Jim Bush, ED of the Charleston Animal co-presented with Blackbaud a fundraising effectiveness session using the AFP's methodology.

1. Fundraising Effectiveness Project (FEP)
Monitoring Fundraising Effectiveness
Charleston Animal Society
September 1, 2009
Jeff M. Terry | Page #1 © 2008 Blackbaud

2. Fundraising Effectiveness Project (FEP)
Session Goals
1. Introduce the Fundraising Effectiveness Project (FEP) concepts and tools
2. Share analysis completed on Charleston Animal Society
- Year over year
- Compared to peers
3. Discuss how CAS makes this data actionable
- What if scenarios
Jeff M. Terry | Page #2 © 2008 Blackbaud

3. Fundraising Effectiveness Project (FEP)
Our Presenters
Jim Bush, CFRE
Executive Director of Charleston Animal Society
@TopDogCAS
Charelston Animal Society
Jim Bush
Jeff Terry
Manager of National Accounts - Blackbaud
@JT_on_DI
Blackbaud
Jeff M. Terry | Page #3 © 2008 Blackbaud

4. Fundraising Effectiveness Project (FEP)
Fundraising Effectiveness Project
Jeff M. Terry | Page #4 © 2008 Blackbaud

5. Fundraising Effectiveness Project (FEP)
The AFP’s “Fundraising Effectiveness Project”
What Is It?
A project launched in 2005 by the AFP and The Urban Institute
Measure & understand growth or losses in annual giving
Comparable growth data with other nonprofits
Analysis - better understand where to focus your resources and efforts
1400 non profit participants & $4 billion in gifts analyzed since 2005
Key finding from AFP:
Retention is King
Jeff M. Terry | Page #5 © 2008 Blackbaud

6. Fundraising Effectiveness Project (FEP)
Per AFP:
“Growth in giving is increased both by
maximizing gains and minimizing
losses.
Management and boards need to know
this to make intelligent, informed,
growth-oriented planning and
budgetary decisions.”
Jeff M. Terry | Page #6 © 2008 Blackbaud

7. Fundraising Effectiveness Project (FEP)
Contributors of Value
GAINS
Detractors of Value
LOSSES
Jeff M. Terry | Page #7 © 2008 Blackbaud

8. Fundraising Effectiveness Project (FEP)
Aggregate Results – 1400 non profits in 2007-2008
On average, for every $1 that participating organizations raised in new
gift dollars in 2008, more than $1 was lost through donor attrition
Jeff M. Terry | Page #8 © 2008 Blackbaud

9. Fundraising Effectiveness Project (FEP)
Aggregate Results – 1400 non profits in 2007-2008
Jeff M. Terry | Page #9 © 2008 Blackbaud

10. Fundraising Effectiveness Project (FEP)
Aggregate Results – 1400 non profits in 2007-2008
Gain
Ratios
Huge variance in performance when comparing best in class to others
Jeff M. Terry | Page #10 © 2008 Blackbaud

11. Fundraising Effectiveness Project (FEP)
Aggregate Results – 1400 non profits in 2007-2008
Loss
Ratios
Huge variance in performance when comparing best in class to others
Jeff M. Terry | Page #11 © 2008 Blackbaud

12. Fundraising Effectiveness Project (FEP)
How To Get Your Organization’s FEP Data
The Raiser’s Edge:
• Plug-Ins Section of RE, then click on link for ‘Fundraising Effectiveness Report’
• Contact your Account Manager if you’d like the type of analysis we did with CAS
Other systems:
• Contact your vendor
Jeff M. Terry | Page #12 © 2008 Blackbaud

13. Fundraising Effectiveness Project (FEP)
Fund Raising Effectiveness for Charleston Animal Society
Comparing gains & losses in periods 05-06, 06-07 & 07-08 using the
FEP report tools
Comparative data from 1400 non profits
Jeff M. Terry | Page #13 © 2008 Blackbaud

14. Fundraising Effectiveness Project (FEP)
CY ‘07 & ’08 - All Giving
GAINS
LOSSES
Jeff M. Terry | Page #14 © 2008 Blackbaud

