Ann Charles Watts, CFRE Organizational Development Consultant—Resource Development

1. DEALING WITH ANALYTICS Ann Charles Watts, CFRE Organizational Development Consultant—Resource Development Habitat for Humanity International 800-422-4828 x 5265 acwatts@habitat.org

2. According to the Indiana University Lilly Family School of Philanthropy: Efficiency in fundraising means the lowest cost for the highest return (e.g. spending less in the current year than in the past year to renew donors for the annual fund at higher average gift levels.) Effectiveness in fundraising means spending more money to bring in a proportionately greater return on each dollar invested in fundraising.

3. Fundraising Results Analysis #1 Greenfield, J.M. “Fundraising Performance Evaluation” Preconference, 2013 Affiliate Conference, Atlanta, Georgia, March 2013 Fundraising goal $2,300,000 Budget $545,000 Results Funds raised $2,209,145 96% of goal Budget spent $ 562,207 103% of budget Goal shortfall $ 90,855 4.1% Budget overspent $ 17,207 3.2% Are these results acceptable? Are they efficient?

4. Fundraising Results Analysis #2 Greenfield, J.M. “Fundraising Performance Evaluation” Preconference, 2013 Affiliate Conference, Atlanta, Georgia, March 2013 Fundraising goal $2,300,000 Budget $545,000 Results Net revenue $1,646,938 Fundraising cost $0.25 Return on expense 293% Are these results acceptable? Are they efficient?

5. Lessons Learned Therefore:What are the performance measures that address botheffectiveness and efficiency? What are the guidelines and standards to be usedin results analysis to demonstrate an acceptable level of performance? Greenfield, J.M. “Fundraising Performance Evaluation” Preconference, 2013 Affiliate Conference, Atlanta, Georgia, March 2013 #1: Spending $0.25/$1.00raised to net $1,646,938at a return on expense of 293% in 12 months is efficient. #2: Failing to make goal is not a failure of fundraising effectiveness. #3: Exceeding budget is not a failure of efficiency. #4: Fundraising results are notabout budget analysis alone.

6. Prospect Research & Identification Raise Awareness Develop Case Basic Fundraising Cycle Cultivate & Consult Steward Solicit

7. Setting the Goal A = How much it will cost to realize the vision set forth in your strategic plan B = Your mortgages receivable, ReStore income, and all other sources of income besides fundraising A – B = Your Fundraising Goal

8. Donor Pyramid Planned Gift Donors Capital Campaign Donors Major Donors Renewed/Upgraded Donors First-time Donors Universe of Prospects

9. Prospect Research & Identification Raise Awareness Develop Case Planned Gift Donors Capital Campaign Donors Major Donors Cultivate & Consult Steward Renewed/Upgraded Donors First-time Donors Universe of Prospects Solicit

10. Our Worst Enemies Attrition & Stagnation How to prevent them? Give donors what they want: • Prompt, personalized acknowledgement of their gifts • Confirmation that their gifts have been set to work as intended • Measurable results on their gifts at work prior to being asked for another contribution • - Penelope Burk

11. Calculating your Retention Rate If your affiliate has a clear definition of how long it takes before a donor is considered lapsed, use that unit of measure. If not, use 12 months. • How many donors did your have between October 1, 2011 and September 30, 2012? • How many donors did you have between October 1, 2012 and September 30, 2013? • How many donors in group A were also in group B? (C ÷ A) x 100 = Your Retention Rate (industry minimum standard is 50%)

12. Improving retention rates by 10% can improve revenue generation by: • 50% • 100% • 150% • 200%

13. “Improving Donor Retention by Just 10% Can Double the Lifetime Value of your Donor Database!” Source: Adrian Sargeant, Ph.D., Bloomerang: Donor Retention Math Made Simple

14. Statistics • It generally costs between $1.20 and $1.50 per $1.00 raised to acquire a new donor. • Gifts from established donors, on average, are four to five times greater than those of new donors. What are you doing to retain your donors?

15. Reasonable Cost Guidelines for Solicitation Methods(based on three or more years of continuous activity) Direct Mail (acquisition) $1.25 to $1.50 per $1.00 raised Direct Mail (renewal) $0.20 to $0.25 per $1.00 raised Membership programs $0.20 to $0.30 per $1.00 raised Benefit events $0.50 per $1.00 raised (gross revenue and direct costs only) Donor clubs/support groups $0.20 to $0.30 per $1.00 raised Volunteer-led solicitations $0.10 to $0.20 per $1.00 raised Corporate solicitations $0.20 per $1.00 raised Foundation solicitations $0.20 per $1.00 raised Capital campaigns $0.10 to $0.20 per $1.00 raised Planned giving programs $0.20 to $0.30 per $1.00 raised Source: J.M. Greenfield, “Fundraising Responsibilities of Nonprofit Boards.” 2nd ed. BoardSource, 2009, p. 54.

16. Your Turn! Break into teams of four or five and discuss the case study. What does your team recommend?

17. DEALING WITH ANALYTICS Ann Charles Watts, CFRE Organizational Development Consultant—Resource Development Habitat for Humanity International 800-422-4828 x 5265 acwatts@habitat.org