Wall Street Bonus Schedule: Leveraging Luxury Spending

wall street bonus schedule

The first quarter of the new year is when financial industry workers in New York City receive their Wall Street bonuses. This Wall Street bonus schedule, or these payouts, represents the performance of workers and the market in the previous year. Wall Street bonuses tend to be higher in years when the market does well. 

Depending on the firm, employee bonus distributions may be paid anytime from late December through the end of February. This Wall Street bonus schedule time has been described as creating a sort of “March Madness” in terms of its euphoria and spending. After all, who wouldn’t want to celebrate such a financial reward? The 2018 bonus pool, paid in early 2019, was $27.5 billion. That amounted to roughly $153,000 per worker. Although down 9% from the previous year, that bonus is twice the average salary of a New York City worker. Let’s explore the impacts of these bonuses on the luxury market and how they can benefit your business. 

Impact of Wall Street Bonuses on the Local Economy

This year’s Wall Street bonus schedule, based on market performance in 2019, is expected to be a bit lower for some Wall Street workers. However, for others, they may experience a slight increase. That’s according to Bloomberg. For example, investment banking advisors and hedge fund managers may see a 5% higher bonus. The Wall Street bonus for commercial bankers looks to be about the same. Fixed income traders could see 5% less, corporate management 10% less. And the Wall Street bonus for equity traders could dip as much a 15%.  

Still, even if bonuses are down slightly, that’s a lot of money to be pumped into the area. The financial sector represents 5% of New York city’s private work force, according to Moira Boyle, Director of WealthEngine’s Luxury Sales Strategy. “Those large year-end paychecks have a disproportionate effect on the local and regional economy.”

It’s easy to see how Wall Street bonuses boost the economy of New York City. “People are going to spend most of that money where they live,” commented New York State Comptroller Thomas DiNapoli in a Newsday.com article. But Long Island, the northern suburbs and the entire state profit, he pointed out. Wall Street bonuses contribute a significant amount of tax revenue to the city and state.

Wall Street Bonus Purchasing Power

Spend it, save it, or donate it? Just what are the recipients of those Wall Street bonuses likely to do with that extra cash? “A prudent employee would treat it as salary,” replied Boyle.  “However, history has shown that non-discretionary spending and real estate transactions increase during the first quarter of the year. “r

As Boyle pointed out, the more senior executives receive the largest payouts, several times larger than their salary. That’s enough to finance a high-priced investment. The average compensation, including salary and bonus, of Wall Street workers, was $399,000 in 2018. “Approximately 177,000 individuals will be buying real estate, cars, watches, bags, trips, and donating to their favorite charity,” said Boyle. 

DiNapoli concurred. Wall Street bonus income is often spent on vacation homes in the Hamptons and on the North Fork. Or for luxury items such as boats and jewelry. East End restaurants and tourist attractions also benefit from stockbrokers’ spending.

The Luxury Market Is Growing

The luxury market grew 5% worldwide in 2018. That growth represents the sales of three major items: luxury cars, luxury experiences and personal luxury goods. Luxury experiences grew by 20% in two areas, high-end food and wine and luxury cruises.

Luxury product marketing targets consumers who have both the propensity and capacity to buy your luxury product or service. It may be apparent Wall Street bonus recipients have the capacity for a luxury purchase. But what about their interest? Are your targeted consumers interested in what you have to offer? It’s not enough to know that your prospect can afford it.

How well do you really know your customers and prospects? Consumers expect more from luxury brands. They want to do business with companies that know enough about them to provide a relevant and personal shopping experience. Luxury marketers must respond to consumer desires for those customers to take them seriously.

Getting Your Share of the Wall Street Bonus Market

If you’re a luxury marketer, this is your opportunity to get your share of Wall Street bonus spending. How are you engaging your customers, based on what you know about their purchasing influencers? ”We know from human nature that their attention will gravitate to what caught their attention most recently,” said Boyle, “so marketing and product visibility is key.”

To bring in new luxury customers you have to know as much about them as you can. And your existing customer data is your starting point. Understanding your current customers will help you determine who you want to reach and how to engage them. Here are some steps you can take to best identify your luxury buyers:

  1. Gain knowledge and insight on your customers. Segment them through analytics such as profiling and cluster analysis.
  2. Make evidence-based decisions on where to allocate your resources and the strategies to use to target prospects.
  3. Identify the data that supports your initiative. Determine the data you need to further understand your customer and create compelling offers.
  4. Approach prospects who have both the financial ability and behavioral characteristics to join your exclusive circle of customers.

A Look At Millennial Wealth

Download WealthEngine and Coldwell Banker’s A Look at Wealth 2019 to understand the motivations, behaviors, and trends of millennial millionaires.

Leverage wealth data to reach luxury consumers. And Wealth Engine can help you build a customer profile to target Wall Street bonus recipients.

8 Phases of A Successful Annual Giving Campaign

what is an annual giving campaign

What is an Annual Giving Campaign?

In the previous piece in our annual giving series, we explored the function and value of annual gifts. An annual gift is a contribution made to a nonprofit organization or higher education institution, provided on any given annual basis with unrestricted purposes. By extension, an annual giving campaign is an organized effort, established by your organization or institution, to solicit yearly gifts to support your general operations. The question is: what all is involved in an annual giving campaign? And how best do you structure your fundraising efforts to meet your goal? Let’s explore the 8 phases involved in a successful annual giving campaign.

Annual Giving Campaign Phases

1. Form a Steering Committee

Before creating an annual giving campaign plan, it’s important to round up a group of people to help you oversee your campaign at large. The first step in your annual giving campaign is to form a steering committee. This is a group of 6 to 8 board members who will help you plan your campaign before you assemble your full staff. Essentially, the annual fund steering committee decides on the priorities and order of business an organization manages. So, they help give your organization strategic direction and support. If anything, they have a vested interest in the delivery and outcome of a project.

2. Plan Campaign: Outline Your Campaign Goal and Budget

Now it’s time to begin planning your annual giving campaign. During this time, it’s necessary to set a goal for your annual fundraising campaign. So, it’s important to make your goal as measurable as possible. Remember, at the very least, the basic goal for your annual fund is to secure funds for your operational expenses. So, it’s necessary to evaluate what your basic needs are. Revisit the mission of your organization and work backward. Ask yourself: what is our organization’s reason for operation? And what do we need, regularly, to make our mission a reality? You may also harbor more general goals that need to be quantified. This may include: cultivating and nurturing deeper connections with your donors, improving donor retention, increasing engagement, and identifying prospects.

