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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

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Why we need a fundraising revolution

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
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 revolution1
WHY WE NEED A FUNDRAISING REVOLUTION

  • Fundraising Effectiveness Project, 2012

    • For Every $100 Gained in 2011, $100 Lost

    • For Every100 Donors Gained in 2011,107 Lost

  • GivingUSA

    • Charitable Giving as % GDP FLAT 2010-2012 at 2%

    • Highest Level ONLY2.25%- 2006

    • (Latest Report Shows Improvements)

  • Overhead Ratio

    • Finally We’re Fighting Back Since June 2013

    • Yet Boards Still Push Us to Use It


Leaky bucket study results
LEAKY BUCKET STUDY RESULTS

Leaking Like a Sieve!

Call the Help Line!

Preventive Maintenance!

WATERTIGHT!


Most important statistic
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 PEOPLE TELL ME

  • “Fundraising Is Our Members’ BIGGEST CHALLENGE”

    • Executive Director, Center for Victims of Torture

    • CEO, Alliance for Children & Families

    • CEO, Florida Alliance for Information & Referral Services

    • Executive Director, Centre on Philanthropy, Bermuda

    • Plus Several Others!

  • “CEO’s Of Our Member Agencies WORRY MORE ABOUT FUNDRAISING than Any Other Topic”

    • Executive Director, Chamber of Nonprofit Organizations

  • “I Pity Those Poor Fundraising People – There’s NO GOOD WAY TO MANAGE Them”

    • CEO, Jewish Community Services


What productivity really means
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
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



Comparing studies
COMPARING STUDIES

  • Fundraising Effectiveness Project, 2012

    • For Every $100 Gained in 2012, $100 Lost

    • For Every 100 Donors Gained in 2012,105 Lost

  • Leaky Bucket Benchmarking Study Insight

    • Respondents with NO RETENTION TARGETS: 15%

    • Respondents ENCOURAGED to Retain: 57%

    • 72% NO RETENTION TARGETS


Fundraising revolution
FUNDRAISING REVOLUTION

CHANGE THE WAY WE MANAGEFUNDRAISING

NOT THE WAY WE DO IT


Six principles of great management
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
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
WHO’S RIGHT FOR PLANNED GIVING?

  • Same as Ideal Donor?

  • Different from Ideal Donor?

  • Objective Benchmark Required!



Results
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
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
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
DONOR MOVES: MOVES MGMT ON STEROIDS

Move 8: Refers

Us to Others

Move 1: Shares

Reasons to Give

Move 7: Gives

Again

Move 2: Sees

Your Value

Donor’s Giving Process

Move 6: Feedback

On Satisfaction

Move 3: OK’s

Proposal

Move 5: Honors

Pledge

Move 4: Negotiates

Details


Meets quality standards
MEETS QUALITY STANDARDS

Measurable, Capture-Able, Report-Able, Analyze-Able


Results1
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
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
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


[email protected]

786-554-2666

@BristolStrategy

www.bristolstrategygroup.com

For the Leaky Bucket Assessment

www.bristolstrategygroup.com/nonprofit-leakybucket


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