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Prospect Ratings Demystified. Or How to read that “stuff” in Wizard. Special Thanks. Lai Lonne Fong Dorothy U. Oluonye Jessica Messerschmitt. Why have ratings?. Determine Wealth Levels Gift C apacity Propensity to Give Frequency of Giving Likely Gift Type (CRT, Bequest, etc.).

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prospect ratings demystified

Prospect Ratings Demystified

Or

How to read that “stuff” in Wizard

special thanks

Special Thanks

Lai Lonne Fong

Dorothy U. Oluonye

Jessica Messerschmitt

why have ratings
Why have ratings?
  • Determine Wealth Levels
  • Gift Capacity
  • Propensity to Give
  • Frequency of Giving
  • Likely Gift Type (CRT, Bequest, etc.)
who has ratings
Who has ratings
  • All Domestic Alumni (unless they are deceased)
  • Many Foundations and Corporations (older records—no longer reviewed)
  • Certain Friends (most at this point)
the lifetime rating explained

The LIFETIME RATING Explained

Making a recommendation based on an analysis of financial and other factors about the range of gift possible from a prospect. (Cecilia Hogan; Prospect Research—a Primer for Growing Nonprofits; Jones and Bartlett, c. 2004)

what it means
What it Means
  • Definition 1: 3% to 5%, conservatively calculated, of Demonstrated Net Worth
  • Definition 2: What a prospect can be expected to expend philanthropically over the course of his or her lifetime—to any charitable institution (not just CWRU)
slide7
Why?
  • Prospects need to be “binned” in categories by wealth on an absolute scale—Who is the richest and what percentage can we get?
  • Propensity is NOT at issue here, just wealth
where to find it
Where to Find it
  • On the front Screen in the Purple Quadrant
  • NOT THE WHOLE PICTURE—Drill down!!
    • Three types of rating:
      • LIFETIME
      • NEEDS RESEARCH APPROVAL
      • NO LONGER VALID
how is lifetime rating calculated
How is Lifetime Rating Calculated
  • Balance Sheet Model
    • Assets – Liabilities = Net Wealth
    • Industry Standard Formulas for Calculating Net Worth—Several Scenarios Formulated
  • Most likely scenario is used based on combination of “hard” and “soft” data (contact reports, news articles –other giving, etc.)
ratings control
Ratings Control
  • Research Office has last word…BUT!
  • Ratings will be changed if proof is offered
  • Propensity to give to CWRU not a factor
  • Ratings are reviewed from time to time
how ratings stack up
How Ratings Stack Up
  • Up to $100M: 3 Alumni, 24 Friends
  • Up to $50M: 2 Alumni, 6 Friends
  • Up to $25M: 20 Alumni, 26 Friends
  • Up to $10M: 45 Alumni, 54 Friends
  • Up to $5M: 213 Alumni, 137 Friends
  • Up to $2.5M: 60 Alumni, 54 Friends
  • Up to $1M: 224 Alumni, 99 Friends
  • Ratings from $100K - $500K not fully approved: there is much room for growth!!
expectation field
Expectation Field
  • Found on Prospect Screen
  • Intended for Fundraiser use
  • Completely user-defined
the prizm ne system
The PRIZMNE System
  • Classifies thousands of neighborhoods in 66 lifestyle segments, each a distinct marketplace group
  • Provides a highly accurate measure of socioeconomic standing, philanthropic tendency, and lifestyle indicators

(Source: GGA presentation, 2005)

prizm ne variables
PRIZMNE Variables
  • Social Rank (income, employment, education)
  • Household Composition
  • Mobility (length of residence, car ownership)
  • Ethnicity
  • Housing
  • Urbanization (urban/rural, housing densities)

(Source: GGA presentation, 2005)

where to find prizm ne
Where to Find PRIZMNE
  • Found in Demographic Profile section
  • Codes of Importance:
    • 1 Upper Crust (6,613 hits)
    • 2 Blue Blood Estates (3,357 hits)
    • 5 Country Squires (5,513 hits)
    • 6 Winner’s Circle (2,160 hits)
    • 7 Money & Brains (6,326 hits)
    • 9 Big Fish, Small Pond (6,294 hits)
    • 10 Second City Elite (2,104 hits)
gga explained
GGA Explained
  • Almost all individuals in Wizard were rated in 2005
  • Three, Four or Five ratings, found in Evaluations
    • GGA Major Gift: A, B, C, D, E (A being the best)
    • GGA Annual Giving: 1 through 6 (1 being the best)
    • GGA Planned Giving: P, S, T, X (P being the best)
    • NL (Nothing to Lose): High wealth but no giving
    • GGA Gift Capacity Estimate (not very many records)
blackbaud analytics

Blackbaud Analytics

The next wave in prospect ratings!

what is blackbaud
What is Blackbaud?
  • A Predictive Model
  • Charts Capacity AND Likelihood
  • Most Detailed Product Available on Market
  • As Many as 26 Records per Prospect
blackbaud ratings broken down
Blackbaud Ratings Broken Down
  • University as a whole analyzed for:
    • Major Gift Likelihood ($2,500 or more)
    • Annual Giving Likelihood
    • Annuity Likelihood
    • CRT Likelihood
    • Bequest Likelihood
    • Target Gift Range (capacity)
  • Each school analyzed separately:
    • Major Gift Likelihood (school specific)
    • Target Gift Range
where to find
Where to Find
  • Found in Evaluations
    • Target Gift Range (TGR’s) Scores are from 1 to 15 (University) and 1 to 12 (schools)
    • Likelihood Scores are from 1 to 1,000 (1,000 being the best score)
      • Mapped into Wizard in file-specific Quartiles
      • Ignore the $ sign on actual rating—it is a hard code
ratings not yet in wizard
Ratings Not (Yet) in Wizard
  • From Blackbaud Wealthpoint Screening:
    • Estimated Wealth
      • To be mapped to a wealth field
    • Annual Giving Capacity ($ range)
    • Annual Giving Capacity Value ($ value)
      • 1% of Wealthpoint total assets
    • Major Giving Capacity ($ range)
    • Major Giving Capacity Value ($ value)
      • 5% of Wealthpoint total assets
  • YOUR GUT INSTINCT!!!
how to section the fun part

How-to Section (the fun part)

Looking up ratings; reports, etc.

reports where ratings matter
Reports where Ratings Matter
  • File-Print-Other
    • Brief Biographical Summary
    • Executive Snapshot
    • Wizard In-depth Profile
    • High Profile Summary Report
    • Proposal List – Entity NEW (choose school for Blackbaud)
    • Proposal List – Prospect NEW (choose school for Blackbaud)
  • Not all ratings appear on all reports
ratings in advanced look up
Ratings in Advanced Look-up
  • Tab PT (A-N)
    • Evaluation sub-tab
    • Use Type and Rating fields
  • To look up Blackbaud data:
    • Best interpreted as a combination of MGL and TGR
      • You must do two searches and use intersecting clipboards
  • For PRIZMNE
    • Tab PT (A-N)
      • Demographic Profile sub-tab; use Level field
thanks for coming

Thanks for Coming

dso@case.edu

duo1@case.edu

jlm67@case.edu