21 st Century Development Team

1. 21st Century Development Team Part 2 2 Way Scorecards CEO + Development Director + Board

2. Support the development function with feedback and communication about performance that goes both ways Introduction to 2 way Scorecards

3. Quality Scorecards Depend on… An existing strategic plan as roadmap Intelligent fundraising goals Awareness of the basic facts of ‘Fundraising ROI’ Stable leadership Ongoing communication Follow through

4. Basics of Fundraising Return On Investment National Averages Direct mail: general lists: (non donors) Cost 115% ROI 15%  Direct mail (prior donors) Cost 20% ROI 80% Special Events Cost 50% ROI 50% Planned Giving Cost 25% ROI 75% Foundations/Corporations Cost 20% - ROI 80% Major Gifts Cost 5-10% - ROI 90-95% National Average all methods Cost 20% ROI 80%  (Based on: James Greenfield, Fund Raising: Evaluating and Managing the Fund Development Process) 

5. Notes on ROI When calculating ROI, keep in mind the indirect costs associated with fundraising. For example staff costs are not just for those who are directly involved with fundraising. Other staff and administration typically are involved as well, albeit to a lesser extent. The costs associated with staff and volunteer time, facility usage, overhead expenses, as well as out of pocket direct costs should all be factored into determining ROI. From an ROI perspective, it costs less and produces more income to raise major gifts than to use other methods of fundraising. While a variety of methods should be used in each organization, all too often, nonprofits tend to utilize, to a disproportionate degree, those methods which produce the lower returns, (events and direct mail) rather than those that are more effective (major gifts).

6. CEO and Development Director CEO Doing the Hiring Take a good look at yourself. What are you really good at and what do you enjoy doing? Make an honest appraisal of your likes and dislikes - you tend to do better at tasks you enjoy Remember that your enjoyment doesn’t imply that you’re good at a given job Ask people on the board and staff to help you with self-evaluation. If you (CEO) are great at connecting with donors but have neither the skill nor the inclination to organize the annual campaign or run special events, then focus on those skills for the DD If you are an accomplished and successful grant writer, but you hate mixing with donors, hire someone who’s an outgoing people person The new development director is not going to do all the development work. You’re looking for a partner You’re hiring this person to keep a focus on the overall development process, to carry out the parts of the development work that have gone undone, or that have been done inadequately The two of you – the CEO and the development director – will be a team going forward, so you need to hire someone with complementary skills and inclinations Credit to Al Cantor

7. CEO & Development Director (DD) Development Director considering the offer (or current situation) • Will I be a full member of the management team? • Will I be invited to every board meeting and presenting at most meetings? • Is the CEO willing to discuss her role in the development process in real detail? How much time per week does she spend on fundraising? How often do we meet and how long are the meetings? • Will I have control over donor communications? If not what is my level of control? • Is the head of the board’s development committee or board chair part of my hiring process? Have they provided me an opportunity to lay out what I consider the necessary conditions for successful development in this organization? • Is there explicit alignment on goals and strategies between myself, the CEO and development committee? How do I know this? • Is the CEO actively supporting my role’s connection to the overall financing of the organization and are all development planning and goals created in this context? (will I be in the room during annual budget meetings?)

8. CEO & Development Director (DD)CEO Scorecard CEO provides • Face time with DD as agreed • Calls, visits, letters to major donors as agreed • Actively builds culture of philanthropy across organization • Engages in creation of Fund Dev Plan as agreed and lobbies with board • Provides performance feedback to DD (how was my donor interaction at event?) • Supports DD prioritization of high ROI work in daily life and offers feedback • Enables active connection of DD to financing strategy and information CEO regularly uses these criteria to assess development initiatives • Prospective net profit • Mission alignment • Relationship building impact and opportunity • Institutional capacity and capability to do the work • Risk analysis and opportunity cost

9. CEO & Development DirectorDevelopment Director Scorecard Development Director Demonstrates • High quality preparation for face time with CEO • High quality input towards the Fund Development Plan • Ability to integrate Fund Dev Plan with nonprofits business model and overall financing strategy. Can communicate this link to stakeholders. • Consistent prioritization and execution on high ROI tasks (most often major gifts) as established • Balances quality and quantity in donor visits, solicitations, proposals • Ability to steward necessary back office functions Development Director Increases • Donor retention rate • Rate of transition from first time donor to regular donor • Ratio of donors who increase their gift size and/or number of gifts per year • Size of gift compared to estimation of donor’s level of interest and commitment

10. Board Development Committee Scorecard Has the Development Committee: • Approved a fundraising plan, each year, with a budget attached, that has concrete action steps that all agree upon • Lobbied/encouraged the full board to approve the fundraising plan and to provide sufficient resources to carry it out (including development office infrastructure and staffing) • Served as traffic cops when well-meaning board members enthusiastically promote new fundraising strategies (pet projects) that are not in the plan • Supported the fundraising staff and reviewed performance measures and results • Understood and reviewed the working relationship of CEO and DD • Been the first to give, and the first to ask • Assisted with the identification of prospects, and, when appropriate, help with the development of prospect strategies • Provided a sounding board for fundraising plans and strategies • Developed and recommended essential board level policies for fund development (Standards of Ethical Practice, limitations on acceptance of gifts, naming protocols)

11. The Board The Board’s job at its legal core • Ensure that charitable dollars are being put to appropriate use as the public’s eye on the nonprofits operations The board’s single most important role • Hire, monitor, support, evaluate, and, if necessary, fire the CEO

12. CEO-Board 2 way scorecard Reflects CEO and Board performance as: • Ambassadors for the organization • Fundraisers and stewards of development function • Developers of a talent and leadership pipeline • Financial stewards • Monitors of legal, regulatory & financial compliance • Guardians of the mission and strategic plan