Talking to your Board and Boss about Development Plan metrics VAFRE - - PDF document

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Talking to your Board and Boss about Development Plan metrics VAFRE - - PDF document

8/2/2016 Talking to your Board and Boss about Development Plan metrics VAFRE Brown Bag Series August 2, 2016 Steve Jobs Quote Its ok to spend a lot of time arguing about which route to take to San Francisco when everyone wants to end up there.


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Talking to your Board and Boss about Development Plan metrics

VAFRE Brown Bag Series August 2, 2016

Steve Jobs Quote

It’s ok to spend a lot of time arguing about which route to take to San Francisco when everyone wants to end up there. But a lot of time gets wasted in such arguments if one wanted to go to San Francisco and another secretly wanted to go to San Diego.

VAFRE Brown Bag August 2, 2016 2

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Culture of Philanthropy

  • Donor is the prize; not the gift
  • Funds raised are just one measurable outcome
  • As Development professionals we are courting
  • ur donors
  • 1. Trusted matchmakers
  • 2. Authentic belief in mutual interests
  • 3. Patient and respectful
  • 4. Marathon not a sprint
  • 5. Stewardship matters most

VAFRE Brown Bag August 2, 2016 3

Evaluating a growing culture of philanthropy

If development is truly about building relationships, how do we measure what matters?

VAFRE Brown Bag August 2, 2016 4

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Two npos each with FR goal of $1,000,000 – who was most successful?

Susie raised $900,000

  • Made 5 PG calls. 2 shared in

will for @$200,000

  • FR goal was 25% > prev yr
  • Donor retention rate > from

65% to 68%

  • Mailings exceeded targeted

response rates

  • Averaged 4 stewardship calls

per week

  • All Board members

participated in stewardship of donors

  • Expense Budget = $200,000

Johnny raised $1,100,000

  • Made 0 PG calls
  • Goal based on prev yr results
  • Donor retention rate < from 65%

to 60%

  • Mailings missed targets for

response rates

  • Realized, unrestricted bequest of

$250,000

  • One‐time gift of $100,000
  • Averaged 2 stewardship calls per

month.

  • Two Board members engaged in

development.

  • Expense budget = $350,000

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On the same page – going to San Francisco or San Diego?

  • Clarity of roles and responsibilities
  • Clarity of expectations
  • Negotiated dollar goals
  • Development Plan

– Metrics to evaluate performance

  • Dashboard

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Educate Board and CEO

  • Look at more than one year
  • Look beyond gross revenue
  • Appreciate time invested in building

relationships

  • Agree on measures of success (KPI – key

performance indicators)

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Beyond Dollars – nonrevenue objectives and KPI’s for the development plan

  • 1. Create a culture of philanthropy

– Engage the Board, CEO, volunteer leadership, and program staff with XYZ activities – Include development info in all new employee hires

  • 2. Focus on ROI ‐highest and best use
  • 1. Renew the base
  • 2. Upgrade the base
  • 3. Build the base

VAFRE Brown Bag August 2, 2016 8

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Beyond Dollars – nonrevenue objectives and KPI’s for the development plan

Board Engagement

  • Approval of Development Plan
  • # of Board members who went on an ask
  • Total Board Giving $ and 100% participation
  • # Board members who attended some level of

governance training/FR education

VAFRE Brown Bag August 2, 2016 9

Beyond Dollars – nonrevenue objectives and KPI’s for the development plan

Donor Retention – 5/5/3 Rule

  • 5 Phone calls per week,
  • 5 out of office meetings/visits per week
  • Ask 3 current donors each week
  • Unique thank you letter – says thanks again.

Acquisition

  • 2 appeals to never givers on database with X%

response rate

  • X# of first time event participants to XYZ event

VAFRE Brown Bag August 2, 2016 10

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Beyond Dollars – nonrevenue objectives and KPI’s for the development plan

Donor Upgrade

  • Phone call tku to anyone who increases their gift

from previous year

  • Every thank you letter is personalized and

individualized

  • 15% of donor base upgrades their gift from

previous year

  • X% of special event participants converted to

donors

  • Median gift from $155 to $175

VAFRE Brown Bag August 2, 2016 11

Beyond Dollars – nonrevenue objectives and KPI’s for the development plan

Special/Major Gifts

  • Define target audiences beyond just dollars

(ex. Re‐occurring donors, donors of 10 yrs +

  • Create a well‐thought out strategy (TLC

program) for each which moves them from arm’s length to face to face communication.

  • Add a new gift club that recognizes cumulative

giving

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Beyond Dollars – nonrevenue objectives and KPI’s for the development plan

Stewardship

  • # of communications (touches) that do not

involve an ask

  • % of communication with each donor that is

personalized or segmented

  • E – survey donors after 3 consecutive yrs of

giving

VAFRE Brown Bag August 2, 2016 13

Beyond Dollars – nonrevenue objectives and KPI’s for the development plan

Special Events

  • Used successfully as cultivation, stewardship,

board engagement opportunities

  • ROI (based on direct costs and expenses)
  • ROI (including indirect costs)

Life Income and Deferred Giving

  • # visits
  • # Solicitations
  • # Secured (written and verbal)

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Beyond Dollars – nonrevenue objectives and KPI’s for the development plan

Capacity

  • Research and acquire software that integrates

development, membership/student info, and accounting

  • Work smarter, not harder

– “Audit” job descriptions for dev and related

  • disciplines. Re‐focus on top priorities, eliminate

duplications of tasks, eliminate non‐essential – Outsource grant writing and print materials – Evaluate each special event with direct AND indirect

  • costs. Eliminate under performing events.

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Educate

  • Assure Development/Philanthropy is first on

the agenda at every other Board meeting

  • Success is meeting cash and beyond cash
  • bjectives.
  • Dashboard ‐ measurement by story telling.

metrics from cash and beyond cash objectives.

  • Presented by a member of the Board or

Development Committee – not staff

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Evaluate

  • Did you work the plan?
  • Did you raise the money?

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Roundtable Discussion

  • What barriers exist in your organization which

may make it challenging to include non‐dollar

  • bjectives in your development plan?
  • How can you begin a conversation within your
  • rganization related to the bigger picture of

philanthropy?

  • What non‐cash objectives do you include in your

dashboard? OR, What non‐cash objectives could you include in your dashboard?

VAFRE Brown Bag August 2, 2016 18