Targeting Your Fundraising Using Key Metrics Anne Arundel Medical Center Foundation: A Case Study

1. Targeting Your Fundraising Using Key MetricsAnne Arundel Medical Center Foundation: A Case Study Jan Wood, CFRE – Anne Arundel Medical Center Tim Nurvala – CCS Fundraising June 10, 2019

2. About Anne Arundel Medical Center FOUNDED IN 1902 425 BEDS 25,000 INPATIENT 98,000 EMERGENCY Mission: To enhance the health of the people we serve. A not-for-profit regional health system headquartered in Annapolis, Maryland, Anne Arundel Medical Center Serves an area of more than one million people. 2

3. About CCS 1947 Founded Strategic Consulting and Management Services 21 Managing Partners 350+Permanent Professional Staff 40% of America’s Top 100 Performing Charities 95% Repeat and Referred Business New York  Washington DC  Baltimore Boston  Chicago  Los Angeles  PhiladelphiaSan Francisco  St. Louis  London

4. How We Analyze and Use Data

5. Leveraging Data to Drive Fundraising

6. The CCS Analytics Process Assessment Assess recent revenue performance and year-over-year key performance indicators to identify the greatest areas of opportunity 1 Inclination Build a portfolio of customized predictive models to forecast an individual’s likelihood to become a top donor to the organization 2 Giving Capacity Assess wealth screen scores to identify unknown prospects with the inclination and capacity to become major donors 3 Activation Activate strategies to engage new prospects with cultivation strategies 4

7. Data Used to Design Models Predictive Model Design

8. Why Predictive Modeling? Optimize donors Non performing donors eliminated Better ROI with resources Better impact for MGOs

9. Predictive Modeling - Overview Predictive modeling exercise is designed to forecast the future giving behavior of our client’s prospective donors. • Identify individuals with capacity and inclination to give • Segment prospects based on geography, constituency, and other characteristics • Build prospect pipelines for major gift and campaign strategies Each individual record in the database is typically scored on a scale of 1 – 100 forecasting inclination to be a good donor. 1 Least Likely to Give 100 Most Likely to Give

10. Predictive Modeling Focus

11. Sample Predictors of Giving

12. The Best Prospects: Inclination & Capacity

13. Anne Arundel Medical Center Goals

14. Anne Arundel Medical Center Process • Process: • Designed three predictive models to forecast the inclination of constituents to become major donors, planned donors, new donors and retained donors. • Screened top scorers to identify net worth, giving capacity, and other indicators of wealth. • CCS analyzed the results by: • Distribution of wealth for the top model scorers • Quality of currently managed portfolios and the performance of fundraising from those prospects • New major gift prospects that are currently not managed. 14

15. Newly Identified Top ProspectSegmentation Total constituents AAMC’s database Households scoring in the top 25% of the major donor model, top 20% of the loyal model, or are assigned Top 20% of model scorers with at least $100,000 gift capacity Top 20% of model scorers with at least $200,000 gift capacity Top 20% of model scorers with at least $200,000 gift capacity and are not assigned Top 20% of model scorers with at least $200,000 gift capacity, $1K+ gift capacity, and are newly identified

16. Anne Arundel Medical Center Results • Significant volume of quality prospects in AAMC’s pipeline with high inclination to give and high levels of estimated gift capacity: • 1,319 unmanaged households rated in top 20% of CCS’s models returned a gift capacity rating of at least $200,000. • CCS prioritized individuals that have already donated at least $1,000 to AAMC: • 447 are not assigned and returned a gift capacity rating of at least $200,000. • 26 are not assigned and returned a gift capacity rating of at least $1,000,000. 16

17. Anne Arundel Medical Center Results • AAMC’s MGO portfolios are filled with high quality prospects: • Large majority scored in the top 20% of the predictive models • Managed prospects that have donated over the past five years seem to hold AAMC as a philanthropic priority • 293 households in the top 20% have a second address in Florida • However, more than 25% of managed prospects have not donated over the last five years 17

18. Anne Arundel Medical Center Results • Annual Fund: • Prioritized 13,562 (or 27%) of LYBUNT, SYBUNT, Lapsed and Acquisition households • Identified over 1,200 prospects that should be managed • Identified 3,984 households as planned giving prospects (354 had given at least $1,000 and had a giving capacity of $200,000 or more) • Found 305 households (under 40 yrs old) with giving capacity of $25,000+ (BTS Society) 18

19. Key Findings & Takeaways Prioritized top potential donors for additional mailings, cultivation, and requests. 01 01 Targeted appeals for operational gifts vs. program gifts 02 MGO’s culled medium-level donors in portfolio to AF. 03 04 Makes MGO’s more effective 05 Overall improved ROI 19

20. Key Upside for AAMC Closing 5% of newly identified potential = $4,470,000 Spent 1% of budget, now have a 3-year plan for cultivation and engagement of new donors Helps justify requests for increased budget and personnel 20

21. Jan Wood, CFRE Chief Development Officer Anne Arundel Medical Center jwood3@aahs.org Questions & Discussion Tim Nurvala Corporate Vice President CCS Fundraising tnurvala@ccsfundraising.com