upi workshop: data collection for strategic fundraising
DESCRIPTION
This presentation was delivered at the Philanthropy Day celebration sponsored by the Community Foundation of South Lake on October 21, 2014. It is designed to help executive directors and development directors communicate fundraising outcomes to the board of directors so that they engage in increasing strategies and funding for improving donor acquisition and donor retention.TRANSCRIPT
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Governance | Fundraising | Marketing
© 2 0 1 4 U N L E A S H I N G P E RF ORM A N C E I N C . A L L R I G H T S RE S E RV E D
Data Collection for Strategic Fundraising
Presented by Todd W. Ruopp
Philanthropy Day | October 21, 2014
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Governance | Fundraising | Marketing
© 2 0 1 4 U N L E A S H I N G P E RF ORM A N C E , I N C . A L L R I G H T S RE S E RV E D
Helping nonprofits raise more money by focusing the board, aligning the fundraising and telling the agency's best story.
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Why me?
Thought I was going to be the pied piper for performance measures in 2007, but I failed
Nobody wanted help measuring performance, but everyone wants help raising more money
Spent the last seven years attempting to understanding fundraising performance
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Governance | Fundraising | Marketing
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Learning Objectives
After this session you will:
1. Be familiar with fundraising effectiveness research and the impact donor retention has on results
2. Understand how to calculate fundraising metrics
3. Learn a format for presenting fundraising metrics to drive your board's strategic budget decisions
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Who wants to be timekeeper?
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Participant Survey 10
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What is the first idea your board members come up with when wanting to raise more money?
1
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80% Individuals
Foundations 15%
5% Corp
SOURCE: Giving USA Foundation, June 2014
Giving in the USA 2013 Data, Released 2014
$335.17 Billion 3
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Individual Donors
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Revenue Sources
Individual Gifts
Foundation Grants
Corporation Gifts
Government Grants
Fee for Service
Service-Related Income
Investment Income
Sale of Capital Assets
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Revenue Source Analysis
Source Unrestricted
Large Cumulative
Amount
Significant Growth
Potential Minimal Servicing
Personal Relationship
Influence
Individual Gifts
Foundation Grants
Corporation Gifts
Government Grants
Fee for Service
Service-Related Income
Investment Income
Sale of Capital Assets
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Fundraising Strategy Analysis
Source In-Person
Solicitation Written Proposal
Direct Mail Solicitation
Telephone Solicitation
Online Peer-to-Peer Solicitation
Individual Gifts
Foundation Grants
Corporation Gifts
Government Grants
Fee for Service
Service-Related Income
Investment Income
Sale of Capital Assets
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Fundraising Impact Analysis
Source
Significant Impact
Potential Easy to
Implement
Recurring Revenue Potential
Individual Gifts
Foundation Grants
Corporation Gifts
Government Grants
Fee for Service
Service-Related Income
Investment Income
Sale of Capital Assets
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Where can I find more donors?
SOURCE: Rosso’s Theory of Constituent Development
Major Donors
Board
Mgmt. Staff
Clients
Employees
Volunteers
General Donors
Members
Former Clients
People with Similar Interests
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How do you measure fundraising performance?
1
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What is the Life Time Value of your donor?
2
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The total amount of giving a donor makes to your organization
during his or her lifetime
Life Time Value
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What is your donor retention rate?
2
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Of the donors making a gift last year, what percentage made a gift this year
Donor Retention Rate
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Calculating Donor Retention
Donors who made a gift last year
The same donors who also made a gift this year
60%
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Less than 45% of fundraisers knew their current donor retention rate.
