fundraising data & trends: putting it all together

50
Fundraising Data and Trends: Putting it All Together PRESENTED BY: ANDREW WATT, FINSTF & MELISSA S. BROWN for the Association of Fundraising Professionals

Upload: blackbaud

Post on 09-Jun-2015

986 views

Category:

Data & Analytics


0 download

DESCRIPTION

By Andrew Watt

TRANSCRIPT

Page 1: Fundraising Data & Trends: Putting It All Together

Fundraising Data and Trends: Putting it All Together PRESENTED BY:

ANDREW WATT, FINSTF &

MELISSA S. BROWN

for the Association of

Fundraising Professionals

Page 2: Fundraising Data & Trends: Putting It All Together

No longer trying to catch up

to for-profits…

2 #bbcon

We have:

• Technology

• Best practices

• Expertise

• Innovation

• Benchmarking

Page 3: Fundraising Data & Trends: Putting It All Together

…And we have data!

3 #bbcon

SO

MUCH

DATA!

Page 4: Fundraising Data & Trends: Putting It All Together

But what’s important?

4 #bbcon

Page 5: Fundraising Data & Trends: Putting It All Together

Our Presentation Today

I. The Fundraising Landscape

II. Why Measure?

III. Which Metrics?

IV. What to Track

V. Benchmarks

VI. Data Collection

VII. Challenges

VIII. Big Picture

5 #bbcon

Page 6: Fundraising Data & Trends: Putting It All Together

I. The Fundraising Landscape

6 #bbcon

Page 7: Fundraising Data & Trends: Putting It All Together

Giving USA

• Americans donated an estimated $335.17

billion

• An increase of 4.4% - $18.94 billion

• The fourth straight year of gains

• Not at 2007 prerecession highs, but

increased 22% since end of recession

7 #bbcon

Page 8: Fundraising Data & Trends: Putting It All Together

Giving USA 2014

8 #bbcon

www.givingUSAReports.org

Page 9: Fundraising Data & Trends: Putting It All Together

Giving USA 2014

www.givingUSAReports.org

Page 10: Fundraising Data & Trends: Putting It All Together

Shifting Donor Interests

Page 11: Fundraising Data & Trends: Putting It All Together

II. Why Measure?

11 #bbcon

Page 12: Fundraising Data & Trends: Putting It All Together

Effectiveness

But what is your definition of effectiveness?

Whose idea of effectiveness?

Does effectiveness matter that much to

everyone? Yes, but…

12 #bbcon

Page 13: Fundraising Data & Trends: Putting It All Together

Interest in ROI

13 #bbcon

Wealth Engine: “Measuring Fundraising Return on Investment and the Impact of Wealth Intelligence”

Page 14: Fundraising Data & Trends: Putting It All Together

Efficiency

Efficiency is critical, but again, being efficient

at WHAT?

• Overall costs?

• Specific program costs?

• Internal/external costs?

• Program delivery?

14 #bbcon

Page 15: Fundraising Data & Trends: Putting It All Together

Other factors

• Internal management

• External benchmarking

• Lifetime value of a donor

• Institutional/Long-term investment in

fundraising

15 #bbcon

Page 16: Fundraising Data & Trends: Putting It All Together

Measurements Depend on Application

• Organization’s plan

• Management of your FR program

• An identified peer group

• ID opportunities, strengths

• Your organization’s subsector

• Is your boat rising with the tide?

• All nonprofits

• ID trends in other sectors (“threats”)

Page 17: Fundraising Data & Trends: Putting It All Together

Who decides what we want to

measure?

We ALL need to play a role

here!

