Fund Development Overview

Step Four:

Expectations, Performance Measures and Metrics

Step Four Outline

  Expectations   Your Role The Role of the Board Fund Development Measures and Metrics © BBBSA & The Osborne Group, Inc.

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Expectations: Your Role

© BBBSA & The Osborne Group, Inc.

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Best Practices

 A recent national study of Best Practices by The Advisory Group, a consulting firm in Washington, DC identified the following key roles for CEOs in Fund Development © BBBSA & The Osborne Group, Inc.

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CEO Success Formula

     Advancing Relationships Providing Information and Resources Building a Culture of Philanthropy Time Buy-in © BBBSA & The Osborne Group, Inc.

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CEO Leadership Leads to Success*

*The Advisory Board Donor Relationships Info & Resources Culture of Philanthropy Role Functions Vision Confidence Stewardship Empowers CDO and team In-person visits Calls and notes Strategy Top prospect involvement Provides access to donors, Board, Management team Provides financial resources needed © BBBSA & The Osborne Group, Inc.

Mobilizes all staff, Board and volunteers in support of philanthropy Features philanthropy as an organizational goal 6

Expectations: The Role of the Board

© BBBSA & The Osborne Group, Inc.

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Board Commitment and Capacity

    100% giving at the leadership level of $1,000 or more 80% or more actively involved in bringing in money 80% or more with BBBS as top philanthropy 40% or more with capacity and inclination to give six figure gifts or more © BBBSA & The Osborne Group, Inc.

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Board Commitment and Capacity

Giving $1,000 or more Getting Gifts Top Philanthropy High Capacity to Give 0% 20% 40% 60% 80% 100% 120% © BBBSA & The Osborne Group, Inc.

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How Does Your Board Stack Up?

 Assess your current Board against these criteria using the

320 Board Assessment Tool

in the

Philanthropy Success Factors Assessment

tool.

 What percentage have the years)?

capacity to make six, seven and even eight figure gifts (over one to five   For how many is BBBS # 1, 2 or 3 philanthropies?

What percentage is on their list of giving and getting ?

© BBBSA & The Osborne Group, Inc.

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Board as Leaders

   Is your Board providing 20% or more of your annual philanthropy revenue?

Are they all giving at least $1,000?

Do the give according to their means?

© BBBSA & The Osborne Group, Inc.

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Make a Plan

  After assessing your current Board, make a plan for Board transformation!

For much more on this topic, go to the

Board Development

section of the agencies website.

© BBBSA & The Osborne Group, Inc.

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Fund Development Measures and Metrics

© BBBSA & The Osborne Group, Inc.

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The Process Matters

   The bottom line, of course, is dollars in the door… But, how they get there will have a direct impact on how much gets there!

Here are measures you should be tracking for each part of the Fund Development Process: © BBBSA & The Osborne Group, Inc.

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The Fund Development Process

Acquiring donors to BBBS Providing stewardship and accountability Saying thank you Identify the “Critical Few”: those with the greatest capacity to give Creating & sharing the BBBS story Developing a relationship Asking for a specific amount Preparing to ask Engaging and Involving

© BBBSA & The Osborne Group, Inc.

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Identifying the “Critical Few”

  Identifying the “Critical Few” donors is the first step in the process  How many do you need?

 How many have been identified?

Go to the

Identifying the “Critical Few”

section of Fund Development Process to develop a plan for “filling your pipeline”.

 Set your goals, work the steps and measure your progress monthly.

© BBBSA & The Osborne Group, Inc.

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Maxim

 For every gift you need, three or four prospective donors with the capacity to give a gift of that size are required.

© BBBSA & The Osborne Group, Inc.

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Preview of this Section

 You already know who many of your “Critical Few” are:  From BFKS, RMM™, Board contacts, lists of current donors, other events, people current donors know, local philanthropists and influencers, current and past Bigs and Littles © BBBSA & The Osborne Group, Inc.

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Developing Relationships

   Measure how many of the “Critical Few” are being visited.

It’s hard to build a productive and satisfying relationship through the mail You and staff should be making visits

WEEKLY

© BBBSA & The Osborne Group, Inc.

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Fund Development Metrics

 The

Fund Development Performance Measures

resource included with this step details the measures you should be reviewing for key relationship development:   Engagement and involvement Asking and closing © BBBSA & The Osborne Group, Inc.

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Finally, Stewardship and Accountability…

     …provide an excellent return on investment Start there Thank again every past donor Tell them in a compelling manner about the IMPACT of their past gifts Watch the renewals roll in!

© BBBSA & The Osborne Group, Inc.

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Keeping Friends

 4 to 11 times more expensive to acquire new donors than to renew old friends!

© BBBSA & The Osborne Group, Inc.

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Overall Measures & Metrics

 Seek a Balanced Portfolio    Is your agency event-driven?

This is the most expensive kind of fundraising Make sure you are using all techniques and focused on those that are the most productive and cost-effective © BBBSA & The Osborne Group, Inc.

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Ideal Balanced Portfolio!

5% 10% 5% 20% 60% Major Gifts Annual Gifts Corporate Foundation Planned Gifts © BBBSA & The Osborne Group, Inc.

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BBBS Revenue Comes from…

       Events United Way Government Foundations Individuals Corporate Other $60,726,000 $43,974,000 $37,692,000 $27,222,000 29% 21% 18% 13% $16,752,000 8% $ 8,376,000 4% $14,658,000 7% © BBBSA & The Osborne Group, Inc.

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Highest ROI*

*The Advisory Board Study of Top Performing Fund Development Offices 35%

% of Revenue from Major Gifts

51% 16% 11%

Highest Fundraising Performers

Top 25% Second 25% Third 25% Bottom 25% © BBBSA & The Osborne Group, Inc.

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The Advisory Board Study: Median ROI

Not All Fundraising Activities Equally Productive

Median ROI by Fundraising Activity

8.1

4.4

2.9

Major Gifts, Capital Campaigns Annual Giving © BBBSA & The Osborne Group, Inc.

Special Events 27

Fund Development is a Partnership

     It requires your leadership A giving and getting Board Smart and talented staff Careful attention to metrics and measures Help from the CFO and program staff in stewardship and accountability © BBBSA & The Osborne Group, Inc.

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Foster and Enjoy the Partnerships

© BBBSA & The Osborne Group, Inc.

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Next Steps

 Go to

Step 5

where we will discuss Investing © BBBSA & The Osborne Group, Inc.

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Tools & Templates

 

Fund Development Performance Measures

sets guidelines for staff

Best Practices Benchmarks

summarizes the core best practices for measuring your own success and potential for growth.

 The

Philanthropy Success Factor Assessment Tool

provides a comprehensive look at the many dimensions of your program.

© BBBSA & The Osborne Group, Inc.

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