-- Most nonprofits measure fundraising success the same way they did 30 years ago: response rates, cost per dollar raised, and gut instinct. Michael Peterman, Founder and CEO of VeraData, believes that approach is costing the sector billions in unrealized philanthropic giving every year — and he built a company to prove it.
VeraData's framework of "accurate, complete, timely, and consistent data," powered by an AI environment custom-built for the nonprofit sector, led to the development of the company's Donor Science approach — a methodology that treats donor acquisition not as an art form but as a discipline with measurable, repeatable outcomes. Under Peterman's leadership, VeraData now serves organizations nationwide that collectively raise more than $1 billion annually, supported by a team that includes more than 25 PhD mathematicians.
"The question we ask every client is simple," Peterman says. "If you knew exactly which prospective donor was most likely to give, most likely to give again, and most likely to become a major donor — would you make different decisions? Every nonprofit says yes. Donor Science makes that knowledge available."
From Direct Mail to a Proprietary Discipline
Peterman started VeraData in 2007 to apply machine learning to direct marketing. By chance, the company's first client was a nonprofit agency. The team enjoyed the experience and decided to specialize in philanthropy, creating the company's bold mission: to increase philanthropic giving as a percentage of gross domestic product. VeraData
What emerged from nearly two decades of working exclusively in the nonprofit sector was a data framework that no general-market analytics firm could replicate. Donor Science is built on the recognition that charitable giving behavior follows patterns that are distinct from commercial consumer behavior — patterns that require sector-specific training data, sector-specific modeling, and sector-specific benchmarks to interpret correctly.
The company routinely doubles or triples an organization's active donor pool while reducing the cost of acquiring donors by 20 to 30 percent. Those aren't projections. They are outcomes VeraData is willing to put behind a performance-based pricing model that charges clients only when results are delivered. VeraData
"We're the only company in our space who puts forth what is a Herculean effort up front with no payment required unless we move the needle," Peterman says. "That alignment breeds trust. And trust is what the nonprofit sector runs on."
The Three Pillars of Donor Science
At its core, Donor Science operates across three integrated capabilities. Predictive modeling identifies which prospects are statistically most likely to make an initial gift, based on behavioral, demographic, and transactional signals drawn from VeraData's proprietary database. Donor development modeling determines the optimal cadence, channel, and message for converting a first-time donor into a recurring and eventually major contributor. And performance attribution closes the loop — connecting every campaign decision back to measurable revenue outcomes so organizations can continuously improve.
VeraData's full portfolio of capabilities now spans creative design, data analytics, production, and logistics, bringing a more comprehensive offering to the nonprofit sector under a consolidated structure through The VeraData Group. TechIntelPro
The result is what Peterman describes as a flywheel: each campaign generates data that makes the next campaign smarter, compounding over time into a donor acquisition and retention engine that becomes increasingly difficult for competitors to match.
Why Now Matters
Peterman points to a convergence of forces making Donor Science more relevant than at any point in the company's history. Donor acquisition costs are rising across all channels. Third-party data is becoming less reliable as privacy regulations tighten. And nonprofits are under growing pressure from boards and major donors to demonstrate that fundraising investments are producing measurable returns.
"The organizations that will thrive over the next decade are the ones that treat their donor data as a strategic asset right now," Peterman says. "Not next year. Not after the next campaign. Now. Because the flywheel takes time to build, and the organizations that start late will spend years trying to catch up to the ones that started early."
Peterman was recently named EY US Entrepreneur of the Year 2026 Florida Award winner, selected from a competitive field of 592 finalists across 17 regions, and will advance to the national competition. He credits the recognition not to any single achievement but to the team and mission that have driven VeraData's growth since its founding.
"Entrepreneurship is a team sport," he says. "Nobody accomplishes anything meaningful alone. I have been blessed with an incredible team that bought into this vision, believes in it every single day, and works tirelessly to support our clients' missions."
About VeraData
VeraData is a data analytics company headquartered in Sarasota, Florida, specializing in AI and machine learning-enabled donor acquisition and retention for the nonprofit sector. Founded in 2007 by Michael Peterman, VeraData serves more than 400 nonprofit organizations nationwide and supports clients that collectively raise more than $1 billion in annual philanthropic giving. VeraData operates as The Donor Science Company. For more information, visit veradata.com.
About Michael Peterman
Michael Peterman is the Founder and CEO of VeraData and the originator of the Donor Science framework. He is the EY US Entrepreneur of the Year 2026 Florida Award winner and will compete at the national EY Entrepreneur of the Year program in November 2026. Peterman is based in Sarasota, Florida.
Contact Info:
Name: J. Farque
Email: Send Email
Organization: VeraData
Website: https://www.veradata.com
Release ID: 89200543
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