How to Build a Donor List from Scratch
It’s an age-old question: how do we create a great donor list? Every organization wants a generous donor base that will sustain the organization for years to come. It’s like building a house; you have to start by compiling a list of building materials to buy (including checking out product reviews and comparing prices). So, if you have a customer relationship management (CRM) database, creating a donor list from scratch is easier than you think. This article also includes evaluation criteria for making a donor list entirely from scratch, with or without a database.
How many donor prospects is too many or not enough? Develop a manageable donor prospects list.
Creating a list of donor prospects should be reasonable, and especially not overwhelming when you have other responsibilities. If you are the leader or a board member of your organization, it is suggested that you have five to ten major gifts prospects to cultivate. If you are on the development team handling multiple fundraising responsibilities (e.g., writing grants, planning events, creating marketing materials), then it is suggested to engage approximately twenty donor prospects. A list with 100 to 150 donor prospects is common if you are a major gift officer. So, when you create a list, try to keep the number reasonable, and your donors will appreciate the attention and care you give to them.
Where do you find donors? Start with your database or look within your circle of influence
As you start making a list of specific individuals within your circle of influence that are closest to your organization, here are the four evaluation criteria for identifying ideal donors:
Relationship - Organize donor prospects according to their connection with the organization (or closest to you) in your circle of influence.
Interest - Does the person have any interests or hobbies relevant to your organization? They are more likely to engage with your cause if they share a common interest.
Networking - Is there anyone in the organization that has a connection with the prospect that can help you cultivate and make the ask together? A board member or staff member can help introduce or build a meaningful relationship with the prospect.
Giving Capabilities- What is that prospect’s net worth, ability to donate, and giving history? Look at their wealth indicators (e.g., real estate, type of job, and other assets) and their philanthropic indicators (e.g., giving amount to other organizations and community involvements).
Put a RING on it
To help you remember each time you assess a potential donor, think, “let’s put a RING on it” (Relationship, Interest, Networking, and Giving Capabilities). There are two ways to find donors: start with your database or look within your circle of influence.
Start with your CRM database (if you have one):
Having a CRM database will make identifying and qualifying donors so much easier. First, create two different reports: 1) a list of the largest donors that gave last year and the year before, and 2) a list of loyal, recurring donors that gave continuously over the years (loyal donors are committed to your cause and are the easiest to work with). Make sure to distinguish one-time donors from donors that make multiple small gifts throughout the year (so that you would not overlook them). Comparing two groups of donors will help you determine the best and most qualifying donors to cultivate this year.
If you don’t have a database (or want to start over), then look within your circle of influence:
Each person has their own circle of influence and it starts with you. Who would be closest to your organization (e.g., family, board members, staff)? The next round is individuals who would be happy to have a coffee chat with you (e.g., friends, volunteers, neighbors, interested parties). The further you go outward from your circle of influence, the less connected they are. However, some prospects might have a working relationship with someone from your organization (e.g., business owners, foundations, friends of community leaders that work with you). Lastly, the most remote relationships you have are strangers or individuals you might have to make cold contact with (e.g., marketing on social media, showing up at an event you did not host, greeting shoppers at a local grocery store).
To identify and narrow down the most qualified and best donor prospects to cultivate, they are categorized into three types: yes, maybe, and no. The most qualified donors are usually individuals who will give a resounding yes. You might have some ‘maybe’ prospects, but they might take a little longer to make a gift. Additionally, there are some ‘no’ prospects, but that does not mean they are in the ‘never’ group (they may not be ready at the time, so don’t rule them out entirely yet). However, focus your time and efforts on the ‘yes’ and ‘maybe’ prospects, and creating a donor profile will help you identify them.
What do I need to know about my donor prospects? Create a donor profile and a cultivation plan.
After you have identified a list of donor prospects to cultivate this year, create a donor profile for each one and a cultivation plan. The donor profile should include the basics: who they are, where they live, why they give, giving capacity, and giving history (if any). Then customize a cultivation plan before you make the ask (e.g., schedule a coffee chat, invite them to a friend-raiser). See the attached Donor Profile template as an example, but the profile should be confidential and only discussed internally to help you win them over.
Creating a donor list is not as daunting as you might think and will be worth the investment. Do you need help identifying and qualifying donor prospects or creating a cultivation plan? You’ve come to the right place for guidance. Schedule a 30-minute chat today!
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