SOURCE: 2014 Bloomerang
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5
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GOAL: Help nonprofit organizations measure, compare, and maximize
the annual growth in giving
a f p f e p . o r g
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Participating Software Firms Donor2
Campus Management Corporation
PhilanthrAppeal
(FundTrack Software)
DonorPerfect Fundraising Software
The Raiser’s Edge® (Blackbaud)
eTapestry
Avectra
Bloomerang
Sage Software
MatchMaker FundRaising Software
Exceed! (Telosa Software)
Metafile
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Why it is Important
Growth in giving is increased both by
maximizing gains and minimizing losses, and
management and boards need to know this to
make intelligent, informed, growth-oriented
planning and budgetary decisions.
SOURCE: 2013 Fundraising Effectiveness Survey Report, pp.3
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Maximizing Growth in Giving Total Dollars • Gains
– New gifts – Recaptured gifts – Upgraded gift
• Same – Renewed gifts
• Losses – Downgraded gifts – Lapsed new gifts – Lapsed repeat gifts
Total Donors • Gains
– New donors – Recaptured donors – Upgraded donors
• Same – Renewed donors
• Losses – Downgraded donors – Lapsed new donors – Lapsed repeat donors
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Dollars vs. Donors (2005-2012)
81 93
86
105
119
105 100 96
2005 2006 2007 2008 2009 2010 2011 2012
82 92
87
99 104
97 107 105
2005 2006 2007 2008 2009 2010 2011 2012
Dollars Ratio
Donors Ratio
SOURCE: 2013 Fundraising Effectiveness Survey Report, pp.15 8
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2013 Fundraising Effectiveness Project Report Key Findings
There was a net increase of $37 million in total dollars (growth-in-giving or GIG)
This is despite a net decrease of 44,000 donors
GIG varies significantly according to organization size
Organizations with the highest GIG ratios also experienced the largest new dollar & new donor growth
Groups with less than $500k in revenue experienced net losses
The largest growth in dollars and donors came from new donors
The greatest dollar losses came from lapsed new gifts
The greatest donors looses came from lapsed new donors across all GIG categories.
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Median Dollar Gains by Org Size (2011-2012)
23.8%
20.1%
16.4% 17.3%
25.0%
20.7%
15.4%
21.2%
4.0% 6.8% 7.8%
9.1% 9.4% 12.5% 13.0% 12.8%
7.2%
11.5% 14.2%
18.4%
24.3%
20.2%
35.6%
19.1%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Gain - New Gain - Recapture Gain - UpgradeSOURCE: 2013 Fundraising Effectiveness Survey Report, pp.20
ANALYSIS: Recapture dollars increase with size
ANALYSIS: Upgrade dollars increase with size
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Median Dollar Losses by Org Size (2011-2012)
-11.4%
-14.4% -15.4%
-16.3% -15.6% -15.9% -15.2% -16.0%
-21.9%
-16.0%
-12.4%
-10.4% -10.2% -10.3%
-6.6%
-9.6%
-16.6% -18.1% -17.5% -16.8% -16.4%
-15.6%
-17.8% -18.5%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
Loss - Downgrade Loss - Lapsed New Loss - Lapsed RepeatSOURCE: 2013 Fundraising Effectiveness Survey Report, pp.20
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Gains & Losses by Size
48.0% 47.0%
63.7%
-72.3%
-57.6% -50.6%
-13.5% -5.1%
16.6%
-80.0%
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
< $100k $100-$500k Average $500k+
Gains Losses GIG Rate
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Median Dollar Gains by Region (2011-2012)
19.6%
17.8%
20.3%
23.7%
20.1%
16.2% 17.3%
18.7%
23.0%
18.8% 18.0%
7.1% 8.5%
7.3% 5.9%
7.9% 7.1% 7.6%
6.9% 7.2%
5.6%
7.4%
12.8% 11.9%
13.1% 12.4%
14.6%
13.0% 11.5%
13.3% 13.3% 12.7% 13.5%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Gain - New Gain - Recapture Gain - UpgradeSOURCE: 2013 Fundraising Effectiveness Survey Report, pp.22
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Median Dollar Loss by Region (2011-2012)
-14.3% -14.3% -14.1% -13.6% -14.3% -13.5% -14.2%
-15.0% -14.9% -15.2% -15.1% -14.4% -14.3%
-13.0%
-15.9% -14.3%
-12.9% -12.5% -13.1%
-17.3% -16.6%
-13.4%
-17.1%
-19.1%
-17.1%
-14.9%
-17.5% -17.7%
-21.5%
-17.1% -16.4% -16.5%
-17.4%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
Loss - Downgrade Loss - Lapsed New Loss - Lapsed RepeatSOURCE: 2013 Fundraising Effectiveness Survey Report, pp.22
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Report Metrics Survey Year Organization Budget Subsector
Arts, Culture & Humanities Education Environment / Animals Health Human Services Public / Society Benefit Religion Related Other
Geographic Region Age of Fundraising Program Rate of Growth Percentile Level
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Three Recommendations
Make significant, incremental increases in their budgets, by categories of fundraising effort.
