A Fresh Look at Development Metrics

byBob Woods

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Metrics, Motivation and LeadershipHow to Motivate Development Staff?Build from Strength; Not as a Penalty?What Happens When Leadership Doesn’t

Lead?Do Metrics Improve the Profession?Do Metrics Inform the Art of Development?Data vs. the Water Cooler?

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What Are Metrics?What Others are SayingKey Data Aggregated from a Development

DatabaseMeasurements that Board and Staff Agree UponIndicators of a Program’s HealthAnnual Fund – Capital Campaign – Annual

CampaignCan be a Snapshot in Time or Measure over

PeriodsAccountability vs. Inquiry 3

What Others are SayingFunding and Forecasting FormulasWho Cares?

Measuring Impact on MissionMeasuring Progress in Fundraising

Grant Thornton AdviceData Mining

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Mathematics of Funding and Forecasting

Funding = Grant $ + (# of Funders Asked x Success

Rate x Average $ Given) -- Ted Chan, MIT Sloan School of

Management

Discounting: Cash Quality ReportOthers?

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Who Cares?Most donors are not all that interested in performance

measurements (metrics) for charitable organizations and do not take them into account when they give, according to an article in the Summer 2004 issue of the Stanford Social Innovation Review.

Despite the lack of interest and, in a few cases, opposition to performance measurements, the report concludes that the use of metrics can be beneficial for both donors and charities.

-- Katie Cunningham and Marc Ricks, 2004

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Advice from Grant ThorntonThe following best practices, found in Grant Thornton LLP’s ForwardThinking newsletter can be usedto ensure that all board members receive the right amount of information by which to govern theorganization:

Brainstorm with the board to determine what type of information members want to receive.

Develop a one to two page “dashboard” of key financial and operational metrics that provides information on the most relevant indicators.

Identify key metrics to assess the organization’s performance against its mission statement and strategic plan.

Inform the board on budget versus actual revenues and expenses as well as budget versus actual capital expenditures and debt payments.

Provide the board with adequate financial information to support decisions; examples include: adding or expanding programs, acquiring property and equipment.

Provide monitoring information so that the board can provide adequate oversight.

Provide the board with information on programs and activities to ensure that members have an adequate knowledge of the organization’s current financial state and its expected future financial state. 7

Data MiningVoluntary Support of Education SurveyBenchmarking (Target Group)Predictive Modeling (Johns Hopkins – SPSS

Inc.)Identify Key ProspectsEliminating Long-Time Non-Performing

ProspectsOther Forms of Modeling

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Key Data Aggregated from a DatabaseTied to a Prospect Tracking System

Values of Prospects at Every Solicitation Stage # and $ Amount of Solicitations

Value of the Prospect PipelineTied to a Contact Tracking System

Key Indicator: # of Visits!Key Issues: Stewardship and Cultivation Touches

Prospect Ratings, Research and Donor Retention

Development Receipts: New Gifts and Pledges9

Development Dashboard

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Personal Dashboard

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Why Use Metrics?Metrics, Schmetrics!Greater InsightIncreases Fundraising PerformanceAcceptance by Fundraisers

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Metrics, Schmetrics!Old School vs. New DayTime Intensive, Bureaucratic, Distraction

from Fundraising?Art vs. Science

Data Analysis Improves the Art of FundraisingKeep an Open Mind to What Data are Telling

UsCan Justify Actions, Investments and Instill

Pride13

Greater InsightCan See Strengths and ChallengesIdentifies Bottlenecks ImmediatelyHelps Target and Track Training and

InvestmentsSuggest Actions that Increase FundingTPL Volunteer Giving Example

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Development Dashboard: $370K in 6 Days!

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Increases PerformancePeople Perform when MeasuredEvaluation and MotivationMetrics and Shoe LeatherTPL Experience with Visits

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Effectiveness of Visits: TPL 2002-06

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Dollars and Visits: TPL 2000-06

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$10K Gifts by Job ClassificationFY 2006$ Raised > $10K # of Gifts $ RaisedProgram

AF 2 20,000$ OTT 12 411,224$

SDDs 68 3,261,170$ MGOs 118 7,730,259$

Corporations 36 1,063,333$ Foundations 122 15,816,180$

Unknown 28 1,223,499$ Total 386 29,525,665$

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Are Metrics Helpful?Development DashboardTop Fundraiser ReportVisits ReportEffectiveness

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TPL 2002-06: Visits Tracking Begins

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$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000

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TPL 2008: Effect of Tracking Visits – Growth

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TPL 2009: Effect of Tracking Visits

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Acceptance of Metrics by Fundraisers

Leads to ExcellenceImproved Professional SkillsProvides Information Helpful to SolicitationsCompensationTime and Comfort

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How to Interpret MetricsRead into Them What You Want?Data Quality?News vs. EmotionBuild from Strengths

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Stewart Woods Aspirational Metrics (SWAM) System

Development DashboardDevelopment Skills MatrixCampaign PlanningDevelopment Scorecard

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Development Matrix: Executive Director & Development Director

Ideas

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Metrics and MotivationInspirationRecognitionAffection

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Questions?Your Experience with Metrics?Is Your Database Capable?Scalability?Concerns about Evaluation?What is the Relationship between Aspirations

and Activity?Can Metrics Motivate Activity to Meet

Aspirations?Are Metrics a Useful Tool for Leaders?

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Go Raise Money!

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