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Blackbaud Thought Leadership Webinar
- August 14th, 2012
Making Better Fundraising Decisions
Nowshad (Shad) Ali; [email protected]
Craig White: [email protected] 1
Nowshad (SHAD) Ali, CFRE, CPBA, CPVA
August 14th, 2012
Making Better
Fundraising Decisions
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#2 © 2007 On Purpose Leadership Inc.
Our Presenter – Nowshad (Shad) Ali President & CEO On Purpose
Leadership
CFRE; CPBA; CPVA
Former senior development roles at:
– Canadian Diabetes Association
– Big Brothers & Big Sisters
– Osteoporosis Canada
– The Lung Association
Volunteer roles include;
– AFP Fdn for Philanthropy Canada
– AFP Int’l Professional Advancement
– AFP Int’l Research Advisory
– AFP Canada Research Chair
– Saskatchewan Association of Human
Resource Professionals
– Canadian Society of Association
Executives
Blackbaud Thought Leadership Webinar
- August 14th, 2012
Making Better Fundraising Decisions
Nowshad (Shad) Ali; [email protected]
Craig White: [email protected] 2
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#3 © 2007 On Purpose Leadership Inc.
Journey for this Session
Making Better Decisions – Key elements|
Components of Strong Organizations
Fundraising Strategies
Applying the 3-S model
Improving results with better Information
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#4 © 2007 On Purpose Leadership Inc.
Begin With the Fundamentals
AFP Code of Ethics http://www.afpnet.org/Ethics/EnforcementDetail.cfm?itemnumber=3261
Donor Bill of Rights http://www.afpnet.org/ethics/enforcementdetail.cfm?itemnumber=3359
AFP Ethics Assessment http://www.afpnet.org/Audiences/MemberNewsDetail.cfm?ItemNumber=6126
AFP/Ipsos Reid – What Canadian Donors Want http://afpcalgary.afpnet.org/International/RepResdetail.cfm?ItemNumber=11841
Blackbaud Thought Leadership Webinar
- August 14th, 2012
Making Better Fundraising Decisions
Nowshad (Shad) Ali; [email protected]
Craig White: [email protected] 3
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#5 © 2007 On Purpose Leadership Inc.
Connecting To This Webinar
The audio for this webinar will be broadcast through your computer. Once you join the
presentation, a small audio broadcast box will appear on your screen and you will hear the
host through your computer speakers.
To join an Audio broadcast in WebEx, click on the Communicate menu in your WebEx screen
and select Join Audio Broadcast. If you are having problems connecting with the audio
broadcast server you can still join using the teleconference. To join the teleconference follow
the steps below:
1.Leave the audio broadcast by clicking on Communicate > Leave Audio Broadcast.
2.Get the teleconference number, click on Communicate > Join Teleconference.
If you are unable to listen to the audio through your computer and wish to dial into the
conference line, please use the information below:
Teleconference information:
Call-in toll-free number: 1-866-4106539 (US)
Call-in number: 1-660-4225471 (US)
Conference Code: 364 005 6
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#6 © 2007 On Purpose Leadership Inc.
Making Better Decisions – Key Questions
Is the Quality of the decision important?
Is commitment from others important to the
decision?
Do you have enough, and the information needed
to make the decision?
Is the problem the decision seeks to resolve well
structured and well defined?
If you make the decision yourself how will it affect
others and or the commitment of others?
Blackbaud Thought Leadership Webinar
- August 14th, 2012
Making Better Fundraising Decisions
Nowshad (Shad) Ali; [email protected]
Craig White: [email protected] 4
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#7 © 2007 On Purpose Leadership Inc.
Making Better Decisions – A Simple Process
Set Objectives
Explore & Prioritize Options
Choose Best
Options
Generate Controls Needed
Implement, Monitor, Adapt
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#9 © 2007 On Purpose Leadership Inc.
Albert Einstein
“The significant problems we face today
cannot be solved at the level of thinking
we were at when we created them.”
Blackbaud Thought Leadership Webinar
- August 14th, 2012
Making Better Fundraising Decisions
Nowshad (Shad) Ali; [email protected]
Craig White: [email protected] 5
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#10 © 2007 On Purpose Leadership Inc.
Components of a Strong Organization
Operate from sound financial base
Good understanding of shared roles and responsibilities
Effective use of all resources
Capacity to be creative, flexible and adaptable
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#11 © 2007 On Purpose Leadership Inc.
