Four steps for starting prospect research for major gifts
July 2020
We work from the basic principle that successful major gift fundraising starts with good research. Whether you’re thinking of wealth screening your existing database or undertaking some prospect research to identify new supporters, you need to take some key steps before getting started. Here are our top tips for laying the groundwork before starting prospect research for major gift fundraising.
Undertake Data Protection Impact Assessment (DPIA) for major gifts
Data protection is at the heart of best practice major gift fundraising and by having a privacy by design approach your supporters will feel secure when it comes to trusting you with their data. A DPIA is an assessment of the ways an organisation uses personal data for specific activities. It should describe the purpose for which you collect the data and look at information flows e.g how data will be obtained, used and retained. Your DPIA should also identify the privacy risks and evaluate solutions to those risks. Once recommended actions are agreed they should be incorporated into the overall project plan.
Undertake Legitimate Interest Assessment (LIA) and document where it can be relied upon for specific activities
There are six lawful grounds for processing data under GDPR, these are:
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Consent
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Contract
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Legal obligation
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Vital interests
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Public task
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Legitimate interest
The ones we use most frequently when processing data for fundraising are consent, legitimate interest and occasionally contract. One is not better than the other and all may be appropriate for use at different times. Most organisations use legitimate interest for their prospect research. Your LIA enables you to verify that you have a legitimate interest. You need to be able to demonstrate that and the data processing you are undertaking is necessary. It takes into account the reasonable expectations of data subjects, the impact of the processing on individuals’ interests and rights and freedoms and weighs this against your legitimate interests. You should document the outcome of this balancing test (and any mitigating steps).
The purpose of the balancing exercise is not to prevent any negative impact on the data subject. Rather, its purpose is to prevent disproportionate impact. (CASE 2019)
Ensure provision of fair processing information via your privacy notice
Your privacy notice should clearly describe all the ways you use personal data and the safeguards in place. It must also show your supporters how they can exercise their rights over your processing of their personal data. When you update it, you need to inform all of your supporters about this.
Your privacy notice should contain the following information.
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Details of the data controller (and data protection officer)
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Purposes for which the data will be processed and the legal basis
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Explanation of the organisation’s legitimate interest
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Categories of personal data
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Who it will be shared with
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Countries where it may be transferred
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How long will it be kept
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Data subjects rights including to withdraw consent to processing and right to opt out
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Sources of personal data - using publically accessible sources
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Use of third parties
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Any automated decision making or profiling (different to prospect research)
Our top tip for ensuring your privacy notice is fit for purpose is to get someone outside of your organisation to read it and explain it back to you. If they can’t explain it, take another look and simplify it.
Notify supporters of updated privacy notices
Once you’ve updated your privacy notice you must notify your supporters of any changes and give them the option to opt-out of processing. Once they’ve had enough time to do this you can start your prospect research.
With over 25 years’ experience working with the not-for-profit sector our team provides research, wealth screening, consultancy, regulatory compliance and training support to charities of all sizes, making fundraising more effective and successful.
We'll help you learn more about the people who support your cause, give you detailed insight into your best prospects and identify new ones, whether they be wealthy individuals, grant-makers or institutional funders. To book your free half-day of (virtual) consultancy with our team get in touch with us by email at info@prospectingforgold.co.uk or call us on 01491 577311.
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