Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

The Leaky Fundraising Bucket – What’s Wrong and How to Fix It


Published on

Ellen Bristol and Linda Lysakowski, ACFRE will give you some ideas on how to fix your fundraising and stops the “leaks” in your own “bucket.”

Published in: Government & Nonprofit
  • Be the first to comment

The Leaky Fundraising Bucket – What’s Wrong and How to Fix It

  1. 1. The  Leaky  
 Fundraising  Bucket  –     What’s  Wrong  
 and  How  to  Fix  It   10/21/15   1pm  Eastern   The  presentation  will  begin  shortly.
  2. 2. Before  We  Get  Started 3 This  presentation  is  being  recorded!   The  recording  and  slides  will  be  emailed  to  you     later  this  afternoon.   Please  chat  in  any  questions  for  our  guest.     We  will  answer  them  in  the  formal  Q&A  session     at  the  end  of  the  presentation.
  3. 3. 3
  4. 4. 3 Our  guest  presenters  » Ellen  Bristol  &  Linda  Lysakowski,  ACFRE  
  5. 5. WHAT’S WRONG WITH YOUR FUNDRAISING….AND HOW YOU CAN FIX IT! Presented by Bloomerang October 21, 2015 Ellen Bristol Linda Lysakowski, ACFRE
  6. 6. ABOUT US Ellen Bristol Performance Management Guru Developed Leaky Bucket Assessment Methodology Designer Consulting with Nonprofits 20 Years Author, Three Nonprofit Books Linda Lysakowski, ACFRE Consulting for 20+ years Serving Nonprofits 30+ Years Author of a Dozen Books for Nonprofits, Editor Trained More Than 26,000 Professionals Worldwide
  7. 7. THE BOOK
  8. 8. OUR HYPOTHESIS Effectiveness, Efficiency and Productivity Leak Out of Development Efforts In Ways We Don’t Notice – Until the Pipes Burst and There’s a Crisis.
  9. 9. THE LEAKY BUCKET ASSESSMENT Nine Standard Practices Evaluated at Four Levels Each Leaking Like a Sieve! Call the Productivity Help Line! Time for Preventive Productivity Maintenance! WATERTIGHT!
  10. 10. OUR ASSUMPTIONS Prospecting: Time Wasted Chasing Unqualified Prospects Can’t Be Regained Pipeline Management: Pursuing “Un-Baked” Gifts, Ignoring “Ready” Gifts Costs Time AND Money You Can’t Recover Metrics and Measurements: Measuring the Wrong Things the Wrong Way is Misleading, De-Motivating and Wastes Time
  11. 11. NINE DEVELOPMENT PRACTICES Funder-Qualification Criteria Acquiring New Funders Retaining Current Funders Upgrading Current Funders Funding Diversification Staff Resources for Fundraising Use of Metrics for Fundraising Performance Comprehensive Fundraising Toolkit Managing Undesirable Fundraising Performance
  15. 15. WHO RESPONDED? Respondents  700 Respondent Titles  CEO – 22%  CDO, Other Senior Staff – 37%  General Staff – 27%  Board Members and Other – 12% Size of Development Shop  No Dedicated Staff – 6%  ED + 1 or 2 – 43%  3 to 5 – 37%  6 to 10 – 8%  More than 10 – 15%  Prefer Not to Answer – 2% Revenue Level  >$1MM – 36%  $1MM to $4.9 MM – 30%  $5MM to $9.9MM – 9%  $10MM to $20MM – 7%  <$20MM – 7%  Prefer Not to Answer – 10% Sector  Social Services – 33%  Children, Community Dev., Education – 36%  Arts – 10%  Everything Else – 21%
  16. 16. CONTEXT FOR PRODUCTIVITY One Hour of Development Time Equals $1,000 - $3,000 Opportunity Risk Or More!!! How Much Are You Wasting?
