Post on 01-Apr-2015
(C) 2005 BBBS & The Osborne Group, Inc.
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Taking Fund Development to the Next Level
(C) 2005 BBBS & The Osborne Group, Inc.
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National Averages
• Year to year anticipated growth – 5% to 6% annually
• Strategic growth – double digit– Campaigns or major programmatic or
circumstance changes
(C) 2005 BBBS & The Osborne Group, Inc.
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Double Digit Growth
67.38%
57.32%
34.92%
29.13%
14.62%
-1.08%
-10
0
10
20
30
40
50
60
70
80
CompleteRevenue Data:28 Agencies
BBBS of SouthTexas-SanAntonio, TX
BBBS of theNational Capital
Area-Washington, DC,
DC
BBBS of King &Pierce
Counties-Seattle, WA
BBBS of GreaterMiami &
MentoringResource Ctr-
Miami, FL
BBBSSoutheasternPennsylvania-
Philadelphia, PA
(C) 2005 BBBS & The Osborne Group, Inc.
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Sustained double digit FD growth•Invest in FD•Improved BFKS, RMM, LMBM, major gifts•More 6 and 7-figure gifts•Less reliance on a few donors•New, high-value corporate relationships•Strategic multi-year foundation gifts
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Balanced Portfolio $5,000,000
12%
15%
13%
12%
48%
United Way Government Foundations Corporations Individuals
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Balanced Portfolio $10,000,000
6%9%
12.50%
12.50%60%
United Way Government Foundations Corporations Individuals
(C) 2005 BBBS & The Osborne Group, Inc.
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BBBSA Philanthropy Update
• Seed capital for investment
• FD Information and training
• FD technology
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The Tarnside Curve of Involvement
High
Giving
Low
Low INVOLVEMENT High
Awareness Interest
Engagement
Commitment
Ownership
Taking Personal
Responsibility
(C) 2005 BBBS & The Osborne Group, Inc.
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Boomers Giving More**Donor Trends Project Study 7.05
• 33% plan to increase giving in next five years– 12% WWII
• Average gift $1,361– $1,138 WWII
• 40% plan to leave charities in their will– 23% WWII
(C) 2005 BBBS & The Osborne Group, Inc.
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High Giver Profile* *2005 CMS Prime Group Study
• 77% of $1,000+/year donors give to a few favored groups every year
• 58% say they are knowledgeable (compared to 38% of total respondents)
• Prefer established groups
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High Giver Profile* *2005 CMS Prime Group Study
• College degrees• 48% want to be seen as “members” of the group• More likely to give a portion to the church (61%)
(C) 2005 BBBS & The Osborne Group, Inc.
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Giving Levels Tied to Loyalty* *2005 CMS Prime Group Study
• As giving amounts increase, reported loyalty rises as well
• 81% of $1,000+/year donors say they are highly loyal
• WWII most loyal
(C) 2005 BBBS & The Osborne Group, Inc.
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Organizations are Losing More Donors*
• Median loss of 47.8% in 2004• 45.9% in 2003
*Target Analysis Group study of DM donors
(C) 2005 BBBS & The Osborne Group, Inc.
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First Year of Giving Matters!**Target Analysis Group
Year One 40% Renew
Years Two-Four 65% Renew
Years Five Plus 85% Renew
(C) 2005 BBBS & The Osborne Group, Inc.
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Why $1,000+ DonorsStopped Giving**2005 CMS Prime Group Study
• Can no longer afford• Interests changed• Found more effective
organization• Disagree with
organization• Dissatisfied with
performance• Not sure my gift made a
difference
• 64%• 40%• 36%
• 35%
• 35%
• 35%
(C) 2005 BBBS & The Osborne Group, Inc.
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Why $1,000+ DonorsStopped Giving**2005 CMS Prime Group Study
• Issues was solved• Haven’t been asked• Didn’t keep me
informed• Other• Didn’t keep me
involved
• 13%• 12%• 12%
• 12%• 8%
(C) 2005 BBBS & The Osborne Group, Inc.
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Boomers More Likely to Stop Giving due to Performance*
*2005 CMS Prime Group Study
• More effective group, dissatisfaction, disagreement– Boomers 40%– WWII 34%– Gen X 32%
• Not sufficiently informed or involved– Boomers 44%, WWII 39%, Gen X 42%
(C) 2005 BBBS & The Osborne Group, Inc.
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Philanthropy Success Factors
• Vision
• Strategic Goals and Plan
• Multi-year Revenue Plan
– “Bottomed Up”– Covering short term needs/contingencies– Projecting for long term
needs/investments
• Fundraising Priorities and Costs
(C) 2005 BBBS & The Osborne Group, Inc.
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Philanthropy Success Factors
1. Resourced philanthropy office
2. CDO with skills and commitment
3. Involved CEO
4. Committed Board with the capacity and inclination to give
5. Balanced portfolio
6. Major Gifts and Stewardship focus
7. A “pipeline” of prospective donors
(C) 2005 BBBS & The Osborne Group, Inc.
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Increased Board Capacity and Commitment
Board Giving and Getting
0%
50%
100%
150%
Giving$1,000+
MG capacity Getting
(C) 2005 BBBS & The Osborne Group, Inc.
