that you’re someone they can trust with their data before you even start a conversation.
GDPR has never stopped prospect research
There’s still confusion about what kind of research can be carried out under GDPR. Prospect research and wealth screening remain perfectly lawful, but GDPR has given us a framework for doing it well.
Organisations now need a lawful basis for processing personal data. The main lawful bases used in fundraising are:
- Legitimate interest (used for most prospect research)
- Consent (primarily for communications)
- Occasionally contract (potentially as part of membership)
Legitimate interest is the standard legal basis for prospect research and wealth screening. GDPR doesn’t prevent major gift fundraising; it encourages organisations to do it thoughtfully.
Compliance improves the donor experience
By taking a privacy-by-design approach to data collection, you put your supporters at the heart of fundraising. Data minimisation is a key part of lawful prospect research; only collect the data you really need and don’t hold on to data that’s outdated.
If legitimate interest is your lawful basis for processing data, avoid unnecessary or intrusive research and focus only on what you need to make informed fundraising asks. Give your supporters control over how their information is used by explaining why the research is taking place, informing them of updates to how you undertake research and giving them ample time to object to the specific elements of data processing.
Good compliance means better fundraising
Compliance isn’t a barrier to better relationships; it supports them. Taking stock of your privacy notice(s) ensures you’re transparent with your supporters; a legitimate interest assessment is an opportunity to think through why research is necessary, and data minimisation keeps your database focused on the information you really need to do your job.
Rather than administrative exercises, these processes help organisations become more intentional about how they fundraise.
Compliance shouldn’t be viewed as another hurdle for fundraisers to overcome. It protects your supporters and your organisation. But most importantly, it builds confidence with your donors. If they can trust your compliance processes, they’re more likely to trust the organisation behind them.
At Prospecting for Gold, we specialise in research, wealth screening, consultancy and regulatory compliance.
Research 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 for research-based fundraising? Get in touch with us today.