Utilizing the Fundraising Effectiveness Program in your Healthcare Organization
Heather Paul, Raiser’s Edge Solutions ConsultantAnne O’Neal, Senior Account Manager - Healthcare
SCAHD 2010
Heather Paul | Page #2 © 2009 Blackbaud
Utilizing The FEP Data – A Fundraising Health Check
Session Objectives
Inform
Inspire
Invite
Involve
Heather Paul | Page #3 © 2009 Blackbaud
Utilizing The FEP Data – A Fundraising Health Check
What is the Fundraising Effectiveness Project?
A project to help nonprofit organizations measure and compare their annual growth in giving by gain/loss category and increase the net by maximizing their gains and minimizing their losses
Heather Paul | Page #4 © 2009 Blackbaud
Utilizing The FEP Data – A Fundraising Health Check
The AFP’s “Fundraising Effectiveness Project”Who is in the Study?
1430 responses to the annual FEP survey for 2008 Small to midsize organizations Averaging less than $1 Million in annual gifts $4 Billion in gifts analyzed since 2005 Contributors & Detractors of Value For Every $6 Raised there is $5 lost-07/ 08 is Break-even
Heather Paul | Page #5 © 2009 Blackbaud
Utilizing The FEP Data – A Fundraising Health Check
5
Includes• Gifts – Restricted
And Unrestricted • Pledge Payments• Cash and Fair Market
Value for Stocks• In-Kind (tangible)
donations
Excludes• Pledges• Deferred gifts• Donations of
personal services and use of facilities
• Costs-benefiting-donors portion of special-event income
Fundraising Effectiveness Project Surveys
Heather Paul | Page #6 © 2009 Blackbaud
Utilizing The FEP Data – A Fundraising Health Check
Fundraising in Hard Times- What to Do?
Assess your situation Create a plan to move forward Intensify your cultivation & stewardship efforts Assess your communication plan & case for support
Heather Paul | Page #7 © 2009 Blackbaud
Utilizing The FEP Data – A Fundraising Health Check
Objective
Review fundraising data from FY 2007 to FY 2008
Help identify areas of strength Help identify areas of improvement
Goal:
Align focus with areas of strength and improvement
Heather Paul | Page #8 © 2009 Blackbaud
Utilizing The FEP Data – A Fundraising Health Check
Action Plan
Create fundraising effectiveness benchmarks and identify areas of opportunity
Leverage Blackbaud’s Performance Improvement calculator to determine what metrics need to be improved and by how much in pursuit of your goal (define financial sustainability benchmarks)
Review potential next steps to derive additional fundraising improvements
Heather Paul | Page #9 © 2009 Blackbaud
Utilizing The FEP Data – A Fundraising Health Check
Why does it matter?
“You can’t manage what you can’t measure”
Create your own KPI Score Card
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Utilizing The FEP Data – A Fundraising Health Check
Contributors of Value
Detractors of Value
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Utilizing The FEP Data – A Fundraising Health Check
Gains and Losses 2007 - 2008
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Utilizing The FEP Data – A Fundraising Health Check
Decreasing the Losses to Increase Net GainsThe Importance of Retention:
AFP’S “Fundraising Effectiveness Program” 2007 -2008
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Utilizing The FEP Data – A Fundraising Health Check
FEP data – 2008 All Verticals
Based on The Association of Fundraising Professional’s 2008 Fundraising Effectiveness Project data.
$1.1 billion in donations from1.2 million donors. 1430 organizations.