So, once you begin planning your goal, begin mapping out a budget for annual fundraising efforts. This funding will help cover the costs of fundraising events, making solicitations to prospects, and investing in fundraising software.

3. Establish an Annual Giving Campaign team

Once you have a clearer impression of your annual giving campaign goals, it’s time to begin assembling your team. Since annual giving campaigns are ongoing, it’s easy for them to take a back seat when your staff is addressing efforts that require immediate attention. So, to prevent your campaign from falling by the wayside, it’s important to create a designated annual fund team. They will ensure that your organization is on track to meeting your annual giving campaign goal, and will work tirelessly to pursue it.

You may be wondering: who all do I involve in my staff? Since annual giving campaigns are so broad, you need to employ a cross-functional team to manage your campaign. For example, it’s necessary to hire a major gift officer since 60% of your annual fund will be made up of major gifts. Additionally, volunteers can help your organization broaden its reach and inspire more individuals to give. If anything, their presence creates the perception that your annual giving campaign is a community-based fundraising effort (not just another fundraiser). It’s also important for you to involve board members and key stakeholders so they can track your campaign’s progress and see where best to redirect your efforts.

4. Analyze your donor base

Now, before you begin developing a marketing strategy for your annual giving campaign, it’s important to figure out who your target audience is. By narrowing your focus, and determining who all would be most likely and most inclined to give, you can tailor your marketing strategy to appeal to those donors who are already interested in donating. This cuts your work in half. The question is: how do you figure out who has the propensity and capacity to give to your organization?

With a wealth screening, you can see which donors have the greatest propensity and capacity to give. Not only can you segment your audience based on basic demographic information such as age, but you can also append your database with wealth attributes. So, you can easily understand an individual’s giving history (what/how much they’ve donated in the past) and estimated giving capacity (what/how much they’re likely to give in the future). This will help you understand how to spark their interest and, as a result, expand your reach to donors just like them.

It’s also important to create an annual fund model. Now that you understand the commonalities among your planned giving donors, you have a clearer impression of who to target. By using predictive modeling, our data scientists employ WealthEngine data along with your data to create a unique, custom algorithm. Using this algorithm, WealthEngine can predict who in your database is most likely to donate to your organization on an annual basis (via online channels or direct response channels).

5. Develop a marketing strategy

Now that you’ve formed your annual giving campaign team, it’s time to develop your marketing strategy. Remember: communicating the mission and message of your campaign is your first priority. Who does your organization seek to serve? And how will it address the needs of that community? How will your organization leave a lasting impact? To develop an effective marketing strategy for your campaign, you should create a case statement, campaign theme, collateral material, media, and at least two campaign kickoffs (one internal and one external).

During this time, it’s also incredibly important to develop your stewardship strategy. It’s paramount to focus on engaging your donors in ways where you can form deeper relationships with them. This will help you increase the number of recurring donors in your base, who are incredibly valuable to your organization. So, in order to cultivate and nurture your donors effectively, it’s necessary to hyper personalize your outreach. By articulating or displaying a grasp of their individual contributions or interests, you can forge connections with your donors that highlight their values in relation to your overall goal. This can be done through different channels such as direct mail, online campaigns, or planned events.

6. Launch your campaign

Now that you’ve done all of your annual giving campaign prep work, it’s time to launch your campaign! Before you open your campaign to the public, you should first conduct a Board (or Internal) Campaign, soliciting internal gifts. Once all of your board members have made contributions, you can then go to the community for support. Remember: the Internal campaign lays the foundation for your annual giving campaign, so public support can only be gained after you’ve received complete participation from your Board.

Once you’ve opened your campaign to your community, it’s important to solicit gifts in sequential order. This fundraising strategy, of sequential solicitation, is a guide outlining the order in which you should receive gifts to meet your fundraising goal. That being said, it’s important to secure your major gifts first, and then receive smaller gifts toward the end of your campaign. That way, once you secure the bulk of your goal through larger donations, the smaller gifts you receive are just meant to help you reach the end of your goal.

During this period of gift solicitation, it’s also important to create opportunities for your donors to interact with your organization beyond donating. This could be through the creation of special events, volunteering opportunities, peer-to-peer fundraisers and other nonprofit fundraising ideas.

7. Thank your donors

As your annual giving campaign efforts wind down once you’ve met your goal, be sure to express thanks for their participation. Without their efforts and commitment to your cause, you wouldn’t be able to transform your mission into a reality. Your donors, and their generous contributions, are what make that possible.

So, before following up with another ask, be sure to express your gratitude by sending them a personalized thank you message! When donors feel acknowledged for their actions, they feel like change agents, and are inspired to do more to create a positive impact.

8. Track Your Progress

Now that you’ve reached the end of your annual giving campaign, it’s beneficial to reflect on your campaign process. Ask yourself: what worked? What extraneous factors did we not account for? How could we transform our campaign moving forward? Answers to these questions will help you address and reframe your fundraising goals.

It’s also necessary to assess your stewardship goals and restrategize if needed. Did your donor retention rate increase? By how much? Are there donors in your database who have the propensity or capacity to give more?  Which donors upgraded their gifts? Evaluating your campaign from this lens helps you adjust your fundraising strategy. It also helps you identify effective ways to deepen donor engagement for future campaigns.

A Look At Millennial Wealth

Discover the best prospects you can target for your annual giving campaign. Download WealthEngine and Coldwell Banker’s A Look at Wealth 2019 to get inside the minds of millennial millionaires.

Other Articles in Our Annual Giving Series

This is the second article in our Annual Giving series. You can read more about Annual Giving best practices in our first article on What is an Annual Gift? and strategies you can implement to boost your fundraising in our third article on Top 5 Annual Giving Campaign Ideas.

Trends in Millennial Spending: 9 Areas Millennials Invest In

trends in millennial spending

Millennials are part of a generation that has become recognized for their unique characteristics, especially in terms of their interests, preferences, and spending habits. Wealthy millennials may share many of the traits of their peers. However, affluent millennials see things a bit differently when it comes to money. If anything, their luxury spending behavior is more distinctive. According to the Pew Research Center, millennials are on the brink of surpassing Baby Boomers as the largest living adult generation. That gives them tremendous economic power. So, businesses wanting to capture a share of this market must pay attention to the following trends in millennial spending.

Top 9 Trends in Millennial Spending

It may not be possible to predict exactly where millennial millionaires will direct their purchasing power in the new year. But, previous trends in millennial spending should give us clues about how affluent millennials may spend their money in 2020.

