385: The Gift Of Data Featuring Moshe Hecht, Founder & CEO of HATCH

[00:00:00] Fundraisers today are around lifestyle, they're around events, right? So learning their lifestyle,

[00:00:07] learning what type of event they're going to want to participate is going to move the needle

[00:00:11] for anyone in the organization who's responsible on building these initiatives.

[00:00:16] On this episode of Mind Your Business I'll be catching up with Moshe Hecht of Hatch, Hatch.ai

[00:00:22] and formally of charity.com Why am I adding that? Well, he has a tremendous knowledge

[00:00:29] in the world of nonprofits and of donors and of securing major gifts.

[00:00:34] And in fact, on this episode we'll be talking about this incredible platform Hatch.

[00:00:38] What does Hatch do? It provides organizations, directors of development, executive directors,

[00:00:44] real time, real world knowledge on your donors. And of course, why is that so important?

[00:00:50] Because that opens the world for greater gifts from your existing donors

[00:00:54] and the path to new donors. Enjoy this episode.

[00:01:03] Moshe Hecht of Hatch, thank you for joining me here on this episode of Mind Your Business. How are you?

[00:01:11] I'm doing great. Thank you Yitzchok for having me. Amazing. So jumping right in,

[00:01:14] Moshe, you originally helped start and found charity. The world knows about charity,

[00:01:20] the incredible impact that it's had for so many organizations of so many sizes around the world.

[00:01:26] Lovely, yes.

[00:01:28] You then founded Hatch. Hello. What was the reason you were, you know, charity is doing very well

[00:01:34] and is still doing very well and you left to found Hatch. What was that all about?

[00:01:39] Yeah. So, you know, I'm obviously very proud of my time and of the team at charity.

[00:01:46] And like you said, charity continues to thrive as a great company, great organization.

[00:01:52] I would say, you know, it was probably around 2020 where a real unmet need started to surface

[00:02:01] with many of our customers. And then I also learned which was actually industry wide challenge.

[00:02:08] And I'll give you a little bit of an anecdote, you know, so we would work with organizations

[00:02:12] on average our campaign sizes were around the million dollars. And one of the benefits of raising

[00:02:17] a million dollars, not just raising a million dollars but it's also getting thousands of new

[00:02:22] people into your database, thousands of new donors. And many times roughly nine,

[00:02:27] 10 months after the after the campaign, I would speak to the organizations ready and

[00:02:31] preparing them on their next year campaign. And I would say, well, you got 10,000

[00:02:35] sometimes new people in your database. And I'd say, well, how did the year go by? If you

[00:02:40] maximizing and monetizing all these new constituents. And unfortunately nine times out of 10,

[00:02:46] they would say, you know what? We haven't really tapped into that base. And immediately when I

[00:02:52] would ask why have you not done that? I mean, these are new donors but for relationships.

[00:02:57] Relationships. And they said, you know, it's interesting. We have the data on them.

[00:03:02] But we don't have enough data on them. So we have their name, their email, their phone number,

[00:03:07] maybe they've given $18 gift, maybe they've even given an $1800 gift. But we don't have the

[00:03:13] information that can inform a greater relationship, a greater size gift, deeper engagement.

[00:03:21] And from that problem is where Hatch was born. Okay. So let's get a little bit, you know,

[00:03:27] more into the depth of what Hatch really is. That answer was a teaser. What does Hatch all about?

[00:03:33] What do you what? What problem do you solve in the marketplace? Yes. So imagine you can get in more

[00:03:39] information on those people. So after some research over those years 2019, 2020, 2021, I did some

[00:03:48] pretty heavy research into the industry. And what I found out is that there are actually hundreds

[00:03:55] of data points if curated properly available on most people in the, on the internet. So you

[00:04:04] know, say you would do a Google search on someone. If you spent five hours on Yitzel-Xelph,

[00:04:08] let's you find out a lot of information right? The challenge is bringing all of that information

[00:04:13] into one single location and creating what we call it Hatch a complete human profile. So what we've

[00:04:19] done is we've created a database where we gather information from roughly 40 different public

[00:04:25] sources. So information like the IRS, the FEC, the SEC, different social data, live news, live tweets.

[00:04:32] And we put that together into complete human profile. And now the organization can visualize what

[00:04:38] before Hatch was maybe this one or two dimensional line in a CRM now becomes this three-dimensional

[00:04:45] person, this three-dimensional individual where they can learn their preferences, their lifestyle

[00:04:50] and so on. A mutual friend, Rob I Richard Beeler. Sure. He actually, I remember at a conference,

[00:04:57] probably two decades ago, he said when he walks into the room, he looks at what's on the credenza

[00:05:04] of an executive. He looks at the, what are the framed photos that are on the wall? What are the

[00:05:09] awards? Because then I'll have an idea of what he's proud of. So what you're telling me is that

[00:05:15] Hatch really gets this multi-dimensional view of a donor because the more you understand your

[00:05:23] donor, the more deeper the relationship you can get into. Yeah, you know, I've obviously a lot of

[00:05:29] respect for Richard but that was 20 years ago and those awards and those let's say wealth signals

[00:05:38] or those signals of their lifestyle and their accomplishments. It's all digital today,

[00:05:45] right? So all of those things are either featured in a media that they were thinking or it's put onto

[00:05:51] some website or as filed in some database. So Hatch is essentially the 21st century digital version

[00:06:00] of Richard Beeler's X-ray professional fundraiser vision. Now I almost can, you know,

[00:06:08] want to guess this but I really want to put it on, you know, lie at your doorstep. You know,

[00:06:13] you could have, you could have named this platform many different names. You chose Hatch.