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Enough Identified Prospective Donors
• Based on Table of Gifts
• Minimum of 500 able to give $1,000 and more
• $5,000,000 a year requires 650 able to give $1,000 to $500,000
• $10,000,000 requires 1,200 able to give $1,000 to $1,000,000
(C) 2005 BBBS & The Osborne Group, Inc.
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Focus on Major Gifts from all Sources -- Highest ROI*% of Revenue from Major Gifts
51% 35% 16% 11%
Highest Fundraising Performers Top 25% Second
25%Third25%
Bottom25%
*The Advisory Board Study of Top Performing Fund Development Offices
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Staffing the FunctionsPriority #1
• Chief Development Officer– Strategy– Management– Major Gifts/staff
CEO
• Special Events– Fundraising– Cultivation– Bowl for Kids Sake
• Individual Giving– Annual Appeals– Raising More Money– Leadership Gifts
• Corporate and Foundation Giving/Grant-writing
• Data entry, Reporting and Research
• Development Assistant and Stewardship
(C) 2005 BBBS & The Osborne Group, Inc.
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A Model for $5M Agencies
Development Asst./S tewardship Specialist
Database M anager/Researcher
Director of IndividualG iving/RMM
Director of Corporate& Foundation Relations
Director of Events/BFKS
Chief Developm entOfficer
CEO/Executive Director
(C) 2005 BBBS & The Osborne Group, Inc.
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A Model for $10M Agencies
Developm ent Assistant 2
Developm ent Assistant 1
G ift & BiographicalInform ation Specialist
Database M anager/Researcher
Stewardship Specialist
Director of IndividualG iving/RMM
M ajor G ifts Officer
G rantw riter
Director of Corporate& Foundation Relations
Director of Events/BFKS
Chief Developm entO fficer
CEO/Executive Director
(C) 2005 BBBS & The Osborne Group, Inc.
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Enhancing Your Plan
• Based on Philanthropy Success Factors© Assessment– Gather needed data– Complete with ADD
• Discuss results• Identify strengths
• Identify high impact fixes
• Enhance plan• Monitor progress
(C) 2005 BBBS & The Osborne Group, Inc.
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Building on StrengthsHigh Impact Fixes
• Easier to move from good to great than from poor to better
• Highest impact, easiest to execute• Must dos
(C) 2005 BBBS & The Osborne Group, Inc.
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The Giving Cycle
Identify the “Critical Few”: those with the greatest capacity to give Creating & sharing
the BBBS story
Developing a relationship
Engaging and InvolvingAsking for a
specific amount
Saying thank you
Providing stewardship and
accountability
Preparing to ask
Acquiring donors to
BBBS
(C) 2005 BBBS & The Osborne Group, Inc.
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Stewardship=Joy=More Gifts!
(C) 2005 BBBS & The Osborne Group, Inc.
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Stewardship
• Plan• Calendar• Materials• Creativity• IMPACT AND ACCOUNTABILITY• Regularity• Personalized for best donors and donors
with highest capacity
(C) 2005 BBBS & The Osborne Group, Inc.
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Other High Impact Fixes and Must Dos
• Vision and vision visits
• CDO and staffing
• Training
• Board development
(C) 2005 BBBS & The Osborne Group, Inc.
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Laser Focused Execution
• Strengths, Fixes• Staffing• Systems and
technology• Budget• Prospects• Board
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Donor
Pool
RMM
BFK
S
Indiv
idual
Gifts
Corporate
Sponsors
Cause-RelatedMarketing
E-
mark
ing
Web Site
Special
Events
Your Donor Pool Comes From…Bigs
(C) 2005 BBBS & The Osborne Group, Inc.
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Segment Your Pool Based on Capacity
Critical Few
Leadership
Everyone Else
(C) 2005 BBBS & The Osborne Group, Inc.
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Create a Plan for Each Segment
• Top BFKS supporters – givers and organizers
• Top RMM donors• Top corporate,
foundation, individual donors
• High capacity low givers• Board members• Everyone else
• Stewardship
• Communications
• Visits
• Engagement
• Solicitation
(C) 2005 BBBS & The Osborne Group, Inc.
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Special Plan for Board Development
• 320 Assessment
• Where do you want to be?
• Getting there!
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Monitoring and Reporting
• What is the Board asking for and receiving?
• What is the CEO asking for and receiving?
• What is the CDO looking at daily, weekly, monthly, quarterly, annually?
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Progress Against Goals
• Sources and Purposes
• Year to year
Corp Found Ind Goal
Matches
Capital
Infra.
Other
(C) 2005 BBBS & The Osborne Group, Inc.
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Some Key Indicators
• % of name by name donor retention
• % of upgrades• % of pledge fulfillment• Yes ratio• Ask to Amount ratio
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Moves Management
Name Cap Read Ask Move Date Who
Joe $250k 0-3 $100k 2.12 KEO
Mary $100k 9-12 $100K 2.22 JM
Sally $50k 0-3 $10k 1.31 JM
Tom $25k 6-9 $25K 1.5 JM
(C) 2005 BBBS & The Osborne Group, Inc.
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Dashboard
Prospects and pipeline Board giving and getting
Visits and engagement Plan execution and results
(C) 2005 BBBS & The Osborne Group, Inc.
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Resources and Tools
• Philanthropy Success Factors©
• New national hire• Regional and National
Conferences• New Toolkit