Here are some areas where we can see patterns or trends in millennial spending habits:

1. Technology

The first big trend in millennial spending is in tech. Having grown up with technology, millennials are very comfortable with it. They prefer managing their money online and they mostly shop on the net. Online flash sales, for example, have served as their entry point into luxury brands. Wealthy millennials also enjoy using social media to share their unique experiences, such as going to an exotic location on their private jet or yacht. 

2. Investing

Millennials, in general, are more risk-averse with their investments, since they entered the workforce following the Great Recession. But, affluent millennials are more open to investing. They are apt to invest outside the U.S. They like investing in technology and their most popular stock investments are in tech companies. They’re also drawn to exciting or trendy investments, such as cryptocurrency. According to an Edelman report, 25% of millennials surveyed use or hold cryptocurrency and 31% are interested in it. Furthermore, 75% of them believe tech innovations like blockchain make the global financial system more secure. 

3. Real estate

Millennials also believe real estate is key to wealth creation. Based on our research, more than 90% of millennial millionaires are homeowners and they are more likely to be married. Most millennial millionaires live in California, followed by New York, Florida, Massachusetts, and Texas. But they prefer to live in places that are more affordable, like the suburbs or second-tier cities.

Affluent millennials may also choose nontraditional luxury neighborhoods over more prestigious ones. They prefer new construction, open floor plans, and want to be closer to “the action.” Home improvement? Younger millennials are typically not keen on big renovation projects. But, as they get older, wealthy millennials are gaining interest in larger homes in great locations, even if they need updating.

4. Health and wellness

Health and wellness is another emerging trend in millennial spending. More than 60% of millennial millionaires say they are interested in health. So, they are spending more money on a healthy lifestyle. This includes spas and weeklong retreats. Many of them also like the idea of being able to walk to fitness centers and healthy dining options. So these preferences may influence real estate trends.

5. Brands

Millennials, in general, are less likely to be loyal to a single brand, compared to older generations. They’re also more socially minded. Based on our research, 70% of millennial millionaires say they are willing to spend more with brands that support causes they care about.  Wealthy millennials will even seek them out. These trends in millennial spending may change the game for luxury brands and luxury industry professionals.

6. Fashion

Another trend in millennial spending is focused on fashion. Wealthy millennials are creating new fashion trends and status symbols, according to Business Insider.  While millennials may dress more casually, they like to buy pricier sneakers and streetwear. Young, tech CEOs like Facebook’s Mark Zuckerberg have helped popularize the look.

7. Cars

Many millennials are choosing rideshare services and public transit over owning cars. Interestingly, when they do buy, millennials prefer Sedans to SUVs. Besides vehicle cost, millennials want to account for rising gas prices and lack of available parking in many cities. These factors inform their purchases. But even millennial millionaires rank the BMW 3 Series as their top choice, followed by the Honda Accord and Jeep Grand Cherokee.

8. VIP treatment

Similar to other millennials, affluent millennials favor experiences instead of things. This is especially reflective of where they choose to spend their money. They’re more willing to pay extra for VIP treatment and customization. This is so they can gain greater comfort or better service. Think special sections in clubs or luxury hotels that will enhance their experience.

9. Charities

Charitable giving is also a big trend in millennial spending. Millennials are also very generous donors. 35% of millennials report they have donated to charities, according to our Millennial Wealth Report.  And, for millennial millionaires, about 56% donate. Affluent millennials want to use their wealth with purpose, to make a difference and improve the world.

Want to Know How to Reach Millennial Millionaires?

Millennials are surpassing baby boomers as the largest, living adult population. They stand to inherit $60 billion in the great wealth transfer. Read our report, in collaboration with Coldwell Banker Global Luxury, to understand how you can reach them.

Annual Gift Definition: What Is an Annual Gift?

what is an annual gift

What is an annual gift, and how do these types of gifts support your nonprofit? In this article, we’ll discuss the key components of annual gifts. In this article, we’ll discuss the key components of annual gifts; the importance of these contributions; how best to set gift levels; and finally, the types of annual giving programs that can fuel your fund. Let’s begin with a definition of an annual gift.

What Is an Annual Gift?

So, what is an annual gift? An annual gift can be a contribution made to a nonprofit organization or higher education institution, provided on any given annual basis (daily, weekly, monthly, etc.) with unrestricted purposes. In short, these gifts are contributions raised on an ongoing basis for a variety of uses.

Your organization’s purpose and overall goal are at the center of annual giving. So, all the funds you raise help you continue to serve your mission. As a result, most organizations primarily use annual gifts to cover their operational expenses. By raising money for the operational needs of your organization, you are able to keep your nonprofit up and running.  This allows you to continue making a difference in the ways you’ve set out to. Annual giving, in that sense, is the backbone of any healthy fundraising program.

Importance of Annual Gifts

Besides covering the operational expenses of an organization, annual gifts serve multiple purposes:

1. They Garner Unrestricted Funding for Your Organization.

Unlike a planned gift or donations made for a capital campaign, annual gifts raise awareness for your cause. These donations fund your regular and ongoing expenses, so they support your broader goals and serve to remind your donors of the values of your cause. Annual funds are a good way of reinforcing your goals and identifying ways to amplify and expand them.

Although annual gifts can be used to offset an operational deficit, they can be used for anything. Since annual gifts are an organization’s source of unrestricted contributed income, they should be the central component of an organization’s fundraising efforts. Annual gifts can also be used to supplement other campaigns or events. If anything, annual gifts strengthen your chances to reach your overall organizational goals.

2.  It Helps Broaden Your Donor Base.

The majority of individual donors who donate to an organization for the first time usually do so through its annual campaign. So, for many organizations and higher education institutions, the collection of annual gifts is an opportunity to broaden their donor base and increase retention.

It’s simpler and advantageous for nonprofits to focus on cultivating relationships with donors who have already given. If you’ve already received a donation from a donor, it takes fewer resources to persuade them to give again. So, as you make direct asks, you can emphasize recurring giving to your donors.

One way to do this is by forming a membership program. Membership programs reward donors who join by providing them with special perks in exchange for contributions or “membership fees”. These perks can range from exclusive fundraising event invites or merchandise from your cause. This method of cultivation incentivizes donors to give and gives your organization control over the gifts you receive.

3. It Can Serve As Your Pipeline for Major Gifts and Planned Giving Gifts.

Annual gifts can also serve as your pipeline for major gifts and planned gifts. The question is: how do you determine which donors (who have previously given) have the inclination or ability to give more?