Co
ntr
ibu
tors
Det
ract
ors
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Utilizing The FEP Data – A Fundraising Health Check
Let’s Look at Best in Class for Retention
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Utilizing The FEP Data – A Fundraising Health Check
Let’s Look at Best in Class for Retention
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Utilizing The FEP Data – A Fundraising Health Check
Let’s Look at Best in Class for Average Giving
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Utilizing The FEP Data – A Fundraising Health Check
FEP data – 2008
Health
vs. All FEP Verticals
22.1%
43.3%
1.0
.97$920
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Utilizing The FEP Data – A Fundraising Health Check
Case Study
Starting the Journey
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Utilizing The FEP Data – A Fundraising Health Check
One Sampled Org vs. FEP Ed and PHL Average
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Utilizing The FEP Data – A Fundraising Health Check
Sample Organization – All Donors – 3 Year Trend
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Utilizing The FEP Data – A Fundraising Health Check
Observations vs. Peers:
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Utilizing The FEP Data – A Fundraising Health Check
Summary of Findings:
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Utilizing The FEP Data – A Fundraising Health Check
• Increase the number of total donors by 10% (to FY 08 levels) via new and recaptured donor growth while maintaining current retention levels
GOAL SETTING ASSUMPTION #1:
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Utilizing The FEP Data – A Fundraising Health Check
Increasing the number of donors to FY2008 levels increases fundraising by $243,157 over three years:
Goal Setting Assumption #1:
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Utilizing The FEP Data – A Fundraising Health Check
GOAL SETTING ASSUMPTION #2:
• Improve average $ per donor by 20% to $1,571
(still below peer average and below prior year)
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Utilizing The FEP Data – A Fundraising Health Check
If you increase the average $/donor by 20% (still below peers & prior year) without any change in donor growth or
retention rates, the increase in fundraising would be $1,190,341 over three years:
Goal Setting Assumption #2:
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Utilizing The FEP Data – A Fundraising Health Check
GOAL SETTING ASSUMPTION #3:
• Increase donor retention rates to the average of the peer area schools, taking retention from 52.9% to 65.5% over a three year period.
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Utilizing The FEP Data – A Fundraising Health Check
If you only increase the retention rate from 52.9% to the area peer average of 65.8% the increase in fundraising
would be $1,046,315 over three years:
Goal Setting Assumption #3:
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Utilizing The FEP Data – A Fundraising Health Check
And if you can….•Increase new donor growth•Improve the average dollars per donor•Move retention rates to peer levels
The increase in fundraising would be $2,782,565 over 3 years:
All Cylinder Option - Assumption #1, 2 and 3:
Yeah, Great. But how?
Heather Paul | Page #32 © 2009 Blackbaud
Utilizing The FEP Data – A Fundraising Health Check
Impact Of Blackbaud Solutions – “Set Goals”
Educate Engage
InspireSteward
Donor Retention New Donor Acquisition Average Gift Per Donor
• Major Gifts
• Median Growth
Efficiencies (Cost Saving)
AFP’s Gain & Loss Segments – Retention Losses are Greater than Recaptures
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Utilizing The FEP Data – A Fundraising Health Check
WHAT ARE YOUR PEER’S BEST DEMONSTRATED PRACTICES?
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Utilizing The FEP Data – A Fundraising Health Check
BEST DEMONSTRATED PRACTICES:
• Increase new donor growth
• “I’m reaching out to patients in new ways”
• “I keep the demographics in mind
and tailor my message”
Heather Paul | Page #35 © 2009 Blackbaud
Utilizing The FEP Data – A Fundraising Health Check
BEST DEMONSTRATED PRACTICES:
• Improve average $ per donor
• “I now use wealth screening”
• Customized asks
• Asks in excess of prior year gifts
Heather Paul | Page #36 © 2009 Blackbaud
Utilizing The FEP Data – A Fundraising Health Check
BEST DEMONSTRATED PRACTICES:
• Increase donor retention rates
• “I’ve built new ways to communicate with existing donors”
• “If I lose a donor I ask why.
We survey lost donors each month”
Heather Paul | Page #37 © 2009 Blackbaud
Utilizing The FEP Data – A Fundraising Health Check
What is Next?
Confirm version of Raiser’s Edge is 7.81 or higher Get your staff onboard by attending Thursday’s FEP web seminar (
www.blackbaud.com) Call Anne O’Neal to submit your data to Blackbaud to convert into the Analyzer Submit your data to AFP
Heather Paul | Page #38 © 2009 Blackbaud
Utilizing The FEP Data – A Fundraising Health Check
Thank You: Additional Questions?
Anne O’Neal
[email protected] x3160
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