  17. 17. #1: HOW YOU QUALIFY FUNDER PROSPECTS Leaky Bucket Scores: 11% - NO Standards 61% - ‘Preferences,’ No Documented Standards 16% - Wealth/Giving Only 6% - Capacity + Motivation Importance: Waste Money Chasing DOA’s Our Reaction: Groan! We Gotta Do Something About It!
  18. 18. BEST PRACTICES: QUALIFYING CRITERIA Document Qualifying Standards Include Motivations for Giving, Not Just Capacity Recognize “Danger Signs” Make Sure All Solicitors Use The Same Criteria Coach Team Members to Use Criteria Properly
  19. 19. #2: HOW YOU ACQUIRE NEW FUNDERS Leaky Bucket Scores: 22% - ‘We Just Try Hard’ 43% - ‘Preferences, No Targets’ 21% - Income-Only Targets 13% - Income Plus Number of Funders Acquired Importance: Always Need New Donors! Our Reaction: A Wag of the Finger!
  20. 20. BEST PRACTICE: ACQUIRING NEW FUNDERS Establish Specific Performance Targets for Acquiring New Funding Sources Consider Targets Per Funding Category Publish Targets, Don’t Assume Evaluate Performance Against New-Funder Plan Regularly
  21. 21. #3: HOW YOU RETAIN CURRENT FUNDERS Leaky Bucket Scores: 17% - No Targets 57% - ‘Preferences’ But No Targets 16% - Retention Targets 9% - Retention + Other Metrics Importance: FEP Results Confirm Our Data Our Reaction: Another Groan!
  22. 22. THE COST OF DOING BUSINESS POORLY It Costs Six Times As Much To Acquire A New Donor As It Does To Retain A Current Donor
  23. 23. BEST PRACTICE: RETAINING CURRENT DONORS Establish and Document Donor-Retention Targets Publish Targets, Don’t Assume People Remember Them Review Donor-Retention Performance Against Plan Regularly The FEP Project
  24. 24. #4: HOW YOU UPGRADE FUNDERS Leaky Bucket Scores: 30% - No Standards 47% - Encouraged, No Targets 16% - Set Targets 5% - Set Targets & Run Campaigns Importance: See “Donor Retention” Costs 6X + To Land New Funder Our Reaction: Room to Improve!
  25. 25. BEST PRACTICES: UPGRADE Establish Targets for Cross-Sell, Up-Sell for Current Donors Prepare Appeal/Campaigns/Marketing Initiatives for Up-Sell & X-Sell Purposes Establish Strategic Development Plan for Each Major Funding Source Communicate with Donors/Funders
  26. 26. #5: STANDARDS FOR FUND DIVERSIFICATION Leaky Bucket Scores: 9% - One or Few Funders 25% - Single Category 49% - Variety of Sources 16% - Well Balanced Importance: Too Many Eggs, Too Few Baskets Our Reaction: Keep Up the Good Work! Critical Issue!
  27. 27. BEST PRACTICES: FUNDING DIVERSIFICATION Document Specific Growth Targets for Each Funding Category Document Specific Retention Targets for Each Funding Category Review Actual Diversification vs. Planned Diversification Regularly
  28. 28. #6: STAFF RESOURCES FOR FUNDRAISING Leaky Bucket Scores: 26% - ED Does It All 31% - ED + 1 17% - ED, Board, + 2 or More 25% - Dev Office, Board + ED Importance: Development Is a Full-Time Job Our Reaction: Hire Development Staff EARLY!
  29. 29. BEST PRACTICES: STAFF RESOURCES FOR FUNDRAISING Understand Strategic Importance of Development Move Development ‘Out of the Shadows’ Hire Development Staff EARLY – As Important As Technical, Clinical, Program Staff If/When Dedicated Support Is Not Possible, Adjust Development Targets and Performance Expectations Appropriately Build Your Case For Additional Support By Relying on Performance Facts
