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 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: ellen@bristolstrategygroup.com

Phone Ellen: 786-554-2666

To Complete a Leaky Bucket Assessment:

www.bristolstrategygroup.com/nonprofit-leakybucket

Free Plus 1-Hour Private Review by Phone

ellen@bristolstrategygroup.com

786-554-2666

@BristolStrategy

www.bristolstrategygroup.com

For the Leaky Bucket Assessment

www.bristolstrategygroup.com/nonprofit-leakybucket