Science Behind the Art: ROI for Frontline Fundraisers

Transcription

1 Science Behind the Art: ROI for Frontline Fundraisers Carrie Collins, JD Key Points Why do you need an ROI report? What metrics are relevant? For whom should these metrics be developed? When should you evaluate performance? Where should you record this information? How do you create an ROI report? 1

2 Why? Critical measurement to persuade leadership to increase salary or operational dollars Effectuate and support adverse employment decisions Will translate fundraising performance data into format that many trustees can understand What? # personal visits # gifts closed % unique visits $ gifts closed # proposals Assists/shared credit 2

3 Number of Personal Visits On campus or at prospect s location Qualifiers to refine and further define Alum + spouse = 1 visit Group meeting w/several alumni = 1 visit, unless gift officer has meaningful discussion with each member Chats at events = no visit, unless conversation moves gift discussion forward Phone call/video = no visit, unless prospect insists on phone/video Percentage of Unique Visits Calculated by dividing number of prospects visited by the number of visits made* EX: 93 prospects/140 visits = 70% uniqueness Gift officers are most successful at 75% Adjust specific percentage according to number of prospects in each stage of gift cycle Percentage should be higher for prospects in qualification * Eduventures, Trends in Managing Development Operations, CASE District VII conference presentation, Vancouver, B.C., slide 14 (February 25, 2011). 3

4 Poll Do you track your fundraisers unique visit percentage? Yes No Q&A BREAK 4

5 Number of Proposals Submitted Tiered approach works well: goals can be adjusted based on level of prospects to which gift officer is assigned EX: MGO proposals $25,000 to $100,000: 10 to 15 $100,000+: 4 to 7 Form isn t important (letter, pledge card, etc.) Documentation that gift officer asked a specific donor for specific amount to support particular project Number of Gifts Closed Not most critical metric; can be crucial if gift officer closes 1 significant gift and then thinks she can take a break EX: MGO closures $25,000 to $100,000: 7 to 10 $100,000+: 2 to 3 5

6 $ of Gifts Closed Monetary goal of new gifts and pledges committed during year EX: MGO goal: $500,000 Amount includes all monies that were donated as direct result of MGO s efforts, even if less than stated proposal threshold Unless position is planned giving officer, planned gifts should be above and beyond base goal Assists/shared credit When 2 or more fundraisers work in tandem to successfully solicit and close gift, appropriate to provide shared credit, i.e. assist Not necessary to quantify 6

7 For whom? Depends on size and structure of staff Stratified responsibilities = tiered metrics Important to set clear and concise expectations for portfolio and budget management as well When? Annual performance evaluations Recommend quarterly evaluations after close of quarter Opportunity to provide constructive criticism, guidance and praise If fundraiser in jeopardy of not meeting annual goals, use quarterlies to document less than stellar performance and create a record for future decisions 7

8 Where? Database or software for recording actions, gifts and generating reports If no system, utilize spreadsheet to track Key points: Enter data Track data Generate reports Q&A BREAK 8

9 How? ROI report measured and reported on quarterly basis Example represents one quarter of performance Includes metrics referenced in presentation, with both goals and individual performance Actual ROI calculation doesn t use these metrics Provide context to performance How? EX: MGO with high number of proposals but low yield rate could indicate that individual is ambushing prospects Issuing proposals before prospects are ready Could also mean MGO isn t conducting adequate follow up 9

10 How? Cost of employment EX: Gross salary + fringe benefits (33%) + travel and hospitality allowance ($15,000): $115,000 salary 37,950 fringe 15,000 travel allowance $167,950/4 = approx. $42,000 per quarter Adjust if individual spends less than 100% of time on fundraising How? ROI = dollars raised/cost of employment EX: MGO $125,000 raised/$42,000 COE = 297% ROI Will seem extremely high, but not unusual High salary for outstanding MGO High expectations for raising money 10

11 ROI: MGO METRICS MGO: Quarterly Measures MGO1: Actual MGO2: Actual MGO3: Actual AVERAGE Visits Proposals submitted Proposals closed Yield percentage 50.00% 25.00% 33.33% 80.00% 46.11% Dollars raised $125,000 $100,000 $340,000 $125,000 $188, Cost of employment (assuming 100% of time spent engaged in frontline fundraising) $42,082 $42,082 $42,082 $42,082 $42, Net dollars raised $82,918 $57,918 $297,918 $82,918 $146, Return on investment percentage % % % % % Poll Which MGO (as described on the prior slide) would you most like to retain? MGO 1 MGO 2 MGO 3 Why? 11

12 ROI: Annual Giving METRICS Director: Quarterly Measures Director: Actual Ass't Dir: Quarterly Measures Assistant Director: Actual AVERAGE Visits Proposals submitted Proposals closed Yield percentage 33.33% 57.14% 33.33% 66.67% 61.90% Dollars raised $25,000 $4,100 $12,500 $14,500 $9, Cost of employment (assuming 50% of time spent engaged in frontline fundraising) $13,625 $13,625 $7,625 $7,625 $10, Net dollars raised $11,375 ($9,525) $4,875 $6,875 ($1,324.75) Return on investment percentage % % % % 80.04% How? Discuss metrics with frontline fundraisers They will be held to these standards. Recommendations about timing Discuss with governing board If not approval, understanding Quantifiable metrics here to stay Track data and measure performance Share with staff and board 12

13 For further information or questions: Carrie Collins, JD Vice President, Institutional Advancement University of the Sciences 600 South 43 rd Street Philadelphia, PA O: C: 13