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Balancing Fundraising and the Bottom Line
The document outlines strategies for improving fundraising efficiency in nonprofits, emphasizing the importance of focusing on profits and losses rather than just dollars raised. It suggests understanding budget management, maximizing relationships for in-kind donations, and fostering cross-departmental transparency to reduce administrative burdens. Key methods for enhancing operational efficiency include centralization, wise personnel use, and standardization of processes to improve accountability and effectiveness.
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Balancing Fundraising and the Bottom Line
- 1. #NPProWebinar#NPProWebinar 1 BALANCING FUNDRAISINGAND THE BOTTOM LINE How a shift toward efficiency in fundraising operations can bring more money to your mission. Mary Hunter, JDRF & John Goering, CDS Global
- 2. #NPProWebinar 2 Speaker Backgrounds INTRODUCTION •Executive Director, JDRF Central Iowa • Budget and Forecasting, JDRF • Director of Centralized Processing, JDRF JOHN GOERINGVice President of Business Development, CDS Global www.cds-global.com/nonprofits • Numerous positions at CDS Global • Worked with many nonprofit clients • Experience in improving operational efficiency MARY HUNTER Director of Centralized Processing, JDRF www.jdrf.org
- 3. #NPProWebinar 3 What MattersMost WHAT IS IT ABOUT JDRF? WHAT DRIVES US JDRF exists for the millions of children, adults, and families affected by T1D every day. Their determination to live with this disease inspires us, and strengthens our resolve to create a world without T1D. WHAT SEPARATES US JDRF is the only T1D research organization that allocates resources throughout the development pipeline, from discovery in the laboratory to delivery of new technology and treatments for people with T1D. WHAT PROPELS US JDRF combines aggressive fundraising and hands-on collaboration with a broad range of scientific, regulatory and corporate partners, toward improving the lives of those living with T1D and, ultimately, finding a cure.
- 4. #NPProWebinar 4 WHAT’S KEEPINGUS FROM FUNDRAISING EFFICIENTLY?
- 5. #NPProWebinar 5 WHAT’S KEEPINGUS FROM FUNDRAISING EFFICIENTLY? Don’t just focus on dollars raised. Focus on P&L. Shift your organization’s thinking: it’s about the bottom line. Decreasing costs means more money going to the mission. Know when to spend money to make (or save) money. INSTILL A MINDSET CHANGE Though it might seem like fundraising 101, expenses are often overlooked in nonprofit orgs. Communicate and coach everyone to focus on the bottom line: board, staff, and volunteers.
- 6. #NPProWebinar 6 HOW CANFUNDRAISERS REDUCE THEIR CAMPAIGN EXPENSES?
- 7. #NPProWebinar 7 Understand yourP&L and budget for campaigns. HOW CAN FUNDRAISERS REDUCE THEIR CAMPAIGN EXPENSES? Study data from previous years – use to set and manage your budget. Start tracking if you aren’t already. First time campaigns – ask your peers. Established campaigns – don’t rely on “business as usual.” Stick to your budget once you set it. Evaluate your campaigns honestly.
- 8. #NPProWebinar Staff, boardof directors, vendors, volunteers, corporate sponsors Single point of contact – consistency of communication Track and give credit where it is due! 8 HOW CAN FUNDRAISERS REDUCE THEIR CAMPAIGN EXPENSES? Maximize your relationships.
- 9. #NPProWebinar Get everything donated. Work your way down your P&L report for a campaign, starting with the biggest expenses. Start dwindling down those expenses with in- kind donations – relationships are key! IN-KIND DONATION EXAMPLES: Office space – stop paying rent Piggyback off corporate operations Printing Postage and mailings Board members take turns hosting board meetings Video and design work Food Remember to barter! 9 HOW CAN FUNDRAISERS REDUCE THEIR CAMPAIGN EXPENSES?
- 10. #NPProWebinar Sponsorships forcampaigns – what can you offer? Marketing benefits Community goodwill Benefits for sponsors, at little or no cost to you Know your sponsors – what do they value? Formalize your offer, but keep the following in mind: 10 HOW CAN FUNDRAISERS REDUCE THEIR CAMPAIGN EXPENSES? Remember: You have something to offer! Sustainability Ability to Fulfill Flexibility Can you sustain your sponsorship levels? Keep your promises to your sponsors! Let sponsors support in a way that suits them.