By conducting a wealth screening, you can determine which donors have the greatest propensity and capacity to give. This is a good indication of which donors you should cultivate and nurture further. You can also use a wealth screening to see what or how much your donors have given in the past. These insights into your donors’ giving history can help you determine how inclined they are to give to your other programs. You can create conversations with interested donors about additional ways they can create lasting change.

This is an opportunity to direct donors to your major gift programs or (depending on their age and giving history) your planned giving program. So, if a donor already gives to your cause, and can give more, it’s important to continue developing your relationship with them.

Setting Annual Gift Levels

Although annual gifts don’t fund targeted projects, it’s necessary to remember to plan out your gifts and how best to acquire them. So, be sure to set gift amounts that are reflective of your donors’ giving habits. In order to do that, it’s important to consider the following factors:

1. Your Campaign

What goal have you set for your campaign? How much do you need to raise to meet the needs of your organization this year? By assessing a specific amount to raise, you can feasibly create a solid foundation for your most basic needs.

2. Giving History

How much has your donor given in the past? Do they donate sporadically? Or do they give in regular intervals? By understanding your donor’s habits, you can get a true sense of their propensity for general philanthropic giving. It also allows you to estimate how much they could give in the future based on their current giving habits.

3. Average Annual Gift Size

Similar to evaluating your donors’ giving history, you can set gift amounts based on their giving habits. This can help you secure gifts more easily, since the amounts you set are within the range in which your donors give.  For example, the low to mid-level gifts collected should make up about 15-25% of your campaign goal. Over time, you can begin increasing this set amount, and ease donors into giving a bit more.

Types of Annual Fund Programs

So, when it comes to supporting and fueling your fund, there are a number of different fundraising programs you can implement to raise annual gifts:

Year-End Fundraising

Year-end fundraising is the process of engaging and following up with prospective and existing donors towards your end-of-year giving season. Donations collected in this type of program support specific projects and your annual fund. So, when deciding upon your year-end goal, it’s important to pick a broad theme that fits with your organization’s mission at large. The goal should serve as a reminder to your audience of what your purpose and values are as an organization and why your cause is worthy of your donor’s support. Show your donors how their contributions create the foundation off of which your organization can thrive.

Sustainer Programs

For those donors who’ve committed their support to your organization at any frequency and through any method (also known as sustainer donors), it’s important to increase their retention. This is becoming easier through the emergence of automatic giving. Donors can now make regular, automated contributions to organizations. Not only is this option convenient for donors, but they also provide nonprofits with a more predictable revenue stream.  These small, recurring gifts fall well within the structure of an annual fund. Donations received within this automated structure are made for general use, so they’re relatively unrestricted.

Viral Fundraising Initiatives

As we become increasingly connected across social platforms, we are constantly sharing content with each other. Now, nonprofits are leveraging these channels to create initiatives where the public has a chance to donate to their cause at large. This is usually done by engaging your donors in an activity or conversation where they can show and share their support via social media. For example, the ALS ice bucket challenge (a viral fundraising initiative intended to raise money for research into amyotrophic lateral sclerosis) was a viral video sensation in 2014. Every video posted of people participating in the challenge raised an incredible amount of awareness for ALS. Supporters ended up raising $115M for the ALS Association.

In that sense, social media-based fundraising initiatives grab the attention of individuals and help nonprofits collect a high volume of one-off gifts in a short amount of time, due to the viral nature of the fundraiser.

A Look At Millennial Wealth

Discover the best prospects you can target for your annual giving campaign. Download WealthEngine and Coldwell Banker’s A Look at Wealth 2019 to get inside the minds of millennial millionaires.

Other Articles in Our Annual Giving Series

This is the first article in our Annual Giving series. You can read more about the structure of annual giving campaigns in our second article on the 8 Phases of a Successful Annual Giving Campaign and strategies you can implement during your campaign in our third article on the Top 5 Annual Giving Campaign Ideas.

Planned Giving Marketing Plan: Best Ways to Approach Donors

planned giving marketing plan

The core of planned giving is donor relationships. If a donor has given to your organization over time, and you’ve cultivated a relationship with them, they will be more inclined to create a future gift. But, before you can discuss planned giving with donors, it’s important to understand how to approach them. Let’s explore the necessary steps you should implement in your planned giving marketing plan. With the help of Steve Maughan⁠—VP of Planned Giving and Estates at the Humane Society of the United States and the Humane Society International⁠—we’ll also explore some tips on how to navigate challenges you may face.

Planned Giving Marketing Plan: 4 Key Steps

Step 1: Creating Your Planned Giving Donor Profile

The first step in your planned giving marketing plan is to identify which donors and prospects to reach out to. As discussed in our previous article in our Planned Giving series, there are two primary planned giving tools you can use: wealth screenings and modeling. Both tools allow you to gain insights into the unique qualities of your planned giving donors. At what age have most of your donors contributed planned gifts? And, what are the commonalities among these donors in terms of interests and behaviors? By screening and modeling your donors, you can also identify which have the greatest propensity and capacity to give. So, you can get a clear impression of how to segment your donor base and who you should target.

For the Humane Society, they have been highly data-driven in their approach. They have primarily looked at the wealth affinity and ages of their donors to determine who to target. For example, the average individual who contributes a planned gift to the Humane Society is either a single or married woman or man with no kids. And, they typically have a liquid net worth between $500k and $5M. Individuals within these segments have the highest likelihood of making a bequest. Additionally, out of these segments, they identify which individuals have the highest likelihood of making a decision in their lifetime. In short, the more decisive the donor, the more likely they are to reach out. So, not only is it important to reach donors based on their potential interest, but it’s also important to reach donors based on the likelihood that they’ll take action.

Step 2: Pinpointing the Best Channels to Communicate With Donors Through

The next step in your planned giving marketing plan is to determine how best to communicate with your donors. This is best done through a highly coordinated, cross channel marketing system. So, instead of just doing a direct mail campaign, you would do email and social media campaigns as well.

A marketing channel that should be leveraged, which is gaining more traction, is social media. Most baby boomers (who are now being targeted for planned gifts) flock to social media to stay connected with their networks. In a 2016 study done by the Pew Research Center, experts found that 81% of adults over the age of 65, with an income over $75K, owned a smartphone. Additionally, the average Facebook user is a 63-year-old woman. So, it’s important to focus your marketing efforts on the areas where your target demographic is communicating. Once you’ve done that, you can create tailored messages that allow donors to begin thinking about planned giving, without you having to persuade them to contribute a planned gift.