[00:06:19] What's the story behind that? Yeah, I think it's twofold over my career,

[00:06:24] you know, marketing, branding, positioning has been a big part of my career through different

[00:06:32] jobs and companies that I've started. So I think on the one hand, I think it fits a lot of the good

[00:06:37] best practices for a solid name. It's obviously something that people remember. People have when

[00:06:44] they see, when they hear the word Hatch, it's a visual that they have right away in their mind.

[00:06:48] It's one syllable, it's five letters, it's very easy to remember just as a name but I think as it

[00:06:54] applies to the actual industry, it really describes what we're doing. Before Hatch, an individual in

[00:07:04] your database who otherwise been ignored because he was not born yet in the eyes of the fundraiser or

[00:07:11] the eyes of the project manager or the eyes of the peer-to-peer campaign manager, when you give

[00:07:17] them this information, it gives you this visual of this person being born, being born with now all

[00:07:24] this new information and all these new opportunities that this person who is responsible for deep

[00:07:32] in this engagement with this individual. So I think it's really, it's a name that was born and

[00:07:38] Hatch from 20 years of both branding marketing and also understanding the space really, really well.

[00:07:46] Moshe, what is the process for an organization when it comes to you? And I'm going to break this

[00:07:51] question really into two parts. What is the turnaround like for when an organization reaches out

[00:07:58] and we all know they need it yesterday. Okay, so does it take a week, a month, you know, 90 days

[00:08:07] and then also once they're engaged with Hatch, how often can they log in, how often can they expect

[00:08:14] updates on information on their donors? Sure. So let's start with the first question of what

[00:08:20] are the process or the organization coming to us. So an organization will come to us with their

[00:08:26] existing database, okay, and they'll either export and import it from their existing CRM or we

[00:08:33] actually have integrations with some particular CRMs and they will upload their data into our

[00:08:41] platform. Now their data usually on average constitutes about eight, nine pieces of information.

[00:08:48] So first name last name, email, phone number, mailing address, email address, maybe date of birth

[00:08:52] sometimes maybe some donation history, but it's usually under 10 pieces of information.

[00:08:58] With in once they upload their database, if they let's say have a database the size of 10,000

[00:09:02] people within an hour, all of the enrichment data will already have been populated and that's

[00:09:07] about 80 new pieces of information per individual, per individual in their database. So it'll

[00:09:14] nearly 10X the information that on this individual gathered from over 40 sources and it'll

[00:09:22] around 10,000 people usually takes about an hour. That's because we've built out all of the systems

[00:09:28] and the storing of the data and the connections and the API connections to the data to happen

[00:09:33] almost imminently. Now, now one second, Mosha, I know you for a while so I know you're an honest

[00:09:38] person but I'm sorry I'm finding this hard to believe. 10,000 people in a house file, they upload it

[00:09:47] to your platform within 60, I'm not gonna say 16 or 90 minutes because I'm extending the time

[00:09:54] you said within 60 minutes they will have for their 10,000 names and a complete comprehensive

[00:10:04] profile is the person Aiyangis fan. Are they a Metz fan? Do they like and the list goes on

[00:10:10] and on and on. In fact, I'm going to even now turn back to you how many different like data points

[00:10:15] could you even like think of? I mean what what their shoe size? I mean like what what what what

[00:10:20] so the data is quite comprehensive and it's I want to remind everybody this is all public information.

[00:10:29] So this isn't we're not getting you know they're not they're not we're not getting their social

[00:10:33] security number. So we're getting information that technically speaking if you would go on each

[00:10:38] individual and do a deep Google search or go through certain databases and certain certain

[00:10:44] clearinghouses and you have a lot of time to burn. Yeah, and you have a lot of that you could

[00:10:48] technically get this information. The information is coming from areas like the IRS so every 990

[00:10:54] that is filed for organizations and the grant giving foundations for example they have to file

[00:11:01] the key personnel but that are behind those those foundations so those people will come up in

[00:11:06] in our database SEC so security and exchange commission so anybody who is a SEC insider that owns

[00:11:12] 10% of a publicly traded company or as a director of a publicly traded company they have to file

[00:11:17] their earnings in that company and we connect those earnings to the live ticker of what that stock

[00:11:22] is on that on that day. The FEC which is a federal election committed so anybody who gives a donation

[00:11:28] a federal donation to a politician United States that's all public. So these are all public information

[00:11:35] now to go and get this all formation from publics from sources take is very very cumbersome now what

[00:11:40] we've done is the reason why it takes so quickly is because first of all we store a lot of this data

[00:11:45] in our own database so we have the entire for example entire IRS database of over a decade

[00:11:51] already stored in our database. So to pull that information is milliseconds some information we're

[00:11:56] getting through licensing through third parties that were connected to an API and also by pulling

[00:12:02] that information through that API also takes milliseconds we're getting live news we're getting

[00:12:08] it straight from Google feed so that also comes in real time it's every single data point either

[00:12:14] is either stored or connected to a real time source and that's how we're able to get the information

[00:12:19] in such a quick in such a quick manner. Now this next question really feeds on your

