Slaying the Dragon Debunking Common Fundraising Myths AFP Toronto - - PowerPoint PPT Presentation

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Slaying the Dragon Debunking Common Fundraising Myths AFP Toronto - - PowerPoint PPT Presentation

Oct 12, 2023 7 likes •627 views

Slaying the Dragon Debunking Common Fundraising Myths AFP Toronto Fundraising Day J une 12, 2018 Performance Advantage N.A. sareed@mpicompanies.com Steve Reed Start with Why What How Why Performance Advantage N.A.

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Slaying the Dragon

Debunking Common Fundraising Myths

AFP Toronto Fundraising Day J une 12, 2018

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com
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SLIDE 2

Start with Why

Why How What

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 2
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What FPI Can Do What FPI Can Do

From To % Change Amount Raised $10,000,000 $45,000,000 350% % from major gifts 0.20 0.87 335% MG >$1 Million 1 12 1100% Donor Visits 1,848 4,312 133%

Source: Florida Hospital Foundation

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 3
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The Problem with Conventional Wisdom in Fundraising It’s an

  • xymoron
Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 4
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SLIDE 5 Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com

Impossible

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Learning Objectives

  • Why traditional fundraising theory and “best practice” can

result in less money for your cause.

  • What performance imperatives from the for-profit world will

improve your fundraising

  • How to keep your organization relevant in today’s changing

philanthropic environment.

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 6
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Slaying the Dragon

10 Ways FPI Questions Conventional Thinking

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 7
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SLIDE 8

Delivering Value

  • ver time
Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com
  • 10. The Donor Pyramid?”
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  • 9. “Any dollar is a good dollar?”
Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 9 9
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  • 8. Culture of Philanthropy?
Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 10 10
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  • 7. Moves Management?
Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 11 11
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  • 6. Board Training?
  • 6. Board Training?
Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 12 12
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  • 5. Your Org Chart?
  • 5. Your Org Chart?
Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 13 13
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  • 4. Managers Make More?
  • 4. Managers Make More?
Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 14 14
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  • 3. Annual Programs?
  • 3. Annual Programs?
Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 15 15
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  • 2. Stewardship?
  • 2. Stewardship?
Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 16 16
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  • 1. Donor
  • 1. Donor-Centric?

Centric?

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 17 17
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“… One Ring to Rule Them “… One Ring to Rule Them All.” All.”

  • J.R.R. Tolkien
Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 18 18
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Lean Six Sigma Thinking Lean Six Sigma Thinking

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 19
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Process Process-Based, Based, Metric Metric -Measured Measured Operations Operations

  • 2. Map the

Value Stream

  • 3. Establish

Flow

  • 4. Implement

Pull

  • 5. Pursue

Perfection

  • 1. Identify

Value

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 20
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Allow Only Allow Only Intentional Intentional Variance Variance

6σ

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 21
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FPI FPI: : Fundraising Performance Improvement Fundraising Performance Improvement

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 22
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FPI FPI: : Fundraising Performance Fundraising Performance Imperatives Imperatives

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 23
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Big Ideas

  • 1. Use high
  • 1. Use high-cost, scarce

cost, scarce resources to do only high resources to do only high - value work. value work.

Applying Lean Six Sigma Thinking to Fundraising

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 24
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  • 2. Create abundant flow into
  • 2. Create abundant flow into

the “pipeline.” the “pipeline.”

Big Ideas

Applying Lean Six Sigma Thinking to Fundraising

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 25
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  • 3. Set key CTQ process
  • 3. Set key CTQ process

measures, with emphasis on measures, with emphasis on cycle time. cycle time.

Big Ideas

Applying Lean Six Sigma Thinking to Fundraising

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 26
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  • 4. Measure early, measure
  • 4. Measure early, measure
  • ften and ensure your
  • ften and ensure your

metrics lead to success. metrics lead to success.

Big Ideas

Applying Lean Six Sigma Thinking to Fundraising

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 27
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  • 5. Eliminate out
  • 5. Eliminate out -of
  • f-bounds

bounds process variance. process variance.

Big Ideas

Applying Lean Six Sigma Thinking to Fundraising

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 28
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Big Ideas

  • 6. Focus on high
  • 6. Focus on high-return

return activities. activities.