Step 3: Meeting Interested Donors in Person

Once you’ve focused your marketing efforts, the next step in your planned giving marketing plan is to set up time to meet with interested donors. Through your cross channel marketing approach, interested donors may begin approaching you, expressing that they are considering contributing a planned gift. So, when you meet with donors in person, it’s important to invite them to learn more about your organization, your mission, and the results you’ve seen.  If donors feel that their personal values align with the mission of your organization, they’ll feel more inspired to give. This is especially important as most baby boomers typically give to two or three charities. So, it’s incredibly important to cultivate and nurture your donor relationships. Show your donors how their interests can be realized in actionable and impactful ways.

Also, if a donor is ready to give, it’s important to follow the donor’s lead when it comes to determining gift size. Since a planned gift is made for future use, the amount can be pretty nebulous. So, it’s important to discuss gifts in terms of the percentage of an estate, or other tax vehicle, rather than a specific amount. That’s for the donor to decide.

Step 4: Collecting Planned Giving Donor Testimonials

The last step in your planned giving marketing plan is to ask donors to share their testimonials. By collecting stories highlighting why donors decided to contribute a planned gift, you have authentic anecdotes that have the ability to connect with prospects. Most donors can look at the testimonials of people who have given and empathize or identify with them. For the Humane Society, they noticed that most of the testimonials didn’t come from wealthy donors. They came from average middle-class donors. They had the opportunity to explain their passion for the cause; why they wanted to give; and how they hoped their story would inspire someone else to do the same.

Connections like these (in-person conversations, donor testimonials, and social media engagement) can also have a major impact on how much donors give. For example, at the Humane Society, they noticed that when donors hadn’t been reached out to, they contributed about $40k. But, when a dialogue had been initiated with them, most would gift $130k or more. That’s a 225% increase. So, by prioritizing connecting with your donors, in different forms through different channels, they’ll feel more inspired to give all they can to support your efforts.

Potential Challenges in Your Planned Giving Fundraising Strategy

Although these steps should help you navigate your planned giving campaign, there are always challenges that may present themselves along the way.

One of the biggest challenges organizations face is receiving gifts from individuals who may not know enough about the cause. Some have very specific ideas of how they would like their gifts to be used. This can be restrictive if their goal doesn’t align with the projects or strategic plan of your organization.

In situations like these, if you can’t fulfill the obligations associated with the proposed gift, it’s better to decline it. No matter how large the contribution may be. It’s important to remain true to the intentions of your donor and how they seek to create change, while also continuing to serve your organization’s mission. Be sure to refer these donors to other resources they can use so their intentions and goal intersect, and can be seen to fruition. Additionally, be mindful when you’re communicating with prospective planned giving donors. Make sure that they have a clear impression of your objectives and initiatives going forward, so your future projects can be supported.

Planned Giving Campaign: Tips for CDOs and Gift Officers

Now that we’ve gone over the necessary steps to implement in your planned giving marketing plan and how to navigate potential challenges, here are some additional things to keep in mind as you communicate with your donors and prospects:

  • Focus on donors who have contributed consistently over time.

If you’re building a program, don’t just focus on individuals who’ve contributed large sums. Talk to the donors who have contributed $5, $10, or even $15 every year for the past five to ten years. These donors consistently support your efforts and display loyalty and passion for your work. If approached for a planned gift, they’ll likely feel inclined to give.

  • Have a board member who’s an advocate and will keep your program going.

When you upsell to your board, it’s important to keep an eye on your progress. Be sure to track the number of new donors and bequests you’re working with annually. It’s also important to track the dollar value of people who’ve committed to contributing a planned gift and shared the confirmed value of their bequests. This reinforces to your board that you’re gaining traction in your program and that it can continue on. Also, don’t be discouraged if you don’t see results immediately. If you start and stop your program, it can impact your momentum and potential success.

  • Remain donor-centric in your approach.

It’s important to remain cognizant of your supporter’s time. If you’re having a meeting with them, they know exactly why you’re there. So, be very clear and focused on your objectives in your conversation. Remember: it’s the donor’s timeline and decision, not yours. If you establish a system around needing goals, donors may feel that their connection to the cause isn’t valued. This may inhibit them from supporting your efforts beyond their lifetime.

  • Don’t disregard the use of social media.

As most baby boomers flock to social media to stay connected, it’s important to communicate with them in those spaces. You can generate tailored and relevant messages to connect with them. And, because they are active on these platforms, there’s more likely to see and respond to the messages you’re generating about planned giving. Additionally, this also gives potential donors an opportunity to familiarize themselves with your organization’s mission and initiatives. So, they can see how they fit into your efforts, and find ways to make a significant impact.

Driving the Donor Journey: Guide to Descriptive Modeling

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5 Nonprofit Trends Influenced by Technology

nonprofit trends

This past year, we’ve seen the power personalized engagement had on donors. The question is: what other things will influence the nonprofit sector? And how are nonprofits changing based on their integration of predictive analytics, AI/ML, and other technologies? Let’s explore the top 5 nonprofit trends (influenced by tech) that will impact the industry as we move into 2020.

Nonprofit Trends Influenced by Tech & Analytics

1. Fundraising is becoming more accessible because of social media reach.

The first nonprofit trend influencing the industry is social media’s influence on fundraising. As competition rises, technology is helping nonprofits reach out to donors in ways that are focused. Donors can now be reached on a local, national, and global level. Social platforms allow people to connect and share information from anywhere at any time. And, most platforms allow people to donate to causes.

For example, Facebook birthday fundraisers have gained more attention over time.  Users can now make posts redirecting to a cause they support. They can then encourage their network to donate on their behalf.  Within the first year of creating birthday fundraisers, Facebook users raised more than $300M for causes. As of now, Facebook allows you to choose a cause to donate from a list of 750,000 nonprofits. So, donors can now give to any cause at any time from anywhere.

2. Constituent Relationship Management systems & analytics will allow nonprofits to identify, segment, and engage donors more effectively.

The second nonprofit trend that is influencing the industry is the increased use of CRM systems and predictive analytics. As these tools advance, nonprofits are relying on them to find and engage donors. Fundraising teams, large and small alike, now have the tools to clearly organize donor data according to their preferences. This lets them strategically manage their fundraising.

Using predictive analytics, gift officers can gain insights on their donors and prospects. For example, they have the ability to learn about their donors’ propensity and capacity to give; their behavior; their personality; and their giving history. And, as they update the information they have on them, they can tweak their outreach. This will help organizations adapt to donors’ evolving interests. So, they will always remain relevant to them and be able to engage them purposefully.

