Opinion:
Prospecting is Critical
in Tough Economic Times
Judy S. Keller, CFRE, Vice President
Midwest Region
Prospecting is fast, free, flexible, and - if you check your sources - reliable. It is also essential at a time when the economy is troubling economists, historians and development officers.
The Fundraising Index, developed by Indiana University’s Center on Philanthropy, has done little to assuage this concern. A recently released annual survey of 140 development professionals’ confidence levels indicates that, in the past six months, the Fundraising Index has plummeted six percent. As confidence dips, it is critical to revisit prospecting – a sometimes overlooked but always rewarding tool available to nonprofit organizations.
Active prospecting can reap big rewards for membership-based organizations, which typically lose between two percent to five percent of their annual income through natural attrition. Even organizations that are not member-based should remember the importance of finding new funding sources.
The nature of prospecting - identifying new donor support - has become more efficient and effective than ever. Free online resources available to development professionals now include websites and an online publication devoted to prospect research. The internet also provides incredible opportunities to connect with large numbers of people, a phenomenon underlined by the huge number of small donors attracted by this year’s presidential campaigns.
Blogging has invaded and invigorated patterns of communication, social networking and donor relations. The internet has dramatically expanded opportunities for organizations to explain their missions, share their stories and solicit support.
The nonprofit world must find the time, expertise and resources to take advantage of today’s technology and trends. The key to maintaining and expanding any individual funding base lies in revisiting and revitalizing prospect research.
Challenging economic times require development departments to remain focused on the fundamentals of fundraising, and prospecting is one of those key tools.
