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WHY WE NEED A FUNDRAISING REVOLUTION!. Fundraising the SMART Way™ and the Evidence of a Need for Change. Presented by Ellen Bristol Bristol Strategy Group Planned Giving Council of Palm Beach County October 14, 2014. ABOUT ELLEN. Performance Management Guru for Fund Development - PowerPoint PPT Presentation
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WHY WE NEED A FUNDRAISING REVOLUTION!
Fundraising the SMART Way™ and the
Evidence of a Need for Change
Presented by Ellen BristolBristol Strategy GroupPlanned Giving Council of Palm Beach CountyOctober 14, 2014
ABOUT ELLEN
Performance Management Guru for Fund Development
Nonprofit Consulting 19 Years; IT Sales Before That
Author, Fundraising the SMART Way™: Predictable, Consistent Income Growth for Your Charity
Developer, Fundraising the SMART Way™; Scorecard 2.0 Software App; Leaky Bucket Assessment for Effective Fundraising; SMART Fundraising Game
WHY WE NEED A FUNDRAISING REVOLUTION
Fundraising Effectiveness Project, 2012For Every $100 Gained in 2011, $100 Lost
For Every100 Donors Gained in 2011,107 Lost
GivingUSACharitable Giving as % GDP FLAT 2010-2012 at 2%
Highest Level ONLY 2.25% - 2006
(Latest Report Shows Improvements)
Overhead RatioFinally We’re Fighting Back Since June 2013
Yet Boards Still Push Us to Use It
LEAKY BUCKET STUDY RESULTS
Leaking Like a Sieve! Call the Help Line! Preventive Maintenance! WATERTIGHT!
MOST IMPORTANT STATISTIC
Leaky Bucket Statement #9: “What Practices Does Your Agency Use When Fundraising Results Fall Below Desired Levels?”
ANSWERS WITH HIGHEST SCORES:Host More Events: 49%
Write More Grant Applications: 48%
Tactical Solutions to Strategic Question
WHAT PEOPLE TELL ME
WHAT PRODUCTIVITY REALLY MEANS
Do MORE with LESS
Efficiency – Decrease Costs, Time, Labor, Headaches
Effectiveness – Produce More, Better, More Lasting Results
Costs Go Down, Achievement Goes Up
PRODUCTIVITY MODELS
Evolving Rapidly Since 1950’s
Total Quality Management, Six Sigma, Lean
Malcolm Baldridge Criteria for Performance Excellence
Collective Impact:4 Terabytes of Data Storage for $100
SmartPhones with More Horsepower than Mainframes of the ‘80’s and ‘90’s
A Zillion Other Examples
SO WHY NOT FUNDRAISING?
COMPARING STUDIES
Fundraising Effectiveness Project, 2012For Every $100 Gained in 2012, $100 Lost
For Every 100 Donors Gained in 2012,105 Lost
Leaky Bucket Benchmarking Study InsightRespondents with NO RETENTION TARGETS: 15%
Respondents ENCOURAGED to Retain: 57%
72% NO RETENTION TARGETS
FUNDRAISING REVOLUTION
CHANGE THE WAY WE MANAGE FUNDRAISING
NOT THE WAY WE DO IT
SIX PRINCIPLES OF GREAT MANAGEMENT
1: Define WHAT You Want, Not HOW to Do It
2: Make Changes Based On Evidence, Not Opinion
3: Transform SUBJECTIVE into OBJECTIVE
4: Establish Benchmarks, Guidelines, Performance Metrics, Analytics and Reporting Methods
5: Measure the Same Things the Same Way Every Time
6: Review PROGRESS AGAINST PLAN Religiously
REVOLUTION: DOCUMENT YOUR DONOR PROFILES
Great Idea!! Not A Common Practice
Reality:15% - No Selection Criteria
61% - Selection Criteria “Assumed,” Not Documented
17% - Wealth Profile, Giving History ONLY
6% - Add Motivations
WHO’S RIGHT FOR PLANNED GIVING?
Same as Ideal Donor?
Different from Ideal Donor?
Objective Benchmark Required!
SMART WAY PROSPECT SCORECARD
RESULTS
Less Time Wasted Chasing DOA’s
More Time for High-Potential Donors
Better Use of People, Time, Money
Promotes Better Donor/Prospect Engagement
Costs Down, Income UP!!!
REVOLUTION: EFFECTIVE METRICS
Great Idea!! Not a Common Practice
Reality:Acquire Donors: 62% No Metrics or “Encouraged”
Retain Donors: 72% No Metrics or “Encouraged”
Upgrade Donors: 77% No Metrics or “Encouraged”
METRICS IN FUNDRAISING: TAIL WAGS DOG
“If the Only Thing You Measure Happens After the Process Is Complete, You Haven’t Learned Anything About the Process”
Reality:63% Total Income: Trailing
52% Income by Category: Trailing
Only 45% Use Any Leading Indicators
Lots of “Encouraged but Not Documented”
DONOR MOVES: MOVES MGMT ON STEROIDS
Move 1: Shares Reasons to Give
Move 2: Sees Your Value
Move 3: OK’sProposal
Move 4: NegotiatesDetails
Move 5: HonorsPledge
Move 6: FeedbackOn Satisfaction
Move 7: GivesAgain
Move 8: Refers Us to Others
Donor’s Giving Process
MEETS QUALITY STANDARDS
Measurable, Capture-Able, Report-Able, Analyze-Able
RESULTS
CEO, $1.5MM Agency: “I’m Not as Tired at the End of the Week –We Have Brought In More Money from More New Funders.”
Board Chair, Same Agency: “We’ve Asked for Reports and Metrics Like These for Years.”
CEO, $200MM Agency: “These Are the Metrics I Need to See. When Can We Start?”
Director of Development, Large Affiliate: “We First Used This Approach in 2008 and Had Our Best Year Ever, During the Great Recession. Then We Topped It.”
FUNDRAISING THE SMART WAY™: THE BOOK!
Published March 2014
Includes Companion Website with Templates, Other Resources
Order online from www.bristolstrategygroup.com, Amazon, Barnes & Noble, Wiley
SMART WAY SHARED PROGRAM
Share the Program, Share the Cost
Five Nonprofits, Four Participants Each
Three-Month Project Includes:Workshop Portion In Florida or By Distance Learning
SMART Way Prospect Scorecard Customized for Each Participating Agency
Three Months of Weekly Group Coaching Sessions to Support Implementation and Adoption
All Agencies Receive One Private Consulting Session
All for Only $2,500
For More Information, or to Speak With Ellen:
Bristol Strategy Group
www.bristolstrategygroup.com
Email Ellen: [email protected]
Phone Ellen: 786-554-2666
To Complete a Leaky Bucket Assessment:
www.bristolstrategygroup.com/nonprofit-leakybucket
Free Plus 1-Hour Private Review by Phone
786-554-2666
@BristolStrategy
www.bristolstrategygroup.com
For the Leaky Bucket Assessment
www.bristolstrategygroup.com/nonprofit-leakybucket