- 11. #NPProWebinar 11 WHAT DOESA WELL-RUN FUNDRAISING OPERATION LOOK LIKE?
- 12. #NPProWebinar 12 When youdon’t notice it! WHAT DOES A WELL-RUN FUNDRAISING OPERATION LOOK LIKE? Fundraisers don’t spend large amount of time on administrative tasks. Relationships are well-managed with little friction (donors, staff, volunteers, vendors, BOD, etc.). Fundraisers and operations have insight into each other’s processes, without one team frequently asking the other for information.
- 13. #NPProWebinar 13 WHAT ARESOME COMMON AREAS OF OPERATIONAL INEFFICIENCIES?
- 14. #NPProWebinar 14 WHAT ARESOME COMMON AREAS OF OPERATIONAL INEFFICIENCIES? Spotting the problems that slow you down. UNNECESSARY OR REDUNDANT WORK MISSED OPPORTUNITIES WITH PARTNERS SILOS AND LACK OF TRANSPARENCY UNPRODUCTIVE USE OF STAFF, VOLUNTEERS, AND BOARD MEMBERS HUMAN ERROR LACK OF ACCOUNTABILITY
- 15. #NPProWebinar 15 HOW CANWE FIX THESE FUNDRAISING INEFFICIENCIES?
- 16. #NPProWebinar 16 Four Methods HOWCAN WE FIX THESE FUNDRAISING INEFFICIENCIES? Centralize and consolidate Use your personnel wisely Strive for cross-departmental transparency and communication Standardize and automate to ensure consistency, accuracy, and accountability
- 17. #NPProWebinar Use aCRM as a central repository for information Establish a central point of contact for cross- departmental or chapter questions Consolidate and share staff members Consolidate administrative tasks to a single person Centralize and consolidate outsourced functions with a single vendor 17 HOW CAN WE FIX THESE FUNDRAISING INEFFICIENCIES? Centralize and consolidate.
- 18. #NPProWebinar Staff assignmentsshould be based on proficiency, not campaign or project Staff, volunteers and board should have tasks matched to skill Shift fundraisers out of administrative duties (use volunteers, software) Know your personnel Board skills assessments, volunteer interviews, job descriptions for committee chairs Empower and value Give volunteers and staff freedom, but empower them to act and show your appreciation! 18 HOW CAN WE FIX THESE FUNDRAISING INEFFICIENCIES? Use your personnel wisely.
- 19. #NPProWebinar Someone shouldalways be available who knows how to interact with the donor – a consistent message is extremely important Cross-training – establish a formal program Volunteer/Staff partners All-inclusive meetings Know your partners and your vendors 19 HOW CAN WE FIX THESE FUNDRAISING INEFFICIENCIES? Communication and transparency. Different image…
- 20. #NPProWebinar Consistency, accuracy,and accountability Moves management and donor ownership/accountability Share designs, processes, forms, etc. across chapters or departments to improve consistency Automate to reduce human error Evaluate your technology – could it standardize your processes? Upgrades or using what you have more efficiently 20 HOW CAN WE FIX THESE FUNDRAISING INEFFICIENCIES? Standardize and automate.
- 21. #NPProWebinar Start communicating:think about the bottom line! Get to know your P&L reports. Start asking yourself: Where can you cut back expenses with in-kind donations? Take stock of your third-party vendors, partners, technology, and services – are they being used to their full potential? Assess your board, staff, and volunteers – take steps to better understand their skill sets, and evaluate possibilities for reorganization. Locate gaps where standard processes don’t exist, and think about ways to standardize or automate those areas. 21 CONCLUSION What should you do now?
