Prospect Research Tips & Best Practices
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In the nonprofit world, relationships fuel impact. Whether you’re launching a new program, expanding your reach or simply keeping your mission moving forward, finding the right supporters is essential. But effective fundraising isn’t just about asking; it’s about understanding. That’s where prospect research comes in.
Effective prospect research helps nonprofits identify individuals, corporations and foundations that not only have the capacity to give, but also have genuine interest and alignment with the organization’s mission. With thoughtful research, fundraisers can craft personalized outreach, strengthen donor relationships and ultimately raise more sustainable support.
Whether you’re a part of a small development team or a seasoned fundraising professional, understanding the importance of comprehensive research will sharpen your strategy and amplify the organization’s potential. Here are a few tips and best practices to follow while doing your research:
Confidentiality:
Any data you collect about a donor or prospect should be stored securely, shared only with staff who need it and used solely for legitimate fundraising purposes. Confidential information should not be circulated casually, posted publicly or shared outside the organization without consent.
Because donor profiles can influence how someone is approached, it’s important to treat information carefully, avoid unverified assumptions and present findings responsibly. Organizations like the Association of Fundraising Professionals provide ethical guidelines for prospect development, emphasizing transparency, respect for privacy and responsible data stewardship. Adhering to these standards protects both donors and the organization.
Start with what you already know:
Before diving into external sources like the internet, review your organization's internal data such as past donations, event attendance, volunteer history, surveys and notes from relationship managers. These insights often reveal information that can lead you to find the correct individual, foundation or corporation through external sources. You can also use these insights to guide and validate your research into a donor's giving to other organizations. For example, if your database notes that a donor spends summers in Colorado, researching their presence there may uncover additional philanthropic interests, such as supporting a local youth camp or food pantry.
Use only reliable and ethical sources:
Use only publicly available, reputable sources such as company websites, news articles and press releases, public records (property, SEC filings, political contributions) and professional networking sites for career information. For nonprofit and philanthropic prospect research M. Gale also utilizes DonorSearch and Candid to identify and evaluate prospective donors, foundations and funding opportunities using publicly available philanthropic organizational information.
Focus on three pillars: Capacity, Affinity and Access
Capacity: What is the prospect’s ability to give? Look for wealth indicators like real estate, business ownership, trusts, SEC holdings or compensation information. Example: Prospect owns three commercial properties, serves as CEO of a privately held company and has reported executive compensation exceeding $1 million annually, indicating the potential capacity for a six-figure gift.
Affinity: Do they care about your mission? Check past giving to similar causes, volunteer engagement or personal interests. Example: Prospect has made multiple gifts to organizations focused on education and youth development, serves on the board of a local literacy nonprofit and regularly attends fundraising events for similar causes, suggesting a strong interest in your mission.
Access: Who in your network can connect you to them? Board members, volunteers or existing donors often hold the key. Example: One of your board members previously served with the prospect on a nonprofit advisory committee and is willing to make a personal introduction, providing a warm pathway to cultivation.
Stay organized with profiles or research templates:
Use a consistent format to capture key details: bio, wealth indicators, philanthropic history, connections, capacity rating and key next steps. This helps gift officers easily interpret your findings.
Leverage technology and databases when available:
If your organization uses tools like wealth-screening platforms, CRM analytics or donor research databases, use them to supplement your findings, but always verify accuracy manually.
Prospect research is a powerful tool for smarter, more strategic fundraising. By using ethical methods, staying organized and focusing on the prospects most aligned with your mission, you can build stronger connections and make your outreach more effective. Pair thorough research with thoughtful engagement and you’ll strengthen relationships that help your organization grow.
Take the next step in your fundraising journey by making prospect research a core part of your strategy. The stronger your understanding of your supporters, the greater your potential to create lasting impact.
Cassidy is passionate about helping nonprofits create lasting impact through strategic fundraising and community engagement. She is committed to building meaningful connections that strengthen organizations and the communities they serve. Outside of work, Cassidy enjoys long-distance running, fostering animals, discovering new restaurants and finding new ways to give back.