Post on 16-Jul-2015
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BALANCING FUNDRAISING AND THE BOTTOM LINEHow a shift toward efficiency in fundraising operations can bring more money to your mission.
Mary Hunter, JDRF & John Goering, CDS Global
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Speaker BackgroundsINTRODUCTION
• 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 HUNTERDirector of Centralized Processing, JDRF
www.jdrf.org
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What Matters MostWHAT IS IT ABOUT JDRF?
WHAT DRIVES USJDRF 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 USJDRF 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 USJDRF 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.
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WHAT’S KEEPING US 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.
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Understand your P&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.
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Staff, board of directors, vendors, volunteers, corporate sponsors
Single point of contact – consistency of communication
Track and give credit where it is due!
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HOW CAN FUNDRAISERS REDUCE THEIR CAMPAIGN EXPENSES?
Maximize your relationships.
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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!
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HOW CAN FUNDRAISERS REDUCE THEIR CAMPAIGN EXPENSES?
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Sponsorships for campaigns – 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:
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HOW CAN FUNDRAISERS REDUCE THEIR CAMPAIGN EXPENSES?
Remember: You have something to offer!
Sustainability Ability to Fulfill FlexibilityCan you sustain your sponsorship levels?
Keep your promises to your sponsors!
Let sponsors support in a way that suits them.
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When you don’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.
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WHAT ARE SOME 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
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Four MethodsHOW CAN 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
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Use a CRM 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
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HOW CAN WE FIX THESE FUNDRAISING INEFFICIENCIES?
Centralize and consolidate.
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Staff assignments should 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!
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HOW CAN WE FIX THESE FUNDRAISING INEFFICIENCIES?
Use your personnel wisely.
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Someone should always be available whoknows 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
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HOW CAN WE FIX THESE FUNDRAISING INEFFICIENCIES?
Communication and transparency.
Different image…
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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
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HOW CAN WE FIX THESE FUNDRAISING INEFFICIENCIES?
Standardize and automate.
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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.
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CONCLUSION
What should you do now?
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KEEP IN TOUCH
Mary Hunter @MaryHunterJDRFJohn Goering @JTGoering
CDS Global @CDSGlobalNP
cds-global.com/nonprofits
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