Managing Processes and Records

CASE District II ConferenceAdvancement Services Track: Database and RecordsFebruary 11, 2002

Patricia BurchThe Stillwater GroupPatricia BurchThe Stillwater Group

The Problem

The typical advancement services process is paper-intensive. Documents are sorted, coded and filed to process transactions and support advancement activities that range from large-scale solicitations to specialized, person-to-person donor cultivation and solicitation.

Why Do We Generate So Much Paper?

Large-scale solicitations tend to be highly customized (e.g., multiple pledge card formats, multiple fund designations).

The process often relies on manual checks and duplicate record-keeping (i.e., paper and electronic) to maintain a low error rate.

The development information system is underutilized.

Why Do We Keep So Much Paper?

Paper is still considered the primary record format.

A significant number of records need to be retrieved frequently or moderately frequently (several times a month to several times a year).

There are no explicit policies for purging or destroying paper records that are no longer needed.

What Can We Do?

Redesign the Process

Develop A Document Retention Strategy

Redesign the Process

1. Analyze the Current Process

2. Identify Process Inefficiencies

3. Develop Redesign Strategies

Analyze the Process

What specific activities and products does the process comprise?

What does each activity in the process accomplish?

Why is the activity performed as it is?

What information, training, and record flows are required to perform these activities?

Tools: Flowcharts and process maps Transaction and cost analysis Staff activity and work distribution analysis

Sample Flowchart

Research

Fundraisers

Departments/Units/

Friends

DevelopmentOperations

Business Office

Solicit Record Acknowledge Steward

Identify prospects, Collect career information, Update data in system

Mailings, Phonathons, Visits

Receive pledge or gift

Produce letters

Publications, Events, Reports

Mailings, Phonathons, Visits

Run activity reports

Process and record funds, post to GL, reconcile

Reconcile, deposit, open accounts

Produce letters

Publications, Events, Reports

Maintain Records and Generate Reports

The prospect-to-donor processThe prospect-to-donor process

Sample Process Map

ADMIN SYS DATABASEPAPER FILES

RESEARCH SOLICIT

RECORDACKNOWLEDGE

DonationsTrip Reports

Verbal Reports

STUD INFO database (student and parent data)

Create paper prospect file

Create donor profile

Research biographical,

demographic and career data

Create prospect

record

Update prospect

record

Contact prospect

Record outcome of

contact

pledge or gift?

Update record

Receive information

about pledges and gifts

Record gift or pledge on

system

Run proof, tally payments and

reconcile

Copy checks, and tape

File

File in matching

gift file

Make 2 copies of the matching gift

form

Complete matching gift

forms

Matching Gift?Attach backup

documentation

Collate and separate

Print transmittal forms and

receipts

Make 6 copies of "proof" and place in campus mailboxes

Type envelope and send original

matching gift form to company

Attach 1 copy to the transmittal

form

Give trannsmittal to acknowledgement

staff

wait

post gifts to system (once a week)

Prospect Record SheetsReports

Mailing LabelsRated ProspectsDonor Profiles

Prospect ListsMailing Lists

Donor Profiles

Sort transmittals and

documents

Create list of matching

gifts

Code transmittals for type of acknowledgement letter (34

types)

Print and attanch to transmittal

form

Add additional or revised data

Merge data into Word document

over $250 or special case?

Attach card to

transmittal

Send to VP and President or

others for signature

wait

Receive documents with

signatures

File copy in donor file

Mail letters

Copy and send news notes to

appropriate officesSend to

Annual Giving

Phonathon SheetsLetters of IntentConversation Documentation

Gifts

TransmittalsReceipts

Daily Cash ReceiptsPosting ReportsCheck Copies

ReportsPledge Reminders

TransmittalsBack-up

DocumentationReceipts

Pledge Reminders

News NotesAcknowledgements

Donor Mailings

no

Activity Reports

Updated DataPledges/Gifts

PAPER FILES

no

yes

Major Donor?

yes

no

phonathons direct mail personalvisits

Create new record or account

if necessary

stock gift?

produce stock letter

Annual Giving?

no

yes

Give to acknowledgements

staff

yes

Send to appropriate department

Produce and sign letters

Send letter and receipt

File copies

no

Run pledge reminder

report

Distribute report

Annual Giving?

