Key Term

What is Prospect Research?

Definition

Prospect research is the systematic process of collecting and analyzing information about potential donors to identify their capacity to give, their philanthropic interests, and their connection to an organization. This includes examining public records, databases, news sources, and social networks to gather data about an individual's or organization's wealth, giving history, business affiliations, and personal interests.

Significance

Prospect research is crucial for nonprofit organizations as it enables them to strategically allocate their fundraising resources and develop targeted cultivation strategies. By understanding a prospect's giving capacity and interests, organizations can make more informed decisions about donor engagement, ask amounts, and program alignment. This research-driven approach significantly increases the success rate of fundraising efforts, helps build meaningful donor relationships, and ultimately leads to more sustainable funding for charitable organizations. It's considered a fundamental best practice in modern philanthropic fundraising and development operations.