Applying Lean Six Sigma Thinking to Fundraising

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 29
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Applying Lean Six Sigma Thinking to Fundraising

Partner Development Candidate Identification Preliminary Qualification Point of Entry Connect Identify Engage Cultivate Solicit Recognize Steward Upgrade or Renew Re-engage

Pipeline Core Stewardship

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com

The Core Process

Applying Lean Six Sigma Thinking to Fundraising

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The Core Process

Applying Lean Six Sigma Thinking to Fundraising

Partner Development Candidate Identification Preliminary Qualification Point of Entry Connect

Pipeline

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 31
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The Core Process

Applying Lean Six Sigma Thinking to Fundraising

Identify Engage Cultivate Solicit

Core

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 32
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The Core Process

Applying Lean Six Sigma Thinking to Fundraising

Recognize Steward Upgrade or Renew Re-solicit

Stewardship

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 33
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The Core Process

Applying Lean Six Sigma Thinking to Fundraising

Identify Engage Cultivate Solicit Recognize Steward Upgrade or Renew Re-engage Partner Development Candidate Identification Preliminary Qualification Point of Entry Connect

Pipeline Core Stewardship

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 34
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Measuring Success

Applying Lean Six Sigma Thinking to Fundraising

Production CPDR/ROI Response Retention Production/FTE Production/FLFR Production/DFTE Production/Donors

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 35
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Q P S Reports

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com

Applying Lean Six Sigma Thinking to Fundraising

Measuring Success

Applying Lean Six Sigma Thinking to Fundraising

  • 2.5
  • 2
  • 1.5
  • 1
  • 0.5
0.5 1 1.5 Control Limits 36
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Qx Qa Reports

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com

Applying Lean Six Sigma Thinking to Fundraising

Measuring Success

Applying Lean Six Sigma Thinking to Fundraising

  • 2.5
  • 2
  • 1.5
  • 1
  • 0.5
0.5 1 1.5 Control Limits 37
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P100 Px Reports

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com

Applying Lean Six Sigma Thinking to Fundraising

Measuring Success

Applying Lean Six Sigma Thinking to Fundraising

  • 2.5
  • 2
  • 1.5
  • 1
  • 0.5
0.5 1 1.5 Control Limits 38
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Sx Sr (FFT) Reports

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com

Applying Lean Six Sigma Thinking to Fundraising

Measuring Success

Applying Lean Six Sigma Thinking to Fundraising

  • 2.5
  • 2
  • 1.5
  • 1
  • 0.5
0.5 1 1.5 Control Limits 39
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The FPI Numbers The FPI Numbers

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 40
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The Decreases

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com

Applying Lean Six Sigma Thinking to Fundraising

Number of gifts Number of gifts <$2,500 $2,500 (Production) (Production)

15,799 6,002

  • 62%

From To Change

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The Decreases

Applying Lean Six Sigma Thinking to Fundraising

Total Number of Total Number of gifts (Production) gifts (Production)

23,852 16,341

  • 31%

From To Change

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 42
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The Decreases

Applying Lean Six Sigma Thinking to Fundraising

Cost Per Dollar Cost Per Dollar Raised (Production) Raised (Production)

58¢ 38¢

  • 35%

From To Change

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 43
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The Decreases

Applying Lean Six Sigma Thinking to Fundraising

Cost Per Dollar Cost Per Dollar Raised (Production) Raised (Production)

35¢ 17¢

  • 51%

From To Change

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 44
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The Decreases

Applying Lean Six Sigma Thinking to Fundraising

% Revenue from % Revenue from Events (Production) Events (Production)

40¢ 16¢

  • 60%

From To Change

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 45
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The Decreases

Applying Lean Six Sigma Thinking to Fundraising

% Revenue from % Revenue from Direct Mail Direct Mail (Production) (Production)

13% 8%

  • 40%

From To Change

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 46
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The Decreases

Applying Lean Six Sigma Thinking to Fundraising

Number of GO Number of GO Processes Processes

14 1

  • 93%

From To Change

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 47
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The Decreases

Applying Lean Six Sigma Thinking to Fundraising

Gift Processing Gift Processing Steps Steps

93 18

  • 81%

From To Change

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 48
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The Decreases

Applying Lean Six Sigma Thinking to Fundraising

Gift Processing Gift Processing Cycle Time Cycle Time

21 days 2 days

  • 71%

From To Change

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 49
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The Decreases

Applying Lean Six Sigma Thinking to Fundraising

Staff Hours in Staff Hours in internal meetings internal meetings

2772 693

  • 75%

From To Change

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 50
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The Increases

Applying Lean Six Sigma Thinking to Fundraising

Total Amount Total Amount Raised Raised

$10m $45m +350%

From To Change

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 51
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The Increases

Applying Lean Six Sigma Thinking to Fundraising

Total Amount Total Amount Raised Raised

$6.1m $9.8m +59%

From To Change

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 52
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The Increases

Applying Lean Six Sigma Thinking to Fundraising

Total Amount Total Amount Raised Raised

$5.32m $10.8m +203%

From To Change

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 53
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The Increases

Applying Lean Six Sigma Thinking to Fundraising

% Raised from % Raised from Major Gifts Major Gifts

20% 80% +335%

From To Change

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 54
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The Increases

Applying Lean Six Sigma Thinking to Fundraising

% Raised from % Raised from Major Gifts Major Gifts

40% 80% 100%

From To Change

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 55
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The Increases

Applying Lean Six Sigma Thinking to Fundraising

Major Gifts over Major Gifts over $1m $1m

1 >12 +1100%

From To Change

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 56
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The Increases

Applying Lean Six Sigma Thinking to Fundraising

Donor Visits Donor Visits

1848 4312 +133%

From To Change

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com
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The Increases

Applying Lean Six Sigma Thinking to Fundraising

Donor Visits Donor Visits

436 1112 +255%

From To Change

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 58
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The Increases

Applying Lean Six Sigma Thinking to Fundraising

Donor Calls per Donor Calls per week week

1.5 8 +533%

From To Change

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com 59
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SLIDE 60 Performance Advantage N.A.