15. Fundraising Effectiveness Project (FEP)
CY ‘07 & ’08 - Individual Giving
GAINS
LOSSES
Jeff M. Terry | Page #15 © 2008 Blackbaud

16. Fundraising Effectiveness Project (FEP)
Peer Comparison – Average Giving per Donor
Jeff M. Terry | Page #16 © 2008 Blackbaud

17. Fundraising Effectiveness Project (FEP)
Peer Comparison - Donor Retention
Jeff M. Terry | Page #17 © 2008 Blackbaud

18. Fundraising Effectiveness Project (FEP)
Peer Comparison - Donor Retention
The 25% best run organizations substantially out performed the norm
Source: Target 2008 Index on direct marketing giving. Over the
twelve months ending December 2008, the Index evaluated
transactions from 70 of the largest nonprofits in the United
States, including over 35 million donors and more than 64 million
gifts totaling over $1.8 billion in revenue.
Individual gifts over $5000 are excluded.
Jeff M. Terry | Page #18 © 2008 Blackbaud

19. Fundraising Effectiveness Project (FEP)
Three Year Trending – CAS All Giving
Retained donors
gave 3X the amount
of a 1st time donor
Jeff M. Terry | Page #19 © 2008 Blackbaud

20. Fundraising Effectiveness Project (FEP)
The Data Tells Us
Strong growth in # of new donors
Average gift amount slightly better than peer average
Upgrades outpacing downgrades
Retained donors are 3X more valuable than 1st time
donors
Retention significantly below peers
Average gift amount for new & retained donors
significantly below peers
Jeff M. Terry | Page #20 © 2008 Blackbaud

21. Fundraising Effectiveness Project (FEP)
What if scenarios
Jeff M. Terry | Page #21 © 2008 Blackbaud

22. Fundraising Effectiveness Project (FEP)
What if…
Scenario 1:
Increase new donor acquisition by 10%
All other variables remain static
Jeff M. Terry | Page #22 © 2008 Blackbaud

23. Fundraising Effectiveness Project (FEP)
What if…
Scenario 2:
Increase retention by 10% (to 47% - still below top
performing peers)
All other variables remain static
Jeff M. Terry | Page #23 © 2008 Blackbaud

24. Fundraising Effectiveness Project (FEP)
What if…
Scenario 3:
Increase retention by 10%
Increase average gift amount by 10%
All other variables remain static
Jeff M. Terry | Page #24 © 2008 Blackbaud

25. Fundraising Effectiveness Project (FEP)
Enough Analysis…What is CAS Going to Do?
Continue to aggressively acquire new donors
1. Everything goes into Raiser’s Edge
• Event attendees
• Adopters
• Email subscribers
• Volunteers
• Class/education participants
2. Moves management applied to all of the above to engage & retain
Jeff M. Terry | Page #25 © 2008 Blackbaud

26. Fundraising Effectiveness Project (FEP)
Enough Analysis…What is CAS Going to Do?
Reactivate past donors via SYBUNT & LYBUNT campaigns.
These are the lowest hanging fruit for annual giving
• Recognition by giving levels
• Stewardship packages by giving level & giving type
Jeff M. Terry | Page #26 © 2008 Blackbaud

27. Fundraising Effectiveness Project (FEP)
Enough Analysis…What is CAS Going to Do?
Talk to donors where they are
• Online
• E-communication strategy
• New website
• Facebook presence
• Twitter activity
• Blog
• E-Newsletter
• Offline
• Face to face
• Direct mail
• Newsletter (hardcopy)
Jeff M. Terry | Page #27 © 2008 Blackbaud

28. Fundraising Effectiveness Project (FEP)
Follow Up
o Jim Bush – @TopDogCAS
jbush@charlestonanimalsociety.org
oJeff Terry – @JT_on_DI
jeffrey.terry@blackbaud.com
o AFP FEP Overview – www.afpnet.org
Jeff M. Terry | Page #28 © 2008 Blackbaud