[00:12:24] and the previous answer and that is I mean to get even to use that example 10,000 names

[00:12:31] in a house file and to have that built out with the amount of information you're providing for an

[00:12:36] organization within an hour the obviously leverage a lot of technology yeah is it am I asking you a

[00:12:43] question that's confidential like could you share like what's the kind of the brains behind

[00:12:48] that yeah besides the physical individuals like yourself that are behind yeah it's like I can tell

[00:12:52] you but then you know I'll have to now so okay so there's no question that this is a big technical

[00:13:01] lift and which was a big project just to give you a bit of a sense of the enormity of the project

[00:13:07] you know and this is all public information you know the company was started three years ago

[00:13:13] we had three previous rounds of funding so we've raised over $2.3 million to date

[00:13:20] we actually this week God willing are closing our seed round which would be north of $3 million

[00:13:27] so collectively hatches raise over $5 million of venture funding and I think that speaks

[00:13:35] to the enormity of the technical lift that is needed for a technology of this sort because it

[00:13:42] is very very complicated and very you know when you think about getting I'll tell you what's just

[00:13:50] to give you a picture like getting this data licensing the data that's obviously a cost that's

[00:13:55] everything the biggest complication here is what's called entity resolution so if I'm getting

[00:14:01] you give me you have a John Smith in your database and you know how many John Smiths there are

[00:14:06] in the United States I had to guess I don't know 50,000 45,000 okay yeah very good pretty good

[00:14:12] that sounds very close by the way by the way as of the research that I've done it's probably as close

[00:14:17] to 50,000 that's actually there when I did the research a year or two years ago was 45,000 today

[00:14:21] there's probably 50,000 John Smiths in the United States so let's say you're an nonprofit and you have

[00:14:25] a John Smith in your database so for me to get John Smith the accurate information from of your

[00:14:31] John Smith and not another John Smith from 40 different sources over 80 different pieces of

[00:14:36] information that to create those matches and to cross pollinate that information that takes a lot

[00:14:41] of algorithmic writing okay that takes a lot of AI predictions okay that takes a lot of work and

[00:14:47] that's where a lot of our technical work has gone into we have data engineers data scientists

[00:14:54] front end back end developers that have developed a system we've created you know we don't get

[00:14:59] at 100% write in every single individual but therefore we've created a beautiful UI and UX of

[00:15:04] giving different scores for individual what's the likelihood that that that the match improving

[00:15:09] the matches over time so the real technical challenge over here is because there are 40,000

[00:15:15] 50,000 now John Smiths in the United States getting the right information from so many different

[00:15:20] locations to append and to enrich this profile in real time it's a huge technical challenge

[00:15:27] we've gotten to a critical place in this technical challenge where we've been able to deliver an

[00:15:31] MVP you know a minimal viable product or our customers were like okay we can use this but we do

[00:15:35] have a really long way to go in terms of proving the accuracy improving the match rate for each profile

[00:15:44] now just a key question because I don't want anyone who's watching this to say like okay this

[00:15:49] sounds like an amazing invention maybe I'll reach out to them in a year or two my understanding is

[00:15:53] you have presently as of now March 2024 north of 150 act of clients yes correct yes we have

[00:16:03] yes we have three major universities that are using us we have one nonprofit that is a national chain

[00:16:10] of over 35 chapters across across the United States and it has to take us for privacy reasons to say

[00:16:16] names of these nonprofits but do inquire and we could give you another confidential that we can tell

[00:16:23] you who our clients are but we have clients that have over a million people in the database that

[00:16:28] have been around one of our clients has been around for over a hundred years so we definitely have

[00:16:34] deep into the nonprofit space of North America now we've we've come from a certain angle

[00:16:41] in the first part of of this episode but now I just want to come at kind of come at you with a

[00:16:47] straight up question and that is at the end of the day a fundraiser an executive director

[00:16:53] how could they maximize the benefits their return through your platform hatch

[00:17:00] hatch really benefits to different categories of people responsible for raising funds in their

[00:17:11] nonprofit okay so number one is the fundraisers the major gift offer serves the directors of

[00:17:17] development who are responsible for raising major funds and what we one of the motivations

[00:17:24] of building this platform was that we don't ignore the second category which are the peer-to-peer

[00:17:29] campaign managers the crowdfunding managers and it helped the platform helps them too so let's

[00:17:35] start with it with the with the major gift offers okay so if you're a major gift officer your

[00:17:43] job is to build relationships essentially with with philanthropists and in order to build those

[00:17:50] relationships the more information that you know about those people like a good friend knows

[00:17:55] right knows what a good friend how he thinks how he eats where he likes to visit what's this

[00:18:00] what what inspires him what motivates what motivates him right so the information that we give to

[00:18:05] major gift officers and to fundraisers is information that help first of all gives you the idea

[00:18:13] of what their per you know capacity is yeah okay so if he's giving to you to a thousand dollars

[00:18:18] to your organization and you can see clearly on hatch that he's giving to another organization 10,000

[00:18:22] or 50,000 or a hundred thousand dollars that right away qualifies him for a greater gift okay but

[00:18:27] that's not enough you want to be able to see well what are the types of other organizations that

[00:18:32] he's given to right does he give to religious causes does he give to educational causes is give to

[00:18:36] environmental causes okay because within your organization that might that might check something off

