Tag: fundraising research

In these difficult times, we are here for you

Posted on by willw

To all our colleagues in prospect research and fundraising, we understand what a worrying and challenging time this is right now – not just for our organisations but for us personally. Here at Factary, just like everywhere else, we have had to come to terms with major changes to the way we live and work whilst we focus on ensuring we and those close to us remain safe and well. Whilst people’s attention has rightly been focused on issues closer to home, we also want our organisations to be able to continue to achieve their objectives,  but Covid-19 has already and will continue to have a negative impact on organisations’ ability to deliver their services, with the impact on fundraising a specific concern for many[1]. There are so many questions that we don’t know the answer to yet; what will be the long-term impact on income levels for charities and non-profits? How can you engage with donors and supporters with social restrictions in place? Will donors have the capacity to support you at the same level in the future? Will their priorities be the same? How should we respond to the situation in the short term and how can we plan for the long term?

We do not pretend to know the answers to these questions, and in many ways, it is still too early to know for certain. That there will be long-term implications for the economy, and therefore people’s household wealth, is not in doubt[2], but we do not know how severe this impact will be or how donors will respond over time. For example, one article we have seen stated that the world’s richest have already lost $200bn[3] whilst another other stated that their wealth has grown by $308bn[4]. At the same time, we are seeing some phenomenal responses from philanthropists around the world, both at the international and local level[5], however this is involving a re-alignment of funding priorities for some philanthropists[6].

Luckily there are some brilliant, clever, helpful people out there who are offering advice, insight and support to the sector during this difficult time. These are some of the people who may be able to help you find the help and answers you might be looking for right now and as we start to move forward with our recovery:

  • Institute of Fundraising – Lots of great blogs providing information and advice for various aspects of fundraising during this time.
  • Association of Charitable Foundations – An interesting survey on foundations’ responses to Covid-19 plus other advice and resources.
  • UK Fundraising – A wealth of useful articles and blogs from Howard Lake and others containing advice for fundraisers. Particularly useful is this one with five actions fundraising teams should be considering taking now.
  • Alliance Magazine – articles giving a global perspective on the philanthropy response to Covid-19.
  • Helen Brown Group – The ever-amazing Helen Brown and her blogs on things from a US perspective.
  • NFP Synergy – research and resources on charities and Covid-19.

This list is far from exhaustive, but we’ve found some really useful thoughts and advice on some of these pages and we hope that they may help you think about how to respond to Covid-19 both in the short term and in the longer term.

Right now, the main priority is to ensure that we, our friends, family and colleagues are safe, and we do all we can to support our incredible NHS and key workers. But when we are able to start looking to the future and working out the best way forward, we will be here for you. Whether that is just for a friendly chat or some advice, or to talk about ways we can support you to build your prospect pool for the future, we will be here working with you.

Stay safe, and we look forward to talking to you and working with you in the near future.

The Factary Team

[1] https://www.civilsociety.co.uk/news/nine-in-ten-charities-will-struggle-to-meet-objectives-due-to-covid-19-poll-finds.html

[2] https://www.pwc.co.uk/services/economics-policy/insights/uk-economic-update-covid-19.html

[3] https://economictimes.indiatimes.com/news/company/corporate-trends/how-coronavirus-impacted-the-wealth-of-rich-people-around-the-world/coronavirus-is-taking-away-the-wealth-of-the-wealthy/slideshow/74667660.cms

[4] https://www.forbes.com/sites/jackkelly/2020/04/27/billionaires-are-getting-richer-during-the-covid-19-pandemic-while-most-americans-suffer/#44d667654804

[5] https://www.nptuk.org/philanthropic-resources/giving-perspectives/global-philanthropys-response-to-covid-19-and-how-to-get-involved/

[6] https://www.acf.org.uk/news/covid-19-results-of-acfs-survey-on-foundations-responses

The role of prospect research in major donor fundraising

Posted on by NicolaW

As part of an MA in Philanthropic Studies (undertaken at the Centre for Philanthropy at the University of Kent) I completed a study which aimed to identify the role that prospect research plays in major donor fundraising. The study involved a survey, undertaken in 2018, of major donor fundraisers and prospect researchers working in higher education institutions in the UK. I’m pleased to say that the results of the study are now available to download.

Download report:
The role of prospect research in major donor fundraising

As a quick summary the results of the study cover a number of areas, such as:

  • The activities commonly undertaken by prospect researchers
  • The purposes or reasons for which fundraisers use prospect research
  • How necessary fundraisers feel research is to their work
  • The ways in which prospect research contributes to fundraising
  • Prospect research metrics (i.e. what data is being gathered on the output or impact of prospect research)

In particular, the results can be used by non-profit organisations when analysing the use of personal data for prospect research purposes under the GDPR. Until now, the non-profit sector did not have a reliable evidence base which outlined the purpose or necessity of prospect research, nor which identified if the purposes of prospect research could reasonably be achieved by other methods (which do not use personal data) – all important areas to analyse, particularly for those organisations relying on their Legitimate Interests to process personal data for prospect research. In practical terms, the data and evidence presented in the paper can now be used by any non-profit organisation when completing, for example, a Legitimate Interest Assessment or a Data Privacy Impact Assessment.

Beyond GDPR, the paper highlights that, on the whole, the prospect research community is not particularly good at gathering evidence which illustrates the impact (or the ROI) of prospect research. That said, it does also show that the vast majority of major donor fundraisers are overwhelmingly positive about the ways in which prospect research supports them in their work.

