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AFP DC Education Session: Popular Fundraising Practices, Sept. 2017 - public copy

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Sept. 28, 2017 presentation for Association of Fundraising Professionals - Washington, DC chapter.

Published in: Government & Nonprofit
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AFP DC Education Session: Popular Fundraising Practices, Sept. 2017 - public copy

  1. 1. POPULAR FUNDRAISING PRACTICES: WHICH ONES WORK FOR ADVOCACY ORGANIZATIONS? Association of Fundraising Professionals Washington DC Metro Chapter September 28, 2017 8:30 to 10:00 pm ET Presenter: Mary Dillon Kerwin
  2. 2. Learning objectives: ❖ This session is intended to help fundraising professionals develop their annual fundraising plans and get buy-in for their plans from staff and volunteers. ❖ Participants will learn what factors to consider when deciding on which fundraising practices to use and ❖ We will see how various fundraising practices impact annual revenue. 2
  3. 3. This session ❖ Report on research findings intended to help development directors set goals, manage time, and deploy resources. ❖ Intended audience: fundraisers/managers ❖ Download/view www.bluestrike.org/resources ❖ Ask for your reactions, comments, and questions regarding the research. ❖ Send comments to marydillonkerwin@gmail.com 3
  4. 4. BACKGROUND Project Development Thursday, September 28, 2017 Popular Fundraising Practices 4
  5. 5. It started with . . . . . . a question from the audience “Can you tell me which strategy will yield the best results?” Why is this question so hard to answer? Thursday, September 28, 2017 Popular Fundraising Practices 5
  6. 6. Tools that help us predict • We have retirement calculators, we have mortgage calculators, we even have workout calculators . . . Thursday, September 28, 2017 Popular Fundraising Practices 6
  7. 7. How about one for development? Your organization’s revenue mix, number of donors Your staff size and level of experience Your volunteer profiles, willingness to help Thursday, September 28, 2017 Popular Fundraising Practices 7
  8. 8. Hypothetical #1 If your organization is less than 10 years old, and you have fewer than 500 donors, and you have a part-time development director, then you are likely to find success . . . 1. Starting a sustainer program 2. Relying on board participation 3. Focusing on a combination of web-based giving strategies 8
  9. 9. Hypothetical #2 If your organization is going through an executive director transition, and you have approximately 2,500 donors, and you raised $2 million last year, you are likely to find success . . . 1. Starting a giving club for major donors 2. Hiring additional fundraising staff 3. Focusing on cultivation of high net worth individuals 9
  10. 10. Enlisting help for the project ❖ Conference calls with nonprofits, discussions with businesses and consultants ❖ Faculty advisor for independent study ❖ Data collection ❖ Analysis -- here we are! Thursday, September 28, 2017 Popular Fundraising Practices 10
  11. 11. LIMITATIONS Considerations in using the research Thursday, September 28, 2017 Popular Fundraising Practices 11
  12. 12. Limitations ❖ Not generalizable to all nonprofits ❖ Does not measure all practices ❖ Revenue is an imperfect dependent variable ❖ Survey focused on 2013 - risk of memory decay ❖ Ranges are difficult to use in regression ❖ Low response rate may result in non-response bias Thursday, September 28, 2017 Popular Fundraising Practices 12
  13. 13. Questions to think about  As we go through the research, here are a few questions to consider:  Have you seen similar, supporting or contradictory research?  How might you use the findings?  Specifically for advocacy, how do the findings apply or not? Thursday, September 28, 2017 Popular Fundraising Practices 13
  14. 14. RESEARCH Descriptives and Group Differences Thursday, September 28, 2017 Popular Fundraising Practices 14
  15. 15. Research design ❖ Focused on organizations engaged in advocacy, public policy, civic engagement, and public interest law ❖ 778 organizations received an online survey (Jan. 20 to Feb. 17, 2015) ❖ Survey asked for information on organization’s 2013 fundraising practices ❖ Responses were matched with IRS administrative records (FY2013) to create the datafile. Thursday, September 28, 2017 Popular Fundraising Practices 15
  16. 16. About the sample  174 responses  162 completed surveys  44 states and 14 different categories Thursday, September 28, 2017 Popular Fundraising Practices 16
  17. 17. Figure 1.1 Nonprofit Category Thursday, September 28, 2017 Popular Fundraising Practices 3 4 4 6 8 10 17 19 24 30 37 Community Improvement Education Animal Related Intl, Foreign Afrs, Natl Sec Public Society Other (Arts, Housing, Food) Enviro Educ/Outdoor Crime and Legal Related Environment Civil Rights Enviro Conservation Figure 1.1 Survey responses by nonprofit category 17
