In today’s economic climate, there is more pressure than ever to ensure a steady stream of fundraising revenue and increase fundraising results with limited resources. To meet that challenge one must analyze current fundraising activities and develop an effective annual development plan to capitalize on strengths and improve areas of weakness. At the October 20, 2011 AFP Northeast Indiana luncheon, fundraising consultant Robert Croft, CFRE presented this program to show you how to conduct a self guided development audit to evaluate your current fundraising efforts, which donor metrics are most critical to track for growth, and how to create a plan that is unique to your organization that will improve your fundraising results.

1. Evaluating Your Annual Fund
Robert Croft, CFRE
October 20, 2011
Consultants of Philanthropy ● Fund Raising ● Training
www.slideshare.net/rncroft

2. Crandall, Croft & Associates,
Evaluating Your Annual Fund
What a Profession!
“The 30 Best Careers for 2009”
(November 2008)
“Top 15 Jobs with Stress that Pay Badly”
(November 2009)

3. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Today’s Objectives
 The Benefits of a Development Audit
 How to conduct a self evaluation
 Learn how to Analyze your program
 How to take this information and start
creating an annual fundraising plan

4. How are You Doing?
Crandall, Croft & Associates,
Evaluating Your Annual Fund
How are You Doing?

5. Crandall, Croft & Associates,
Evaluating Your Annual Fund
The New Normal?
 Nonprofit Research Collaborative Study
(FEP Study)
In the first half of 2011:
– 44% saw an increase
– 25% raised the same
– 20% raised less
In the first half of 2010:
– 43% saw an increase
– 24% raised the same
– 33% raised less

6. Crandall, Croft & Associates,
Evaluating Your Annual Fund

7. Crandall, Croft & Associates,
Evaluating Your Annual Fund

8. Crandall, Croft & Associates,
Evaluating Your Annual Fund
What is a Development Audit?
 An internal assessment of your overall
fundraising program
 Examines governance, human
capital, development
systems, procedures, donor relations and
fundraising approaches
 It is an essential tool to measure the gap
between an organization’s current fund
raising efforts and established best practices
in the industry

9. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Reasons to Consider an Audit
 Planning a new fundraising initiative
 Not satisfied with current results
 Have a need to diversify revenue streams
 Want to increase board participation
 Currently engaged in strategic planning
 Would like an objective, expert evaluation
 Would like to raise the program to a higher
level by incorporating industry best practices
Source: What is a Development Audit and When Does Your
Organization Need an Audit – Linda Lysakowski
AFP Information Exchange

10. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Why Conduct an Audit?
“If you don't know
where you're
going, you might not
get there.”
– Yogi Berra

11. Crandall, Croft & Associates,
Evaluating Your Annual Fund
What an Audit will Accomplish:
 Create a common understanding of
development fundamentals/best practices
 Set a precedence of continuous improvement
within the development program
 Start creating a pervasive culture of
philanthropy

12. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Why Conduct an Audit?
It’s hard to plan where you're going
if you don't know where
you've been.

13. Crandall, Croft & Associates,
Evaluating Your Annual Fund
What an Audit will Accomplish:
 Identify areas of strengths in fundraising
 Identify areas of weaknesses in fundraising
 Identify current giving patterns and donor
preferences

14. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Why Conduct an Audit?
“If you can see
things out of
whack, then you
can see how things
can be in whack.”
– Dr. Seuss
Ain’t it GREAT to be a
Fundraiser?

15. Crandall, Croft & Associates,
Evaluating Your Annual Fund
What an Audit will Accomplish:
 Provide clarity on areas for improvement
 Identify priorities for fundraising strategies by
comparing current activities with accepted
better/best practices
 Set goals, organizationally and personally, that
will move towards a comprehensive fundraising
program

16. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Destination: A Strong and Consistent
Fundraising Program

17. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Keys to Strong Annual Fundraising
 Written Annual Fundraising Plan
– With attainable goals and it is being followed
 Case for Support
– Provides a clear and compelling reason to
support the organization
 Regular Donor Communications
– Clearly demonstrates how support makes a
difference
 Know Thy Donors

18. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Keys to Strong Annual Fundraising
 Strong Board Support
– Including financial
 CEO Actively Involved in Fundraising
 Volunteer Fundraisers
– Volunteers make the best fundraisers!
 Keep Records
– Donor software program

19. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Different Levels of Audit
 “Global Audit” – similar to S.W.A.T. analysis
– Governance/Organizational Structure
– External Environment
– Fundraising Track Record
– Constituency Analysis
– Program Maturity
Audit Tool Available:
– Resource Availability http://www.guymallabone.com/
– Fundraising Culture resources
– Donor Perspective

20. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Different Levels of Audit
 Basic and Effective Audit:
– Leadership Review: Board, CEO, Staff
– Constituency Review
– Fundraising Activities Review
– Availability of Resources

21. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Leadership Review
 Board
 CEO/Executive
Director
 Development
Staff

22. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Board’s Role in Fundraising
 Believe strongly in the organization's mission in
order to convince others of its merit.
 Contribute to the organization financially to the fullest
of their personal capabilities as an indicator of
commitment.
 Open doors to prospects and serve as an
Ambassador for the organization.
 Make direct cultivation and solicitation calls by
mail, telephone, or in-person.
- Source: Association of Fundraising Professionals

23. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Board’s Role in Fundraising
Additionally, as a group the board:
 Approves all fundraising plans and budgets.
 Monitors revenue streams - the funds flowing into
the organization.
 Identifies and rates potential donors.
 Hosts/Assists with cultivation events such as
tours, socials, meetings, and presentations.
- Source: Association of Fundraising Professionals

24. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Key Questions @ Board
 Do all board members contribute
financially as a sign of commitment?
 Do board members actively participate in the
fund development process?
 Is there a development committee?
The “culture of fundraising” begins
with the board!!

25. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Questions @ CEO/Executive Director?
 Does the CEO understand the importance of
development to the organization?
 What is the CEO’s role in fundraising?
 Is the CEO engaged in
building relationships
and soliciting major
gifts?
CEO is the Chief
Fundraising Officer!

26. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Questions @ Development Staff
 Are staff professional and adequately
knowledgeable?
 Is there a commitment to regular professional
training and education?
 Are development staff roles clearly defined
and focused only on fundraising?
 Do staff maintain ethics in fundraising?
 Are staffing levels adequate to meet
fundraising needs?

27. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Constituency Analysis

28. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Constituency Analysis
 Create a list of your donor/prospect
audiences?
– Individuals, Corporations, Foundations, Churches,
Alumni, Former Clients, Volunteers
– Basic Demographics of donor base?
 List how you are connecting with these
audiences? How are you cultivating?
– News, newsletters, speaking
engagements, special events, friends, volunteer
opportunities, etc

29. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Cultivation of Constituency
 Do you know your top 100 donors?
 Do you have systems in place for identifying
prospects, acquiring new prospects?
 Do you conduct research on donors and
potential donors?
 Do you have a data management system in
place to keep donor/prospect records?

30. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Fundraising Activities Analysis

31. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Fundraising Activity Review
 List all of your current fundraising activities:
– Grant Writing
– Direct Mail, Newsletter
– Telephone
– Recurring Giving Program
– Planned Giving Program
– Special Events
– In-Kind donation drives
– Personal Solicitation – Major Gift Program
– Corporate Sponsorships

32. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Fundraising Activity Review
 Review the three most recent years of giving:
FY2008 FY2009 FY2010
Development Income $836,745 $770,189 $ 750,606
FY2009 # of gifts FY2010 # of gifts
Sources
Corporations $ 8,675 20 $ 7,601 21
Foundations $ 118,242 32 $ 58,621 30
Individuals* $1,401,515 6,078 $1,263,49 6,695
6
Other** $ 15,283 103 $ 11,594 112

33. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Fundraising Review Questions
 Is the fundraising program diverse?
 Are fundraising efforts systematic and
consistent?
 Are we utilizing established industry “best”
practices?
 What approaches work best for this
organization?

34. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Fundraising Review Questions
 Do fundraising strategies reflect the mission
and program activities?
 What is the ROI for the overall program and
for each activity? (Are you tracking cost per
dollar raised?)

35. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Donor Software is COOL b/c…
 Reports, reports and more reports

36. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Giving Dynamics Report
– What areas are strong?
– What can be improved?
– Should also monitor donor segments (presidents circle, monthly
donors, corporations, etc)

37. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Identify Weak Areas
 Not many New Donors? Why?
 High attrition rate? Why?
 Donors Not Upgrading Support? Why?
 What can you do in each of these scenarios?

38. Crandall, Croft & Associates,
Evaluating Your Annual Fund
(c) 2010. Blackbaud, Inc. (eTapestry the product]. Used with permission. All other rights reserved.
- This report tracks a lot of metrics…goal, Cost Per Dollar
Raised, average gift, etc.

39. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Fund Analysis Report
Fund # of Donors # of Gifts Total Raised Average Gift
Annual Fund – Unrestricted 1,312 3,051 $726,624.98 $238.16
Client Sponsorship 303 1,494 $233,051.66 $155.99
/Recurring Giving
Group Home Construction 82 188 $112,510 $598.46
Special Olympics 31 37 $7,028.60 $189.96
New Community Center 29 64 $266,735 $4,167.73
Music Therapy Program 10 12 $3,545 $295.42
Animal Therapy Program 5 5 $2,995 $599.00
Endowment Fund 5 5 $17,350 $3,470
Which area/program/giving option has the most donors? May indicate strongest appeal.
Which has the highest average gift? Be sure to account for impact of major gifts.
Compare with previous years and look for trends. May indicate a shift in interest in
donor base.

40. Crandall, Croft & Associates,
Now Consider Effective Strategies…
Evaluating Your Annual Fund
Focus on Effective Strategies

41. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Why is Annual Support Flat?
 In non-recessionary environment, flat or
declining annual fundraising is often due to:
– Too much emphasis on inefficient methods or too
little emphasis on effective methods
– Poor donor acquisition, or lack of planning or
budget for acquisition
– Poor donor retention!!!
– Neglecting to analyze results and adjusting
(usually from “tyranny of the urgent” and being
understaffed)

42. Crandall, Croft & Associates,
Evaluating Your Annual Fund
The Development Challenge
 The Fundraising “Bucket”
– Acquisition and Retention
 Nonprofits lose 5 donors for
every 6 they obtain
- Fundraising Effectiveness Project
 A 10% increase in donor
retention can increase the
lifetime value of the donor
database by up to 200
percent.
- IU Center on Philanthropy

43. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Top Focus: Donor Retention
 Recent studies are showing that 9 out of 10
donors ARE NOT going to consider a gift
supporting a new organization this year.
 2011 FEP Study: NPOs gained more new
or reactivated donors than they lost in lapsed
donors in 2010, net increase of 1.7 percent in
the number of donors. This compares
favorably to a -3.2 percent average net loss
of donors in 2009.

44. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Top Focus: Donor Retention
 Where in the fundraising plan is donor
stewardship and retention?
 What can we do to renew and keep Donors?
– Create a new donor process
– Intentional renewal solicitations
– Intentional stewardship to build trust

45. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Mash it ALL Together!

46. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Mash it All Together!
Considerations:
 Specific strategies
Audiences
Approaches depends on what
you want to
Available
Resources
accomplish
 Available
resources are
major limited factor
Annual Fundraising Plan

47. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Audiences - Donor Segments
Top Donors (Major Gifts)
Staff Responsible: Gary
Objective: To cultivate relationships and secure major gifts for annual support and for
special projects or capital needs through personal contact.
A specific cultivation and solicitation plan should be developed for each person within the
major gift list, and a total annual goal from this group determined. This group must be a
manageable list of donors who have demonstrated major gifts with previous giving to
Rainbow Acres, or have been specifically identified as a major gift prospect, including
rancher families. Should be no more than 25-50 donors. (A full time major gifts officer can
only effectively cultivate about 80-120 individuals per year.)
For the moment, Gary should identify individuals capable of completing Community Center
Campaign and focus on a few individual major gifts for annual support.
Activities:
Develop specific and individualized cultivation and solicitation strategies for each donor
Face to face visits
Phone calls
Personal notes, Birthday cards or calls, holiday cards, etc
Email when appropriate
VIP Events (like reception during 35th anniversary)
Individuals may be include in regular appeal letter mailings at CEO’s discretion, but must
have a handwritten cover note.
Solicitations should be specific whenever possible
Twice a year, the development team should intentionally review donor list and recent gifts for
potential major gift prospects to add to this segment

48. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Fundraising Activities (Approaches)
Direct Mail:
2009 Sybunt Appeals
August 09 Appeal letter sent to all Sybunts who had given $1-$499
Sept mail appeal letter to all Sybunts who had given $500 or more (636 individuals)
ask to renew support
Segment by date of last gift (the further out the gift, the lower the gift array/request should
be…goal is to recapture at any amount)
Acquisition Mailings
Acquisition efforts are critical to maintaining current donor levels to account for donor
attrition, as well as adding to the donor base.
Fall 2009 – An acquisition package may be created to mail in October targeting the 6,000 on
the list who have never given. The theme could be around highlighting 35 years of ministry
and accomplishments. Given current staff limitations, consideration may be given to drafting
the Year end appeal message around this theme and then slightly adjust package and
message for this group.
Fall 2010 – A traditional acquisition approach should be planned for the Fall of 2010,
including list rental options.