Send pledge reminder

letter

Send to stewardship

Produce and send letter

wait

no

yes

yes

Business OfficeFinancial System

STEWARDSHIP ACTIVITIES

Annual Reports, Newsletters, Events, Fund

Reports, Donor Recognition

no

yesInformation complete?

yes

Researchwait

no

Sample Transaction Analysis

86%

7% 1%

6%

< $500

>= $500 and <$1,000

>= $1,000 and <$10,000

>= $10,000

1% 6%

90%

3%

< $500

>= $500 and <$1,000

>= $1,000 and <$10,000

>= $10,000

. . . Which accounted for only 3% of total dollars received

A majority (86%) of gift and pledge payments processed were less than $500. . .

Work Distribution Analysis

Tasks that involve managing paper are time-burners

7.72 7.577.06 6.79 6.44

5.835.35 5.27

0

1

2

3

4

5

6

7

8

Percentage of effort

Preparecorrespondence

Open and sortmail

Create/maintaindatabase

Copy, distribute,and file

documents

Research data ondonors

Plan/conductsolicitation visits

Handle and sortdocuments for

mailing

Identifyprospective

donors

Identify Problems and Inefficiencies

Complex procedures for processing low-dollar transactions reduces staff time available for value-added work.

High level of customization (e.g., acknowledgement letters) increases processing costs.

Redundant checking and duplicate record-keeping reduces efficiency.

Guiding Principles for Redesign

Streamline the process…Streamline and standardize processing for low-

dollar transactionsMake effective use of technologyMinimize reliance on paper documentation Encourage and support self service for internal

users of information

Guiding Principles for Redesign

And improve service to donors…Devote more staff time to activities that increase

fundraising revenues and strengthen donor relationships.

Reduce the number of hand-offs required to resolve problems

Process Redesign Can Reduce Paper

Transmittals. This document will no longer be produced. All information printed on this document is available and accessible through the database.

Most Acknowledgement Letters. With the exception of high dollar gifts or donors requiring “special handling,” donors will receive a receipt instead of an acknowledgement letter.

Copies of checks. Copies of checks will no longer be made. Sufficient information about the payment exists in the database, and donors receive cancelled checks from their banks as proof of payment.

Process Redesign Can Reduce Paper

“Backup” donor response form. Once the donor response has been entered into the database, the original response form (e.g., pledge card) will be destroyed unless it contains special information or additional instructions.

Daily transaction reports. Institutional advancement staff will now be given access to on-line reports with information about all payments and pledges received.

Develop a Document Retention Strategy

1. Evaluate record retention needs Inventory of current records Classify records by retention and retrieval

frequency

2. Assess costs and benefits of record retention options

3. Develop record retention policies

Sample Results of a Record Inventory

91% of records are paper.

32% of paper records also exist in electronic format.

41% of records are retained permanently despite a policy or guideline that indicates a definitive retention period. Only 9% of records are destroyed or purged.

50% of records are retrieved frequently or moderately frequently

Approximately 500 cubic feet of campus space is used to store boxes of documents and 5000 cubic feet is rented from Pierce Leahy.

Evaluating Record Retention Needs

Finite Retention Period Infinite Retention Period

Fre

quen

t R

etri

eval

Infr

eque

nt

Ret

riev

al QUADRANT C

QUADRANT B

QUADRANT D

Easy access Plan for disposal

Easy access Secure, permanent

storage format

Temporary storage

Plan for disposal

Secure, permanent storage format

QUADRANT A

Record Retention Options

Paper File Storage

Paper documents labeled and stored either on site or off site

Microfilm or Microfiche

Paper documents converted to film accessible through reader or PC software

CD-ROM or DVD

Paper documents converted to electronic format, stored on CD or DVD with desk-top or networked access

Optical Disk Paper documents converted to electronic format, stored on optical disks with networked access

Internet-based Documents

Web access to electronic images through an Intra- or Internet site

Weighing the Costs

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Cost for 10,000 recordsPaper

Microfilmw/readerMicrofilm w/ PC

CD (stand alone)

CD (networked)

Optical disk

Develop a Records Retention Policy

Electronic vs. Paper Records. Should records that are available in electronic format be stored in paper format?

Record Ownership and Duplicate Records. Who is the official owner of a record? Can we identify a strategy to eliminate duplicate record storage?

Retention of Reports. Why are we keeping paper printouts of electronic reports? Can we make changes to eliminate this practice?

Develop a Records Retention Policy

The records retention policy should include detailed retention schedules that state the “lifecycle” of a record.

The schedule should indicate the official owner of the record, how long it is required to be retained and what should happen to it after that retention period.

Further research may be required to confirm that proposed policies are consistent with internal and external guidelines.

Critical Success Factors

Leadership: A sponsor who provides resources and a mandate for change

Process: staff involvement and ownership

Implementation: Realistic milestones and clear responsibilities