Measure the corresponding incremental return on those investments (ROI), by gain/loss categories.
Make additional incremental increased investments in fundraising effort, category by category, based on the performance (ROI) of previous fundraising activities
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5-Step Performance Improvement 1. Compare your gain/loss performance to FEP survey statistics(*). For each of the
Gain/Loss categories, benchmark your organization’s Gain/Loss Ratios against those of other like organizations entering gain/loss ratios, selecting comparative data from the report.
2. Set your priorities for improvement. For example, establish as your objective moving up to the next performance level in the Percentage Ranking tables in each gain/loss category.
3. To achieve your objectives, plan and budget for increased fundraising efforts for priority gain/loss categories.
4. Evaluate progress toward objectives for each gain/loss category.
5. Repeat annually
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Prepare Your Own Reports Growth in Giving Report Free, downloadable Excel templates
www.afpnet.org/gigtemplate Creates the core report and 7 other
GIG reports useful for tracking growth
Helpful article: A Better Measure of Success: How to Use AFP’s Growth-in-Giving Reports to Improve Fundraising Performance (Advancing Philanthropy, Mar/APR 2011) www.afpnet.org/files/ContentDocuments/2011MarchApril_135-41FEPLevisWilliams.pdf
GiGi Fundraising Fitness Test Measures your performance against
100 performance metrics and five giving levels
www.afpnet.org/GiGiTest
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Todd’s Recommendations Have a donor database, make it mandatory to keep updated.
It is likely the your organization’s single most important asset.
Heller Consulting: FREE CRM Insights report http://theconnectedcause.com/crminsights/
Idealware.org: FREE Consumers Guide to Donor Management Systems http://www.idealware.org/reports/consumers-guide-donor-management-systems
Raiser’s Edge customers use the “plug-in” to generate GIG reports
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Todd’s Recommendations Collaborate with the development committee to create an annual development plan
to affect donor acquisition, stewardship and retention.
Create more first-time donor stewardship touch points – hand-written note, event invitation, program updates, invite to people’s homes to hear a client speak
Organize first-time donor after-work social activities
Invite your board members to make “thank you” calls to all first-time donors
Ask first-time donors what it is that prompted them to make an initial gift and capture their answer in your database
Invite donors to experience your programs through volunteering or receiving a tour
Perform a wealth screen of your entire database every two years to establish gift upgrade targets and identify major gift prospects
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An Annual Fund
Get the Gift
Repeat the Gift
Upgrade the Gift
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Major Gifts
10%
Upgraded
Annual Fund Gifts
20%
Annual Fund Gifts
70%
Annual Fund Pyramid
SOURCE: 2014, The Philanthropy School , Indiana University
$
$ $
$ $ $
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Governance | Fundraising | Marketing
© 2 0 1 4 U N L E A S H I N G P E RF ORM A N C E , I N C . A L L R I G H T S RE S E RV E D
Helping nonprofits raise more money by focusing the board, aligning the fundraising and telling the agency's best story.