November 6, 2019
Elevate is proud to share that several of our team members were selected to present three different breakout sessions at the Grant Professionals Association Annual Conference, which will be held November 6-9 in Washington, DC!
Leading up to the conference, we’re sharing previews of these sessions, and some of what our presenters will be teaching. In this post, we’re looking at what it takes to put together a smart, strategic prospect research strategy for your organization.
Developing a clear prospecting strategy and organizing your prospect research to identify the best-aligned foundation and corporate leads for your organization is critical to the success of any prospecting effort.
No matter how robust your organization’s grants program may be, nonprofit leaders are often in a position where they need to identify and pursue new sources of funding. And since no organization can (or should!) pursue every possible funding opportunity that comes along, having a thoughtful strategy in place to help guide prospect research is essential so that we spend our time researching, identifying, and pursuing high-quality prospects.
So how does one build a prospecting strategy? Below we’ve outlined a few steps to help you create or refine your plans.
1. Create an ideal prospect profile
The first step is to get crystal clear on what a good prospect looks like for your needs. We find that our clients often want to pursue new prospects, but don’t yet have a clear vision within their organization of what a well-aligned prospect actually looks like for the work they do. In our experience, an “ideal prospect” should share an interest in the audience you serve, the geographic reach of your organization, the needs of the community, and the type of support you need, to name just a few.
In building your list of these points of alignment, you’ll want to ask yourself both, “What do we have to offer a funder?” as well as, “What do we want/need most from a funder?”
While creating your “ideal prospect” profile, you’ll also want to consider what are the deal breakers for your organization. For example, many organizations have policies that ensure that any partners they engage with align on key values. Small organizations may not have the capacity for very robust data tracking that some funders require. What are those factors that might lead your organization to decline funding? You’ll want to do your due diligence in the prospecting phase in order to avoid a lot of wasted effort later in the process!
2. identify and prioritize your search criteria
Using the “ideal prospect” profile you put together in step 1, you should then start to identify the criteria you’ll use to search for potential funders, and organize your internal research process based on your priorities. The greater the number of points of alignment you have with a funding prospect, the higher the probability that this prospect will be interested in supporting the organization’s work.
3. Assess the competitive landscape
Once you’ve gotten clearer about what you’re looking for in a funding prospect, this is a great time to do a little research into your peers and competitors to better understand the field in which you are competing for resources. Who is funding your peers? For what projects? At what grant amount? Some of these organizations are going to be your best prospects, as well. (And remember, it is rare for a foundation to only award one or two grants per cycle, so if you are successful in going after a peer organization’s funder, you are not necessarily taking resources that would have otherwise been designated for the other organization!)
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Once you’ve tackled these three steps, we recommend you also consider focusing on getting information and buy-in from your internal stakeholders – such as the organization’s leaders and program staff – to develop your strategy. Include them in this process! This could start with something as simple as developing a clear and concise summary of your prospecting strategy and sharing it internally for feedback.
Ultimately you will want to develop a process for identifying and qualifying prospects to ensure that you are pursuing the most strategic, actionable opportunities possible. Think quality over quantity! If you are successful in developing and executing an effective prospect research strategy, you’ll be well-positioned to spend your limited time going after those prospects that are the most likely to be interested in funding your work.
Written by Caroline O’Shea and Jennifer O’Brien
Photo courtesy of wocintechchat.com
