SCAHD - FEP In The Raiser's Edge


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SCAHD - FEP In The Raiser's Edge

  1. 1. Utilizing the Fundraising Effectiveness Program in your Healthcare Organization <ul><ul><li>Heather Paul, Raiser’s Edge Solutions Consultant </li></ul></ul><ul><ul><li>Anne O’Neal, Senior Account Manager - Healthcare </li></ul></ul><ul><ul><li>SCAHD 2010 </li></ul></ul>
  2. 2. Session Objectives <ul><li>Inform </li></ul><ul><li>Inspire </li></ul><ul><li>Invite </li></ul><ul><li>Involve </li></ul>
  3. 3. What is the Fundraising Effectiveness Project? <ul><li>A project to help nonprofit organizations measure and compare their annual growth in giving by gain/loss category and increase the net by maximizing their gains and minimizing their losses </li></ul>
  4. 4. The AFP’s “Fundraising Effectiveness Project” Who is in the Study? <ul><li>1430 responses to the annual FEP survey for 2008 </li></ul><ul><li>Small to midsize organizations </li></ul><ul><li>Averaging less than $1 Million in annual gifts </li></ul><ul><li>$4 Billion in gifts analyzed since 2005 </li></ul><ul><li>Contributors & Detractors of Value </li></ul><ul><li>For Every $6 Raised there is $5 lost-07/ 08 is Break-even </li></ul>
  5. 5. <ul><ul><li>Includes </li></ul></ul><ul><ul><ul><ul><li>Gifts – Restricted And Unrestricted </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Pledge Payments </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Cash and Fair Market Value for Stocks </li></ul></ul></ul></ul><ul><ul><ul><ul><li>In-Kind (tangible) donations </li></ul></ul></ul></ul><ul><ul><li>Excludes </li></ul></ul><ul><ul><ul><li>Pledges </li></ul></ul></ul><ul><ul><ul><li>Deferred gifts </li></ul></ul></ul><ul><ul><ul><li>Donations of personal services and use of facilities </li></ul></ul></ul><ul><ul><ul><li>Costs-benefiting-donors portion of special-event income </li></ul></ul></ul>Fundraising Effectiveness Project Surveys
  6. 6. Fundraising in Hard Times- What to Do? <ul><li>Assess your situation </li></ul><ul><li>Create a plan to move forward </li></ul><ul><li>Intensify your cultivation & stewardship efforts </li></ul><ul><li>Assess your communication plan & case for support </li></ul>
  7. 7. Objective <ul><li>Review fundraising data from FY 2007 to FY 2008 </li></ul><ul><ul><li>Help identify areas of strength </li></ul></ul><ul><ul><li>Help identify areas of improvement </li></ul></ul><ul><li>Goal: </li></ul><ul><ul><li>Align focus with areas of strength and improvement </li></ul></ul>
  8. 8. Action Plan <ul><li>Create fundraising effectiveness benchmarks and identify areas of opportunity </li></ul><ul><li>Leverage Blackbaud’s Performance Improvement calculator to determine what metrics need to be improved and by how much in pursuit of your goal (define financial sustainability benchmarks) </li></ul><ul><li>Review potential next steps to derive additional fundraising improvements </li></ul>
  9. 9. Why does it matter? <ul><li>“ You can’t manage what you can’t measure” </li></ul><ul><li>Create your own KPI Score Card </li></ul>
  10. 10. Contributors of Value Detractors of Value
  11. 11. Gains and Losses 2007 - 2008
  12. 12. Decreasing the Losses to Increase Net Gains The Importance of Retention: AFP’S “Fundraising Effectiveness Program” 2007 -2008
  13. 13. Aggregate Results – 1400 non profits in 2007-2008 <ul><li>Huge variance in performance when comparing best in class to others </li></ul>Gain Ratios
  14. 14. Aggregate Results – 1400 non profits in 2007-2008 <ul><li>Huge variance in performance when comparing best in class to others </li></ul>Loss Ratios
  15. 15. FEP data – 2008 All Verticals Based on The Association of Fundraising Professional’s 2008 Fundraising Effectiveness Project data. $1.1 billion in donations from1.2 million donors. 1430 organizations. Contributors Detractors
