Or How to read that stuff in Wizard. Lai Lonne Fong Dorothy U. Oluonye Jessica Messerschmitt.

Prospect Ratings Demystified

OrHow to read that “stuff” in Wizard

Special ThanksLai Lonne Fong

Dorothy U. OluonyeJessica Messerschmitt

Why have ratings?Determine Wealth LevelsGift CapacityPropensity to GiveFrequency of GivingLikely Gift Type (CRT, Bequest, etc.)

Who has ratingsAll 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

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 MeansDefinition 1: 3% to 5%, conservatively

calculated, of Demonstrated Net WorthDefinition 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)

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 itOn the front Screen in the Purple QuadrantNOT THE WHOLE PICTURE—Drill down!!

Three types of rating: LIFETIME NEEDS RESEARCH APPROVAL NO LONGER VALID

How is Lifetime Rating CalculatedBalance Sheet Model

Assets – Liabilities = Net WealthIndustry Standard Formulas for Calculating

Net Worth—Several Scenarios FormulatedMost likely scenario is used based on

combination of “hard” and “soft” data (contact reports, news articles –other giving, etc.)

Ratings ControlResearch Office has last word…BUT!Ratings will be changed if proof is offeredPropensity to give to CWRU not a factorRatings are reviewed from time to time

How Ratings Stack UpUp to $100M: 3 Alumni, 24 FriendsUp to $50M: 2 Alumni, 6 FriendsUp to $25M: 20 Alumni, 26 FriendsUp to $10M: 45 Alumni, 54 FriendsUp to $5M: 213 Alumni, 137

FriendsUp to $2.5M: 60 Alumni, 54 FriendsUp to $1M: 224 Alumni, 99 FriendsRatings from $100K - $500K not fully

approved: there is much room for growth!!

Expectation FieldFound on Prospect ScreenIntended for Fundraiser useCompletely user-defined

The PRIZMNE SystemClassifies 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)

PRIZMNE VariablesSocial Rank (income, employment, education)Household CompositionMobility (length of residence, car ownership)EthnicityHousingUrbanization (urban/rural, housing densities)

(Source: GGA presentation, 2005)

Where to Find PRIZMNE

Found in Demographic Profile sectionCodes 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)

Grenzenbach Glier & Associates

The GGA ratings

GGA ExplainedAlmost all individuals in Wizard were rated in 2005Three, 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 givingGGA Gift Capacity Estimate (not very many records)

Blackbaud AnalyticsThe next wave in prospect ratings!

What is Blackbaud?A Predictive Model Charts Capacity AND LikelihoodMost Detailed Product Available on MarketAs Many as 26 Records per Prospect

Blackbaud Ratings Broken DownUniversity as a whole analyzed for:

Major Gift Likelihood ($2,500 or more)Annual Giving LikelihoodAnnuity LikelihoodCRT LikelihoodBequest LikelihoodTarget Gift Range (capacity)

Each school analyzed separately:Major Gift Likelihood (school specific)Target Gift Range

Where to FindFound 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 WizardFrom 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 assetsMajor Giving Capacity ($ range)Major Giving Capacity Value ($ value)

5% of Wealthpoint total assets

YOUR GUT INSTINCT!!!

How-to Section (the fun part)

Looking up ratings; reports, etc.

Reports where Ratings MatterFile-Print-Other

Brief Biographical SummaryExecutive SnapshotWizard In-depth ProfileHigh Profile Summary ReportProposal 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-upTab PT (A-N)

Evaluation sub-tabUse 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 [email protected]

[email protected]@case.edu