- 22. #NPProWebinar 22 KEEP INTOUCH Mary Hunter @MaryHunterJDRF John Goering @JTGoering CDS Global @CDSGlobalNP cds-global.com/nonprofits Need more resources? Click the link:
Editor's Notes
- #4 Brief overview of JDRF mission 3 fundraising campaigns [briefly explain each] Walk Ride Gala - Mary: work experience Work at national/local levels Experience in many different areas within JDRF Some experience in for-profit sector as well
- #6 Main Idea: organizations aren’t thinking about the bottom line. Mary: experiences on B&F with BOD/staff (thinking only about dollars raised) P&L – must think about profit AND loss Revenue means nothing if expenses are high! Efficient fundraising = reducing expenses Think like a for-profit (experience at Hy-Vee) Efficiency = more $mission How to instill a mindset change Communicate – bottom line - Say this at every opportunity
- #8 Main Idea: An efficient campaign starts with a well-planned budget, and understanding of profit/loss. Study data from previous years – use to set and manage your budget. Use as benchmark Must be tracking P&L data already for each campaign Start tracking. Manage to prior years’ expense and revenue New campaign/new organization: Find resources: google, call other orgs, compare to other campaigns, … Established budget/campaign? [business as usual budget] – Dive into your budget First – find where to reduce expenses Second - Find areas of stagnancy What-if scenario. What if we did this, what if we changed head count, etc. Do more than just “business as usual” Third – Evaluate revenue streams Revenue sources? Find new sponsorships Grow current sponsorships E.g. - Incremental increases in sponsorship costs depending on age of event Stick to your budget once you set it. Help you stay efficient! Evaluate your campaigns honestly. If a campaign or a part of a campaign doesn’t make sense, make adjustments.
- #9 Main idea: Nurture your relationships and manage them well, because if you aren’t using them to their full potential, that’s a missed opportunity for efficiency. In house: staff and volunteers Fantastic resources with a lot to offer. Know what they can offer during an event – more on this later… BOD Remember your BOD’s network Work with their contacts to locate donations. Make your board work for you e.g. Set standards – each member has to raise a certain amount of dollars Vendors Can often give discounts, in-kind donations Bundle different services for a discount Talk to them – find how they can serve you best Corporate sponsors Better relationship = more ways they can support org, more synergies Know them and their needs (more on this later) Single point of contact Continuity and consistency Helps build relationship Better understanding of what other party has to offer Better experience for the external party Give credit! To each of these groups, always say thanks Be vigilant about keeping track of how they helped
- #10 Main idea: the best way to make a campaign efficient is to reduce expenses. The best way to reduce expenses? Get in-kind donations for as many things as possible. Start by looking at P&L report Look at biggest expense – how can we get it donated? Go down your list of expenses by cost, ask that same question. This is where relationships come into play (corp sponsors and vendors especially) In kind donations Not always obvious – rent? One option - piggyback off corporate operations – e.g. run mail through their postal meter Sometimes people can help internally to lower expenses – e.g. board members hosting meetings Bartering – some things you can offer at almost no cost [examples]. Use these! Mailing Mass mailings can be done better with a third party. You just can’t do it that cheap in the chapter… Commingling and such, lowers costs
- #11 Main idea: corporate sponsorships are a great way to fund campaigns. But you aren’t just begging for money – you have something to offer! Sponsorships Marketing opportunities Logos, banners, impressions Positive associations and community goodwill toward your brand Low cost benefits E.g. listing on website Know your sponsors and their values what works for one company wont for another Formalize your sponsorship offering with the following in mind Sustainability Costs sustainable? When your org grows? If a new sponsor is needed? Examine your sponsorship levels Must look to the future Ability to fulfill Don’t make promises you can’t keep Honesty and integrity Broken promises = hurt the relationship Flexibility Create custom sponsorships, and offer them Don’t pigeon hole a sponsor (especially if they want to give more money!) Don’t operate in a silo e.g. if a company wants to give a large sum for more than one event, let them! Also, make sure you can work with other departments to create a custom package
- #12 Transition from campaign level to overall, ongoing operational level
- #13 Main Idea: a fundraising operation is well run when it’s invisible! Unnecessary work doesn’t eat up your time, and operations and fundraising operate as a single team. Admin tasks - People are assigned to roles that maximize their capabilities, and don’t burden them Relationships Empowered, functional, rewarded and thanked properly Systems in place that make this simple and trackable. Insight Transparency within the org, not constantly having to ask one another for information Lines of communication are open
- #15 Main Idea: there are lots of problems that make fundraising operations visible – slow you down, impact your work, etc. Finding these problems is just a matter of looking at your organization honestly. Unnecessary or redundant work Redundancy is a time suck, and therefore a profit-suck So are administrative tasks if they are not necessary ASK YOURSELF: Do I have to provide the same info to multiple people/departments? How much time do admin/data entry tasks and meetings take up? Do people in my org ever perform the same task, unaware it is already being worked on? Silos + Lack of Transparency/Communication So many times departments or personnel operate in silos What happens if there’s an emergency? If someone needs to step in, they are hurting the orgs productivity if they can’t do it seamlessly Sharing information is critical, esp in smaller orgs ASK YOURSELF: Are decisions made by departments that affect other departments, without consulting them? Do staff members know what goes on in other