Hope is Not a Hope is Not a Strategy. Strategy.

Steve Reed  Performance Advantage N.A.  sareed@mpicompanies.com
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SLIDE 61

Learn Learn More

More

  • Why fundraising fails to achieve potential
Why fundraising fails to achieve potential
  • What’s bad about “best practices”
What’s bad about “best practices”
  • Characteristics of high performers
Characteristics of high performers
  • A Lean Six Sigma primer and
A Lean Six Sigma primer and process basics process basics
  • Cleveland Clinic (metrics and measures)
Cleveland Clinic (metrics and measures)
  • Virginia Mason (pure Lean)
Virginia Mason (pure Lean)
  • Florida Hospital (the early model)
Florida Hospital (the early model)
  • The Core Process
The Core Process
  • The Tipping Point (board and staff
The Tipping Point (board and staff teamwork) teamwork)
  • Fundraising vs. Philanthropy
Fundraising vs. Philanthropy
  • Fundraising (pull vs. push strategies)
Fundraising (pull vs. push strategies)
  • Creating a donor
Creating a donor-centric approach centric approach
  • Overview of the end
Overview of the end-to to-end RDMS end RDMS
  • Organic process vs. intentional process
Organic process vs. intentional process
  • Types of measurement (leading vs. lagging
Types of measurement (leading vs. lagging metrics) metrics)
  • Process improvement requires process
Process improvement requires process
  • The language of process
The language of process
  • Introduction to process design
Introduction to process design
  • Introduction to process improvement
Introduction to process improvement
  • The three levels of process (as applied to the
The three levels of process (as applied to the RMDS; definition and purpose of each) RMDS; definition and purpose of each)
  • The role of Development Services
The role of Development Services
  • Gift officer time management skills
Gift officer time management skills
  • ROI Examples (based on established levels of
ROI Examples (based on established levels of giving) giving)
  • Candidate
Candidate-to to-Donor Donor ratios ratios
  • Propensity, capacity, affinity and passion
Propensity, capacity, affinity and passion
  • The high
The high-performing gift officer performing gift officer
  • Attitude, Attributes and Skills
Attitude, Attributes and Skills
  • Working with your Development Services
Working with your Development Services Assistant/Officer Assistant/Officer
  • The partnership role of the DSO/DSA
The partnership role of the DSO/DSA
  • The daily huddle
The daily huddle
  • Pipeline definitions
Pipeline definitions
  • Partner Development Process
Partner Development Process
  • Candidate Identification Process
Candidate Identification Process
  • Preliminary Qualification Process
Preliminary Qualification Process
  • Point
Point-of
  • f-Entry Process
Entry Process
  • The Connect Process
The Connect Process
  • Strategically Aligned Events
Strategically Aligned Events
  • The fundraising event as a POE
The fundraising event as a POE
  • How gift officers should work an event
How gift officers should work an event
  • Networking and OPEs (Other People’s
Networking and OPEs (Other People’s Events) Events)
  • Warm Calls and Cold Calls
Warm Calls and Cold Calls
  • The Rolling 100 Candidate Call List
The Rolling 100 Candidate Call List
  • The role of Development Services
The role of Development Services
  • Gift officer time management skills
Gift officer time management skills
  • ROI Examples (based on established levels of
ROI Examples (based on established levels of giving) giving)
  • The stage gate concept (and why it is a key
The stage gate concept (and why it is a key to success) to success)
  • The numbers: 10
The numbers: 10-5-3-2
  • How the Tipping Point integrates with the
How the Tipping Point integrates with the Core Process Core Process
  • How the Core Process facilitates donor
How the Core Process facilitates donor - centricity centricity
  • How the Lean principle of cycle time applies
How the Lean principle of cycle time applies to the Core Process to the Core Process
  • Making the “ask” a process rather than an
Making the “ask” a process rather than an event event
  • Setting the ID stage first meeting
Setting the ID stage first meeting
  • The Stage Gate objectives
The Stage Gate objectives
  • Stage Gate requirement: Three Favorite
Stage Gate requirement: Three Favorite Charities Charities
  • The structure and sequence of a First ID
The structure and sequence of a First ID meeting meeting
  • What you should never do during the Identify
What you should never do during the Identify stage stage
  • The criteria for moving ahead with a prospect
The criteria for moving ahead with a prospect
  • The Graceful Disengagement
The Graceful Disengagement 61
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