[00:18:41] the list of qualifying that ask or might move you to say you know what this program is not the

[00:18:47] right program that I should be asking from about because let's say I'm an institution that has both

[00:18:52] educational programs and environmental programs when you want to shift them that ask to what they

[00:18:57] care about more there are other wealth signaling also tools in the organization so you might not be

[00:19:02] able to see their public gifts and see that they gave another organization a million dollars but

[00:19:06] you can see things like their real estate holdings wealth signals their assets how much they're you

[00:19:13] know the their wealth what kind of home they live in are they are they owner of the home other

[00:19:18] wealth signals that can inform you know how when and how much to ask for those major for those

[00:19:25] major donors and that's typically goes into the category what we call wealth screening in this

[00:19:29] industry and hatches my opinion best in class on well screen now the second category are peer-to-peer

[00:19:35] campaign managers and crowdfunding which is really why this thing was born right so if I'm

[00:19:40] running a peer-to-peer campaign and I need a hundred bikers for for my for my by bycathon okay this

[00:19:45] is this is a real I'm going to give you a real case scenario we had an organization that in the

[00:19:50] previous year at 50 people running doing their bycathon okay they came on to hatch they had to

[00:19:57] think roughly 12 or 13,000 people in in their database okay with three little clicks of button filters

[00:20:04] they were able to find the 167 people in their organization that were interested in biking

[00:20:10] okay because they was listed on their social media as interested in cycling they probably could have

[00:20:15] found more if they would have been like if they're outdoorsy or if they work at a bike company or

[00:20:20] if they're a physical therapist but they left it at people who were clearly saying that they're

[00:20:26] skilled are interested in biking they got 167 they narrowed that down they put a volunteer

[00:20:31] on calling those specific 167 people and they got over 20 new cyclists for their peer-to-peer campaign

[00:20:39] for that year so this is a way to help peer-to-peer campaigns it's a tool that is for the fundraisers

[00:20:45] it's a tool that are for the peer-to-peer campaign managers for the crowd funding managers

[00:20:49] for the event planners you can go into hatch I hear here I'm going to say this guaranteed okay

[00:20:55] and you can catch me on this and you get your a free year subscription if you have if you have over

[00:21:00] 5,000 people in your database okay and I can't find you more than 30 people in your database

[00:21:05] that love golf you get your fear of subscription for free because you take any 5,000 people out there

[00:21:12] we're going to be able to find critical mass of people that love golf so the next time you're

[00:21:15] running your peer-to-peer golf event hatch is going to help identify those people who are either skilled

[00:21:21] interested spend their time doing the lifestyle things that your fundraisers are about because

[00:21:28] it's no longer just about money anymore with fundraising fundraisers today are around lifestyle

[00:21:34] they're around events right so learning their lifestyle learning what type of event they're

[00:21:41] going to want to participate is going to move the needle for anyone in the organization who is

[00:21:46] responsible on building these initiatives now just an interesting question here short while

[00:21:53] ago you had mentioned that within an hour after an organization engages with hatch they're getting

[00:21:59] critical information at their fingertips how often are they getting updates how from should they

[00:22:04] be logging in any so that's a great question so hatch is built as a platform to be used on a daily

[00:22:11] basis and the reason is aside for the pricing there's it's a software as a service model but for

[00:22:18] the main reason is that the data is updated in real time relevant to the to where the how the

[00:22:25] the data is updated in its source okay so let's take worst case scenario if the data is coming from

[00:22:31] the IRS or from an annual report it's updated annually okay now let's go down to job jobs jobs are

[00:22:39] being updated on social media all the time we're scanning job sources every quarter okay let's go

[00:22:46] further down what if it's a tweet well a tweet should be is daily we're scanning to Twitter

[00:22:52] x whatever calling it these days on a daily basis if it's media we're getting on a daily basis if

[00:22:57] it's stock movements we're getting on a daily basis so when you log in to hatch everything

[00:23:01] represents more or less real time as that data as people are growing as people are evolving as

[00:23:06] people are changing positions as people are changing careers so the data is real time so it's worth

[00:23:12] it for an organization to come in on a day-to-day basis to see how is my community growing I will

[00:23:18] just like to add we actually have a feature called hatch live which is a live ticker of what's

[00:23:23] happening in your database right now so you go on to hatch live will show you whose birthday it is

[00:23:26] today we'll show you who tweeted today we'll show you who put up a YouTube video today if they have

[00:23:32] a YouTube channel and many other things that are happening it's kind of like a real-time feed

[00:23:36] of your community specifically your people in your database for people out there in the

[00:23:43] nonprofit space later we're going to touch on because I'm saying to myself you got to have

[00:23:48] a tool for corporate but I what we're going to touch on that a little later in the nonprofit world

[00:23:53] they're listening to this and they want more information what's the website hatch.ai

[00:23:59] Moshehatch.hatch.ai Mosheh perhaps you could share a story from an organization obviously not

[00:24:08] sharing the particular name and organization where hatch made a huge difference now by the way

[00:24:14] the whole interview here is 45-50 minutes you probably can go on for hours where you made a huge

[00:24:19] difference but maybe like one story that really brings it home yeah I'll tell you two two anecdotes

[00:24:25] two stories on kind of the the opposite sides of the sizes of the organization so one from a really

[00:24:32] small organization and one from a you know more substantial organization so we have an organization

