Predictive Modeling
While predictive modeling for fundraising is growing in popularity and is becoming more widely used, its definition and applications still are not universally familiar for fundraising professionals.
Predictive modeling for fundraising typically involves the use of statistical techniques to determine which constituents are most likely to exhibit a particular behavior. In many cases, this behavior is related to giving. For example, many nonprofits use predictive modeling to identify the prospects most likely to
make a major gift
make a planned gift
respond to a particular type of solicitation
make a gift via a particular channel (by mail; online; over the telephone; etc.)
give to a particular project or initiative
Organizations use these types of predictive models to
identify new prospects
prioritize prospects
segment prospect groups to increase solicitation response rates (and save money on broad-based appeals)
help fundraisers optimize their portfolios to focus on the best prospects
determine which prospects to screen for wealth and capacity