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BUILDING A CULTURE OF PHILANTHROPY
MPS 519, Resource DevelopmentDePaul University School of Public Service
Meagan Downey, CFREApril 20, 2013
Definition• Culture of philanthropy: a set of organizational values and
practices that support and nurture development within a nonprofit organization
In Practice• Most people in the organization act as ambassadors and
engage in relationship building.• Everyone promotes philanthropy and can articulate a case
for giving.• Fund development is viewed and valued as a mission-
aligned program of the organization.• Organizational systems are established to support the act
of giving.• The executive director is committed to and personally
involved in fundraising.
Climate: Instability in the Development Director Role
Under $1M Between $1-5M Between $5-10M
Over $10M0%
10%
20%
30%
40%
50%
60%
Anticipate Leaving the Organization within 2 Years
Anticipate Leaving the Field of Development within 2 years
Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising, Bell and Cornelius, CompassPoint, 2013
Development Directors Leaving the Organization or Field by Organizational Budget Size
Climate: Executive Directors Dissatisfied and Unprepared
Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising, Bell and Cornelius, CompassPoint, 2013
Under $1M Between $1-5M Between $5-10M Over $10M0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Executives Very Satisfied With De-velopment Director Performance
Climate: Executive Directors Dissatisfied and Unprepared
Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising, Bell and Cornelius, CompassPoint, 2013
Love
s as
king
for g
ifts
Skilled
at s
ecur
ing g
ifts
Previo
us d
evelo
pmen
t exp
erien
ce0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Executive Director Fundraising Capacity
High-Performing Organizations
Rest of Sample
Climate: Board Members Not Sufficiently Engaged In Philanthropy
Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising, Bell and Cornelius, CompassPoint, 2013
Under $1M Between $1-5M Between $5-10M Over $10M0%
5%
10%
15%
20%
25%
30%
35%
40%
Sufficient
Very Sufficient
Board Member Engagement as Reported by Executive Directors by Organizational Budget Size
Climate: A Vicious Cycle• High turnover rate of development staff, due to
dissatisfaction and termination• Misunderstanding about the development profession
leads to unrealistic expectations of fundraising staff• Fundraising becomes “a necessary evil” instead of an
opportunity for engagement • Donors lack meaningful relationships to the
organizations they care about, or worse, they lack trust in organizational leadership and fundraising staff
Breaking the Cycle• Continual education• Creating and communicating opportunities for
engagement• Communicating impact
Education and Training Resources• Association of Fundraising Professionals• BoardSource• Donors Forum• Chronicle of Philanthropy• Fundraising and board development consultants• Executive coaching• CFRE International• IUPUI School of Philanthropy• Integration of training in basic staff and board orientation• Harvard Business Review• Donor surveys and focus groups
Engagement: Demystifying the Donor
DONOR
Engagement: Demystifying the Donor
• Board members• Former board members• All staff• Leadership• Volunteers• Activists• Members/subscribers• Beneficiaries• Audience goers/attendees• Grateful patients• “Family” friends
Engagement: Demystifying the Donor
Successful fundraising professionals develop close relationships with all staff and volunteers who have contact with these constituencies. They make fundraising success everyone’s success, and fundraising challenges everyone’s challenges.
Impact: Fundraising Metrics
Development raised $XX,XXX,XXX!
Impact: Fundraising Metrics• Metrics are ideally represented in fund development plan
and integrated into organizational strategic and operational plans
• Metrics address costs (hard and soft), revenues and health of donor base
• Targeted improvements in metrics are closely tied to budgetary needs/budgetary cuts (staffing, technology, prospect research, etc.)
• Relevant metrics are regularly communicated to staff and volunteers who are not development professionals
• Metrics inform rather than overwhelm.
Impact: Fundraising MetricsMetrics can show what is happening, but not necessarily why. Discussing the why can be a valuable engagement exercise for executive directors, board members and fellow staff, and help to create buy-in for fundraising strategies undertaken by the organization.
Impact: Fundraising Metrics
Average lifetime valueAttrition rate
Cost per dollar raised
# of meaningful contacts
% board giving
Renewals
Net ticket revenue
Response rate
# of face-to-face solicitations
# of event attendees
Email open rate
Em
ail click-through rate
Upgrades/downgrades
What is “good”?
Impact: Fundraising Metrics
Good is better.
Cost Per Dollar Raised• Often an oversimplified metric, at times sensationalized by
the media and misunderstood• Considerations include type and age of the organization
and mix of fundraising programs• Returns on investment in fundraising programs don’t
necessarily show up in the same fiscal year• Generating $4M at a cost of $1M (25% CPD) is preferable
to $3M at a cost of $600K (20% CPD) because the end result is $600K more to spend on mission
Association of Fundraising Professionals Resource Center; Hot Topic: Fundraising Costs
Cost Per Dollar Raised
Dan Pallotta: The Way We Talk About Charity Is Dead Wrong; Ted; http://www.youtube.com/watch?v=bfAzi6D5FpM
Impact: Fundraising Metrics• Identify who needs to know what• Give partners simple benchmarks that they can follow
over time• Communicate trends• Engage partner stakeholders in determining the why, then
test assumptions together• Never underestimate anecdotal feedback to weave into
metrics to create a compelling narrative• Succeed together, fail together, innovate together• Institutionalize opportunities for communicating impact
Discussion
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