Fundraising Assessment-AFP-IN

Melissa S. BrownPrincipal, Melissa S. Brown & Associates, LLC

March 16, 2010AFP - Indiana

Why do we measure?

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Word of mouth or “word of mouse”

Accountability Goals

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Effective AND Efficient

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But compared to what?

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15

18

24

24

19Declined by more than 15%

Declined by less than 15%

Increased by more than 15%

Increased by lessthan 15%

Stayed the same

Vehicle Reasonable cost guidelines

Acquisition $1.25-$1.50 / $1 raisedPlanned Giving

$0.20-$0.30 / $ raised

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Followers

Intermediate

Major

FollowingFeldman

Annual donors

Constituency

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Mailing List

General public

z

Self-Identified Advocates

1. Number of donors (or donations)

2. Income from this appeal or group of appeals.

3. Expense, including indirect costs, for this appeal or group of appeals

Greenfield’s 9 pointsBaseline data

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4. % Participation : Donors/Number receiving appeals

5. Average gift : Income/# Donors (or donations)

6. Net income: Income Expense

Effectiveness

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1. Average cost per gift: Expense/Donor

or donation

2. Fund-Raising Cost: Expense/Incomecan be cents/dollar or %

1. Return: Net Income/Expenses * 100(for percentage)

Efficiency

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z

z

z

z

What about loyalty?

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A. Sargeant, Donor Retention, AFP

Service Quality

Risk

Shared Beliefs

Learning

Personal Link

Multiple Engagements

Sargeant & Jay Loyalty Model

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Attrition rate

Gains/Losses

Transaction Frequency

Donor Lifetime Value

Loyalty Metrics: Quantitative Info

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Sargeant & Jay

Donor Satisfaction/Commitment and Trust

Exit Polling

Number (and Categories) of Complaints

Loyalty Metrics: Qualitative Info

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Sargeant & Jay

Other Metrics Proposed

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Monitor % of new donors who report learning of organization from existing donor or volunteer

Track MEDIAN, not mean, gift amount

Track % of gift $ that are “over the transom”

dzo Strategies

Going Forward

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Before picking metrics, have a plan for what can change when metrics employed.

Determine “compared to WHAT”. Without a benchmark, even an internal one, data not helpful.

Start modestly, test, review, revise.

Assess “cost” of implementation against “benefits” of use (time, particularly).

Resources

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www.AchieveGuidance.com Feldman pyramid

www.AFPNet.org FEP, Nonprofit Research Collaborative

Achieving Excellence in Fundraising Greenfield’s table3rd Edition, eds: Tempel, Seiler and Aldrich

www.GivingUSAReports.org Giving USA 2010

www.studyfundraising.info Sargeant on Donor Loyalty

www.dzostrategies.com Beyond cash dashboard items