The Momentum Fundraising Glossary

Prospect Management

Definition

Prospect management is a systematic approach utilized by nonprofit organizations to identify, track, and cultivate potential donors (prospects) for major gifts. This process plays a crucial role in developing effective fundraising strategies. It typically involves compiling data on prospects, including their giving history, interests, and financial capacity, to effectively prioritize and engage with them. Additionally, it includes the use of a prospect tracking system or software that helps fundraisers visualize their pipelines and understand the stages of each prospect’s journey. The ultimate goal of prospect management is to convert potential donors into committed supporters, thereby increasing an organization's fundraising revenue over time. An effective prospect management strategy enhances donor relationships and maximizes the impact of fundraising efforts.

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Common Misperceptions

Many fundraisers believe that prospect management is only about finding new donors.

In reality, while identifying new prospects is a key component, prospect management also focuses on nurturing relationships with existing supporters and maximizing their contributions.

FAQ

What is the main goal of prospect management?

The main goal of prospect management is to effectively identify, track, and cultivate potential donors to ultimately convert them into active supporters contributing major gifts.

How do nonprofits prioritize their prospects?

Nonprofits prioritize prospects based on factors such as past giving behavior, affinity to the organization, capacity to give, and overall relationship history.

What tools are commonly used in prospect management?

Nonprofits often use database management software, CRM systems, and donor management tools to help track and analyze prospect information for strategic decision-making.

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