17 #bbcon

Page 18: Fundraising Data & Trends: Putting It All Together

III. Which Metrics?

18 #bbcon

Page 19: Fundraising Data & Trends: Putting It All Together

Performance Metrics

• Inputs

• Activities

• Outputs

• Outcomes

• Impacts

19 #bbcon

Page 20: Fundraising Data & Trends: Putting It All Together

20 #bbcon

Page 21: Fundraising Data & Trends: Putting It All Together

Greenfield’s The Big Three Data Items

1. Number of donors (or donations)

2. Income from this appeal or group of

appeals

3. Expenses, including staff time and indirect

costs, for this appeal or group of appeals

21 #bbcon

Page 22: Fundraising Data & Trends: Putting It All Together

Greenfield: Key Metrics

• Percentage participation: Donors/Number of

asks

• Average gift: Amount of income/Number of

asks

• Net income: Income - expenses

22 #bbcon

Page 23: Fundraising Data & Trends: Putting It All Together

Two Sides of the Same Coin

• Return on investment: Revenue/Expenses

• Cost to raise a dollar: Expenses/Revenue

• MUST compare in different ways:

• Short-term

• Long-term

• Against original goals

• Against other programs

23 #bbcon

Page 24: Fundraising Data & Trends: Putting It All Together

Donor Retention

• Donor retention: Number of donors in this

year/Number of donors in previous year

• Increasingly important metric with

increasing competition and fewer donors

• Retaining existing donors much less

expensive than finding new ones

24 #bbcon

Page 25: Fundraising Data & Trends: Putting It All Together

Other Key Metrics

• Upgrades

• Acquisition

• Donor interaction and conversions

25 #bbcon

Page 26: Fundraising Data & Trends: Putting It All Together

Outside the Box: What About Loyalty

• Donor satisfaction/commitment and trust

• Exit polling

• Number (and categories) of complaints

26 #bbcon

Page 27: Fundraising Data & Trends: Putting It All Together

Other Metrics

• Monitor percentage of new donors who

report learning of organization from existing

donor or volunteer

• Track MEDIAN, not mean, gift amount

--dzo Strategies

27 #bbcon

Page 28: Fundraising Data & Trends: Putting It All Together

Actionable Information

• Phases of a donor relationship that can be

measured without tracking money

contributed

• Engagement

• Solicitation, specific ask

• Pending (status of continuing gift negotiation)

• Stewardship

28 #bbcon

Page 29: Fundraising Data & Trends: Putting It All Together

What do donors want in terms

of impact?

Fashion your metrics

accordingly!

29 #bbcon

Page 30: Fundraising Data & Trends: Putting It All Together

IV. How to Track?

30 #bbcon

Page 31: Fundraising Data & Trends: Putting It All Together

Data Entry

• PLAN data entry to support selected metrics

• Gift level

• Donor level

• “Cohort” level – “Class of ‘1x” or “Grateful patients”

• Program / department level (costs, ROI, etc.)

• Do: Test runs for entry, output

• Check: Assess usefulness of test runs

• Act: Make changes, put into action

Page 32: Fundraising Data & Trends: Putting It All Together

Data Analysis Resources

• Built into software

• Proprietary

• Fundraising Effectiveness Project

• Download selected data points

• Growth in Giving at www.APFNet.org/GIGTemplate

• Retention analysis

• Analysis by cohort or subset

• More to come in Fundraising Fitness Test

Page 33: Fundraising Data & Trends: Putting It All Together

V. Benchmarks

Page 34: Fundraising Data & Trends: Putting It All Together

Examples of Comparison Resources

Giving USA • Total changes in giving, by donor type and by sub-sector type

Nonprofit Research Collaborative (AFP co-sponsorship)

• Semi-annual, changes by type vehicle (online, direct mail, etc.)

FEP (AFP co-sponsorship)

• Annual, retention and upgrades

Blackbaud Giving Index • Monthly, changes in total

Page 35: Fundraising Data & Trends: Putting It All Together

Percentage Change Comparison

2.3

12.7

1.4 2.3

5.8

4.4

2.2

5.4

-0.04 1.0 0.9 1.3

4.1

3.9

2007 2008 2009 2010 2011 2012 2013

Giving USA

Health NPO

Page 36: Fundraising Data & Trends: Putting It All Together

Percentage Change, Trend Comparison

2.3

12.7

1.4 2.3

5.8

4.4

2.2

5.4

-0.04 1.0 0.9 1.3

4.1

3.9

2007 2008 2009 2010 2011 2012 2013

Giving USA

A Health Org.

