RESOURCES AND RESEARCH
DOING PROSPECT RESEARCH ON A SHOESTRING BUDGET

1. Budget time to do research.
If you are a one-person shop and the "prospect research hat" is part of your wardrobe along with everything else, you must budget time to do research or it will not get done, despite your best intentions. Determine a particular time each week when you will be the researcher and will let nothing else interfere with performing research. Use that time, even if it is only a couple of hours a month, to chip away at your research to-do list.

2. Use your trustees or board members to the fullest extent possible.
Some board members may be very sophisticated about fundraising and glad to help out with research; others may be more reluctant and need more coaxing. Know your organization's culture and work within it to make the best possible use of your governing board members. Among the ways in which they can be helpful to research include: screening (either formal or informal); corporate gifts-in-kind (e.g., donation of computer equipment, Dun & Bradstreet services, database searching, etc.); and clipping and forwarding of relevant articles from periodicals.

3. Be realistic and keep your research aspirations and methods in line with both your time and financial limitations.
Research does not bring money into an organization; rather, acting upon the information provided by research does. Your task is usually to find individuals who are prospects now, or at least in the near future, rather than to compile a list of people with wealth but no apparent connection to your organization who might be turned into prospects with about five or ten years of cultivation. In many organizations, the most valuable assistance research can provide is to rank an existing prospect base in priority order by capacity and inclination. Know how much an hour of your time costs the organization and weigh that information in determining whether a research project should be undertaken, or whether outside services or additional staff are advisable.

4. Collaborate with other agencies
If possible, form a good working relationship with other small nonprofit organizations in your area, especially if you are not in direct "competition" for prospects. This relationship can take the form of exchanging annual reports and sharing research resources. For example, a certain reference book may be too expensive for one organization to buy, but can be affordable if two or three nearby non-profits share the cost and are willing either to go to the other organization to use the resource, or agree to perform quick lookups for each other.

5. Make friends with your librarian.
Your local public library is an obvious resource for both printed and electronic sources, but you will get better assistance if you make it a point to form a relationship with the reference librarians. If you explain to her/him your purpose in seeking out information, she/he will be able to lead you to sources that you might not uncover on your own. The librarian will respect the confidentiality of your research. Even a library with a limited budget may make special book purchases upon request by a known patron. Finally, make use of the local The Foundation Center reference collection.

6. Learn about your free sources.
There are many free (or nearly so) sources of printed information. Begin by acquiring programs and donor lists from other local non-profits. These lists can be very useful in identifying a prospect's other interests and giving potential. Most foundations publish a (glossy) annual report, which can be yours for the asking. Public companies make available more free information than you can possibly use; ask (call or send a post card) to be put on their permanent mailing list for annual reports, 10-Ks, and proxy statements. The information contained in these publications is useful whether you plan to approach the company or foundation as a prospect, or if you are interested in an individual executive.

7. Purchase a prospect database management system.
Demographics can be a useful tool, but you don't necessarily have to buy expensive electronic screening services. At a very basic level, you can take a list of the top hundred or so zip codes (from Sourcebook of Zip Code Demographics available from CACI Marketing Systems, 1-800-292-CACI, or at a library), either in your state or nationally, and add the information as a table to your prospect database management system. You can then rank the most promising prospects by zip code and median income, etc.

If your reaction to the above is "What prospect database management system?" you need to spend some time establishing a tracking system before you undertake research. Unless you are a computer expert yourself, you will need some assistance with systems. Sources of free or inexpensive consulting assistance include local computer users' groups and local college or university programs in computer science. Perhaps you could offer your organization as a "case" for a class project in designing a system. Call organizations similar in size and mission to your own, and find out what system they use and what their recommendations are. Do not believe everything vendors tell you. Get confirmation of all vendor claims from users. Be selective in determining what data you need. Too much is just as useless as too little. Don't buy a Cadillac when what you really need is a Volkswagen!

Above all, research should be part of the fun of fundraising and not simply another chore. If you possess even a modest sense of curiosity, you should get a certain thrill and sense of accomplishment out of uncovering relevant information about your prospects, especially if you have done so on a shoestring budget.