Charleston Animal Society Fundraising Effectiveness Webinar

Fundraising Effectiveness Project (FEP)

Monitoring Fundraising Effectiveness

Charleston Animal Society

Jeff M. Terry | Page #1 © 2008 Blackbaud

September 1, 2009


Session Goals

1. Introduce the Fundraising Effectiveness Project (FEP) concepts and tools

2. Share analysis completed on Charleston Animal Society

- Year over year

- Compared to peers


3. Discuss how CAS makes this data actionable

- What if scenarios


Our Presenters

Jim Bush, CFREExecutive Director of Charleston Animal Society

@TopDogCASCharelston Animal Society

Jim Bush


Jeff TerryManager of National Accounts - Blackbaud

@JT_on_DI

Blackbaud



Fundraising Effectiveness Project


The AFP’s “Fundraising Effectiveness Project”

What Is It?

� A project launched in 2005 by the AFP and The Urban Institute

� Measure & understand growth or losses in annual giving

� Comparable growth data with other nonprofits

� Analysis - better understand where to focus your resources and efforts

� 1400 non profit participants & $4 billion in gifts analyzed since 2005


Key finding from AFP:

Retention is King


Per AFP:

“Growth in giving is increased both by maximizing gains and minimizing losses.


Management and boards need to know this to make intelligent, informed, growth-oriented planning and budgetary decisions.”


Contributors of Value

GAINS


GAINS

Detractors of Value

LOSSES


Aggregate Results – 1400 non profits in 2007-2008


On average, for every $1 that participating organizations raised in new gift dollars in 2008, more than $1 was lost through donor attrition






Gain Ratios


Huge variance in performance when comparing best in class to others



Loss Ratios


Huge variance in performance when comparing best in class to others


How To Get Your Organization’s FEP Data

� The Raiser’s Edge:• Plug-Ins Section of RE, then click on link for ‘Fundraising Effectiveness Report’

• Contact your Account Manager if you’d like the type of analysis we did with CAS


� Other systems:• Contact your vendor


Fund Raising Effectiveness for Charleston Animal Society


Comparing gains & losses in periods 05-06, 06-07 & 07-08 using the FEP report tools

Comparative data from 1400 non profits


CY ‘07 & ’08 - All Giving

GAINS


LOSSES


CY ‘07 & ’08 - Individual Giving

GAINS


LOSSES


Peer Comparison – Average Giving per Donor



Peer Comparison - Donor Retention



Peer Comparison - Donor Retention


The 25% best run organizations substantially out performed the norm

Source: Target 2008 Index on direct marketing giving. Over the twelve months ending December 2008, the Index evaluated transactions from 70 of the largest nonprofits in the United

States, including over 35 million donors and more than 64 million gifts totaling over $1.8 billion in revenue. Individual gifts over $5000 are excluded.


Three Year Trending – CAS All Giving

Retained donors

gave 3X the amount

of a 1st time donor



The Data Tells Us

� Strong growth in # of new donors

� Average gift amount slightly better than peer average

� Upgrades outpacing downgrades

� Retained donors are 3X more valuable than 1st time donors


donors

� Retention significantly below peers

� Average gift amount for new & retained donors significantly below peers



What if scenarios


What if…

Scenario 1:

� Increase new donor acquisition by 10%

� All other variables remain static



What if…

Scenario 2:

� Increase retention by 10% (to 47% - still below top performing peers)




What if…

Scenario 3:

� Increase retention by 10%

� Increase average gift amount by 10%




Enough Analysis…What is CAS Going to Do?

� Continue to aggressively acquire new donors 1. Everything goes into Raiser’s Edge

• Event attendees

• Adopters

• Email subscribers

• Volunteers


• Volunteers

• Class/education participants

2. Moves management applied to all of the above to engage & retain



� Reactivate past donors via SYBUNT & LYBUNT campaigns. These are the lowest hanging fruit for annual giving

• Recognition by giving levels

•


• Stewardship packages by giving level & giving type



� Talk to donors where they are• Online

• E-communication strategy

• New website

• Facebook presence

• Twitter activity


• Twitter activity

• Blog

• E-Newsletter

• Offline

• Face to face

• Direct mail

• Newsletter (hardcopy)


Follow Up

o Jim Bush – @TopDogCAS

[email protected]


oJeff Terry – @JT_on_DI

[email protected]

o AFP FEP Overview – www.afpnet.org

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Charleston Animal Society Fundraising Effectiveness Webinar