Page 37: Fundraising Data & Trends: Putting It All Together

Using NRC for Analysis by Vehicle

17% 26% 24% 30%

39% 35% 24% 18% 19% 18%

27% 25%

10%

19%

23% 25% 33%

37% 33% 31%

56% 49%

66% 51%

38% 40% 43% 45% 47% 51%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Respondents by Change Reported, Direct Mail Receipts, Year on Year

Increased

Stayed thesame

Decreased

Page 38: Fundraising Data & Trends: Putting It All Together

Fundraising Effectiveness Project

Median Gain/Loss Ratios, All FEP Participants

46.8% 53.1% 52.7% 50.7%

-60.4% -56.5% -57.7% -59.5%

-5.6%

1.1% 1.8%

-2.5%

Gain Ratio

Loss Ratio

Rate of growth

2009 2010 2011 2012

Page 39: Fundraising Data & Trends: Putting It All Together

Blackbaud Giving Index

Page 40: Fundraising Data & Trends: Putting It All Together

Other Benchmarks

• Blackbaud. State of the Nonprofit Industry

• NTEN/M+R. The 2014 Nonprofit Benchmarks Study,

focuses on online giving

• NTEN. The 8th Annual Nonprofit Technology

Staffing & Investments Report

• CASE and Association for Healthcare Philanthropy

have industry-specific benchmarks.

Page 41: Fundraising Data & Trends: Putting It All Together

AFP Summary of Benchmarks

• CTRD: $0.32 for hospitals (AHP)

• % of dollars from top 10% of donors: 95%

(Median per CASE Campaign Report)

• Direct mail response: house list: 3.6%

• Direct mail response: prospects: 0.9%

(DMA)

• Member Access at AFPNet.org

Page 42: Fundraising Data & Trends: Putting It All Together

VI. Data Collection

Page 43: Fundraising Data & Trends: Putting It All Together

Challenges to Metrics for Gifts Received

No universal solutions.

Consider how your organization:

• Links gift to appeal(s)

• Credits couples – before, during, after

• Gives soft credit

• Tracks planned gift commitments

Page 44: Fundraising Data & Trends: Putting It All Together

Challenges to metrics for CTRD

Again, no universal standards.

• Does your organization consider staff time?

• Development staff?

• Other organizational personnel in fundraising work?

• Do you track total costs, marginal costs, or both?

• Volunteer investment of time?

Page 45: Fundraising Data & Trends: Putting It All Together

VII. Big Picture

Page 46: Fundraising Data & Trends: Putting It All Together

Plan, Do (Test), Check, Act

Page 47: Fundraising Data & Trends: Putting It All Together

Goals for Metrics

• Part of management strategy and controls

• Measure things organization can change

• Set benchmarks ahead of time

• Use free or low-cost resources at first

• e.g., Services from software vendor or

GIGTemplate

Page 48: Fundraising Data & Trends: Putting It All Together

Back to the “Why”

• We are under considerable pressure by

different audiences to benchmark and

analyze: • Funders and donors

• Board of directors

• Executive staff

• The public

• There are benchmarking/trend “standards”

in place but we need to take control of: • Our message and story

• What makes the most sense for our organization

Page 49: Fundraising Data & Trends: Putting It All Together

Fundraising Data and Trends: Putting it All Together QUESTIONS?

Page 50: Fundraising Data & Trends: Putting It All Together

50 #bbcon

Don’t forget to complete

a session survey!

Each completed survey enters you into a drawing to win a

complimentary registration to bbcon 2015 in Austin, Texas*.

*Blackbaud reserves the right to change or withdraw this promotion at any time, without advance notice. Promotion has no cash value and may not be

exchanged, applied to, or combined with any other offer.

Feeling powered on for your mission?