Take the University of Maryland for example. Mary Beth Nibley, Director of Prospect Engagement, needed an easier way to manage her prospects. At the time, her team was managing prospects from Maryland’s Med school and school of social work. As a small group, they found it difficult to determine which prospects were worth pursuing. But, using predictive analytics, they found it easier to sort through their donor pool. So, they were able to segment their donors effectively and efficiently. With a CRM and predictive analytics, organizations can gain relevant donor information instantly. They also have the tools to appeal to donors in personalized ways.

3. Technology will enable nonprofits to stay personally connected with their donors, remotely.

Another nonprofit trend influencing organizations is the use of technology to connect with key donors. It’s becoming more and more important to engage donors in ways that are novel. Each donor wants to create change with significant impact and influence. So, they want to give not only to benefit communities, but also to reach the people with the most influence. In short, the CEO, or the face of the organization. Technology, in that sense, has allowed donors to connect with those channels more easily.

Take the Malala Fund for example. Patricia G. Eisner, former CDO of the Malala Fund, was able to connect with donors by doing more than sending out a personalized email or note. Using technology, the Fund was able to have Malala connect with her audience remotely. They were able to create and send personalized videos where Malala was able to address each donor individually. So, the messages weren’t just personal. They provided donors, especially major gift donors, an added incentive to take greater action, give more,  and inspire others to as well.

4. Apps and Tech Intermediaries will Re-Invigorate Donors to Give

The use of apps, and other tech intermediaries, to boost fundraising is also a rising nonprofit trend. As stated in the Giving USA 2019 report, the state of charitable giving in the United States is shifting. The number of non-donor households is continuing to increase. So, we’re experiencing a decline in mid-level donors. This is greatly impacting the revenue streams of nonprofits across the country.

So, in order to seamlessly engage donors, nonprofits are partnering with brands and services. In short, they’re creating new and easy ways for donors to give. For example, customers can now donate through apps like Lyft, Uber, and Venmo (among others). These options make it easier for nonprofits to interact with their donors and prospects. It’s also a more approachable and affordable way for donors to remain involved. So, as donors make purchases, they have the opportunity to round up the cost of their purchase so they can give. They also have a chance to give more specific amounts to organizations of their choice through these apps. The use of intermediaries will make it easier for nonprofits to gain a steady stream of gifts. They also have the potential to push donors towards everyday giving.

5. More Nonprofits are Moving Towards Crowdfunding

The last nonprofit trend that’s gaining traction is crowdfunding. Crowdfunding was, and is, primarily used for contributors to fund an initiative, online. Usually through a collection of small investments. However, crowdfunding is now projected to become an over  $90 billion industry by 2025, so it can be a valuable tool for fundraising.

Crowdfunding is beginning to help nonprofits raise money for specific projects or causes. It can also help nonprofits reach diverse audiences. This further enables them to meaningfully engage donors and spread messages that increase their impact. Additionally, projects funded on this platform can be shared via social media & can be linked to live giving portals. This encourages recurring giving and allows donors to engage directly with your organization.

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Top 4 Major Donor Fundraising Strategies

major donor fundraising

In order to create an impact, you need the support and action of your donors. Major gift donors, in that sense, play an integral part in helping your organization create change. In a 2017 study conducted by the Fundraising Effectiveness Project, it was reported that 88% of gifts were contributed by 12% of donors. Now, fundraising fits well within the 80/20 rule. So, since it’s confirmed that the majority of gifts given come from a small percentage of donors, it’s clear that each donor must contribute substantial gifts. The question is: what are the best ways to find and cultivate relationships with major gift donors?

When it comes to major donor fundraising, you want to be able to pinpoint which donors are worth pursuing; forge and nurture relationships with them; and create the “ask”. Let’s explore the necessary steps you should take to create the best major donor fundraising strategy.

Major Donor Fundraising Strategies: Top 4 Ways to Enhance Your Efforts

1. Determine What Qualifies as a Major Gift for Your Organization

Before you identify, cultivate, and solicit gifts from major gift donors, it’s necessary for you to determine what qualifies as a major gift for your nonprofit. Major gifts (which are the largest monetary gifts your organization receives), as a donation type, are varied. In short, every organization determines the size of their major gifts differently.

This can be dependent on the size of your organization, the length of time it’s been around, and what you’re fundraising for. For example, a gift over $5k may be large for some organizations, such as a local theatre company. Meanwhile, other organizations may consider gifts over $100k to be major gifts, like a state university. To establish a major gift starting point, it’s important to evaluate and understand the largest gifts your organization has received in the past. It can also be helpful to identify your top individual donors and determine what their propensity and capacity to give is. This should be determined in relation to their giving history with your organization and organizations similar to yours. Additionally, you should make sure that your major gift range aligns with organizations within your industry. Adopting a similar major gift range ensures that your organization isn’t being unintentionally undervalued.

2. Identify Optimal Donors and Prospects

Before you can cultivate deep relationships with major gift donors, it’s important to understand who in your database, has major gift potential. That’s the next step in major donor fundraising: conducting a wealth screening and modeling your best donors.

Ask yourself: which of our donors has given the most in the past few years? Which of our donors give on a recurring basis? And, which of our donors displays a passion for our mission and our initiatives? Screenings help you pick up on key attributes like an individual’s wealth, income, lifestyle, and affinity. This allows you to find, segment, and prioritize your prospects and donors accordingly. So, you can identify what each individual’s propensity and capacity to spend is.

The next best practice in major donor fundraising is a major gift model. Once you know what your major donors look like, and once you’ve identified common traits among them, you gain a clearer impression of who to target. Using WealthEngine data in combination with information from your organization’s database, we can create a custom algorithm to determine who would be most likely to contribute major gifts to your organization. These can be people among your list of donors who haven’t been reached yet or prospective donors who exist beyond your database. Additionally, you can score prospects to see how they compare in relation to your best donors. Screening and modeling allow you to hone in on your most relevant donors. So, you can focus all your energy on developing long-standing relationships with them.

3. Personalize Your Outreach Strategy

Now that you’ve identified which donors have an ability and willingness to donate major gifts, it’s time for the next step: reaching out. One way to develop a relationship with major gift donors is to personalize your outreach. You can personalize your outreach through tailored messaging, creative touchpoints, and donor involvement in other areas of your organization.

When donors decide to contribute major gifts, they aren’t giving to your organization at random. They’re giving because they feel connected to the work you’re doing and want to make an impact by funding your services. So, by sending your donors messages that highlight their individual interests, you have an opportunity to bridge the gap between what they value, personally, and how your organization works in alignment with those values.

