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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. Performance Management Guru for Fund Development

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WHY WE NEED A FUNDRAISING REVOLUTION!

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  1. 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

  2. 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

  3. 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

  4. LEAKY BUCKET STUDY RESULTS Leaking Like a Sieve! Call the Help Line! Preventive Maintenance! WATERTIGHT!

  5. 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

  6. 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

  7. 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

  8. 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

  9. SO WHY NOT FUNDRAISING?

  10. 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

  11. FUNDRAISING REVOLUTION CHANGE THE WAY WE MANAGEFUNDRAISING NOT THE WAY WE DO IT

  12. 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

  13. 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

  14. WHO’S RIGHT FOR PLANNED GIVING? • Same as Ideal Donor? • Different from Ideal Donor? • Objective Benchmark Required!

  15. SMART WAY PROSPECT SCORECARD

  16. 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!!!

  17. 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”

  18. 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”

  19. 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

  20. MEETS QUALITY STANDARDS Measurable, Capture-Able, Report-Able, Analyze-Able

  21. 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.”

  22. 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

  23. 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

  24. For More Information, or to Speak With Ellen: Bristol Strategy Group www.bristolstrategygroup.com Email Ellen: ellen@bristolstrategygroup.com Phone Ellen: 786-554-2666

  25. To Complete a Leaky Bucket Assessment: www.bristolstrategygroup.com/nonprofit-leakybucket Free Plus 1-Hour Private Review by Phone

  26. ellen@bristolstrategygroup.com 786-554-2666 @BristolStrategy www.bristolstrategygroup.com For the Leaky Bucket Assessment www.bristolstrategygroup.com/nonprofit-leakybucket

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