staff members’ day to day operations? Unproductive use of personnel and volunteers Your paid staff should be used for the skills they were hired for – not admin tasks Your volunteers are a great resource – use them for tasks they are well suited for Board and committee as well – don’t waste their expertise ASK YOURSELF: How many administrative tasks does my staff work on? Where are tasks falling through the cracks? Do I know my volunteers/BOD/committees’ skill sets? Do our staff and volunteers function as a team? Human error Can be harmful to donor trust Also puts org at risk Can’t always get rid of this, but ways to reduce it ASK YOURSELF: Are donations getting lost? Is donor information accurate? Am I reaching out and thanking donors at the right times? Are our security standards functional and up-to-date? Lack of accountability Ownership of project, and of the metric Projects don’t get done without accountability ASK YOURSELF: Are systems in place to hold fundraising and operational staff accountable for projects, campaigns, budgeting, etc? Does someone have oversight into ensuring these goals are met? Is there clear ownership of every project and activity? Missed oppts with partners Relationship management – who “owns” the relationship can that relationship be maximized what are the limits of that relationship – thinking of vendors that donate or give cost reductions – - ASK YOURSELF: Is there a clear “owner” of every relationship with a corporate partner, vendor, and other constituents? Do we have a clear understanding of our partners’ needs, offerings, and limitations?
- #17 Main Idea: there are four broad steps you can take to put your org on track to more efficient fundraising operations. Centralize and consolidate Centralizing creates economies of scale; Volume = lowered costs Consolidate across chapters, departments, tasks for efficiency Have people on the same systems to improve information flow and shared understanding of operational tasks Use personnel wisely Working with paid staff, volunteers, board members, and committees most effectively to maximize their capabilities and lower your costs Might take a shift in your organization of personnel, and their assigned duties. Transparency/communication Shared roles and responsibilities Breaking down silos Standardize and automate – consistency, accuracy, accountability Having processes in place to guide operational functions – whether automated or not Consistency improves operational speed Automation reduces human error Essential to build into your business rules
- #18 Main Idea: Centralizing and consolidating reduces redundancy and creates economies of scale that reduce costs simply by aggregating work into a central place. It also makes for more consistent processes across the organization Have a central repository of information CRM Easy for fundraisers and operations to access donor and organizational information Central information empowers personnel – don’t have to ask other departments for information Establishes consistency around core processes that are based on the CRM across different departments/chapters Everyone should be trained on how to use this should be shared/updated regularly Establish a central point of contact for cross departmental or chapter questions Run all cross departmental/chapter questions through them Eliminate the same questions being asked of multiple people Gives a person insight into many different things For multiple departments/chapters/etc: Consolidate and share staff and resources when possible Especially applies to administrative work Try to get administrative tasks down to a single person E.g. use one person to handle all admin calls Share staff when you have multiple offices. E.g. Have one person in charge of logistics for everything in every office. Can use the same vendor, software, etc bulk discounts Using same vendor in multiple areas creates buying power
- #19 Main Idea: Your personnel should be doing the job they are best suited for, or you are missing opportunities for efficiency. Reorganizing staff and volunteer structures is sometimes the best way to maximize your effectiveness without hiring on more people. Roles based on proficiency Diagram explains Instead of having a single person in charge of a campaign, have a person in charge of an aspect of that campaign What they are in charge of should be what they are best at This also helps create continuity in relationships E.g. if same person is in charge of all corporate sponsorships for multiple events, corporations will be in touch with the same person for every event – so no talking to multiple people! Easier for the sponsor that way. E.g. one person does registration for all events Match tasks to skill set Staff (and volunteers) should be doing what they are best at, at every opportunity Staff shouldn’t be doing admin work if they are skilled at fundraising Shift fundraisers out of administrative duties Install software/systems when able to cut back on administrative roles – means fundraisers can do less admin tasks More time spent on fundraising should equal more revenue Let volunteers do event management Find volunteers that are great sales people – they make great fundraisers ! Know your personnel Assigning tasks by skill/specialty requires knowing your people and their strengths! Board skills assessments – help you understand what your board can offer What they are How to create/use them Volunteer interviews Help match volunteers where they fit the best Job descriptions for committee chairs Lets your committee self select, pick the things that are best suited for them Empower your staff Give them freedom, make sure they understand mistakes are okay Do not micro manage Empower and value your volunteers Give them the tools they need to empower themselves (e.g. handbook) Also make sure you are comfortable with their independence – have them sign confidentiality agreement, etc. Then appreciate them – utilize, don’t abuse. Show appreciation on a regular basis Utilize them the way they WANT to contribute. (i.e. if they are an accountant by day and do not want to be treasurer respect that, but find also find their skill set) It is okay to say you don’t have anything for them to do right now. Make the task that you are asking them an honor. Make them know you hand picked them to help you with “X”. Help them feel their value.