So, your organization can communicate with donors through standard channels like direct mail, email, or invitations to public events. You can also take your efforts a step further and generate personal ‘thank you’ videos; send major gift donors or prospects ‘insider’ updates; invite them to observe your projects as they come together; or even invite them to intimate events where they can meet with the CEO and senior staff. This gives them an opportunity to discuss upcoming initiatives they may have a vested interest in. Involving donors in other areas of your organization is an integral part of your major donor fundraising strategy. By inviting them to see your programs in action, they have a greater opportunity to deepen their passion and interest in the work you do.

4. Implement a Stewardship Program

The final step in your major donor fundraising strategy is to express gratitude for your donors. Once you’ve begun cultivating and nurturing relationships with major gift donors and prospects, it’s important to engage in stewardship. Donors are the catalysts for all your major goals. Without them, you wouldn’t be able to enhance the programs and services you have in place. So, if major gift donors aren’t treated as key players, they may not feel that the impact they’re making is valued.

Essentially, you want to continue communicating with your donors so you can effectively meet the gift intentions and expectations they’ve set out. Show your donors how their gift will be used and what kind of effect it will make on your cause. It’s also important to express thanks in multiple ways. You can do this in-person, publicly (in your newsletter or on your website), in a handwritten note, or on a phone call. Recognition like this will inspire major gift donors to give again and again. Not only are they doing something of value, but their contributions are also being put towards something actionable.

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Above all, make sure to follow up with your donors so they know how their gifts have been used. By showing them that you created something impactful because of their contributions, they’ll see themselves as agents for change. Now, and for the future.

 

Planned Giving Tools: Screen & Model to Pinpoint Donors

planned giving tools

Now that you know about the basics of planned giving, it’s only natural to wonder: how do I know who to approach? And once I’ve figured out who to approach, how do I know they’ll want to give? Let’s explore which planned giving tools you can use to identify your best donors and prospects for planned giving.

Identifying Donors for Planned Giving

No matter how big or small your database is, there are segments of donors within it who may be thinking about planned giving. So, it’s important to understand who in your database you should begin approaching for planned giving. All of this information can be gathered using two planned giving tools: wealth screenings and modeling.

Planned Giving Tool 1: Screening

The first planned giving tool in your arsenal is a wealth screening. By conducting a wealth screening, you can see which donors have the greatest propensity and capacity to give. Not only can you segment your audience based on basic demographic information such as age, but you can also append your database with wealth attributes. So, you can easily understand an individual’s giving history (what/how much they’ve donated in the past) and estimated giving capacity (what/how much they’re likely to give in the future). This will help you understand how to spark their interest and, as a result, expand your reach to donors just like them. For example, for planned giving, you could screen your donors for 3 key qualities:

1. Donor Age

When it comes to planned giving, it’s necessary to reach donors at the right time. Not only based on the average age most donors get approached for planned giving, but also based on the age the donors you’ve approached in the past. It’s important to ask yourself: what is the average age most of our existing donors we have approached about planned giving? For most nonprofits interested in boosting their planned giving base, they begin approaching donors in their 40s.

2. Giving History

Tracking individual giving history in your wealth screening can also be an advantageous planned giving tool. Bequests may not come from individuals who have given large gifts in the past. If anything, donors who have given on a recurring basis over many years may be the most likely to be interested in contributing a legacy gift. It’s these donors, who have forged a long-standing relationship with your organization, who will feel inclined to create change with your cause beyond their lifetime. So, it’s important to ask yourself: how often does this individual give to our organization? Have they attended our events? And, have they volunteered with in the past?

3. Propensity and Capacity to Give

As important as it is to identify individuals who have given in the past and who are receptive to discussing planned giving, the big question is: will they feel inclined to give? And even if they do, will they be able to contribute as much as they can?

But, wealth screening is just the first planned giving tool in your arsenal. If you want to expand your reach and initiate conversations with prospective donors, you can create a prospect profile. In short, by creating a planned giving model, you can identify prospects who look just like your best donors.

Planned Giving Tool 2: Planned Giving Model

The next planned giving tool in your arsenal is a planned giving model. Now that you understand the commonalities among your planned giving donors, you have a clearer impression of who to target.  For example, you may find that donors in your database who have decided to make legacy gifts are men over the age of 50 who have dogs. These are what your best planned giving donors look like. So, what if you want to reach prospective donors? But, not just any prospects. Prospects who will be just as likely as your existing donors to give.

By using predictive modeling, our data scientists employ WealthEngine data along with your data to create a unique, custom algorithm. Using this algorithm, we can predict who’s most likely to include your organization in their planned gifts. This model can help you score prospects to see how they fare against your best donors. You can then rank your prospect lists by order of similarity to your best. Essentially, with the planned giving model,  you can easily evaluate who, within your database (and beyond) are likely to contribute planned gifts. Not just in general, but to your organization specifically.

Using planned giving tools like screening and modeling allow you to gain greater insights into what makes your planned giving donors unique. You’ll be able to personalize your outreach and forge lasting connections with donors that inspire them to give.

Driving the Donor Journey: Guide to Descriptive Modeling

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Stay tuned to our planned giving series as we explore more related topics beyond planned giving tools. Next, we will explore the best ways to discuss planned giving with your donors.

Planned Giving Definition: What is Planned Giving?

planned giving definition

Ever wondered how planned giving can benefit your nonprofit? Keep reading to find out- let’s begin with a planned giving definition along with information on the three primary ways donors contribute planned gifts. In other words, here’s all you need to know about planned giving in a nutshell.

What is Planned Giving?

Planned giving is also referred to as gift planning or legacy giving. In a nutshell, it is a donor’s intention to contribute a major gift to an organization, beyond their lifetime. So, unlike an annual gift (an outright gift made for current use), a planned gift is for the future. Essentially, donors make arrangements for planned gifts in the present but they are actually doled out at a later date. Additionally, the major gifts contributed by a donor can be made as a part of their financial or estate plans.

So by definition, planned giving is not limited by donors’ current wealth. Unlike the value of donations, donors contribute on a recurring basis, planned giving enables them to contribute gifts that they wouldn’t ordinarily be able to make. The gifts donated end up being larger and aren’t dependent on one’s regular income. That’s why most planned gifts contributed by donors take the form of life insurance, equity, or real estate holdings (among others). Thus, even if a donor consistently contributed small gifts, their planned gift can be of a much higher value.