  30. 30. % NFP’S MEETING FUNDING GOAL BY STAFF SIZE No Paid Staff: 39% Part-Time Staff: 50% 1 Full-Time Staff: 60% 1 to 4 Full-Time Staff: 71% 5 or More Full-Time Staff: 69% Source: Nonprofit Fundraising Study Covering Charitable Receipts at U.S. Nonprofit Organizations 2011, published April 2012, Nonprofit Research Collaborative
  31. 31. AVOID AT ALL COSTS Discourage “Work Until You Drop” Heroism Take Downtime Sharpen the Saw
  32. 32. #7: HOW YOU MEASURE FUNDRAISING PERFORMANCE Leaky Bucket Scores: Tail Wags Dog Majority Using Trailing Indicators: 63% - Total Income (Trailing) 47% - Income per Category (Trailing) 14% - Donor Visits (Leading) 24% – Proposals & Applications (Leading) 13% - None of the Above Importance: If the Only Thing You Measure Happens After the Process Is Complete, You Haven’t Learned Much About the Process Our Reaction: Use “Leading Indicators” Figure Out What’s Going On “Upstream”
  33. 33. BEST PRACTICES: PERFORMANCE METRICS Use More Leading Indicators Such As: Number of “Suspects” that Convert to “Prospects” and “Prospects” to “Expects Number of Times You’ve Asked Prospects What They Need/Want Use Special-Event Analysis; Establish Pre-Event Checklists, Interim Deadline Targets
  34. 34. #8: WHAT’S IN YOUR FUNDRAISING TOOLKIT Leaky Bucket Scores: Strategic Plans – 13% Donor Profiles –45% Donor Mgmt Tools – 25% Case Statement – 55% None – 22% Importance: Workers Need Tools Our Reaction: Hmmm – Mixed Bag!
  35. 35. BEST PRACTICES: DEVELOPMENT TOOLKIT Strategic Elements First: Performance Targets for Income, Retention, Diversification Qualifying Criteria for Each Funder Category Strategic Plan Tactical Development Tools Second: Up-to-Date Case Statement Presentation Materials Donor Software (Plus Ability to Use It) Documented Development Plan (That You Follow) Documented Policies and Procedures Evaluation Tools
  36. 36. #9: RESPOND TO UNDESIRABLE PERFORMANCE Leaky Bucket Scores: Fire the DD – 15% More Events – 49% More Grants – 49% Staff/Board Training – 23% Improve Case Statement – 17% None of Above – 22% Importance: Trend Toward High-Cost, Low-Return Solutions Our Reaction: Think Strategically – Reverse Trend!
  37. 37. BEST PRACTICES: UNDESIRABLE PERFORMANCE Analyze Performance Metrics Over Time Avoid Knee-Jerk Reactions Consider Cost/Benefit of Events & Activities Consider Improving, Expanding Metrics and Benchmarks Learn Skills of Continuous Improvement Update Your Case Regularly
  38. 38. SPECIAL OFFER The Leaky Bucket 10-Week Course: Ten Weekly 90-Minute Pre-Recorded Sessions Includes Ellen & Linda’s Recorded Web Sessions PLUS Participant Handbook, Special Downloads, Access to the Experts Publication Date January 1, 2016 For Bloomerang Users: $199, a $100 Saving! Email to Add Your Name to the Announcement List! Mention You Are a Bloomerang User to Get Your Discount!
  39. 39. Bristol Strategy Group Email Ellen: Phone Ellen: 305-935-6676 Linda Lysakowski, LLC Email Linda: Phone Linda: 702-892-0955
  40. 40. Questions?
  41. 41. •Nonprofit  Wrap-­‐Up   •Bloomerang  TV   •Bloomies •Daily  blog  post   •Weekly  webinars   •Downloadables
  42. 42. Upcoming  webinars  » How We Did It – An ED / Board Chair Duo Share Lessons, Confessions, and Tools to Fix What Ails Your Board Thursday, October 29th – 1:00pm Eastern Susan Schaefer and Bob Wittig