Maybe research is not exactly a secret weapon, but it might as well be, the way so few nonprofit organizations take advantage of the research tool in their fundraising toolkit.

Consider this example: A name-brand Canadian health charity recently did a survey of lapsed donors. It wanted to know why these donors were lapsing and what it would take to get them to reactivate their support.

The survey clearly showed that: Donors cared deeply about the cause; a vast majority of them were personally affected by the disease this charity is dedicated to; 90% of these lapsed donors strongly wanted to see a charity dedicated to the work that this organization was doing; a majority of lapsed donors said that this charity was one of the top four charities they support; fully 80% of lapsed donors said they intended to support this charity in the coming year.

However… a large majority of lapsed donors believed they had actually given to this charity in the past year, and more than 40% of them indicated that they support more than 10 charities per year.

This charity appears to have “transactional” issues.

Donors support the cause. They want this charity to be in business (it’s the only one of its kind in Canada). They also express strong support for the charity itself.

It appears that the lapsed donors are just getting mixed up about when they last gave. We would suggest that the charity’s challenge is in its donor communications and service. It would probably do better if it communicated clearly where the previous donation had been used, when the last donation was made and when the donor might expect her next appeal. In fact, we’d go so far as to ask the donor to record the most recent donation date so she can keep track when the next appeal arrives in her mailbox.

That’s just one example of the success available to those who take a deliberate and intelligent approach to the marketplace. So how can you do the same?

We have five kinds of research you may wish to consider. This is not a definitive list. It is only intended as an example of the kinds of research you and your organization could undertake, in an effort to prepare for better performance and greater results.

These are only examples we’ve chosen to whet your appetite for opportunities to use research as part of your fundraising toolkit. Let’s look at each one specifically and explore what’s unique about it and how it may apply to your organization.

Market research is “the process of gathering, analyzing and interpreting information about a market; about a product or service to be offered for sale in that market; and about the past, present and potential customers for the product or service.” (www.ots.treas.gov/glossary/gloss-m.html).

This may be offensive to some who think we are NOT selling anything as a nonprofit, but rather we’re offering services to the public for the benefit of humankind. Yes we are. But as leaders in our sector, we also have a responsibility to fund the work we do. And that involves having someone, somewhere, somehow to provide funds. Therefore we have to convince them (sell them) of the value of our cause.

It is not about changing our product or service. It is, however, about shaping the product or service in a manner that is “understood” by those in the marketplace who are in a position to support us (buy our message and cause) with their dollars.

The more we know about the people in the geographic area in which we work, their demographics (age, gender, income, and education) and their psychographics (personality characteristics that affect purchasing behaviours) the more likely we are to be successful in appealing to them for support of our cause. In essence, without this knowledge in specific terms we are at best guessing on how to approach our donors and hoping that our messages will work.

Prospect Research Experts, www.prospectresearchexperts.com/whatis.html, has this pinned down: “Similar in concept to market research, the goal of prospect research is to find prospects that have an interest and the ability to invest in an organization. In prospect research, the anticipated outcome is an investment in the organization’s mission and activities. In market research, it is the purchase of a company’s goods or services.”

Those of you who’ve ever had to make a cold call will know how difficult it can be to go in cold to talk to someone about making a gift. Good prospect researchers are worth their weight in gold, especially for those involved in major gift fundraising. With a good prospect researcher, there is no such thing as making a cold call.

Before visiting prospects who you think could make a gift to your organization, you will know who they are, their individual giving history, their interests, their connections with other charities and businesses, their potential for giving and from all that, the approach you may wish to take to gain their interest and move to a yes.

Somebody once defined data mining as “sports-betting equivalent of sitting a huge number of monkeys down at keyboards, and then reporting on the monkeys who happened to type actual words.”

On a more serious note, data mining is “the process of analyzing data to identify patterns or relationships.” It assumes of course that you have a database, and that you have an idea of what it is you’re looking for and how you might use the information you find.

What we know for sure is that in most databases, if populated correctly, there is a wealth of information that can help you be more efficient and effective in the work you do. It can gather common traits for major donors and high net worth individuals. It can assist in gap analysis by pointing out the difference between those you’re soliciting for gifts now and those who are likely to be best suited to give.

More than anything else, data mining can help you focus on opportunities most likely to net results, enabling you to spend time, money and resources wisely.

Why do people give? What is the relationship between where people learn their philanthropy and where they practise it today? What are the primary factors influencing donors’ decision-making? Should caregivers in cancer facilities be engaged in philanthropic activities, and if so, how?

All of these questions lend themselves to basic inquiry research and stand to add knowledge to how we can, should or might do our work.

Brandon L. Clark, Attorney at Law in Little Rock Arkansas provides a wonderful basic definition of research. He says it is a “… careful hunting for facts or truth about a subject; inquiry; investigation.”

Professions like law are based on codes of conduct, standards of practice and a body of knowledge. If fundraising is to be recognized as a profession, it too must continue to compile a body of knowledge linked to its conduct, standards and practice. Basic inquiry research is one of the many ways that body of knowledge is acquired.

Basic inquiry research can be applied or theoretical, often with the motive of advancing the profession and practice and designed to respond to identified research questions that are studied, written about and shared with others.

So you want to run a campaign and you want to know if the campaign concept is going to work. A feasibility study is a study of the applicability or practicability of a proposed action or plan – in this case, your campaign plan.

Is your case for support solid? Will it attract the attention you want to raise the money you need? If not, what adjustments do you need to make? Who is more likely to give? Is there the support in the community you need to be successful? You have a target in mind – is it realistic? If not what should your target be? Have you aimed too high or too low?

So many questions, how do I find the answers? The answers are generally found in a campaign feasibility study, a kind of research most organizations are aware of, especially those who have ever contemplated conducting a major fundraising campaign.

Campaign feasibility studies are designed to test a specific campaign before the campaign begins. The study tests the case, the arguments in support of the case, and the willingness and ability of the community to support the campaign. It is intended to recommend a target and provide evidence for a “go or no-go” recommendation.

This results-driven exercise is most often completed by an external consultant who is charged with providing an objective assessment based on interviews with community leaders and major prospects.

So the secret is out. Actually, it has been out for a long time. Research does make sense. It can save you time, effort and embarrassment. It can save you money. It can enhance your results. The key of course is to learn about the tool, how to use it well and how to use it in the right way, at the right time, for the right reasons. When you do, you’ll reap the benefits in spades.