[00:24:38] that's young it's only about three or four years old had a small database updated updated uploaded

[00:24:45] in into hatch got all this new information and three or four months into the platform I get

[00:24:53] this whatsapp message from from from from the customer and Mosheh you're not going to believe it

[00:24:58] I found this person in the database and here's a story he basically put this individual on the

[00:25:03] database new very very little about her she was a woman that lived in her in her community and

[00:25:10] on hatch told him critical information hatch told her that she was an author okay hatch told her

[00:25:17] that she gave very serious significant size gift to political causes very frequently okay it

[00:25:28] actually told her his age so was able to get an age range and just other information and then

[00:25:34] once he got that information hatch he kind of did some other research he says I went into that

[00:25:38] meeting so confident and so prepared and he said he made sure the complimenter on the book

[00:25:44] which otherwise would not have right otherwise wouldn't have known he made sure some of the things

[00:25:49] that he brought up in the conversation he made sure not to make a Biden joke okay because he saw

[00:25:56] where her political leaning was he might otherwise have been a little bit looser talk talk talk

[00:26:01] a little politics make a joke he made sure not to make that joke because he saw where her political

[00:26:06] leaning so we're going finally he knew exactly what size gift to ask for he asked for an 1800 dollar

[00:26:14] gift because that was the average size gift of her giving to other organizations and to her political

[00:26:18] size gift and she closed right there and she gave him an 1800 an 1800 dollar gift and he you know

[00:26:26] he he gives so much credit obviously it's him he had to do the ask but he said that that

[00:26:31] meeting was so pleasant and was so successful because I think he texted this was about a year ago

[00:26:37] he texted me like two months two months ago he says most of the time you know I got another

[00:26:41] 1800 dollar gift from her and he you know for him he feels like a lot of this is credit

[00:26:46] to the information that he was able to get how smooth that operation was with with her another

[00:26:50] another anecdote so there's an organization that is a day school in the United States and they were

[00:26:55] running a multi-million dollar capital campaign okay almost that 10 million dollar capital campaign

[00:27:03] and they hired fundraising consultant who otherwise would have been working with them

[00:27:08] through this capital campaign as a capital campaign consultant and she used this she you'd

[00:27:15] used hatch for six months to plan this campaign because we didn't get too much into the details but

[00:27:20] you can create segmentations you can create workflow on hatch you can create tags and sorts and

[00:27:27] filter she was on this platform hours and hours a week managing and planning the entire crowd

[00:27:33] funding campaign and there's and and the feedback that I got back from from from the head of this

[00:27:40] school he's like there is no question that a million new dollars was raised from this campaign

[00:27:45] because of hatch another thing is is that it didn't only give them information on the you know

[00:27:51] the lead gift for the capital campaign and the mid-level may in me give it also hatch gives new phone

[00:27:57] numbers and emails so he said that he's had a part of the capital campaign was also a crowdfunding

[00:28:03] component right and he's done crowdfunding in the past he said he doubled his efficiency on his

[00:28:10] crowd fund on his call center for their for their last bit that they raised because they had new

[00:28:15] phone numbers an accurate one yes and accurate email addresses yes so he doubled his efficiency

[00:28:22] on his call center on his operations room because of all the new data points that hatch was able to

[00:28:27] provide for for this campaign so those are you know two different types of stories that really

[00:28:33] shows the benefits of what I loved about even the first story was that what to do and what not to do

[00:28:40] that's it's sure that's what data is all about yeah data data is king right and they did yeah now

[00:28:45] yeah especially in those fill of you know in those one-on-one conversations you want to align

[00:28:52] yourselves with these philanthropists as much as you can and you want to be careful because a lot

[00:28:58] of them have you know they didn't they didn't become philanthropist because they weren't have strong

[00:29:02] opinions because they didn't you know they weren't strong about certain things so as a fundraiser

[00:29:07] you want to be you should always be sensitive but it's good to know a little bit more information

[00:29:11] on what areas to be extra sensitive now here's a key question that really it's in the minds of

[00:29:18] anyone involved in the world of fundraising now are you focusing on your existing donors

[00:29:24] or on your new donors are you going at its housefall versus acquisition now I would imagine again

[00:29:32] in your world you're pulling information from your existing database why is it important

[00:29:41] and why is it important to first focus on your housefall focus on your existing relationships

[00:29:48] and perhaps is that the pathway for acquiring new major gifts yeah so and major donors

[00:29:54] new major donors yeah so every organization has to be focused on their existing constituents

[00:30:00] and simultaneously be focusing on you know building out their pipeline and building out new people

[00:30:04] in the database but what my advice and what hatch follows this mantra for any organization that's

[00:30:10] been around roughly five years raises you know north of two three hundred thousand dollars a year

[00:30:16] right that's kind of like we can't really help organizations that are less than that so if they're

[00:30:20] just start if they're just startups like really just right out of the gate at this point there

[00:30:25] really isn't a much that we can provide we do have a separate product within hatch called open giving

[00:30:30] which you can do research through all grant giving foundations so we could help you identify

[00:30:35] grant givers and the key personnel behind them as a startup and that's free that we give to startup

[00:30:41] organizations but to answer your question when it comes to you know building your database

[00:30:47] verse you know going deeper or going abroader so what I always tell organizations that if again

[00:30:52] if you if you hit this if you fit this criteria have been around for a few years you have a database

