In today's environment, competition is intense for the limited philanthropic dollars available. Organizations are expected to run increasingly effective and efficient fundraising programs. For years, the most successful organizations and corporations such as Xerox and IBM have invested heavily in the acquisition and use of knowledge management programs within their organizations to increase effectiveness and efficiency.

Nonprofit leaders can no longer rely on instinct or intuition to develop the sophisticated development operations necessary today. Though many fundraising organizations have used some form of research for years, today's advancement research comprises more than passing on word-of-mouth anecdotes, and locating and collecting data. Information is simply not enough anymore. Expert analysis is necessary to convert raw data and information into functional intelligence.

Fundraising researchers are the development professionals most able to meet the growing information needs of the fundraising community. Using the Internet and other technologies, fundraising researchers collect, evaluate, analyze, organize, package and disseminate publicly available information in a way that maximizes its usefulness and enables accurate and educated decision-making.

Read definition of prospect research.