Finance, Fundraising and Technology: Beyond the Bottom Line

801 views
721 views

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
801
On SlideShare
0
From Embeds
0
Number of Embeds
20
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Finance, Fundraising and Technology: Beyond the Bottom Line

  1. 1. Alzheimer’s Association Finance Directors Meeting April 5, 2003 - Dave Harkins VP, Director of Strategic Services The Jackson Group Finance, Fundraising and Technology: Beyond the Bottom Line
  2. 2. What We’ll Cover <ul><li>Overview of philanthropic giving in the U.S. and how it has evolved </li></ul><ul><li>How it will impact what you do </li></ul><ul><li>Focus on Finance </li></ul><ul><ul><li>Best Practices for Finance leadership </li></ul></ul><ul><ul><ul><li>It’s more than just the numbers! </li></ul></ul></ul>
  3. 3. Charitable Giving 2001 Contributions $212.00 billion by contribution source Source: AAFRC Trust for Philanthropy/Giving USA 2002
  4. 4. Charitable Giving 2001 Contributions $212.00 billion by recipient type Source: AAFRC Trust for Philanthropy/Giving USA 2002
  5. 5. Charitable Giving Total Giving 1971 - 2001 Source: AAFRC Trust for Philanthropy/Giving USA 2002 $ in Billions Inflation-Adjusted Dollars Current Dollars * Recessions in purple: 1973-1975; 1980; 1981-1982; 1990-1991; 2001
  6. 6. Charitable Giving Individual Giving and Personal Income Adjusted for inflation Source: AAFRC Trust for Philanthropy/Giving USA 2002
  7. 7. Charitable Giving Individual Giving and the Stock Market Adjusted for inflation Source: AAFRC Trust for Philanthropy/Giving USA 2002
  8. 8. Charitable Giving Wealthiest 20% of Americans contribute 67% of all philanthropy Total individual giving Source: “Trends in wealth and Philanthropy”, Boston College Social Welfare Research Group Formula applied from 1999 giving to 2001 giving.
  9. 9. Charitable Giving Individual Giving As a percentage of personal income 1990 – 2002 Source: AAFRC Trust for Philanthropy/Giving USA 2002 1.9% 1.8% 1.8% 1.8% 1.7% 1.6% 1.8%
  10. 10. Charitable Giving Growth in 501(c)(3) organizations 1991-2001 Source: AAFRC Trust for Philanthropy/Giving USA 2002
  11. 11. Charitable Giving <ul><li>Giving behavior is not changing </li></ul><ul><li>Our generosity as a nation is driven by our resources as a nation </li></ul><ul><li>Competition for donations is growing </li></ul>
  12. 12. Beyond The Numbers <ul><li>The contributor “pie” is about the same </li></ul><ul><ul><li>Contributions will tend to be “shifted” from one area to another </li></ul></ul><ul><li>Individuals have more causes to which to contribute </li></ul><ul><ul><li>Causes are becoming more and more individualistic </li></ul></ul><ul><ul><li>Some level of consumerism will appear </li></ul></ul><ul><ul><ul><li>“ What have you done lately” syndrome </li></ul></ul></ul><ul><ul><ul><li>Clarity in purpose is needed </li></ul></ul></ul><ul><ul><ul><ul><li>Not just at the national level, but at the local level </li></ul></ul></ul></ul><ul><ul><li>Aside from research dollars, donors may want to see more dollars allocated for local efforts </li></ul></ul><ul><li>There is a movement of financial firms into philanthropy </li></ul><ul><li>Increased importance of professional advisors </li></ul>
  13. 13. What Others Are Finding… <ul><li>Operating model has to change </li></ul><ul><ul><li>How do we engage and manage multiple constituents across multiple channels? </li></ul></ul><ul><ul><ul><li>Must agree on the primary “customer” (Donor, Foundations/Corporations, Chapters, Recipients, etc.) </li></ul></ul></ul><ul><li>Organization and governance as to be evaluated </li></ul><ul><ul><li>Are we working as a team to solve key “business” challenges </li></ul></ul><ul><ul><li>Are we structured properly to execute efficiently? </li></ul></ul><ul><ul><li>How do we make decisions as a “system” to show a unified front to various constituents? </li></ul></ul><ul><ul><li>How do we define success? </li></ul></ul><ul><ul><ul><li>Revenue generation </li></ul></ul></ul><ul><ul><ul><li>Maximizing use funds raised </li></ul></ul></ul><ul><ul><ul><li>Creating higher level of impact for the cause </li></ul></ul></ul>
