Talking to your Board and Boss about Development Plan metrics VAFRE - PDF document

8/2/2016 Talking to your Board and Boss about Development Plan metrics VAFRE Brown Bag Series August 2, 2016 Steve Jobs Quote It’s ok to spend a lot of time arguing about which route to take to San Francisco when everyone wants to end up there. But a lot of time gets wasted in such arguments if one wanted to go to San Francisco and another secretly wanted to go to San Diego. VAFRE Brown Bag August 2, 2016 2 1

8/2/2016 Culture of Philanthropy • Donor is the prize; not the gift • Funds raised are just one measurable outcome • As Development professionals we are courting our donors 1. Trusted matchmakers 2. Authentic belief in mutual interests 3. Patient and respectful 4. Marathon not a sprint 5. Stewardship matters most VAFRE Brown Bag August 2, 2016 3 Evaluating a growing culture of philanthropy If development is truly about building relationships, how do we measure what matters? VAFRE Brown Bag August 2, 2016 4 2

8/2/2016 Two npos each with FR goal of $1,000,000 – who was most successful? Susie raised $900,000 Johnny raised $1,100,000 Made 5 PG calls. 2 shared in Made 0 PG calls • • will for @$200,000 Goal based on prev yr results • Donor retention rate < from 65% FR goal was 25% > prev yr • • to 60% Donor retention rate > from • Mailings missed targets for • 65% to 68% response rates Mailings exceeded targeted Realized, unrestricted bequest of • • $250,000 response rates One ‐ time gift of $100,000 Averaged 4 stewardship calls • • Averaged 2 stewardship calls per per week • month. All Board members • Two Board members engaged in • participated in stewardship of development. donors Expense budget = $350,000 • Expense Budget = $200,000 • VAFRE Brown Bag August 2, 2016 5 On the same page – going to San Francisco or San Diego? • Clarity of roles and responsibilities • Clarity of expectations • Negotiated dollar goals • Development Plan – Metrics to evaluate performance • Dashboard VAFRE Brown Bag August 2, 2016 6 3

8/2/2016 Educate Board and CEO • Look at more than one year • Look beyond gross revenue • Appreciate time invested in building relationships • Agree on measures of success (KPI – key performance indicators) VAFRE Brown Bag August 2, 2016 7 Beyond Dollars – nonrevenue objectives and KPI’s for the development plan 1. Create a culture of philanthropy Engage the Board, CEO, volunteer leadership, – and program staff with XYZ activities Include development info in all new employee – hires 2. Focus on ROI ‐ highest and best use 1. Renew the base 2. Upgrade the base 3. Build the base VAFRE Brown Bag August 2, 2016 8 4

8/2/2016 Beyond Dollars – nonrevenue objectives and KPI’s for the development plan Board Engagement • Approval of Development Plan • # of Board members who went on an ask • Total Board Giving $ and 100% participation • # Board members who attended some level of governance training/FR education VAFRE Brown Bag August 2, 2016 9 Beyond Dollars – nonrevenue objectives and KPI’s for the development plan Donor Retention – 5/5/3 Rule • 5 Phone calls per week, • 5 out of office meetings/visits per week • Ask 3 current donors each week • Unique thank you letter – says thanks again. Acquisition • 2 appeals to never givers on database with X% response rate • X# of first time event participants to XYZ event VAFRE Brown Bag August 2, 2016 10 5

8/2/2016 Beyond Dollars – nonrevenue objectives and KPI’s for the development plan Donor Upgrade • Phone call tku to anyone who increases their gift from previous year • Every thank you letter is personalized and individualized • 15% of donor base upgrades their gift from previous year • X% of special event participants converted to donors • Median gift from $155 to $175 VAFRE Brown Bag August 2, 2016 11 Beyond Dollars – nonrevenue objectives and KPI’s for the development plan Special/Major Gifts • Define target audiences beyond just dollars (ex. Re ‐ occurring donors, donors of 10 yrs + • Create a well ‐ thought out strategy (TLC program) for each which moves them from arm’s length to face to face communication. • Add a new gift club that recognizes cumulative giving VAFRE Brown Bag August 2, 2016 12 6

8/2/2016 Beyond Dollars – nonrevenue objectives and KPI’s for the development plan Stewardship • # of communications (touches) that do not involve an ask • % of communication with each donor that is personalized or segmented • E – survey donors after 3 consecutive yrs of giving VAFRE Brown Bag August 2, 2016 13 Beyond Dollars – nonrevenue objectives and KPI’s for the development plan Special Events • Used successfully as cultivation, stewardship, board engagement opportunities • ROI (based on direct costs and expenses) • ROI (including indirect costs) Life Income and Deferred Giving • # visits • # Solicitations • # Secured (written and verbal) VAFRE Brown Bag August 2, 2016 14 7

8/2/2016 Beyond Dollars – nonrevenue objectives and KPI’s for the development plan Capacity • Research and acquire software that integrates development, membership/student info, and accounting • Work smarter, not harder – “Audit” job descriptions for dev and related disciplines. Re ‐ focus on top priorities, eliminate duplications of tasks, eliminate non ‐ essential – Outsource grant writing and print materials – Evaluate each special event with direct AND indirect costs. Eliminate under performing events. VAFRE Brown Bag August 2, 2016 15 Educate • Assure Development/Philanthropy is first on the agenda at every other Board meeting • Success is meeting cash and beyond cash objectives. • Dashboard ‐ measurement by story telling. metrics from cash and beyond cash objectives. • Presented by a member of the Board or Development Committee – not staff VAFRE Brown Bag August 2, 2016 16 8

8/2/2016 Evaluate • Did you work the plan? • Did you raise the money? VAFRE Brown Bag August 2, 2016 17 Roundtable Discussion • What barriers exist in your organization which may make it challenging to include non ‐ dollar objectives in your development plan? • How can you begin a conversation within your organization related to the bigger picture of philanthropy? • What non ‐ cash objectives do you include in your dashboard? OR , What non ‐ cash objectives could you include in your dashboard? VAFRE Brown Bag August 2, 2016 18 9