- #20 Main Idea: A well run fundraising operation means processes don’t happen in silos. Insight into each other’s operations and day to day processes prevents miscommunication, redundant work, and helps keep consistent messages flowing out from the organization. It is important that someone is always available that knows how to interact with the donor Working in silos means donors might get different messages if talking to different people Best way to prevent this is to break down silos, and move from specialists to generalists Account management – know who owns the relationship, and make sure to communicate correspondence. Whatever job title you have someone needs to know how you impact and interact with the donor. This can never be missed. Cross Training – establish a formal program Cross training especially important for smaller organizations Everyone needs to know everyone else’s job to some extent, so support can be shared, especially in emergencies. “hit by a bus” - explain Example: Someone gets ill and cannot fulfill their duties for an event. Someone has to come in and pick up where they left. Everyone should be secure enough in their role that they can relinquish control if they need help with a project or are overworked Formal cross training Will introduce staff to one anothers’ jobs Establish trust in one another’s capabilities. Resistance to be expected, but overcome this! Have Volunteer/staff “partners” A volunteer partner for every staff member that knows the “job”. For example, outreach – if the volunteer knows how to welcome a new family to the organization, you don’t miss a beat if staff member gets sick. If you don’t have the volunteer base established, the staff can and should do this. Staff “substitutes” for emergencies All inclusive meetings Encourage meetings and have everyone at the table when a decision has to be made If you are planning an event, Make sure you have all skill represented. A logistics person, communication person, donor management, corporate donors, volunteers, etc. All players at the same time. The communication is critical that everyone get the same message. Also, follow up notes from the meeting to everyone. Know your market and your vendors Keep lines of communication open with your partners Whatever software or technology you use, pay attention to the vendor’s offering and be willing to keep an open mind. You might spot opportunities for new efficiencies. Work with partners to find ways to reduce expenses Attend community events and learn about vendors in your community – chamber events, rotary, etc.
- #21 Main idea: Standardizing processes and building those standards into your business rules makes things run more smoothly, and reduces chance of human error. Automating processes takes standardization even further, and offers opportunities for peak efficiency. Consistency, accuracy, and accountability Important to provide donors with best experience Helps ensure effective campaigns, with less output and resources. Standardizing and automating might require upfront costs of both time and money, but sets you up to save in the long term Spend money to make money Implement standards for moves management and stewardship with built-in oversight Helps to manage portfolios and build donor pipeline Easier to track performance and ensure fundraisers are hitting the right touch-points Centralizes fundraising processes Gives a standardized backbone to the very fluid fundraising process Mary anecdote: hired regional donor officers for every region Works to standardize processes across chapters Has insight into portfolios Able to hold chapters and executive directors accountable Example of where efficiency doesn’t necessarily mean cutting costs: sometimes you have to spend money to make money – doubled pipeline Design work and otherwise don’t reinvent the wheel – use designs/copy/processes/etc from other chapters or departments to cut back on work. Borrow when you can! Automation - Automating core processes not only saves times, it also helps reduce human error Data capture Deposits Acknowledgement letters Memorial tribute letters Welcome letters Direct mail data base management - continuity/consistency around how information is entered into your system Evaluate your technology don’t necessarily get new software/tech if something isn’t working – are you using it to it’s full potential? Often, people will overlook what they already have, and get a new piece of technology for a certain process, when their old tech was capable of performing that function.