  14. 14. What Others Are Finding… <ul><li>Demand for “localized” accountability for chapters as individuals request more of their contributions stay “at home” for local programs </li></ul><ul><li>Increased need to better educate donors on local vs. “Association” contribution </li></ul><ul><li>Requirement to better understand the needs, values and expectations of donors </li></ul><ul><ul><li>Will impact systems and technology </li></ul></ul><ul><ul><li>Direct Marketing/Fundraising </li></ul></ul>
  15. 15. Focus on Finance Finance’s role in leading the organization through change… It’s not just about the bottom line.
  16. 16. Best Practices – Finance Leaders <ul><li>Business Leadership </li></ul><ul><ul><li>Approach everything from the “business perspective” </li></ul></ul><ul><ul><ul><li>Pragmatic about execution of programs, plans and initiatives </li></ul></ul></ul><ul><ul><ul><li>Asks the difficult ‘show me’ questions </li></ul></ul></ul><ul><ul><ul><ul><li>“ Can we realistically expect that many new donors…?” </li></ul></ul></ul></ul><ul><ul><ul><ul><li>“ I don’t see how the users of this system will gain the value anticipated…” </li></ul></ul></ul></ul><ul><ul><ul><ul><li>“ Have we really had enough time to prove the value of... that fundraising offer, that data, or that screen design” </li></ul></ul></ul></ul><ul><ul><li>General Planning </li></ul></ul><ul><ul><ul><li>Provides guidance and direction on programs, marketing and technology investments </li></ul></ul></ul><ul><ul><ul><li>Helps determine the actual costs of programs, as well as fundraising campaigns </li></ul></ul></ul><ul><ul><ul><ul><li>Goes beyond basic math…really gets to the heart of the real cost, no matter how difficult </li></ul></ul></ul></ul>
  17. 17. Best Practices – Finance Leaders <ul><li>Budget Leadership </li></ul><ul><ul><li>Key process – “Top down” approach </li></ul></ul><ul><ul><ul><li>Provides base data and assumptions to “departments” </li></ul></ul></ul><ul><ul><ul><ul><li>Built on program needs, admin costs, projected growth in other costs </li></ul></ul></ul></ul><ul><ul><ul><li>Conservatively estimates revenue growth based on input from fundraising and other sources </li></ul></ul></ul><ul><ul><li>Finance sets the published figure for revenue </li></ul></ul><ul><ul><ul><li>Usually far more conservative than Fundraising’s </li></ul></ul></ul><ul><ul><ul><ul><li>Fundraising folks will still try to meet their target (wo-hoo!) </li></ul></ul></ul></ul><ul><ul><ul><li>Generally assumes costs for fundraising and technology are accurate as provided </li></ul></ul></ul>
  18. 18. Best Practices <ul><li>Compliance Management and Support </li></ul><ul><ul><li>Keep the organization honest about the numbers </li></ul></ul><ul><ul><li>Help the organization understand and meet guidelines (CBBB Standards/BBB Wise Giving Alliance) </li></ul></ul><ul><ul><ul><li>Particularly important for those marketers/fundraisers to understand! </li></ul></ul></ul>
  19. 19. Best Practices <ul><li>Reporting and Analysis </li></ul><ul><ul><li>Forecasting </li></ul></ul><ul><ul><ul><li>Revenue </li></ul></ul></ul><ul><ul><ul><li>Cost </li></ul></ul></ul><ul><ul><li>“ True Cost” of programs and/or campaigns </li></ul></ul><ul><ul><li>Donor Value </li></ul></ul><ul><ul><ul><li>Cost of acquisition </li></ul></ul></ul><ul><ul><ul><li>Long-term value of a donor </li></ul></ul></ul>
  20. 20. Questions?
  21. 21. Thank You! Dave Harkins VP, Director of Strategic Services The Jackson Group [email_address] Direct: 630.820.2087 5804 Churchman By-Pass | Indianapolis, IN 46203 | 1-888-Jackson | www.jacksongroup.com

×