Components of a Strong Organization
Clear understanding of environment
Constant focus on the mission (business, where
we are going and how we plan to get there
Communication, Communication, Communication
Blackbaud Thought Leadership Webinar
- August 14th, 2012
Making Better Fundraising Decisions
Nowshad (Shad) Ali; [email protected]
Craig White: [email protected] 6
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#12 © 2007 On Purpose Leadership Inc.
Peter Drucker
“ Management exists for the sake of the institution’s
results. It has to start with the intended results and
has to organize the resources of the institution to
attain these results. It is the organ to make the
institution, whether business, church, university,
hospital or a battered women’s shelter, capable of
producing results outside of itself.”
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#13 © 2007 On Purpose Leadership Inc.
Strategy - Three Strategies in all of Fundraising
Acquisition
Renewal
Growth
Cultivation
Blackbaud Thought Leadership Webinar
- August 14th, 2012
Making Better Fundraising Decisions
Nowshad (Shad) Ali; [email protected]
Craig White: [email protected] 7
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#14 © 2007 On Purpose Leadership Inc.
Traditional Pyramid
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#15 © 2007 On Purpose Leadership Inc.
Structure - The Real Donor Pyramid
Blackbaud Thought Leadership Webinar
- August 14th, 2012
Making Better Fundraising Decisions
Nowshad (Shad) Ali; [email protected]
Craig White: [email protected] 8
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#16 © 2007 On Purpose Leadership Inc.
Systems - Success will require that you:
Understand your donor and supporter markets and segments that can be the most productive.
Focus resources on those revenue generation opportunities that offer the most growth in income.
Use proven successful strategies and tactics to attract and keep a donor and supporter base that shares your organization’s vision and believes in your mission.
Be clear about your success to date and the challenges before you.
Recognize your capabilities as well as skill and resource gaps.
Know from whence you came and to where you wish to go.
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#17 © 2007 On Purpose Leadership Inc.
Sound Fund Development Vision
A corporate-wide, donor relationship plan that focuses on developing
long-term donor relationships that create loyalty
Knowledge-based marketing plans that evolve through constant
learning and feedback
Efficiencies and effectiveness in all donor contacts through intelligent
use of donor data
Developing a behaviour based (trigger based), consistent,
routinized donor plan for every donor relationship
Blackbaud Thought Leadership Webinar
- August 14th, 2012
Making Better Fundraising Decisions
Nowshad (Shad) Ali; [email protected]
Craig White: [email protected] 9
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#18 © 2007 On Purpose Leadership Inc.
Objectives in Support of Vision
Integrated activities and systems resulting in knowledge-
based donor contact strategy
Donor Contact management systems
Full reporting capabilities
Good stewardship & ability to effectively manage quality
donor relationships
Fund development efficiencies and effectiveness (ROI)
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#19 © 2007 On Purpose Leadership Inc.
Data Management Plan to Support Vision
A fully integrated corporate-wide information
system to enable:
– Systematic processing and routinized
management of donor information across all levels
– Quick and easy on-line access to donor
information
– Systematic treatment of all donor points of contact
– Continuous refinement of fundraising efforts using
timely, accurate and insightful information
Blackbaud Thought Leadership Webinar
- August 14th, 2012
Making Better Fundraising Decisions
Nowshad (Shad) Ali; [email protected]
Craig White: [email protected] 10
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#20 © 2007 On Purpose Leadership Inc.
Stage 1 Communal
Stage 2 Serial
Stage 3 Symbiotic
Stage 4 Integral
Collation of Information Gaining insight into donors from past behavior
Developing an understanding of likely future behavior
Real-time response to donor’s needs
Data in different places
Data entry de-centralized
Low level of controls, procedures, protocols, coordination
Standards not formalized
security levels low Usage narrow
data more likely to be centralized
Controls, procedures, protocols, coordination higher
Some standards formalized
Security levels moderate
Usage broadening
Database centralized (in rare cases different databases)
Controls, procedures, protocols, coordination formalized and implemented
Standards formalized and managed, measured
Security levels high Usage broad
Integral coordination among all relevant – across divisions, geographies and other boundaries
Sophisticated and or established major gifts focus
Formalized sales/solicitation process
Multiple contact points managed, number of solicitors
Integrated Development Program
Development staff IT Staff
Development Director, IT Staff, Analytics experts,
Marketing
Symbiotic coordination between collator, analytics experts and line organizations
Development staff, IT Staff, Cross Department integrators
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#21 © 2007 On Purpose Leadership Inc.
