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Last Updated: Nov 28, 2018 11:04AM AST

## What is Capacity?

Capacity is an estimated five year dollar amount of what an individual could potentially give to the non-profit industry as a whole.

How is the capacity determined?

The estimated capacity is determined using the wealth indicators that you have in your Prospect’s profile. The wealth indicators could be from the following datasets, Real Estate, Political Giving, Prospects of Wealth, Donations, or Thomson Reuters.  A different formula is applied depending on the dataset.

Political Giving Calculation:
For the Political giving calculation An Election Cycle is 2 years starting with odd years, example: Election Cycle for 2012 is 2011 and 2012

The formula used is:
Highest Total Election Cycle Contributions * 20

EXAMPLE:
\$15,000 Total Election Cycle Contributions X 20 = \$300,000 Estimated Giving capacity.

### Prospects of Wealth:

There are two pieces of information used to calculate the estimated giving in the Prospects of Wealth dataset.

Estimated Net Worth (low end of range) * 5%
Income (low end of range) * 10%
The Estimated Capacity is the highest number from the above calculations.

EXAMPLE:
ENW = \$5.00 mm-\$ 9.99 mm
Income = \$250,000- \$999,999
Calculation 1= \$5,000,000 * .05 = \$250,000
Calculation 2 =\$ 250,000 * .10 = \$25,000
Estimated Capacity based upon POW = \$250,000

### Donations:

In order to help determine the estimated capacity based on the donation data, the donor gift range low’s are combined by year. As well, in the case of a cumulative donation it will be counted once using the latest year only.

The estimated capacity based on donations is calculated by taking the Average of Total Donations by year, multiplied by (5)

How to determine Total Donations:
Low 1 = \$1,000 - \$5,000
Low 2= \$10,000- \$25,000
Total Donations = \$11,000

EXAMPLE:
Total Known Donations 2008 = \$25,000
Total Known Donations 2009 = \$50,000
Total Known Donations 2010 = \$50,000
Total Known Donations 2011 = \$100,000
Average: \$225,000/4 = \$56,250
Estimated Capacity:  \$56,250 * 5 = \$281,250

### Real Estate:

When determining capacity based upon real estate, the value used follows the following hierarchy: Current Value; Assessed Value or Tax amount if the following two pieces of information are not available.
The percentages used to calculate this are outlined in the table below.
 Property Values Primary Residence Multiplier Additional Property Multiplier < \$500,000 5% 7.5% \$500,000 - \$999,999 7.5% 10% \$1,000,000 + 10% 15%

Capacity based on Real Estate = Value of Primary Residence + Value of Additional Property.
Example:  Primary Residence is valued at \$1,000,000 and Additional Property is valued at \$1,000,000
\$1,000,000 * .10% = \$100,000
\$1,000,000 * .15% = \$150,000
Capacity based on Real Estate:  \$100,000 + \$150,000 = \$250,000

*** Add an additional 5% of real estate where Total Value of Mortgages is 50% or Less of the Total Value of Real Estate
EXAMPLE: Total Value of Real Estate = \$2,000,000 and Total Mortgages = \$750,000 = Giving Capacity Bonus of \$100,000

Thomson Reuters:
When determining capacity based upon the Thomson data, it will take 5% of the last known yearly compensation data in the record. If there are multiple records, if will take the lowest non- zero value and use this one.

RelSci:
To determine the capacity based on the RelSci data, it will take the first value of the following:
5% of Net Worth
10% of total compensation
10% of salary
5% of stock awarded

Manifold Data Calculations (Canada):
Income:
Median Income multiplied by ten (10) percent (EXAMPLE: Income is \$250,000. \$250,000 * 0.10 = \$25,000 Giving Capacity)

Value of median Dwelling Capacity: Value of Median Dwelling multiplied by 5% if Less Than \$500,000; 7.5% between \$500,000 - \$999,999; and 10% Greater Than \$1,000,000.

Insider Filings:

Take 5% of the Total Holdings Value

Total Holdings Value is calculated by taking the most recent acquisition or disposal transaction for each distinct ticker value of Insider Filings transactions in a PROfile, multiplying the 'Shares Remaining' by the 'Transaction Price' and summing these values in the case of multiple tickers. In cases where there are multiple transactions in the same day, use the sequence number to take the final transaction for the day

Example:
ABC - \$10 - 1,500 Shares Remaining = 10*1500 = \$15,000 - Total Capacity = \$750

Multiple Tickers:
ABC - \$10 - 50,000 Shares Remaining = 10*50000 = \$500,000
XYZ - \$25 - 100,000 Shares Remaining = 25*100000 = \$2,500,000
Total Holdings = \$500,000 + \$2,500,000 = \$3,000,000 Total Capacity = 3,000,000 * 5% = \$150,000

DatabaseUSA:

DatabaseUSA records may contribute a home value range and individual income range to the capacity calculation.

Capacity based on income is calculated as follows:
Income = Lower end of the range X 10%

Capacity based on home value is calculated as follows:
Home Value = Lower value of the home X Mulitpler listed below

Property Value                             Multiplier
< \$500,000                                        5%
\$500,000 - \$999,999                         7.5%
\$1,000,000 +                                     10%

Capacity is the greater of the two Income Capacity or HomeValue Capacity

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