[00:30:57] all your hopes and dreams are right under your nose because even if you do have to build your database

[00:31:01] and you have to the best place to start is with your existing database because what I find is that

[00:31:09] nonprofits are ignoring 90% of their existing constituents they're focusing on their major donors

[00:31:14] their most active supporters but they're ignoring the rest of their database 90% of the people and

[00:31:19] in that 90% are more major donors, mid-tier donors, armies of modest donors, social influencers

[00:31:26] today so it's not just about money but it's about how they can propel your organization through

[00:31:31] through their social influence go deeper on your existing constituents learn more about them build

[00:31:37] those relationships and then word of mouth they're going to be inspired and motivated to share

[00:31:41] now I should mention that there isn't a feature within hatch that does show connections

[00:31:46] to your existing database so it's organic lead gen organic prospecting through your existing database

[00:31:53] we will show you two categories number one we will show you people that are connected to your people

[00:32:01] if they sit on let's say the same C-suite in an company and that's public information

[00:32:07] if they sit on the same board of you in a nonprofit or even a foundation that's public information

[00:32:12] we will append that to their profile so they can see who they can make connections through

[00:32:16] we're also going to show you people that follow your people on Twitter if they have a Twitter account

[00:32:21] and we'll show you who are those people are mega influencers so if John Smith has somebody who

[00:32:27] follows him on Twitter and that person has 20,000 more Twitter files we're going to make sure

[00:32:31] that hatch shows you that information so there is when you know if you start with your database

[00:32:37] there are ways to organically grow from there wow now I this is perhaps an unfair question but if

[00:32:43] it's okay you said I could pretty much ask anything you provide dozens of pieces of information

[00:32:52] on every donor that's sitting in the file is there perhaps like one piece of information

[00:32:59] that you would say like stands out like this is something that's like wow this is something

[00:33:04] that like every fundraiser would dream of having this information and you provide it in hatch

[00:33:08] you know I love that question because it's a hard no okay it's a hard no okay and I think

[00:33:16] thank you but at least not turning off the mic on me yeah no it's a hard no and I want to

[00:33:20] storming out of the studio you know like this is a great studio by the way very comfortable here

[00:33:24] so I'm not going anywhere it's a hard no and I'll tell you why if you have one piece of

[00:33:29] information you go on that information you can you could you could you could head down a really

[00:33:33] scary path right the idea is to create what we call a complete human profile it's multiple pieces

[00:33:42] of information that build this character okay so if I find I see one person I gave a million dollar

[00:33:49] gift to this organization in in 2005 so you know that's very very weak data to go on

[00:33:57] I mean what's happened to him since then right okay why did he give that gift do you

[00:34:02] are you seeing a trend of that of that gift but let's say I see that one piece of information

[00:34:07] but I also see that now he is either the CEO of a big company where I see okay there's this trend

[00:34:14] of him still being capable of giving or whatever I see that he gave that one gift and now I know

[00:34:18] from Hatches retired okay so then maybe you think right so it's all about creating what we

[00:34:25] call a complete human profile dozens and dozens of little pieces of information that that that

[00:34:32] comes together to create a character to create an individual and that is qualified information I

[00:34:38] think a lot of fundraisers out there who are using other prospect researching tools that are just

[00:34:43] looking at this kind of stale one or two pieces of him he lives in a $15 million home well do you

[00:34:50] know that he also owns 90% of the mortgage or do you know that he lives he's still living with his

[00:34:55] parents like so so it's about it's about dozens of pieces of information coming together to create

[00:35:03] this complete human profile that the person looking at it can make an educated and an artful

[00:35:10] but you know assumption and prediction around this person to help qualify the ask now if there is one

[00:35:15] piece of information that I would say is a good start okay home value okay because first of all

[00:35:23] home value is 100% accurate if the organization gives us their home and their address there's no

[00:35:28] John Smith problem there's no checking to see it's where they live so that's a good place to start

[00:35:35] so you go on to the platform and like sort of sort your entire database by who has the most

[00:35:39] expensive home okay I was just on with another organization the other day they sorted the entire database

[00:35:44] they who has expensive home first came home it was a $75 million home okay we went a little further

[00:35:50] into its good start okay it's the family house it's it's part of the but it started to give them

[00:35:57] a sense of the thing so that's a good place to start it's always 100% accurate it always kind of

[00:36:03] gives a sense and then from there you can go and veer out into all the other pieces of information

[00:36:08] that help color this individual or that family and so on and so forth. Mocha we've known each other

[00:36:14] a long time and in a variety of different positions aside from charity and now especially in Hatch

[00:36:21] you've managed to successfully combine working in the nonprofit space and in the corporate space

[00:36:27] can you please talk about that yeah sure so honestly I feel like extremely blessed

[00:36:36] because very very rarely I've been able to eat my cake and have a tooth when it comes to

[00:36:43] how I spend my time and my career you know I grew up in a family that you know the Wall Street

[00:36:50] Journal actually wrote an article on my family many years ago I've spoken about it this few time

[00:36:54] that called us the largest rabbinical family in America that's precisely around the time we're fake

[00:36:59] news started so I don't know if that's if that's true but you know it does give some color into

[00:37:06] my background my grandfather ran a very very prominent my grandmother ran a very prominent

[00:37:10] nonprofit organizations most of my siblings run social and social enterprises so for me it was