49. Crandall, Croft & Associates,
Renewal Mailings Evaluating Your Annual Fund
Rainbow Acres should mail 4 renewal appeals each year. The main target group for these
mailings are active donors (current and Lybunt). The idea is to mail two general annual
support appeals (Year End and May Mailing) and two specific invitations (Adopt a Rancher
and a Special Need Project).
November 2009 – Year End Appeal – theme on 35 years of accomplishments, with follow
up in December. May also mail to larger group.
Target Group: Current donors, Lybunts, and Sybunts
Pieces: Letter, Response Card, #10 Envelope, BRE (business reply envelope), AZ Tax Credit
Insert for AZ residents
Timeline:
October 19 – First Draft of Year End Appeal
November 2 – Draft letter to Gary
November 9 – Finalize letter, response card, #10 envelope and BRE
November 16 – Letters/package to volunteer mail processors
November 30 – Drop Date
February 2010 – Adopt a Rancher Mailing – the goal of this mailing is to promote the
Adopt a Rancher program.
Target Group: Current donors, Lybunts and “6,000”
Pieces: Letter, Something about adoptable Ranchers (bios, photos, etc), Oversized
Envelope (6x9) with teaser, Response device, BRE
Timeline:
January 25 – First Draft of Year End Appeal
February 1 – Draft letter to Gary
February 8 – Finalize letter, response card, #10 envelope and reply envelope
February 15 - Letters/package to volunteer mail processors
February 22 – Drop Date

50. Crandall, Croft & Associates,
Direct Mail Evaluating Your Annual Fund
Communications Special Events Gary’s Schedule
September 09 Sybunt Mailing – 2010 CALENDAR
$500 + prev. gift
October Acquisition package 35th Anniversary 35th Anniversary Event
Annual Fundraising Plan
November
to 6,000 never givers
Year End Appeal Rainbow Promise
Event
Host Desserts with Individual/personal
(house list) (Highlight 35th, mail Major Donor solicitations to top
- Tax Credit insert to early Nov) Prospects (continue donors
AZ donors thru 2010)
December Current Renewal Christmas Cards …….. ……..
Appeal (non-solicitation)
Follow up to Year …….. ……..
End mailing
2010
January AAR Follow up to Q1 Rainbow ……..
non-responses Promise
Tax Statements and
Brief Annual Report
February Adopt a Rancher ……..
Package (house list
plus “6,000”)
March Church AAR ……..
promotional (mini-
display)
April Final follow up Q2 Rainbow Blazin’ M Event
mailing to 6,000 Promise
never givers
May General Appeal Update Mailing Letter to Families
(house list)
June

51. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Development Calendar 2009
September 2009
Draft SYBUNT mailing to $500+ donors
Create Job Description for Development Assistant
Finalize Plans for 35th anniversary
Mail 2010 Calendar
Draft Thank you letter for October
Hire Development Assistant
October 2009
Begin creating a data/entry and donor process binder
Work with Carey to define specific data entry field definitions and values, as well as gift
processing procedure
Create single page gift entry flowcharts for specific donor segments, including checklist and
thank you process
Create New Donor Process (see Development Plan)
Draft Year End appeal letter
Finalize 35th Anniversary needs
30-31 - 35th Anniversary Event
Make phone calls to lapsed Church Support
November 2009
Rainbow Promise out in early November (focus is on 35th anniversary)
Mail Year End Appeal Letter
Segment AZ residents and include insert highlighting tax credit
Draft and mail renewal letter to AAR donors
Coffee/Dessert Events with Major Donor Prospects
Consider themes for Blazin’ M event, research previous notes (if available), and create

52. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Annual Fundraising Plan
2011 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Group A Newsltr Letter Newsltr Appeal Newsltr Back to Appeal Newsltr Thank You EOY Ltr
from a School Card
child Report
Group B Newsltr Program Newsltr Appeal Newsltr Letter from Appeal Newsltr Thank You EOY Ltr
Recap the Card
Report President
Group C Newsltr State of Newsltr Appeal Letter Newsltr Appeal Newsltr Thank You EOY Ltr
the Org with Card
Ltr photos
Group D Newsltr Letter Newsltr Appeal Newsltr Private Appeal Newsltr Thank You EOY Ltr
from X event Card
Source: Janet L. Hedrick, CFRE from “Near, Dear, and Clear” by Paul Lagasse in Advancing
Philanthropy Nov/Dec 2010

53. Crandall, Croft & Associates,
Evaluating Your Annual Fund
How Often to Evaluate?
 Evaluate Overall Plan
annually
– Ideally, fundraising plan
will align with strategic
planning
 Evaluate each
approach constantly

54. Crandall, Croft & Associates,
Evaluating Your Annual Fund
Questions?