  16. 16. Let’s Look at Best in Class for Retention
  17. 17. Let’s Look at Best in Class for Retention
  18. 18. Let’s Look at Best in Class for Average Giving
  19. 19. FEP data – 2008 Health vs. All FEP Verticals 22.1% 43.3% 1.0 .97 $920
  20. 20. Case Study <ul><li>Starting the Journey </li></ul>
  21. 21. One Sampled Org vs. FEP Ed and PHL Average
  22. 22. Sample Organization – All Donors – 3 Year Trend
  23. 23. Observations vs. Peers:
  24. 24. Summary of Findings:
  25. 25. GOAL SETTING ASSUMPTION #1: <ul><li>Increase the number of total donors by 10% (to FY 08 levels) via new and recaptured donor growth while maintaining current retention levels </li></ul>
  26. 26. Increasing the number of donors to FY2008 levels increases fundraising by $243,157 over three years: Goal Setting Assumption #1:
  27. 27. GOAL SETTING ASSUMPTION #2: <ul><ul><li>Improve average $ per donor by 20% to $1,571 </li></ul></ul><ul><ul><li>(still below peer average and below prior year) </li></ul></ul>
  28. 28. If you increase the average $/donor by 20% (still below peers & prior year) without any change in donor growth or retention rates, the increase in fundraising would be $1,190,341 over three years: Goal Setting Assumption #2:
  29. 29. GOAL SETTING ASSUMPTION #3: <ul><li>Increase donor retention rates to the average of the peer area schools, taking retention from 52.9% to 65.5% over a three year period. </li></ul>
  30. 30. If you only increase the retention rate from 52.9% to the area peer average of 65.8% the increase in fundraising would be $1,046,315 over three years: Goal Setting Assumption #3:
  31. 31. <ul><li>And if you can…. </li></ul><ul><li>Increase new donor growth </li></ul><ul><li>Improve the average dollars per donor </li></ul><ul><li>Move retention rates to peer levels </li></ul><ul><li>The increase in fundraising would be $2,782,565 over 3 years: </li></ul>All Cylinder Option - Assumption #1, 2 and 3: Yeah, Great. But how?
  32. 32. Impact Of Blackbaud Solutions – “Set Goals” <ul><li>Donor Retention </li></ul><ul><li>New Donor Acquisition </li></ul><ul><li>Average Gift Per Donor </li></ul><ul><ul><ul><ul><li>Major Gifts </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Median Growth </li></ul></ul></ul></ul><ul><li>Efficiencies (Cost Saving) </li></ul>Educate Engage Inspire Steward AFP’s Gain & Loss Segments – Retention Losses are Greater than Recaptures
  34. 34. BEST DEMONSTRATED PRACTICES: <ul><ul><li>Increase new donor growth </li></ul></ul><ul><ul><ul><li>“ I’m reaching out to patients in new ways” </li></ul></ul></ul><ul><ul><ul><li>“ I keep the demographics in mind </li></ul></ul></ul><ul><ul><ul><li>and tailor my message” </li></ul></ul></ul>
  35. 35. BEST DEMONSTRATED PRACTICES: <ul><ul><li>Improve average $ per donor </li></ul></ul><ul><ul><li>“ I now use wealth screening” </li></ul></ul><ul><ul><ul><li>Customized asks </li></ul></ul></ul><ul><ul><ul><li>Asks in excess of prior year gifts </li></ul></ul></ul>
  36. 36. BEST DEMONSTRATED PRACTICES: <ul><ul><li>Increase donor retention rates </li></ul></ul><ul><ul><ul><li>“ I’ve built new ways to communicate with existing donors” </li></ul></ul></ul><ul><ul><ul><li>“ If I lose a donor I ask why. </li></ul></ul></ul><ul><ul><ul><li>We survey lost donors each month” </li></ul></ul></ul>
  37. 37. What is Next? <ul><li>Confirm version of Raiser’s Edge is 7.81 or higher </li></ul><ul><li>Get your staff onboard by attending Thursday’s FEP web seminar ( ) </li></ul><ul><li>Call Anne O’Neal to submit your data to Blackbaud to convert into the Analyzer </li></ul><ul><li>Submit your data to AFP </li></ul>
  38. 38. Thank You: Additional Questions? Anne O’Neal [email_address] 800-443-9441 x3160