Avalon Cultural Coalition Benchmarking Presentation

1Avalon Consulting Group, Inc.
All rights reserved, 2017
Avalon Cultural Coalition
Benchmarking Meeting
VitalStatsTM Cross-Client Dashboard
December 5, 2017

• To share current benchmarking with arts, culture and destination-based
clients and to foster dialogue amongst clients.
• Compare Avalon clients to the industry as a whole.
• Source of benchmarking information for our clients that can allow a
more relevant comparison than other public sources.
• Identify trends for Avalon cultural clients.
Goals of the Avalon Cultural Coalition

• 10/1/16 to 9/30/17 is the most recent 12 month window, regardless of client fiscal year.
• All trend comparisons (purple box) are through 6/30. To show the most recent data possible (through
9/30) we have noted where the industry metrics are three months behind.
• Organizations included are those with current dashboards and at least three years of dashboard
history at the time that this report was created:
1. Friends of Smithsonian (Members)
2. Kennedy Center
3. Monterey Bay Aquarium
4. National Air and Space Museum
5. National Geographic
6. National Museum of African American History and Culture
7. National Museum of the American Indian
8. The Trustees
9. Wolf Trap
• Additional sources: DonorCentrics Fundraising Index Q2; 2016 Donor Retention report from
2016/2017 Fundraising Effectiveness Survey Report
Methodology

Overview of Individual Views (Handout)
- Year over year trends
(not actual metrics)
- Compared to ACC with
and without anomaly
clients
- Compared to
DonorCentrics
- Helpful to see overall
growth and decline
compared to industry

- Benchmarking information
using:
- Average gift
- Revenue per member
(revenue divided by
members in a 12 month
window)
- Gifts per member in a 12
month window
- Indicators of value and
additional giving

- Retention is one of the most important metrics to
monitor in our industry, and one of the most
commonly benchmarked.
- Reactivation indicates how many lapsed members
are returning from a certain window of time.

- xxxxx
- Second gift rate shows a
strong positive
correlation to first-year
retention and is an early
indicator of donor
commitment.
- For cultural
organizations, this
metric can show a looser
correlation due to fewer
gifts given per member.

Trends and Key Metrics

22.0%
28.1%
0.3%
14.6%
-0.9%
50.9%
-4.8%
-6.6%
2.3%
6.7%
10.2%
16.5%
-0.1%
5.6%
-2.1%
35.1%
-5.4%
-5.8%
0.8%
1.9%
5.8%
1.7%
3.3%
3.2%
1.0%
8.5%
7.8%
3.5%
1.5%
-10.6%
Gross Revenue
Members
Multi Year Retention
1st Year Retention
Overall Retention
New Members
Revenue/Member
Average Gift
Gifts per member
Reactivation
Avalon Cultural Clients Avalon Cultural Clients (no anomaly clients) DonorCentrics Arts/Cultural Index
Avalon Cultural Clients tend to follow DonorCentrics cultural
trends for most metrics, with more dramatic changes.
Year over Year Change –
2016 vs. 2017
Data through
June 30, 2017

Avalon Cultural Clients show steady growth in gross and
net revenue, similar to the industry but more dramatic.
$39.7
$41.2
$49.5
$54.4
$31.1 $30.4
$38.1
$39.8
$0
$10
$20
$30
$40
$50
$60
2014 2015 2016 2017
Millions
Revenue Net Revenue
ACC trend:
+22% (6/30)
+9.8% (9/30)
Industry
Sector
trend:
+6%
Some Avalon clients have experienced substantial growth in 2017 due to anomaly events. Without
these clients, growth is still 6%.

Members have grown steadily with growth in all
categories, especially new joins.
ACC trend:
+28% (members)
(6/30)
+50% (new joins)
(6/30)
+14% (members)
(9/30)
+11% (new joins)
(9/30)
Industry Sector
trend:
+2% (members)
+9% (new joins)
Some Avalon clients have experienced substantial growth in 2017 due to anomaly events. Without
these clients, growth is still 10%.
139,099 140,893 142,982 156,283
22,668 22,201 33,438
55,723
72,936
101,410
156,019
173,284
45,152
46,613
53,235
54,581
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
2014 2015 2016 2017
Multi-Year Members First-Year Members New Joins Reinstates

As gross revenue has grown alongside file size, revenue per
member has declined. RPM is typically far higher for cultural
clients in general.
ACC trend:
-5% (6/30)
-3.7% (9/30)
Industry
Sector trend:
+8%
$142
$132
$128
$124
$60
$70
$80
$90
$100
$110
$120
$130
$140
$150
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
2014 2015 2016 2017
Revenue Revenue per Member
Revenue per member is closer to $60 for Avalon clients as a whole, and industry wide the
metric is lower.

