Fundraising Effectiveness Project (FEP)
Monitoring Fundraising Effectiveness
Charleston Animal Society
Jeff M. Terry | Page #1 © 2008 Blackbaud
September 1, 2009
Fundraising Effectiveness Project (FEP)
Session Goals
1. Introduce the Fundraising Effectiveness Project (FEP) concepts and tools
2. Share analysis completed on Charleston Animal Society
- Year over year
- Compared to peers
Jeff M. Terry | Page #2 © 2008 Blackbaud
3. Discuss how CAS makes this data actionable
- What if scenarios
Fundraising Effectiveness Project (FEP)
Our Presenters
Jim Bush, CFREExecutive Director of Charleston Animal Society
@TopDogCASCharelston Animal Society
Jim Bush
Jeff M. Terry | Page #3 © 2008 Blackbaud
Jeff TerryManager of National Accounts - Blackbaud
@JT_on_DI
Blackbaud
Fundraising Effectiveness Project (FEP)
Jeff M. Terry | Page #4 © 2008 Blackbaud
Fundraising Effectiveness Project
Fundraising Effectiveness Project (FEP)
The AFP’s “Fundraising Effectiveness Project”
What Is It?
� A project launched in 2005 by the AFP and The Urban Institute
� Measure & understand growth or losses in annual giving
� Comparable growth data with other nonprofits
� Analysis - better understand where to focus your resources and efforts
� 1400 non profit participants & $4 billion in gifts analyzed since 2005
Jeff M. Terry | Page #5 © 2008 Blackbaud
Key finding from AFP:
Retention is King
Fundraising Effectiveness Project (FEP)
Per AFP:
“Growth in giving is increased both by maximizing gains and minimizing losses.
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Management and boards need to know this to make intelligent, informed, growth-oriented planning and budgetary decisions.”
Fundraising Effectiveness Project (FEP)
Contributors of Value
GAINS
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GAINS
Detractors of Value
LOSSES
Fundraising Effectiveness Project (FEP)
Aggregate Results – 1400 non profits in 2007-2008
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On average, for every $1 that participating organizations raised in new gift dollars in 2008, more than $1 was lost through donor attrition
Fundraising Effectiveness Project (FEP)
Aggregate Results – 1400 non profits in 2007-2008
Jeff M. Terry | Page #9 © 2008 Blackbaud
Fundraising Effectiveness Project (FEP)
Aggregate Results – 1400 non profits in 2007-2008
Gain Ratios
Jeff M. Terry | Page #10 © 2008 Blackbaud
Huge variance in performance when comparing best in class to others
Fundraising Effectiveness Project (FEP)
Aggregate Results – 1400 non profits in 2007-2008
Loss Ratios
Jeff M. Terry | Page #11 © 2008 Blackbaud
Huge variance in performance when comparing best in class to others
Fundraising Effectiveness Project (FEP)
How To Get Your Organization’s FEP Data
� The Raiser’s Edge:• Plug-Ins Section of RE, then click on link for ‘Fundraising Effectiveness Report’
• Contact your Account Manager if you’d like the type of analysis we did with CAS
Jeff M. Terry | Page #12 © 2008 Blackbaud
� Other systems:• Contact your vendor
Fundraising Effectiveness Project (FEP)
Fund Raising Effectiveness for Charleston Animal Society
Jeff M. Terry | Page #13 © 2008 Blackbaud
Comparing gains & losses in periods 05-06, 06-07 & 07-08 using the FEP report tools
Comparative data from 1400 non profits
Fundraising Effectiveness Project (FEP)
CY ‘07 & ’08 - All Giving
GAINS
Jeff M. Terry | Page #14 © 2008 Blackbaud
LOSSES
Fundraising Effectiveness Project (FEP)
CY ‘07 & ’08 - Individual Giving
GAINS
Jeff M. Terry | Page #15 © 2008 Blackbaud
LOSSES
Fundraising Effectiveness Project (FEP)
Peer Comparison – Average Giving per Donor
Jeff M. Terry | Page #16 © 2008 Blackbaud
Fundraising Effectiveness Project (FEP)
Peer Comparison - Donor Retention
Jeff M. Terry | Page #17 © 2008 Blackbaud
Fundraising Effectiveness Project (FEP)
Peer Comparison - Donor Retention
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The 25% best run organizations substantially out performed the norm
Source: Target 2008 Index on direct marketing giving. Over the twelve months ending December 2008, the Index evaluated transactions from 70 of the largest nonprofits in the United
States, including over 35 million donors and more than 64 million gifts totaling over $1.8 billion in revenue. Individual gifts over $5000 are excluded.
Fundraising Effectiveness Project (FEP)
Three Year Trending – CAS All Giving
Retained donors
gave 3X the amount
of a 1st time donor
Jeff M. Terry | Page #19 © 2008 Blackbaud
Fundraising Effectiveness Project (FEP)
The Data Tells Us
� Strong growth in # of new donors
� Average gift amount slightly better than peer average
� Upgrades outpacing downgrades
� Retained donors are 3X more valuable than 1st time donors
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donors
� Retention significantly below peers
� Average gift amount for new & retained donors significantly below peers
Fundraising Effectiveness Project (FEP)
Jeff M. Terry | Page #21 © 2008 Blackbaud
What if scenarios
Fundraising Effectiveness Project (FEP)
What if…
Scenario 1:
� Increase new donor acquisition by 10%
� All other variables remain static
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Fundraising Effectiveness Project (FEP)
What if…
Scenario 2:
� Increase retention by 10% (to 47% - still below top performing peers)
� All other variables remain static
Jeff M. Terry | Page #23 © 2008 Blackbaud
Fundraising Effectiveness Project (FEP)
What if…
Scenario 3:
� Increase retention by 10%
� Increase average gift amount by 10%
� All other variables remain static
Jeff M. Terry | Page #24 © 2008 Blackbaud
Fundraising Effectiveness Project (FEP)
Enough Analysis…What is CAS Going to Do?
� Continue to aggressively acquire new donors 1. Everything goes into Raiser’s Edge
• Event attendees
• Adopters
• Email subscribers
• Volunteers
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• Volunteers
• Class/education participants
2. Moves management applied to all of the above to engage & retain
Fundraising Effectiveness Project (FEP)
Enough Analysis…What is CAS Going to Do?
� Reactivate past donors via SYBUNT & LYBUNT campaigns. These are the lowest hanging fruit for annual giving
• Recognition by giving levels
•
Jeff M. Terry | Page #26 © 2008 Blackbaud
• Stewardship packages by giving level & giving type
Fundraising Effectiveness Project (FEP)
Enough Analysis…What is CAS Going to Do?
� Talk to donors where they are• Online
• E-communication strategy
• New website
• Facebook presence
• Twitter activity
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• Twitter activity
• Blog
• E-Newsletter
• Offline
• Face to face
• Direct mail
• Newsletter (hardcopy)
Fundraising Effectiveness Project (FEP)
Follow Up
o Jim Bush – @TopDogCAS
Jeff M. Terry | Page #28 © 2008 Blackbaud
oJeff Terry – @JT_on_DI
o AFP FEP Overview – www.afpnet.org