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By Andrew Watt
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Fundraising Data and Trends: Putting it All Together PRESENTED BY:
ANDREW WATT, FINSTF &
MELISSA S. BROWN
for the Association of
Fundraising Professionals
No longer trying to catch up
to for-profits…
2 #bbcon
We have:
• Technology
• Best practices
• Expertise
• Innovation
• Benchmarking
…And we have data!
3 #bbcon
SO
MUCH
DATA!
But what’s important?
4 #bbcon
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
I. The Fundraising Landscape
6 #bbcon
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
Shifting Donor Interests
II. Why Measure?
11 #bbcon
Effectiveness
But what is your definition of effectiveness?
Whose idea of effectiveness?
Does effectiveness matter that much to
everyone? Yes, but…
12 #bbcon
Interest in ROI
13 #bbcon
Wealth Engine: “Measuring Fundraising Return on Investment and the Impact of Wealth Intelligence”
Efficiency
Efficiency is critical, but again, being efficient
at WHAT?
• Overall costs?
• Specific program costs?
• Internal/external costs?
• Program delivery?
14 #bbcon
Other factors
• Internal management
• External benchmarking
• Lifetime value of a donor
• Institutional/Long-term investment in
fundraising
15 #bbcon
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”)
Who decides what we want to
measure?
We ALL need to play a role
here!
17 #bbcon
III. Which Metrics?
18 #bbcon
Performance Metrics
• Inputs
• Activities
• Outputs
• Outcomes
• Impacts
19 #bbcon
20 #bbcon
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
Greenfield: Key Metrics
• Percentage participation: Donors/Number of
asks
• Average gift: Amount of income/Number of
asks
• Net income: Income - expenses
22 #bbcon
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
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
Other Key Metrics
• Upgrades
• Acquisition
• Donor interaction and conversions
25 #bbcon
Outside the Box: What About Loyalty
• Donor satisfaction/commitment and trust
• Exit polling
• Number (and categories) of complaints
26 #bbcon
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
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
What do donors want in terms
of impact?
Fashion your metrics
accordingly!
29 #bbcon
IV. How to Track?
30 #bbcon
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
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
V. Benchmarks
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
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
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.
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
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
Blackbaud Giving Index
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.
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
VI. Data Collection
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
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?
VII. Big Picture
Plan, Do (Test), Check, Act
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
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
Fundraising Data and Trends: Putting it All Together QUESTIONS?
50 #bbcon
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