Gifts per member are increasing in line with the industry trend for
cultural organizations. Generally speaking, this metric is notably
lower for cultural clients than for the industry as a whole.
1.220 1.230 1.240 1.250 1.260 1.270 1.280 1.290 1.300 1.310
2014
2015
2016
2017
Gifts per Member
ACC trend:
+2.3% (6/30)
+2.4% (9/30)
Industry
Sector trend:
+1.5%
Without anomaly clients/events, gifts per member is 1.24 in FY17.

Average first gift has declined while new joins have increased. New
joins far outpace the industry (49% growth vs. 9%) due to anomaly
years for some participants (13% growth without such clients).
$107
$86 $84
$79
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
$0
$20
$40
$60
$80
$100
$120
2014 2015 2016 2017
New Joins Average First Gift
Acquisition is an area of focus for most cultural organizations given lower response rates, while join
gifts tend to be far higher than the industry as a whole.

58.60%
59.70%
56.70%
55.00%
68.60%
69.80%
68.20% 68.10%
2014 2015 2016 2017
Overall Member Retention Multi-Year Retention
Multi-year and overall retention for cultural organizations
exceed industry averages, but have declined alongside the
industry as a whole.
ACC trend:
-.9% (overall)
(6/30)
+.3% (multi)
(6/30)
-3% (overall)
(9/30)
-.1%% (multi)
(9/30)
Industry
Sector trend:
+1% (overall)
+3.3% (multi)
2016 industry
retention
average: 45%
2016 industry
retention
average: 60%

First-year retention has risen steadily since 2014 and exceeds
industry trends. First-year retention is typically higher for
cultural organizations when compared to the industry.
31.00% 31.10%
33.00%
35.70%
2014 2015 2016 2017
First-Year Retention
2016 industry
retention
average: 23%
ACC trend:
+14.6% (6/30)
+8.2% (9/30)
Industry
Sector trend:
+3.2%
Without anomaly clients/events, first year retention was 32.6% in FY17.

Average gifts have declined for the cultural coalition as a
whole, while the industry shows an upward trend.
$119.84 $118.32 $117.31
$111.79
$79.86
$85.93
$75.11
$72.60
$106.50
$85.88
$84.47
$79.30
$40
$50
$60
$70
$80
$90
$100
$110
$120
$130
2014 2015 2016 2017
Multi-Year Avg Gift First-Year Avg Gift Average First Gift

Rate of second gift shows strong positive correlation to first-
year retention. ACC participants show increasing 2nd gift rates
through FY17. This is in line with Avalon clients as a whole.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
3 Mo Second Gift Rate 6 Mo Second Gift Rate 9 Mo Second Gift Rate 12 Mo Second Gift Rate
2014 2015 2016 2017

Not surprisingly, number of second gift givers at 3 and 6
months correlates to overall number retained.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
FY Retained 6 MO Second Gift Givers 3 MO Second Gift Givers

Recap on Avalon Cultural Coalition Trends
Avalon Cultural Clients are generally in line with overall industry trends, but
have shown more dramatic changes in the past 12 months.
Metrics that have gone in the opposite direction are average gifts, revenue
per member, and reactivation. The first two are not surprising given overall
growth and anomaly years for some clients.
Cultural clients tend to generate more revenue per member driven by high
average gifts, with fewer gifts given, when compared to the industry as a
whole.
Lower acquisition response rates make acquisition an ongoing focus; but
cultural clients benefit from strong join gifts and stronger first-year
retention when compared to the industry.

Recap on Avalon Cultural Coalition Trends
Overall retention has not grown at the same pace as the industry, but is
notably stronger when compared to industry standards.
First-year retention spiked in 2017 due to clients in anomaly years. Even
without this data included, first-year retention is far higher than the industry
as a whole.
Rate of second gift has been increasing year over year and shows a strong
positive correlation to first-year retention.

Areas of Focus for Cultural Organizations
Maintaining and
strengthening acquisition
response rates
Maintaining acquisition
investment large enough to
sustain file growth/stability
Upgrading
Maintaining membership
after anomaly events
(performances, special
exhibitions, openings, etc.)
Expanding available
universe, especially for
regional organizations
Encouraging
philanthropic/mission-
based giving along side
benefits-based giving

Discussion Topics
• What other metrics are of interest?
• What key questions do you get most often from your organization?
• What is your organization doing to impact relevant metrics?
• What do you see as the top areas of focus for cultural organizations?

Avalon Cultural Coalition Benchmarking Presentation

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