Slaying the Dragon Debunking Common Fundraising Myths AFP Toronto - PowerPoint PPT Presentation

Slaying the Dragon Debunking Common Fundraising Myths AFP Toronto Fundraising Day J une 12, 2018  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed

Start with Why What How Why  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 2

What FPI Can Do What FPI Can Do % Change From To Amount Raised $10,000,000 350% $45,000,000 % from major gifts 0.20 335% 0.87 MG >$1 Million 1 12 1100% Donor Visits 1,848 4,312 133% Source: Florida Hospital Foundation  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 3

The Problem with It’s an Conventional oxymoron Wisdom in Fundraising  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 4

Impossible  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 5

Learning Objectives • Why traditional fundraising theory and “best practice” can result in less money for your cause. • What performance imperatives from the for-profit world will improve your fundraising • How to keep your organization relevant in today’s changing philanthropic environment.  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 6

Slaying the Dragon 10 Ways FPI Questions Conventional Thinking  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 7

10. The Donor Pyramid?” Delivering Value over time  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 8

9. “Any dollar is a good dollar?”  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 9 9

8. Culture of Philanthropy?  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 10 10

7. Moves Management?  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 11 11

6. Board Training? 6. Board Training?  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 12 12

5. Your Org Chart? 5. Your Org Chart?  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 13 13

4. Managers Make More? 4. Managers Make More?  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 14 14

3. Annual Programs? 3. Annual Programs?  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 15 15

2. Stewardship? 2. Stewardship?  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 16 16

1. Donor 1. Donor-Centric? Centric?  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 17 17

“… One Ring to Rule Them “… One Ring to Rule Them All.” All.” - J.R.R. Tolkien  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 18 18

Lean Six Sigma Thinking Lean Six Sigma Thinking  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 19

1. Identify Value 2. Map the Value Stream Process Process-Based, Based, Metric Metric -Measured Measured 3. Establish Flow Operations Operations 4. Implement Pull 5. Pursue Perfection  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 20

6 σ Allow Only Allow Only Intentional Intentional Variance Variance  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 21

FPI FPI : : Fundraising Performance Improvement Fundraising Performance Improvement  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 22

FPI FPI : : Fundraising Performance Fundraising Performance Imperatives Imperatives  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 23

Big Ideas Applying Lean Six Sigma Thinking to Fundraising 1. Use high 1. Use high-cost, scarce cost, scarce resources to do only high resources to do only high - value work. value work.  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 24

Big Ideas Applying Lean Six Sigma Thinking to Fundraising 2. Create abundant flow into 2. Create abundant flow into the “pipeline.” the “pipeline.”  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 25

Big Ideas Applying Lean Six Sigma Thinking to Fundraising 3. Set key CTQ process 3. Set key CTQ process measures, with emphasis on measures, with emphasis on cycle time. cycle time.  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 26

Big Ideas Applying Lean Six Sigma Thinking to Fundraising 4. Measure early, measure 4. Measure early, measure often and ensure your often and ensure your metrics lead to success. metrics lead to success.  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 27

Big Ideas Applying Lean Six Sigma Thinking to Fundraising 5. Eliminate out 5. Eliminate out -of of-bounds bounds process variance. process variance.  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 28

Big Ideas Applying Lean Six Sigma Thinking to Fundraising 6. Focus on high 6. Focus on high-return return activities. activities.  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 29

The Core Process Applying Lean Six Sigma Thinking to Fundraising Applying Lean Six Sigma Thinking to Fundraising Pipeline Partner Candidate Preliminary Point of Connect Development Identification Qualification Entry Core Identify Engage Cultivate Solicit Upgrade or Re-engage Stewardship Recognize Steward Renew 30  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed

The Core Process Applying Lean Six Sigma Thinking to Fundraising Pipeline Candidate Point of Entry Identification Partner Preliminary Connect Development Qualification 31  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed

The Core Process Applying Lean Six Sigma Thinking to Fundraising Core Cultivate Identify Solicit Engage 32  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed

The Core Process Applying Lean Six Sigma Thinking to Fundraising Stewardship Upgrade or Recognize Renew Re-solicit Steward 33  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed

The Core Process Applying Lean Six Sigma Thinking to Fundraising Pipeline Partner Candidate Preliminary Point of Connect Development Identification Qualification Entry Core Identify Engage Cultivate Solicit Stewardship Upgrade or Recognize Steward Re-engage Renew 34  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed

Measuring Success Applying Lean Six Sigma Thinking to Fundraising Production Production/FTE CPDR/ROI Production/FLFR Response Production/DFTE Retention Production/Donors 35  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed

Measuring Success Applying Lean Six Sigma Thinking to Fundraising Applying Lean Six Sigma Thinking to Fundraising Q P S Reports Control Limits 1.5 1 0.5 0 -0.5 -1 -1.5 -2 -2.5 36  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed

Measuring Success Applying Lean Six Sigma Thinking to Fundraising Applying Lean Six Sigma Thinking to Fundraising Q x Q a Reports Control Limits 1.5 1 0.5 0 -0.5 -1 -1.5 -2 -2.5 37  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed

Measuring Success Applying Lean Six Sigma Thinking to Fundraising Applying Lean Six Sigma Thinking to Fundraising P 100 P x Reports Control Limits 1.5 1 0.5 0 -0.5 -1 -1.5 -2 -2.5 38  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed

Measuring Success Applying Lean Six Sigma Thinking to Fundraising Applying Lean Six Sigma Thinking to Fundraising S x S r (FFT) Reports Control Limits 1.5 1 0.5 0 -0.5 -1 -1.5 -2 -2.5 39  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed

The FPI Numbers The FPI Numbers  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 40

The Decreases Applying Lean Six Sigma Thinking to Fundraising From To Change Number of gifts Number of gifts 15,799 6,002 -62% <$2,500 $2,500 (Production) (Production)  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 41

The Decreases Applying Lean Six Sigma Thinking to Fundraising From To Change Total Number of Total Number of 23,852 16,341 -31% gifts (Production) gifts (Production)  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 42

The Decreases Applying Lean Six Sigma Thinking to Fundraising From To Change Cost Per Dollar Cost Per Dollar 58¢ 38¢ -35% Raised (Production) Raised (Production)  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 43

The Decreases Applying Lean Six Sigma Thinking to Fundraising From To Change Cost Per Dollar Cost Per Dollar 35¢ 17¢ -51% Raised (Production) Raised (Production)  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 44

The Decreases Applying Lean Six Sigma Thinking to Fundraising From To Change % Revenue from % Revenue from 40¢ 16¢ -60% Events (Production) Events (Production)  Performance Advantage N.A.  sareed@mpicompanies.com Steve Reed 45