If you think it might be useful for you or your organisation, please do download the paper and (when sufficiently caffeinated) have a read. I’d be more than happy to answer any questions or chat about the data/paper in more detail if you’d like to get in touch.

Nicola Williams

Factary New Trust Update 2017 Review

Posted on by willw

Download free report here

According to the Association of Charitable Foundation’s (ACF) Foundation Giving Trends 2017 grant making by the Top 300 foundations reached a record high for the second year in a row in 2017, with giving totalling £2.9bn. 64% of this grant-making (£1.87bn) comes from personal and family philanthropy through foundations. The report also states that the top 50 corporate foundations gave grants totalling £269m – up 9% on the previous year. According to the report these top foundations account for around 90% of all foundation giving.

In addition, The Coutts Million Pound Donor Report 2017 shows that the total value of £1m+ donations in the UK was £1.83bn from 310 donations. Foundations continued to be the main source of donations of £1m or more, representing 55% of the overall value, and corporate donors significantly increased their giving – accounting for nearly a third of the overall value.

These statistics highlight the importance of keeping abreast of new sources of funding in the foundations market, particularly from High Net Worth families and corporates. That is where Factary’s New Trust Update can be a vital resource for fundraisers. With details on around 20 new grant-makers each month, including notes on the professional and philanthropic interests of the settlors and interview notes on the aims and objectives of the trusts and foundations, New Trust Update gives fundraisers a head start on building relationships with these new philanthropic vehicles.

Whilst there are on average around 100 new organisations registered with the Charity Commission each month that state they make grants to other organisations, in practice the vast majority of these are not what would be considered grant-making trusts or foundations. We scrutinise and carefully select the organisations that are featured in New Trust Update and as a result, our review of 2017 found that 1 in 5 of the trusts and foundations featured had been created by a settlor with an estimated wealth of £10m or more. The combined estimated wealth of these 48 philanthropists was in excess of £12bn. Our review also found that we included details of 38 newly created corporate foundations in 2017 with the companies involved having a combined turnover in excess of £4.25bn in the past financial year.

Our infographic report, available to download here, includes a range of useful analysis and statistics including the philanthropic areas of interest of the trusts and foundations featured throughout the year, the source of funds of the High Net Worth Individuals creating their own foundations and their geographical distribution. It also includes mini profiles on a handful of the most interesting and potentially major foundations and their settlors.

Subscriber numbers for New Trust Update are limited to maintain exclusivity of the information contained. If you would like to find out more then please contact Nicola Williams or call us on 0117 9166740.

Prospect Research and Legitimate Interests

Posted on by NicolaW

Something quite remarkable happened a few weeks ago. I went to a conference on GDPR (the CASE Regulation and Compliance Conference) and, by the end of the day, I was actually feeling upbeat, hopeful and – even – vaguely excited about the future of prospect research. This was not at all how I was expecting to feel after a GDPR conference, based on the countless other GDPR conferences and events that I have attended over the past 18 months which have mostly left me feeling a mixture of despondency and frustration.

So, why the sudden shift? Well, a few things. Firstly, the brilliant presentations were, for the first time, practical, focusing on what people are working on and achieving as they build towards compliancy for GDPR. To be at a GDPR event which was about positive action in regards to things like privacy notices or data analysis, and not just about all the things we can’t or mustn’t do, felt like progress.

Secondly, there was a real focus on analysing the ‘legitimate interest’ condition for processing data for prospect research. This is a huge step forwards. For too long now ‘legitimate interest’ has been viewed as a second-best option, a condition for processing that non-profits can maybe use, which is kind of OK, but probably just not quite as good or as ‘safe’ as consent. Obviously, this is due in no small part to the Regulator and ICO’s view that non-profits should probably get consent for wealth screening (by which they seem to imply most forms of prospect research). Alongside this, as Adrian Salmon’s recent blogpost highlights, one of the problems of principles’ based regulation is that, whilst it should encourage flexibility, it tends to lead to a “very conservative compliance mind-set”. So, it was great to see the all the relevant conditions for processing being analysed in an informed and practical way at the conference.

And lastly, many Higher Education Institutions (HEIs) are actively choosing legitimate interests (after careful analysis) as their condition for processing data for prospect research. This is another good, positive step.

All that said…

There is still confusion and misinformation. In the past two weeks alone I have received a number of emails from researchers who are still asking if wealth screening is illegal or if they need to get consent from all their donors before doing research. I also speak to many organisations that have suspended some or all forms of prospect research whilst they try to work out their next steps. Occasionally, I speak to smaller charities who have no idea that any of this is even happening.

So, despite great advances in the HE sector and with some charities, it is clear that there is still a long way to go for prospect research before we reach May 2018, when GDPR becomes law.

The main aspect which seems to be paralysing many organisations is the question of whether to rely on consent or legitimate interests as the condition for processing for prospect research. Many researchers have been tasked with coming up with a plan for assessing this and making recommendations, which is a tall order. Much has already been written about consent (see, for example, The Fundraising Regulator’s Guidance on Consent) and we thought, therefore, that it might be useful to add some thoughts around legitimate interests, specifically in relation to prospect research.

Please click here to download our paper on this, which is a meander around the topic (you’ll be asked to subcribe to Factary Updates, so you’ll receive other reports and updates like this in the future). We hope the report is useful. Please do come back to us with any questions or comments. Also, remember that we are not data protection lawyers, so don’t make any decisions based solely on the information we provide!