Who Uses Donor Prospect Research Software?
Fundraising and development teams use donor prospect research to support fundraising campaigns. Wealth screening and donor affinities are extremely useful data points when determining which current and prospective new donors to target for solicitations. Fundraisers can craft better messaging if they know that a prospective donor has a particular interest in their organization’s mission, and they can set more realistic expectations for a donor’s giving capacity. Grantwriters and corporate relationship staff also use these tools to identify grant and sponsorship opportunities.
Software Related to Donor Prospect Research Software
Related solutions that can be used together with donor prospect research software include:
Nonprofit CRM software: Wealth and giving capacity information pulled by donor prospect research can often be integrated into donor records in a nonprofit CRM database.
Alumni management software: Educational institutions also rely on donor prospect research tools to target alumni for fundraising campaigns.
Challenges with Donor Prospect Research Software
Software solutions can come with their own set of challenges.
Data relevancy: Donor prospect research software relies on data integrations and providers to power the search functionality. Without a sufficient amount of publicly accessible information, users may not be able to get entirely accurate prospect research. Wealth screening may not reflect a donor’s current giving potential, and philanthropic history can be spotty if the donor makes anonymous gifts.
Pricing model: Some donor prospect research tools charge per prospect screening, which may be prohibitive to nonprofit organizations with a smaller budget. This can result in the prospect research database being used too infrequently to generate accurate data or still results in many missed opportunities due to rationing out prospect screening.
Ineffective stewardship strategy: While donor prospect research software offers actionable insights, fundraising staff still have to have an effective strategy in place to use that data and build donor relationships. The software cannot automate every part of the process, and fundraisers must interpret the data with their specific circumstances in mind. If an organization has an understaffed fundraising team or cannot retain donor relationships, the prospect research will not be as well utilized as it could be.
How to Buy Donor Prospect Research Software
Requirements Gathering (RFI/RFP) for Donor Prospect Research Software
Whether a company is just starting to explore donor prospect research software or is looking for a more appropriate solution for their needs, G2.com can help inform buyers of the market and assist them in selecting the best software product for their business.
For donor prospect research software, the core functionality does not differ much across products. They will likely only differ in which data sources power their search tool and which specific donor databases they integrate. Some products also focus more on foundation and corporate prospecting than individual donor data. Most importantly, buyers should consider the pricing model for each potential product. Donor prospect research providers may charge a monthly or annual subscription or charge per prospect report pulled. Depending on the intended use cadence of this software, nonprofits should weigh the cost versus the benefit.
Compare Donor Prospect Research Software Products
Create a long list
The first step to finding the perfect software solution is to create a preliminary list of products that fit the buyer’s general needs. The next step is to narrow down the list by selecting specific features that are must-haves or requirements for the buyer. G2.com provides information about the best donor prospect research software, allowing buyers to filter options and user reviews to help narrow the product list to a more relevant selection.
Create a short list
Creating a short list of software products is an essential step in the buying process. While it may be daunting to filter through various products, users can get help by utilizing G2’s compare feature. This feature will take products of choice and display them side by side so the buyer can easily determine which software ticks the important boxes on the list. Some donor prospect research tools may only focus on wealth screening and donor affiliations, while others may offer predictive analytics and score prospects based on a variety of data points.
Conduct demos
Once the buyer has narrowed down the product list, the next step is to conduct a demo. Demos allow buyers to see a product and its features in more detail. To ensure a buyer gets the most out of a demo, it’s important to go in prepared. Some of the questions to keep in mind would be: How intuitive is the software for their team? What data sources inform the prospect research? Does it have the potential to screen for both individual donors and grantmaking foundations? Additionally, buyers should inquire about cost, integrations, vendor support, and any concerns they have about the product. Adequate preparation will make it easier for a buyer to compare products after completing the demos.
Selection of Donor Prospect Research Software
Choose a selection team
Executive leadership and senior-level fundraising staff should be involved in the selection process, as they have the biggest stake in achieving an organization’s fundraising goals. The director of fundraising should have the largest influence in the process, as their team’s donor management and fundraising strategy relies on having access to the most comprehensive set of donor data.
Negotiation
Once the selection team has narrowed down their software picks, it’s time to discuss integration options, pricing, and the type of support needed from the donor prospect research vendor. It’s always important to address pricing options, even when they are listed on a vendor’s website. Buyers must determine whether the vendor offers subscription-based or pay-per-report pricing. Many software vendors will provide discounts and custom pricing options based on the buyer's needs.
Final decision
Once a buyer has made the final decision on a product and is ready to move forward with a purchase, it is recommended to conduct a final demo with the entire fundraising team. They can enquire about a trial run and determine the next steps if the product doesn’t ultimately fit their needs. These steps can give a buyer an additional sense of security and confidence when making a final decision.
