The release of the Sunday Times Rich List always causes a frenzy in the fundraising world. Who’s new on the list? And who are the lucky organisations that have a connection with them?
But our advice to time-poor fundraisers is to ignore the Rich List and instead, focus on the prospects with a genuine connection to your cause.
Wealth alone is not an indicator of a good prospect
A high-net-worth individual on your database can be a sign that a major gift is in reach for your organisation, but only if that prospect has other key criteria.
The right prospect for your organisation will have the ability to give to your cause (capacity), an interest in your organisation’s work (affinity) and be easy to reach (proximity). Without affinity and proximity, a high-capacity prospect is unlikely to give a major gift.
The risk of cultivating the wrong prospect
Chasing high-net-worth prospects who aren’t aligned with your organisation drains fundraisers’ time and takes them away from building relationships with more suitable and engaged supporters. As well as putting a strain on time-poor teams, it decreases morale amongst fundraisers when cultivation stalls or an ask goes unanswered.
Ranking prospects against criteria such as previous giving history, propensity to give, broader philanthropy and whether or not you can reach them not only maximises income but also protects your fundraisers’ time.
Connection trumps wealth (every time)
Proximity to your cause matters more than most organisations realise. While it’s good to have a balance of connected and wealthy prospects in your pipeline, a mid-level donor who’s really connected may surprise you with a top-level gift. On the other hand, a wealthy prospect who’s recently appeared on the Sunday Times Rich List may be receiving asks from 100s of organisations, some much closer to them than your cause.
That doesn’t mean it’s impossible to build a pipeline outside your existing network. Wealth screening your database can reveal new prospects who may be supporting you at a low level and may also have existing relationships with trustees, donors, or volunteers. That warm introduction from someone who already cares about your cause increases the likelihood that the prospect will engage with you at a major gift level.
Relationships matter more than research
Prospect research is a valuable tool for organisations that want to take an insight-led approach to fundraising, but it should support relationship building, not replace it.
For charities to be successful, they need a clear research brief that defines why they’re doing the research, what they want to achieve, and how it supports their fundraisers to build relationships.
Relationship-building will always remain at the heart of major gift fundraising. The best fundraising strategies combine research with building long-term relationships with your supporters.
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.