This labor of love from Cecilia Hogan, international editor for the electronic newsletter and Web site Internet Prospector and former member of the APRA International Board of Directors, offers an insightful introduction to the research side of fundraising in America today and is destined to become a classic in the field of prospect research.

Hogan employs a user-friendly, big-picture approach for describing the theory, ethics, research methodologies, and internal policies and procedures used by nonprofits that engage the services of professional prospect researchers. Because prospect research now demands a high level of professional expertise and support from the most senior levels of management, the content of this primer may initially appear to be weighted toward the larger shops (Ms. Hogan's own career path establishes her as an expert in higher education fundraising). However, each of Prospect Research's twelve chapters contains solid information and wise professional advice that can readily be put into action in one-person shops, new nonprofits, and in grassroots organizations. The details of how to conduct and organize research will sustain the interest of fundraisers with little or no experience in this aspect of development. Other chapters are noteworthy for experienced fundraisers who may need a refresher on research because their organizations have begun major gifts and planned giving programs.

A complete array of topics is covered, from "Signs of Wealth" and "Research Math" (for analyzing wealth information on individuals), to "Building a Pool of Potential Prospects," "Electronic Screening," and "Prospect Tracking," (which describe how to find and cultivate potential donors through an organization's "prospect pipeline").

I did find one point that needs clarification in the next edition of Prospect Research; this is in regard to the calculation of the minimum five percent payout requirement of net investment assets that U.S. private foundations are required by the Internal Revenue Service to expend each year for charitable purposes. The minimum five percent payout figure is not based solely on grants and contributions awarded back to the 501 ( c)(3) community; it includes other qualifying distributions such as program-related investments, amounts set aside for future charitable projects, and certain other administrative costs of making grants. In general, a private foundation must meet or exceed an annual payout requirement of five percent of the average market value of the foundation's assets. This is a minor note, however, in a book that provides a great service to our community.

Above all else, Prospect Research champions the role of organized research and established in-house procedures as opposed to the ad hoc situation, "We need a new facility for our children and youth program -- We need to raise money!" that initially inspires many agencies to begin looking for individual and institutional (private, foundation, corporate, or government) donors. Nonprofit managers are provided useful tips on how to create and implement a research plan. Do your agency's fundraising initiatives rely upon a "foraging plan" with the simple goal of finding new prospects or qualifying known prospects for your projects? Or is your organization at the level where a "farming plan" for prospect information offers a better result? Under the "farming system" agencies can usually afford to hire a full-time researcher who can purchase resources and access your nonprofit's central files and database resources. Farming implies that your staff has a calendar of annual reports or fundraising events. Incidentally, Hogan advises that forage or farm, both research paths will move your organization ahead. The key for managers today is to select a path and carry it forward.

Equally useful is Prospect Research's appendix which includes a nifty specialized glossary, chock full of terminology of particular use in fundraising research (e.g. DEF-14A, appreciated assets, peer screening, pooled income fund). Also included is a collection of sample prospect research forms, such as tracking requests, contact reports, research checklists, individual prospects, and foundation and corporate profiles that readers will want to use to organize the research process in their own offices.

For citations to additional materials on this topic, refer to the Literature of the Nonprofit Sector Online, using the subject heading "Prospect research."