[00:37:17] kind of in my in my destiny and my stars like this is what you're supposed to do you start you

[00:37:21] supposed to start a nonprofit right but simultaneously I had entrepreneurial ambitions I had artistic

[00:37:27] ambitions I had a music career for a while we'll probably start that up at some point again in

[00:37:33] some in some capacity but you know so I've had these you know almost seemingly conflicting entrepreneurial

[00:37:41] ambitions so what happened when this opportunity started at charity and now at Hatch where I'm

[00:37:47] able to a build a scalable business that's going to help thousands of organizations that is

[00:37:55] that is going to generate millions and millions of dollars of revenue for both

[00:38:00] not hundreds of millions for both the entities the nonprofit entities and for the business itself

[00:38:06] so so I mean I get everything and directly you know some people have to you know they're

[00:38:12] passionate about giving to charity so they have to build a business and sell jeans and I'm

[00:38:15] not passionate about jeans or not passionate about you know vanity selling vanities but eventually

[00:38:21] they'll give to charity for me it's all completely interlocked I could build a successful a business

[00:38:26] and have built a successful businesses in this space while at the same time helping people helping

[00:38:32] people so I feel like I'm doing what I'm calling at scale special special now let's hold on

[00:38:39] to the nonprofit world fundraising is no easy feat you know what suggestions do you have for

[00:38:46] a director development of fundraiser to raise major gifts or even the tip or two on peer-to-peer giving

[00:38:54] yeah you know it's really simple and any any professional fundraising consultant

[00:39:01] or anybody person who's been in this space for a long time will tell you that ultimately it's

[00:39:05] all about building relationships okay but I think there's a nuance here that we have an

[00:39:10] opportunity going into you know 2024 2025 we have an opportunity under this umbrella of building

[00:39:19] relationship when you think about like what is a really good relationship think about a really

[00:39:23] really good friend a really really good friend okay it's not just that he comes to your parties

[00:39:29] or he's the one that's invited to your inner circle or spends your you know backyard time with you

[00:39:34] a really good friend one of the most important qualities of a really good friend is that they can

[00:39:40] predict yeah what you like predict what you need right what we're doing is we're giving

[00:39:48] organizations and fundraisers predictive power for their constituents where when they're

[00:39:56] able to say look at all of this data and look at all this information okay like a true friend

[00:40:02] then can say you know what based on this information and based also together with my relationship

[00:40:07] I have this predictive power where I know what program and how much and for which particular

[00:40:16] group of children or which produce particular group of things is going to make the greatest

[00:40:21] impact for you because ultimately our job as fundraisers is to make our philanthropist and

[00:40:26] anybody giving ten loss to make their dreams come true through their giving so what you have at

[00:40:31] your tool right now is the same way a friend should be able to finish your sentence

[00:40:35] you're able to know exactly what you want for your birthday should know when your birthday is

[00:40:39] right right we're giving that power now to the fundraisers whether they're asking for a million

[00:40:44] dollar gifts or they're asking someone to join a crowdfunding campaign to give them that predictive

[00:40:48] power to be able to know exactly how to align their philanthropy with your cause within three years

[00:40:57] of inception you have over 150 clients and including some very major universities can you tell us

[00:41:04] what you feel is the biggest driver of your success that's a great question you know I reflect

[00:41:09] back at what made charity.com succeed and I will say that while we had some pretty talented people

[00:41:18] while the original founder you who the girl which was in very much in many ways a visionary okay

[00:41:25] so there were a lot of good components there but I think that when we reflect back the greatest

[00:41:30] driving of our success was that we were writing a wave right before it took off right and it takes

[00:41:39] a visionary and it takes an entrepreneur to see to know before that corner to ride the way but

[00:41:44] ultimately you ride the wave right so with charity was riding away the crowdfunding and now we're

[00:41:49] riding the wave of data and AI and I think a successful business is not creating a market

[00:41:57] a successful business is not trying to force a solution to an industry but a successful

[00:42:04] business is saying like the industry is moving in this direction like data is needed for so many

[00:42:09] things data is needed today for AI for machine learning for all the generative AI data is needed

[00:42:15] today for enrichment so data as a solution is the calling of our time if you're able to monetize

[00:42:23] that you're able to develop a solution for a particular audience that's I believe is the greatest

[00:42:29] driving success so it's not about your particular talent or your particular group of people those

[00:42:34] are all very very important but they're secondary things the primary thing is that you're at the

[00:42:39] the right solution at the right time for the right audience and that's writing a wave.

[00:42:43] Namocha you go your face lights up and you're like you feel like I feel like you're about to jump

[00:42:51] out of the chair anytime we talk about this you know the hatch and apparently it's not just a parent

[00:42:58] it's obvious it's what you love to do yeah just a question because again you have life experience

[00:43:06] in addition to being at the at the forefront of some latest greatest technology how important is

[00:43:12] it for any visionary any CEO or even anyone at their desk to love what you do be passionate about

[00:43:20] it be involved with something that you're just you're crazy about yeah I think it's a critical

[00:43:25] component I think it is the ingredient I think it's the salt in the in the recipe and you know

[00:43:32] it's not something that you could be taught passion it's not something that you know it is a

[00:43:40] little bit contagious you know when you're surrounded by passionate people it is a big

[00:43:44] thing but kind of fades away it's something that either you have it you don't you know I'll tell

