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What is prospect research?
Definition: Prospect research is the practice of gathering and organizing information about potential donors, clients, or buyers so you can judge their connection to your work, their capacity to give or buy, and the best way to approach them. In fundraising it usually covers giving history, wealth indicators, and relationships. In sales it covers role, company priorities, and recent news. The goal is a better first conversation.
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Why it matters
Without research, outreach is guesswork. You ask a modest donor for too much, or a wealthy supporter for too little, or you pitch a buyer on a problem they solved last year. A little research before contact shows you who to prioritize and what they are likely to care about.
Research also makes outreach more human. When you know someone served on a hospital board, lost a parent to the illness your clinic treats, or just started a new role, your first message can be specific and respectful. People can tell when you took the time to learn about them.
How it works
The three things researchers look for
Fundraisers often frame prospect research around three questions. Linkage: does the person have a real connection to your organization, such as a board member who knows them or a past gift? Affinity: do they care about your cause, shown by volunteer work, giving to similar groups, or personal history? Capacity: could they make a meaningful gift, based on public signals like property, business ownership, or past gifts elsewhere? In sales the same logic applies: a link to your company, interest in the problem you solve, and budget or authority to buy.
Where the information comes from
Good research starts with your own records: past gifts, event attendance, notes from conversations, and who on your board or team knows the person. From there, researchers use public sources such as nonprofit annual reports and donor lists, foundation filings, property records, business filings, news coverage, professional profiles, and company announcements. In sales, earnings calls, job postings, and press releases show what a company is focused on. The rule is to use only information that is public and relevant to the relationship you hope to build.
The prospect profile
Research usually ends in a short prospect profile. A useful one fits on a page and includes the person's role and background, their connection to you, interests and causes they support, signals of capacity, known relationships with your board or staff, and a suggested approach: who should reach out, what to talk about, and what not to bring up. Long profiles full of trivia go unread. The best ones answer one question clearly: what should the person making the call know before they dial?
Research is a starting point, not a verdict
Public data shows possibility, not intent. A person with a large house may have little to give, and a modest saver may be planning a major bequest. Treat research as a way to choose who to talk to and how to open the conversation. Then let the conversation tell you the rest. Record what you learn directly from the person, since it is more accurate than anything you found online. Keep profiles respectful, factual, and limited to what is relevant, as if the person might read them.
Examples
- A university prospect researcher notices an alumnus recently sold his company and flags him for a major gifts officer, noting he once volunteered as a mentor.
- A hospital foundation reviews its grateful patient list and finds a former patient who sits on two other health nonprofit boards.
- A business development rep reads a target company's recent job postings and sees it is building a new compliance team, which shapes her first email.
- A small nonprofit's executive director asks each board member to review a list of local donors and mark anyone they know personally.
Putting it into practice
- Start with your own records: who has already given, attended, volunteered, or met someone on your team.
- Ask board members, colleagues, or partners to review your prospect list and mark people they know.
- For your top prospects, check public sources for connection, interest in your cause, and capacity.
- Write a one page profile with a suggested approach: who reaches out, what to talk about, and what to avoid.
- After the first conversation, update the profile with what the person told you directly.
- Set a next step for each prospect so the research turns into an actual relationship.
Write the message in 20 seconds
Free, no signup. The example is filled in: press the button, then replace it with your own situation. In Capstone, a message like it is written for each person you know when their check-in is due.
Frequently asked questions
What is prospect research in nonprofits?
In nonprofits, prospect research is identifying and learning about people who might give, especially those who could make larger gifts. Researchers look at a person's connection to the organization, interest in the cause, and capacity to give, then summarize it in a profile. Fundraisers use that profile to decide who to cultivate and how to approach them.
What is an example of prospect research?
A food bank notices a local business owner has attended its gala twice. A researcher finds that she sits on a hunger relief committee, owns several restaurants, and gives to a similar organization in a nearby city. The profile suggests a board member who knows her invite her to tour the warehouse before any ask.
What is included in a prospect research profile?
A useful profile includes the person's role and background, their connection to your organization, the causes and interests they support, signals of capacity to give or buy, relationships with your board or team, and a suggested approach. Keep it to about a page, and focus on what the person making contact needs to know before the first conversation.
Is prospect research ethical?
It is when it stays within public, relevant information and is used to build a genuine relationship. Good practice means using only lawful public sources, recording only facts that matter to the relationship, keeping profiles confidential, and writing them as if the person might read them. Avoid speculating about health, family conflicts, or other private matters.
How is prospect research used in sales?
In sales, prospect research means learning about a buyer and their company before reaching out: their role, recent news, hiring, priorities, and any shared connections. It helps you decide which accounts to focus on and lets your first message address a real problem. A few minutes of research usually makes outreach shorter, more specific, and more likely to get a reply.
Done the research. Where will it live? Put what you learned on the prospect's timeline in Capstone. Every note, email and meeting sits in one place, ready before your next talk with them.
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A study of 20 million LinkedIn members found that acquaintances, more than close friends, led to new jobs (Science, 2022). Capstone keeps those people warm. You approve every message, and it goes from your own email or phone.