Solutions that work
CRM, Internet Solutions
Data Management Solutions – use of Action Tracks and Prospect tabs
Financial Management Solutions
Giving Scores & Custom modeling
Online/Net Community – Cultivation and Acquisition online
Friends Asking Friends – Grow
Guide Creative - integrate into web design
Blackbaud Thought Leadership Webinar
- August 14th, 2012
Making Better Fundraising Decisions
Nowshad (Shad) Ali; [email protected]
Craig White: [email protected] 11
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#22 © 2007 On Purpose Leadership Inc.
Alvis Sweeney
“Relationships are the first order of business and the
only business you’re in.The reality is, everyone is
going after the best customers; protecting your
customer base is critical. It is economic suicide to
concentrate on acquiring new customers without
doing everything in your power to retain existing
customers.”
Customers: (donors/members/volunteers)
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#23 © 2007 On Purpose Leadership Inc.
If this is so simple why is it so hard:
Transaction VS Relationship
Expense VS Investment
Income VS Equity
Get VS Give
Overnight VS Over Time
Us Vs Them
Disease/issue VS People
Blackbaud Thought Leadership Webinar
- August 14th, 2012
Making Better Fundraising Decisions
Nowshad (Shad) Ali; [email protected]
Craig White: [email protected] 12
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#24 © 2007 On Purpose Leadership Inc.
“Every organization is
perfectly designed for
the results they get.” (Peter Drucker)
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#25 © 2007 On Purpose Leadership Inc.
Benchmarking research indicates
A donor can be defined as reaching the loyal donor threshold when he
or she has given to your organization in a minimum of three of the past
five years, or 60 percent of the time. Once people achieve this
threshold, they are much more likely either to advance to a higher
level of annual giving or to make a planned or major gift.
after six solicitations per year, the likelihood for long-term loyalty
diminishes significantly. As a result, it is important for charities to focus
on building long-term relationships rather than on squeezing an extra
$20 from donors in any given year. It is time to realize that seventh
fundraising letter sent in a year is likely to alienate the same small
donor who might otherwise be a good prospect for a large gift a few
years down the road.
Blackbaud Thought Leadership Webinar
- August 14th, 2012
Making Better Fundraising Decisions
Nowshad (Shad) Ali; [email protected]
Craig White: [email protected] 13
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#26 © 2007 On Purpose Leadership Inc.
A few Key things to be looking at
Are retention rates increasing or decreasing? Which donor segments have the best retention?
Is my donor upgrade strategy working? For particular lifecycle stages, are my donors giving more today than in past years?
What is the lifetime value of donors acquired through the web versus those acquired through direct mail?
Are increases in average gift having a negative effect on donor retention?
What is the impact of a sub-par acquisition year on future years’ revenue?
How have my heavy lapsed reactivation efforts impacted my donor portfolio and affected retention and donor value?
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#27 © 2007 On Purpose Leadership Inc.
http://www.afpnet.org/Audiences/ReportsResear
chDetail.cfm?ItemNumber=3113 Overall* donor retention was 41 percent in 2010 (Median).
– That is, only 41 percent of 2009 donors made repeat gifts to participating
nonprofits in 2010
Overall* donor attrition in 2010 was 59 percent.
– That is, 59 percent of 2009 donors did not give again to participating
nonprofits in 2010. These donors are also known as ―lapsed donors‖ or
―LYBUNTs‖ [Last-Year-BUu-Not-This]
Repeat* donor retention was 70 percent. New* donor retention
was only 27 percent
Database* donor retention in 2010 was 10 percent.
– That is, only 10 percent of all prior donors of record in participating
nonprofits’ donor databases gave again in 2010.
Blackbaud Thought Leadership Webinar
- August 14th, 2012
Making Better Fundraising Decisions
Nowshad (Shad) Ali; [email protected]
Craig White: [email protected] 14
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#28 © 2007 On Purpose Leadership Inc.
http://www.afpnet.org/Audiences/ReportsResear
chDetail.cfm?ItemNumber=3113 Overall* donor retention was 41 percent in 2010 (Median).
– Donor retention is less than the FEP survey median of 41 percent for groups of
donors making gifts of under $250 and significantly higher for groups of $250-and-
over donors where retention can range up to 70 percent or more
Adrian Sargeant and Penelope Burk report in their books that donor
retention can be increased by 50 percent -- or more – by investing in
communications to donors about their gifts at work and other aspects
of donor relations. A 50 percent increase in the FEP survey‘s 45
percent gift$ retention for 2010 would increase gift$ retention to nearly
70 percent
Such increases in retention rates alone can significantly improve the
annual rate of growth in giving in the nonprofit sector as indicated in
Figure 7. For the average FEP 2009-10 survey respondent, an
increase in gift$ retention from 45 percent to 70 percent would mean
an increase in net growth in giving from -2 percent to 23 percent.
