utilizing the fundraising effectiveness program in your healthcare organization heather paul,...

Utilizing the Fundraising Effectiveness Program in your Healthcare Organization

Heather Paul, Raiser’s Edge Solutions ConsultantAnne O’Neal, Senior Account Manager - Healthcare

SCAHD 2010

Heather Paul | Page #2 © 2009 Blackbaud

Utilizing The FEP Data – A Fundraising Health Check

Session Objectives

Inform

Inspire

Invite

Involve



What is the Fundraising Effectiveness Project?

A project to help nonprofit organizations measure and compare their annual growth in giving by gain/loss category and increase the net by maximizing their gains and minimizing their losses



The AFP’s “Fundraising Effectiveness Project”Who is in the Study?

1430 responses to the annual FEP survey for 2008 Small to midsize organizations Averaging less than $1 Million in annual gifts $4 Billion in gifts analyzed since 2005 Contributors & Detractors of Value For Every $6 Raised there is $5 lost-07/ 08 is Break-even



5

Includes• Gifts – Restricted

And Unrestricted • Pledge Payments• Cash and Fair Market

Value for Stocks• In-Kind (tangible)

donations

Excludes• Pledges• Deferred gifts• Donations of

personal services and use of facilities

• Costs-benefiting-donors portion of special-event income

Fundraising Effectiveness Project Surveys



Fundraising in Hard Times- What to Do?

Assess your situation Create a plan to move forward Intensify your cultivation & stewardship efforts Assess your communication plan & case for support



Objective

Review fundraising data from FY 2007 to FY 2008

Help identify areas of strength Help identify areas of improvement

Goal:

Align focus with areas of strength and improvement



Action Plan

Create fundraising effectiveness benchmarks and identify areas of opportunity

Leverage Blackbaud’s Performance Improvement calculator to determine what metrics need to be improved and by how much in pursuit of your goal (define financial sustainability benchmarks)

Review potential next steps to derive additional fundraising improvements



Why does it matter?

“You can’t manage what you can’t measure”

Create your own KPI Score Card



Contributors of Value

Detractors of Value



Gains and Losses 2007 - 2008



Decreasing the Losses to Increase Net GainsThe Importance of Retention:

AFP’S “Fundraising Effectiveness Program” 2007 -2008



FEP data – 2008 All Verticals

Based on The Association of Fundraising Professional’s 2008 Fundraising Effectiveness Project data.

$1.1 billion in donations from1.2 million donors. 1430 organizations.

Co

ntr

ibu

tors

Det

ract

ors



Let’s Look at Best in Class for Retention



Let’s Look at Best in Class for Average Giving



FEP data – 2008

Health

vs. All FEP Verticals

22.1%

43.3%

1.0

.97$920



Case Study

Starting the Journey



One Sampled Org vs. FEP Ed and PHL Average



Sample Organization – All Donors – 3 Year Trend



Observations vs. Peers:



Summary of Findings:



• Increase the number of total donors by 10% (to FY 08 levels) via new and recaptured donor growth while maintaining current retention levels

GOAL SETTING ASSUMPTION #1:



Increasing the number of donors to FY2008 levels increases fundraising by $243,157 over three years:

Goal Setting Assumption #1:




• Improve average $ per donor by 20% to $1,571

(still below peer average and below prior year)



If you increase the average $/donor by 20% (still below peers & prior year) without any change in donor growth or

retention rates, the increase in fundraising would be $1,190,341 over three years:





• Increase donor retention rates to the average of the peer area schools, taking retention from 52.9% to 65.5% over a three year period.



If you only increase the retention rate from 52.9% to the area peer average of 65.8% the increase in fundraising

would be $1,046,315 over three years:




And if you can….•Increase new donor growth•Improve the average dollars per donor•Move retention rates to peer levels

The increase in fundraising would be $2,782,565 over 3 years:

All Cylinder Option - Assumption #1, 2 and 3:

Yeah, Great. But how?



Impact Of Blackbaud Solutions – “Set Goals”

Educate Engage

InspireSteward

Donor Retention New Donor Acquisition Average Gift Per Donor

• Major Gifts

• Median Growth

Efficiencies (Cost Saving)

AFP’s Gain & Loss Segments – Retention Losses are Greater than Recaptures



WHAT ARE YOUR PEER’S BEST DEMONSTRATED PRACTICES?



BEST DEMONSTRATED PRACTICES:

• Increase new donor growth

• “I’m reaching out to patients in new ways”

• “I keep the demographics in mind

and tailor my message”




• Improve average $ per donor

• “I now use wealth screening”

• Customized asks

• Asks in excess of prior year gifts




• Increase donor retention rates

• “I’ve built new ways to communicate with existing donors”

• “If I lose a donor I ask why.

We survey lost donors each month”



What is Next?

Confirm version of Raiser’s Edge is 7.81 or higher Get your staff onboard by attending Thursday’s FEP web seminar (

www.blackbaud.com) Call Anne O’Neal to submit your data to Blackbaud to convert into the Analyzer Submit your data to AFP



Thank You: Additional Questions?

Anne O’Neal

[email protected] x3160

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