[00:43:48] you a quick anecdote my grandfather who was the chief rabbi of Australia or by Chiam Guttnik he

[00:43:53] was once brought down to give a class on public speaking to a group of women okay and he got up

[00:43:58] and on on the on the talk and as a story I'm gonna do a terrible Australian accent and he says

[00:44:02] you know so he says you know the trick to public speaking is either you got it or you don't

[00:44:09] then he sat down it's one of those things that you they have or you don't passion is one of the

[00:44:14] and then he got back up and he gave the and he gave the and he gave the whole the whole the whole talk

[00:44:18] but the passion is something that you know if you're an entrepreneur you're starting something

[00:44:23] you're found something you're at the high level something on the ground floor if these problems

[00:44:26] don't keep you up at night then I don't know what's gonna drive you like you know take something

[00:44:32] secure get a good job if the if you have problems that aren't you think then it's yeah it's one of

[00:44:36] the other looking down the line and we touched on this earlier in the interview you're you're changing

[00:44:42] the world of of fundraising in the nonprofit world okay but I'm saying to myself during this

[00:44:50] interview that just got to have a solution in the corporate world we understand data mining

[00:44:57] in terms of acquisition legion am I putting you on the spot or am I asking something confidential

[00:45:04] like no something up your sleeve for the corporate world yeah no we definitely intend to pivot

[00:45:09] towards companies hatch can be used for sales people to qualify leads and if you do if you

[00:45:17] if you are out there in your company and you'd like to explore that we are beta testing with different

[00:45:21] in industry so definitely reach out what I'm most excited about are brands that are doing

[00:45:28] CSR corporate social responsibility and where hatch can help measure the impact and qualify

[00:45:36] the donations that they're making so if I'm Nike and I'm busy giving a $10 million gift to

[00:45:41] animal rights and they have no idea if they're if their customers or their employees actually care

[00:45:47] about our rights hatch can come in within a day we can run all their data and we can say well

[00:45:52] actually 70% of your people care more about environmental so you're throwing all this $10 million

[00:45:58] towards this you know maybe that maybe the greatest and you know the hottest and greatest new

[00:46:02] cause out there but it's not what your employees or customers actually care or are thinking about

[00:46:07] and that has a bottom line impact on the company because of their if that company if that

[00:46:15] customer sees that this brand is more aligned with the things that I care about and they're donating

[00:46:20] to or doing some type of volunteer effort to the donations they care about that's going to create

[00:46:24] loyalty with that with that brand I hope it's not a good spot to ask you this final question

[00:46:30] sure okay you're a charity charity is still a thriving company and yet you're you have that

[00:46:38] intrepidorial bug in you and you're just going after you know what perhaps you could share you

[00:46:45] obviously your risk figure perhaps you could share a tip or two for those out there that have a

[00:46:52] vision they want they they there's something beyond what's in front of them now but a little nervous

[00:47:01] right because you know you're comfortable yeah you're obviously someone that's comfortable

[00:47:06] in the uncomfortable yeah could you talk about that uh yeah that's that's a good question having

[00:47:12] me think a little bit I would say like this I think risk is directly correlated to ambition okay

[00:47:22] it's a direct correlation or maybe a causation but definitely correlation correlated to to to each

[00:47:27] other um and I think it's important to know yourself there's a lot of you go through social

[00:47:35] meeting is a lot of pump up you know people out there take a risk take a risk well not if it doesn't

[00:47:41] not if you're that if you're ambitious right so I would say you know if you're not that ambitious

[00:47:46] you don't have a picture of a lifestyle that you want to live or how much charity you want to give

[00:47:51] right um then take less risk there's no there's no need to take less to take so much risk build a

[00:47:59] you know get a profession become something that that doesn't you know either learn a trade or whatever

[00:48:04] to take a risk and and and and that should be aligned with your ambitions but if you have a picture

[00:48:09] of what type of lifestyle you want to live or how much you want to contribute to society whether through

[00:48:15] an impact that you're making or through dollars and cents of how much you're giving or building or

[00:48:20] doing then that's directly correlated to the risk the greatest ambition is is directly correlated

[00:48:25] to the level of risk so if you want to make just a ten million dollars you're going to have to

[00:48:32] take a lot of risk to get there um because you're creating something for nothing right you're creating

[00:48:38] something new usually people who have who are exponentially successful are creating and delving

[00:48:45] into worlds that didn't existed before they came up with something new they innovated it

[00:48:50] made an invention in innovation and that caused some kind of an exponential return so I think the

[00:48:57] answer is like just know yourself what how ambitious are you if you're super ambitious and you

[00:49:05] think you're going to do with a little bit of risk you're in for big trouble if you're not so

[00:49:10] ambitious don't take that much risk but if you are super ambitious know that you are going to have

[00:49:15] to take an equal amount of risk to get to where you're going. Moshehacht of hatch that AI what an

[00:49:24] incredible episode thank you very much what an incredible episode of Mind Your Business catching up

[00:49:29] Moshehacht was a real treat formally of charity and now on to hatch you know it was great hearing

[00:49:35] from someone with that level of experience on how knowledge of your donors can lead to greater

[00:49:42] gifts for anyone in the nonprofit world and it paves the path for reaching out to future donors

[00:49:49] I'd love to get your thoughts your comments your feedback please put them in the comment section

[00:49:54] below and please join me on an upcoming episode of Mind Your Business