As you work to identify potential major gift donors, you want to make sure that you are focusing your efforts on those people with whom you are most likely to see a return! After all, if you want to make the most out of your time and resources, it’s important that you’re targeting your outreach to the right people – and in the most effective way.
WealthEngine's scores and ratings are crucial predictive indicators that will go a long way to helping you identify who those people are. This means you need to know how to read them!
This article will cover:
- Gift Capacity
- Wealth Ratings
- Planned Giving
- Inclination Affiliation
- Inclination Giving
- Board Member
The P2G stands for “Propensity to Give” and it is a sophisticated measure of their propensity for general philanthropic giving. This is our flagship score, and it likely presents the most complete picture of your person! You can take full advantage of the P2G by using it as a safety net and/or a way to segment your screening results when you’re trying to figure out who you want to focus on first. It’s great for both these purposes because, unlike our other scores, it will incorporate all the data in the profile, not just the more traditional wealth and assets information. In other words, it will also consider the strength and predictive value of specific data source matches (e.g. a tie to a family foundation) as a way of identifying potential major donors. This is especially valuable because some wealthy people have managed their finances and estates so as to make it look like they don’t own anything. The P2G is uniquely designed to catch them!
- Note: this indicates how likely they are to give to someone – not necessarily how likely they are to give to you.
The P2G Score is a two-digit number. The first digit represents the category within which that particular individual falls, on a scale of 1-5.
The second digit of each score is used to rank individuals within each primary category. Remember, when it comes to the P2G, the lower the number, the better the score!
- Note: For more information see the P2G Score Guide.
With WE9, we have created a brand-new, foundational score! The Wealth Score provides a comprehensive rating of a person’s overall financial health, taking into account all forms of modeled assets and liabilities. Utilizing predictive analytics and modeling, it combines the strengths of our other key scores to help you differentiate and prioritize profiles with a greater level of granularity than ever before.
Each profile is assigned a number between 1 and 100; the higher the number, the better.
You can toggle back and forth between the WealthScore and the P2G to determine which will appear at the center of the Wealth Signal.
- For more information, make sure to check out our new WealthScore Guide!
Both the Gift Capacity range and the Estimated Giving Capacity chart represent the total amount your person is likely capable of giving to all the institutions they support, in a five-year period. Always remember – that’s in total!
This score is built to reflect the industry standard that an individual can afford to donate 2% of their net worth per year to charity. Those with the highest capacity rating show the greatest potential to make a major gift. However, WE do recommend that you read this score conservatively as well as seriously consider your person’s interests, whether you have any shared contacts, their history with you, etc. The Gift Capacity alone will never tell you the appropriate ask amount.
Five major components make up the score and a formula is used for each to determine which information is included and in what amounts. Keep in mind that you can actually adjust these percentages using our Custom Giving Capacity feature so that it’s more accurate to your area and/or constituency!
- Note: For more detail on the statistical breakdowns, check out our Gift Capacity Formula Guide.
Each individual is assigned to one of twenty Gift Capacity ranges and its correlating rating, so that you can easily sort and filter the results:
The Estimated Giving Capacity section of the profile will then provide both a donut chart and a specific numerical score.
- Note: For more information on how to adjust these numbers, see our Customizing Giving Capacity Guide.
As you look to interpret the Total Assets, Net Worth, Cash On Hand, and Estimated Annual Donations scores on your person’s profile, it’s crucial to remember that they are based on sophisticated statistical models. While most of our other scores and ratings are reporting directly on the actual assets data we have on them, the Wealth Ratings do something quite different. After all, data has its limits and WE can’t legally or ethically access the contents of someone’s bank account. So instead, these scores act as statistically derived, predictive representations for information that is private. In other words, if one of your leads is listed as having a Net Worth of $1-5M, that isn’t literal. It tells you that their profile resembles other people that actually do fall into that range!
WealthEngine accomplishes this by using an enormous truth file, which contains actual household data (over 1,000 data elements per household) that’s representative of the US population, covering the full spectrum of wealth from individuals of very modest means to ultra-high net worth. Our data scientists used this truth file to develop algorithms that would accurately predict the Wealth Ratings. Ultimately, one of these algorithms is chosen and applied to each profile, depending on that profile’s individual details.
A modeled score predicting the total value of all their financial and non-financial assets.
A modeled score predicting the difference between their total assets and total debt.
Cash On Hand
A modeled score predicting the measure of their financial assets that are readily accessible, such as checking, savings, money market accounts, etc. You can also use this as a proxy for discretional income.
Estimated Annual Donations
A modeled score predicting the amount of money an individual is likely to give in the span of one year to all of their interests in total.
Keep in mind that the Wealth Ratings don’t utilize any data that you submitted to us.
This score identifies how influential the person is in the community based on how many boards (corporate or philanthropic) they are affiliated with. This is done on a scale of 1 - 4.
This score identifies whether the person is likely to be a good prospect for making a major gift, in a lifetime or at death, as part of their overall financial and/or estate planning. Whether they use cash, appreciated securities/stock, real estate, artwork, partnership interests, personal property, life insurance, a retirement plan, etc., this allows individuals to make larger gifts than they could make from their income!
This three-part score measures the ability to give Bequest, Annuity, and/or Trust planned gifts, based on their age and gift capacity.
Outright gifts that use appreciated assets as a substitute for cash;
Gifts that return income or other financial benefits to the donor in return for the contribution;
Gifts are payable upon the donor’s death.
A measure of philanthropic intent based on affiliations and political giving. To see a list of those gifts, check out the Research Details section of the profile!
A measure of philanthropic intent based on what you told us about their giving history to you. It looks at the recency, frequency, and amounts of gifts.
A simple yes/no flag identifies if that individual is tied to board membership.
Income is either directly drawn from data or imputed based on other data sources. The sources that are involved with income calculation include but are not limited to the following:
- Market Guide
- Household Profile
- Census Data
- Real Estate
A little more detail:
- Income derived from current real estate is calculated using a formula based on the property market value, first loan amount, and age, if available. The score is then shown in a range format.
- Household Profile and Census information is based on demographic (as opposed to hard asset) data. The default age of the individual is set to 40, but you can change the age by supplying that information in an Advanced Search or screening.
The RFM score uses the giving history you provided to rate the individuals in your file relative to one other. This means that if you didn’t provide giving history for someone, their score will be 0. Keep in mind that the system only compares people within a single WE screening, but if you choose to combine the results of multiple files into one, the scores will automatically recalculate. Remember, when it comes to RFM the higher the number the better!
A value of 0 – 100, based on the date of the last gift made. Most recent donors will have a higher ranking than donors that have not given recently.
A value of 0 – 100, based on the number of total gifts made to your organization. Donors who have made more gifts will have a higher ranking than donors that have given fewer.
A value of 0 – 100, based on the size of the largest gift made. Donors who have made the highest personal gift will have a higher ranking than donors whose single largest gift is smaller.
The scores for the Recency, Frequency and Money components are totaled, with a maximum score of 300. The higher a donor’s score the stronger their giving history is relative to the other people in your file.