Sections of this topic
Too many people (NPO board members, volunteers and staff) believe that “Evaluation” means determining what a potential donor should give!! That couldn’t be more wrong.
A formal evaluation process has two objectives: to identify a dollar amount that the prospective donor would be likely to be able to afford; and, to identify a (realistic) dollar figure that the donor will be asked to give – a figure that a donor might give if s/he were so motivated.
Though they may sound alike, they’re not the same thing !! And, they are not identified in the same timeframe.
The need to “evaluate” a potential donor ties into two circumstances:
(1) The Prioritization Figure: Since the members of a Major Gifts Committee (staff, board members and volunteers) don’t have an unlimited amount of time to chase every lead for potential major gifts, the list of those individuals must be prioritized, and those individuals with the highest dollar evaluations are placed at the top of the list … and get the most attention.
The focus, initially, is on determining if an individual should be on the Major Gifts Prospects List. Once you’ve determined that the other criteria have been met — see (https://management.org/ blogs/fundraising-for-nonprofits/2010/06/15/who-is-a-major-gift-prospect/), you must come up with your first “evaluation:” Is this person capable of giving an amount equal to 1% or more of your fundraising goal … and where is s/he likely to fall on the “Gift Table” ?? — see (https://management.org/blogs/fundraising-for-nonprofits/2010/09/07/constructing- the-gift-table/)
So, how do you come up with the number you use to prioritize your list of major gifts prospects? …by asking the person who suggested the name in the first place, by asking someone who knows the person fairly well, by getting a feel for the value of that person’s car/home/yacht/toys, by researching what that person has given/committed to other NPOs (just look at their annual reports, plaques in their lobby, stories in newspapers). In essence, the initial evaluation can be based on specific (publicly available) information or on “common knowledge.”
(2) The “Ask” Amount: When actually soliciting the gift/commitment, it is important that the prospect be asked for a specific dollar figure.* That figure must be consistent with the prospect’s ability to give, his/her business and family circumstances, the extent to which s/he may have become involved with the NPO and its mission/programs, the extent to which his/her “need” will be satisfied by making a gift of that amount, and the likelihood that s/he will say, “Yes,” to that amount.
The determination of that figure, therefore, must be part of a serious process. This figure must be based on solid information obtained from reliable sources … with the best source being the person who had been selected to “cultivate” and eventually solicit an individual. The actual determination of the “Ask” will be based on all the information available close-and-prior-to the actual solicitation.
*Oh, yes !! In case you were wondering why it is essential that a prospect be asked for a specific dollar figure, watch for my posting on “Asking For The Gift.”
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Have a comment or a question about starting, evaluating or expanding your fundraising program? With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions. Contact me at AskHank@Major-Capital-Giving.com
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Have you seen The Fundraising Series of ebooks ??
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