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 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.

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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

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Evaluating a growing culture of philanthropy

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

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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

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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

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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

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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

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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

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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?

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