Prospect Research and a Brazilian Steakhouse

By Bob McKenney
Vice President, Pennington & Company

Each of the past three summers, I join a group of friends for a trip to a Brazilian Steakhouse for dinner. We fell that it is our obligation to take part in our fair share of eating too much food and telling stories that get better with each repetition.

By now I’m sure you’re asking, “What does this have to do with prospect research?”

Like this yearly ritual, prospect research creates a wide array of thoughts and emotions. Heading into the research process (or dinner), there is excitement about the limitless possibilities; however, after a few hours fatigue sets in, a hint of sweat presents itself on your forehead, and you begin to wonder “Was that really worth it?”  Fear not, I come bringing knowledge and tips to attack both of these skirmishes that only experience provides.

Why Prospect Research?

Prospect research is an incredibly powerful tool in the development process. If you conduct the work on the front-end you can accomplish several goals that will assist you in cultivating or soliciting in the long-term.

First, research ensures you’re spending your time and resources wisely. Every organization that has a cause is deemed ‘worthy’ of donor support by someone, but you need to have an understanding as to who those men and women are that have the financial ability coupled with an interest in helping your organization reach its goals.

Secondly, it allows you to skip some of the introductory questions in meetings, and towards conversation that can foster a stronger relationship with your prospective donor. By avoiding those questions that do nothing more than ‘fill time,’ you can move directly into more pointed and detailed questions pertaining to your organization. It is these types of questions that provide the meat of your meeting and will allow you to discover the true interests and intentions of the prospect.

Finally, doing your homework allows you to develop an appropriate ask - the more information you have, the more specific your request for support can be regardless if it is a request for time and/or money.

A Systematic Approach

It is not wise to jump into the research process without having a clear goal. I’ve learned from my steakhouse visits, it is sometimes important to avoid the temptations that present themselves along the way. For example, the salad and potato bars may be incredible however; they don’t help you reach your desired goal of consuming 14 different types of meat. With respect to research, it’s easy to spend 30 minutes performing a number of online searches; however they might not help you collect the information you need most. Try to avoid getting pulled into the temptations of the internet along the way. 

One way to stay focused is to develop a prospect research checklist. This will provide a systematic approach that will ensure that your research is both consistent and efficient. It should include a list of helpful resources, relevant publications, and any existing information you have on file. I find it very beneficial, as well as an effective use of time to build a system for researching prospects that takes you through the same steps for every prospect to ensure consistency in your findings. You won’t find the same level of detailed information for everyone you research, but by following the same process for each prospect will be less likely to skip an important step or overlook any helpful resources.

A Prospect Profile

Once your information is gathered your results will need to be compiled in one place, namely a prospect profile. A prospect profile provides a consistent and easy-to-use form for you, your staff, or volunteers. The profile provides pertinent information for your meeting at a glance. Additionally, a profile needs to be concise (not more than two pages), consistent (the same template used for each prospect), and current (two year-old information may no longer be accurate).

It’s Cost Effective

Finally, one of the more popular myths with respect to prospect research is that it’s too expensive. Simply stated, this is not true. The internet is a tremendous resource for information that is free or requires registering for a free account to access a website. While I have used hundreds of online sites, some of the most helpful include: Google, 123People, ZoomInfo, and Tray.com.

One bit of caution. You won’t find everything you may need or want - and that is fine. Your goal is to create a profile on the donor prospect, not to write an in-depth biography. Remember that often the most information about a benefactor will come from asking questions during your visit.

Conclusion

Prospect research is not something everyone enjoys. I know several people that would rather go to the dentist than spend time scouring the web for potentially helpful information. It is really no different than people who pass on the endless supply of steak, chicken, and lamb for a healthier alternative of fish and vegetables. However, when research is done well, you will find yourself in possession of some very valuable information. Just maybe you will discover you cannot wait for the next opportunity to learn more about prospects - or schedule that next trip to a Brazilian restaurant.