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#29 © 2007 On Purpose Leadership Inc.
Path To Improved Results
•Assumptions Research Improved Assumptions
•Behaviour or Improved Action Behaviour
•Results Improved Results
Blackbaud Thought Leadership Webinar
- August 14th, 2012
Making Better Fundraising Decisions
Nowshad (Shad) Ali; [email protected]
Craig White: [email protected] 15
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#30 © 2007 On Purpose Leadership Inc.
The Impact Donor Modeling Is Having
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#31 © 2007 On Purpose Leadership Inc.
Done Well Donor Modeling Helps
Increase return rates
Increase gift sizes
Accelerate major and planned gift programs
Plan and prepare for campaigns
Improve targeted marketing
Identify the best prospects for various giving
levels and types
Blackbaud Thought Leadership Webinar
- August 14th, 2012
Making Better Fundraising Decisions
Nowshad (Shad) Ali; [email protected]
Craig White: [email protected] 16
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#32 © 2007 On Purpose Leadership Inc.
Done Well Donor Modeling Helps
Better prospect identification for major gifts,
planed giving and annual fund programs
More appropriate target gift ranges for
solicitation strategies and timing of
communications
Increased success rates in securing
appointments with Planned Giving and Major
Gifts prospects
Increased response rates in DR programs
Decreased cost of mailings and telemarketing
programs
Enhanced engagement of solicitation
volunteers and staff
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#33 © 2007 On Purpose Leadership Inc.
Different Forms of Data Analysis
RFM Analysis
Data Mining
Cluster Analysis
Predictive Modeling
Blackbaud Thought Leadership Webinar
- August 14th, 2012
Making Better Fundraising Decisions
Nowshad (Shad) Ali; [email protected]
Craig White: [email protected] 17
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#34 © 2007 On Purpose Leadership Inc.
Breakdown of a model…
- 34 -
Graduate
School
Age
Per Capita
Income
Home Value >
$500K
Years of Giving
High Retail Credit
Constituent Code
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#35 © 2007 On Purpose Leadership Inc.
-
5,000
10,000
15,000
20,000
25,000
30,000
$1-50 $51-100 $101-250 $251-500 $501-$1,000 $1,001-2,500 $2,501-5,000 $5,001- 10,000
Giving Range
# o
f D
onors
Actual
Potential
Understanding Annual Fund Potential
Blackbaud Thought Leadership Webinar
- August 14th, 2012
Making Better Fundraising Decisions
Nowshad (Shad) Ali; [email protected]
Craig White: [email protected] 18
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#37 © 2007 On Purpose Leadership Inc.
Where is good data coming from
Inside your own database
Access studies and papers like FEP, What Canadian Donors Want,
and other research results
Giving scores and custom modeling
Talk with your donors including surveys,(segment based on common
traits not just gift levels or response mechanisms)
Use internal and external data sources. Create a profile for your
donors and look for other people like them
Focus foremost on building the relationship with existing donors and
maximizing the support from them.
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#38 © 2007 On Purpose Leadership Inc.
Some Helpful Resource links
http://www.supportingadvancement.com/revenue/samples/samples.htm
http://www.malwarwick.com/assets/pdfs/successful10-07.pdf
“Monthly Donors: Why you want them, how to get them, how to keep
them.” Canadian Fundraiser eNews. April 30, 2003.
http://www.canadianfundraiser.com/newsletter/article.cfm?ArticleID=787&ClientID=9697
http://www.mastercardmerchant.com/cgibin/orderform.cgi?form=market_acceptance
http://www.blackbaud.com/resources/white-papers.aspx
Blackbaud Thought Leadership Webinar
- August 14th, 2012
Making Better Fundraising Decisions
Nowshad (Shad) Ali; [email protected]
Craig White: [email protected] 19
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#39 © 2007 On Purpose Leadership Inc.
Final Thought!
"Research is like a lamppost to a drunken man - it's just as
vital for support as illumination."
A point of view can be a dangerous luxury when
substituted for insight and understanding……
(Marshall Mcluhan)
…see over
Making Better Fundraising Decision – Thought Leadership Seminar| Page
#40 © 2007 On Purpose Leadership Inc.
Nowshad (Shad) Ali, CFRE
President & CEO I On Purpose Leadership
1-866-644-7673
Direct: 306.652.1417 I Mobile: 306.220.7764
[email protected] I www.onpurpose.ca
Craig White
Manager of Sales, Blackbaud Canada
Direct: 843.654.3278 | Mobile: 843.323.8111
[email protected] | www.blackbaud.ca
Thank You for allowing me this luxury to express my
point of view on the subject.