Top 3 Tax Vehicles for Planned Giving

In order for an individual to leave behind a major gift, planned gifts can take many different forms. They can take the form of real estate, personal property, life insurance, or even cash. However, the majority of donors seem to gravitate towards 3 primary planned giving options:

1. Bequest

A gift (typically cash; personal property; real estate; stocks; or bonds) left behind in a will for a group, individual, or organization. There are four types of charitable bequests:

  • General Bequests: gifts of property taken from the assets of an estate.
  • Demonstrative Bequests: gifts that come from a source, such as a bank account.
  • Specific Bequests: gifts of personal property such as cash, jewelry, or other tangible assets.
  • Residuary Gifts: gifts that come from the remainder of any debts or expenses that have been paid along with other bequests that have been made.

Additionally, out of all the planned gift options a donor could choose from, bequests are the most popular.  In a 2016 study conducted by Indiana University, it was reported that 42% of all planned gifts (given by donors in their subsample) were bequests.

2. Annuity

A fixed sum of money paid to an organization each year. So, this typically takes the form of a simple contract between a donor and a charity. Also known as a charitable gift annuity, a donor transfers cash, security, or assets to a cause in exchange for a partial tax deduction. They can also receive a lifetime stream of annual income from the charity itself.

3. Trust

A legal entity whereby an individual holds or invests property as its titular owner. This can be for one or more beneficiaries. Additionally, there are two types of charitable trusts:

  • Charitable Remainder Trust:  a tax-exempt trust created to reduce an individual’s taxable income by dispersing their earnings to the beneficiaries of the trust over time. The remainder of the trust goes to the organization outlined in the trust.
  • Charitable Lead Trust:  this is the inverse of a charitable remainder trust. The trust provides financial support to multiple causes over a specified period of time. The remainder of the trust then goes to the other beneficiaries (family members, friends, etc.)

Motivations Behind Planned Giving

Above all,  planned giving preserves a donor’s legacy. Donors first begin thinking about planned giving when they are nearing retirement age, between the ages of 40 and 60. So, donors may give to organizations that act in accordance with their personal values and beliefs. As a result, their planned gift symbolizes the relationship they’ve cultivated with the cause they’ve given to. If anything, they want their contribution to help secure the future of the organization. It also represents their commitment to positively impacting communities in actionable ways.

Driving the Donor Journey: Guide to Descriptive Modeling

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We hope you enjoyed learning about planned giving in a nutshell. Stay tuned to our series as we explore more related topics beyond planned giving’s definition. Next, we will explore modeling and how to leverage it to identify your next best planned giving donors.

Wealth Signal: An Overview of Your Most Important Scores

wealth signal

Effective donor and customer engagement starts with gaining a deep understanding of your constituents. What their interests are, what their giving and spending history is like, and how they’re likely to donate or invest in the future. Let’s explore how WealthEngine’s Wealth Signal will help you make informed decisions on which prospects are the best to engage.

What is Wealth Signal™?

Wealth Signal is a visual indicator of the relative strength of an individual’s propensity to give (P2G); net worth; income; real estate holdings; estimated giving capacity; donations; and connections. By tracking these parameters, you are able to determine how best to grow your pipeline. Additionally, you have the insights to generate more donations & sales, and achieve your business objectives with ease.

Furthermore, the Wealth Signal gives you a quick view of what an individual’s propensity, capacity, and intent is in terms of giving or investing. It allows you to gather donor, customer, and prospect information efficiently while also providing you with the insights to make a quick appraisal of a prospect.

Wealth Signal: Visual Breakdown



Similar to a cell phone carrier bar signal, the bars displayed for each parameter indicates the range of relative strength, from the low to high end of the scale. For instance, 5 bars indicate that an individual’s score is on the high end. This implies high financial strength, monetary value, and influence. By contrast, a lower number of bars or a single bar would suggest the opposite.

This strength is also indicated by color. The high-end of the scale (4-5 bars), is in green; the middle of the scale (3 bars) is in yellow; the low end of the scale (2 bars) is in red. So, this simple visual now gives you a bird’s eye view of the most relevant scores on any individual profile.

Wealth Signal: Ratings and Scores

Wealth Signal tracks 7 wealth indicators, including:

1. P2G (Propensity to Give)

The Propensity to Give (P2G) score is a proprietary score that represents propensity for general philanthropic giving. It’s a two-digit number. The first digit represents the overall category, on a scale of 1-5, along with a text description. Additionally, the second digit is used to subdivide and rank individuals within that category. So, in both cases, the lower the number, the better the score.

2. Net Worth

Net worth, as it is displayed in Wealth Signal, indicates the range in which the difference between total assets and total debt for a household is likely to fall. This is a primary indicator of an individual’s overall wealth.

So, while sifting through multiple profiles, the net worth Wealth Signal will help you segment and determine which prospects best match your existing donors or customers. It’s these potential donors or customers who will be most likely to give or invest.

3. Income

Income indicates an individual’s regularly accrued funds. So, based on the strength of an individual’s income in Wealth Signal, you can determine how much of a donation or investment you could receive from that individual on a recurring basis.

4. Real Estate

Real estate, in Wealth Signal, indicates a range estimating the total value of properties owned by an individual. These insights may help you evaluate whether someone invests in real estate or would be a potential candidate for a legacy gift.

5. Estimated Giving

Estimated giving displays a range, estimating how much an individual could give in the next 5 years. So, the estimated giving strength is informed by an individual’s giving history and assets among other things. Additionally, this section helps prospect researchers determine how much an individual may give in the future.

6. Donations

Donation strength indicates the value of gifts given to causes by an individual. This signals to nonprofits how much a donor has given in the past. So, they are better able to understand their donor’s potential to give in the future. Are they a hidden gem with an untapped capacity to give? Are they a high-impact donor? Or can they be upgraded?

This metric (along with estimated giving) can also be of significant value to wealth managers. This can also help managers understand an individual’s philanthropic interests beyond business. So, based on these insights, they can tailor their outreach in ways that are relevant & personal. Additionally, they can offer them specific investments such as Donor-Advised Funds (DAFs).

7. Connections

Connection strength displays the number of familial and business connections an individual has. So, the more connections you have, the easier it is for you to potentially get introduced to other high-impact donors or wealthy prospects.

The parameters tracked with Wealth Signal allow wealth managers and development organizations alike to understand their prospects deeply. At first glance, you’re able to easily visualize an individual’s propensity and capacity to give or spend. But, Wealth Signal goes beyond that. The parameters tracked, along with their strength, give you a comprehensive, high-level understanding of an individual’s motivations and behaviors. This also allows you to personalize your outreach. As a result, you can begin cultivating and nurturing lasting relationships with your prospects.

 

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