  18. 18. Individual giving and revenue ❖ Most organizations (77%) have fewer than 1,000 donors ❖ Only 17% count on individual donors to make up 50% or more of their revenue ❖ Most (60%) have fewer than 5,000 names on their email files ❖ Average revenue is $2 million Thursday, September 28, 2017 Popular Fundraising Practices 18
  19. 19. Staff and volunteers ❖ Two-thirds of the organizations have staff dedicated to development ❖ 38% have executive directors with less than five years tenure; while one-third have tenure of 10 years or more ❖ Board participation is present, but modest Thursday, September 28, 2017 Popular Fundraising Practices 19
  20. 20. SURVEY Nonprofit Fundraising Practices Questionnaire Thursday, September 28, 2017 Popular Fundraising Practices 20
  21. 21. Figure 1.2 Fundraising Practices Thursday, September 28, 2017 Popular Fundraising Practices 22% 20% 20% 39% 30% 45% 42% 85% 51% 54% 85% 89% Giving clubs Matching campaigns Conditional ask string Sustainer program Donate button on website Second gift ask Figure 1.2 Prevalence of fundraising practices 21
  22. 22. Figure 1.3 Giving Clubs $1,748,474 $1,940,761 $2,697,044 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 No Giving Club Recognition Only Recognition and Fundraising Giving clubs with a fundraising component are associated with higher revenue Thursday, September 28, 2017 Popular Fundraising Practices 22
  23. 23. Figure 1.4 Matching Campaigns $1,778,860 $1,848,724 $2,655,744 $3,246,755 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 No Matching Campaigns Low emphasis Moderate Emphasis Heavy Emphasis Matching campaigns are associated with higher revenue Thursday, September 28, 2017 Popular Fundraising Practices 23
  24. 24. Figure 1.5 Conditional Ask String $1,543,682 $2,768,055 $1,841,081 $1,683,012 $4,964,755 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 Did not use Used in few Used in some Used in most Used always Consistent use of conditional ask strings yields best results Thursday, September 28, 2017 Popular Fundraising Practices 24
  25. 25. Figure 1.6 Sustainer Program $1,789,965 $2,726,310 $0.00 $500,000.00 $1,000,000.00 $1,500,000.00 $2,000,000.00 $2,500,000.00 $3,000,000.00 $3,500,000.00 $4,000,000.00 Low emphasis/no program Moderate and heavy emphasis Sustainer campaigns see higher revenue Thursday, September 28, 2017 Popular Fundraising Practices 25
  26. 26. Figure 1.7 Second Gift Ask $1,659,148 $1,836,170 $2,697,201 $1,654,427 $2,217,072 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 Did not solicit Solicited once Some once, others more Solicited all 2 to 3 times Solicited all 4 times or more Asking more than once a year helps when it’s targeted Thursday, September 28, 2017 Popular Fundraising Practices 26
  27. 27. Figure 2.1 Development Directors $1,537,686 $1,297,823 $2,170,352 $3,066,418 $3,213,659 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 No DevDir Less than 5 yrs 5 to 9 yrs 10 to 14 yrs 15 plus yrs Experienced development directors see higher revenue Thursday, September 28, 2017 Popular Fundraising Practices 27
  28. 28. Figure 2.2 Board Participation $1,829,662 $1,973,2673 $2,109,688 $2,506,708 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 Low Low to moderate Moderate to high High Board participation has little to no impact Thursday, September 28, 2017 Popular Fundraising Practices 28
  29. 29. Figure 2.3 Executive Director Tenure $1,873,090 $1,945,450 $2,105,967 $2,242,143 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 Less than 5 yrs 5 to 9 yrs 10 to 14 yrs 15 plus yrs Executive Director tenure has little to no impact Thursday, September 28, 2017 Popular Fundraising Practices 29
  30. 30. Figure 4.4 Comparison $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 DD & ED<5yr, BD Low DD & ED 5-10yr, BD L/M DD & ED 10-15yr, BD M/H DD & ED 15yr+, BD H An increase in development director experience has the greatest impact Board participation Executive director tenure Development director yrs experience Thursday, September 28, 2017 Popular Fundraising Practices 30
  31. 31. DISCUSSION Real Life Scenarios Thursday, September 28, 2017 Popular Fundraising Practices 31
  32. 32. Discussion questions Have you seen similar, supporting or contradictory research? How might you use the findings? Thursday, September 28, 2017 Popular Fundraising Practices 32
  33. 33. Current situation Adjusting to changing political climate Getting attention for fundraising when everyone is hyper focused on politics The difference between small, medium, and large groups in the aftermath of a political shift Thursday, September 28, 2017 Popular Fundraising Practices 33

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