Capacity Formulas - They Are Fun To Build! 3369

Capacity Formulas - They Are Fun To Build!

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I guess this is where you might use the phrase "great minds think alike" - I was going to write a blog tomorrow about capacity formulas and then saw Deborah Drucker's post today asking about the same thing.  So here it is a day early!

I love the idea of having the ability to have multiple capacity formulas in RP.  Just like every non-profit is not a like neither are our donors and I feel they should not all be subject to the same capacity formula.  That being said, I do like the default formula that is currently in RP.  It basing confirmed assets at 5%.  I think this definitely helps to ensure that we are not over inflating the capacity of our donors.  However based on the amount of the assets and type of assets may require us to create a formula for a group of people or even just one individual.  To access capacity formulas you first of need to make sure you have admin access which is both the prospect research and prospect research manager roles.  Once this completed, you can go to the Prospect Tab and then under Configuration click on Capacity Formula Management.  Most of you may only see the default formula but as you can see in my sample RP database I have already created multiple formulas.  To create an additional capacity formula simply click on Add.
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So let's say you created a selection for a group of individuals who own real estate that you have determined is generating income for the donor such as apartment and office buildings or warehouses.  Instead of the 5% formula you may choose something like the following -
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Next you need to go to the Calculation tab before you finish -  You need to change the Set Value from 0.05 (5%) to 1.00 (100%) because you have already made the calculations in the Asset tab.

I also created a "Tiered Asset Formula" based on the type of assets
Real estate - 5% for real estate valued $1M
Business - 5% for business valued $1M or 3% for under $1M
Securities - 10% because this is a liquid asset
Income - 10% because this is a liquid asset
Other Assets - 10% for those who have privately held or luxury type of assets found via research or meeting with the prospect.

So don't be afraid to create a formula - be inventive.  If you find a prospect you can assign one of your formulas when you are in their record.  In the Wealth and Ratings portion simply click on edit under capacity and you will see the options you created
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As you can see you can compare your formulas with the default formula and then simply click on "Apply comparison formula" and Save.  

What are some ideas you all have for formulas?  


 

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2 Comments
Thanks Michael - great post! We'll need an updated one when we add Giving to the formula in the fall release. :-)
Thank you Michael, as a I definitely appreciate the visual. The apply comparison formula is a helpful feature.

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