1. Why fundraisers should care about measurement:
The urgency of assessing your impact
to stay funded
Workshop Description: In these
tough financial times, can you
justify your fundraising return to
cost? What ranking will the new
crop of online evaluators give your
nonprofit for its mission
effectiveness? What answer do you
give prospective donors when they
ask for evidence of your societal
impact?
Like it or not, measurement is directly linked to your fundraising success. In this
workshop, you’ll explore the basics of measuring results, get introduced to the most
influential online rating systems, learn what social investors are looking for and receive
practical steps to help you and your leaders prepare. Expect a lively exchange on a topic
as controversial as this one.
May 2010
Presented by:
Gayle L. Gifford, ACFRE, President
www.ceffect.com gayle@ceffect.com
The Butterfly Effect www.ceffect.com/blog
On Twitter @gaylegifford
Copyright (c) 2010 Cause & Effect Inc. Permission to reprint. Not for commercial use.
www.ceffect.com gayle@ceffect.com 401.331.2272
2. Presentation: Do you know what’s working?
Where: Annual Conference Association of Fundraising Professionals, RI
When: May 20, 2010
Page: 1
TOPICS
The challenge of defining Social Impact
The national conversation and who is talking
Measuring impact
Measuring fundraising effectiveness
SOCIAL IMPACT
What change are you creating in your community? For your clients?
What matters most to you?
What impact are you having on what matters? How do you know?
What do you do with what you learn?
WHY A FUNDRAISER SHOULD CARE ABOUT MEASURING SOCIAL IMPACT
Because donors want to know their money is well used
Because funders like the government, corporations, private foundations, and social
investors expect it
Because you can make a more compelling case for support
So your volunteers can feel confident in your case for support
Because it’s going to be hard to ignore the raters
Because it’s hard to undo the fallout from a poor rating online
___________________________________________________________
THE CONVERSATION
There are “too many public charities” asking for funding
Rating systems based only on finances are not the best measure of effectiveness
Many charities are not effective
Donations should be “social investments,” not merely “giving”
Donors need independent advisors/rating systems to help them evaluate charities
WHO IS PUSHING RATING SYSTEMS?
Hewlett Foundation
Wall street types
Intermediary organizations
Philanthropy bloggers/Twittersphere
Copyright (c) 2010 Cause & Effect Inc. Permission to reprint. Not for commercial use.
www.ceffect.com gayle@ceffect.com 401.331.2272
3. Presentation: Do you know what’s working?
Where: Annual Conference Association of Fundraising Professionals, RI
When: May 20, 2010
Page: 2
WHO IS RATING? (a sampling)
Guidestar.org – promoting, providing a platform for others
CharityNavigator.org – “experts”
GreatNonprofits.org – crowd sourcing
GiveWell.net – independents reviewing research
CharityRater.org – donor against standards
Philanthropedia.org – “experts”
WHAT WOULD LIKE YOUR DONORS TO SAY ABOUT YOU ON A RATING
SITE
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
EVALUATION IN A NUTSHELL
You decide what you want to accomplish
You try something
You measure what happens
You learn from that data
You act on what you learn
EVALUATION QUESTIONS
Did we do what we said we would do?
What happened?
How do we know?
So what?
Now what?
Copyright (c) 2010 Cause & Effect Inc. Permission to reprint. Not for commercial use.
www.ceffect.com gayle@ceffect.com 401.331.2272
4. Presentation: Do you know what’s working?
Where: Annual Conference Association of Fundraising Professionals, RI
When: May 20, 2010
Page: 3
WHY YOU SHOULD MEASURE FUND DEVELOPMENT
To raise more money
To understand what activities are working or not
To understand where you get the best return on investment so you can invest more
there
To ensure future success
To justify the investments you need to expand giving, to be more successful
To justify your presence
SOME BASIC FUND DEVELOPMENT MEASURES
Did you meet your revenue objectives? Going up? Going down?
What was your return on your investment?
What is the lifetime value of a donor?
What is the retention rate of your donors? Longevity? Retention to longevity?
How stratified are your donors?
What does the giving pipeline look like for future years?
WHAT YOU CAN DO
Model a culture of learning and inquiry in your department
Advocate for a culture of learning and inquiry in your organization
Choose outcomes that matter, including designing your own
Develop a measurement system that measures the right thing
Collect and analyze “data”
Be transparent about unknowns, successes, failures
____________________________________________________
SOME REPORTED FUNDRAISING BENCHMARKS
eMail fundraising response rate: .13% . Average one-time gift: $81.33
Special events benchmarks: raise at least $2 for every $1 in costs
Direct mail acquisition: Response rates of less than 1% are not uncommon
Direct mail renewal: 10% and up
Copyright (c) 2010 Cause & Effect Inc. Permission to reprint. Not for commercial use.
www.ceffect.com gayle@ceffect.com 401.331.2272
5. Presentation: Do you know what’s working?
Where: Annual Conference Association of Fundraising Professionals, RI
When: May 20, 2010
Page: 4
A FEW RESOURCES
Measuring Program Impact
A Guide to Actionable Measurement, www.gatesfoundation.org
The Center for What Works www.whatworks.org outcome frameworks
W.K. Kellogg Foundation Logic Model Guide http://tinyurl.com/2bd6538
Initiative for NonProfit Effectiveness www.independentsector.org (in development)
Measuring Fundraising
Association of Fundraising Professionals www.afpnet.org various resources
Fundraising Analytics. Joshua Birkholz, AFP Fund Development Series
eNonprofits Benchmark Study http://www.e-benchmarksstudy.com/2010.html
Revolution in the Mailbox, Mal Warwick
Copyright (c) 2010 Cause & Effect Inc. Permission to reprint. Not for commercial use.
www.ceffect.com gayle@ceffect.com 401.331.2272
6. Presentation: Do you know what’s working?
Where: Annual Conference Association of Fundraising Professionals, RI
When: May 20, 2010
Page: 1
Copyright (c) 2010 Cause & Effect Inc. Permission to reprint. Not for commercial use.
www.ceffect.com gayle@ceffect.com 401.331.2272
7. Dreaming about having a bigger impact on your community?
Let us help you.
Research* shows that community benefit organizations (otherwise known as nonprofits) with a big
impact:
Pay attention to what is happening around them by listening and learning.
Value collaboration and nurture leadership.
Build evangelists among their volunteers, donors, staff, and advisors.
Act strategically to take advantage of opportunities that lie around them.
Serve well and advocate for the systems changes that will magnify their impact.
That’s what we’ve been helping our clients do for over a decade.
Our experiences as staff at respected national, international and local organizations and our
consultation with scores of others proved to us the effectiveness of these practices. We use them in our
own work.
We can help you:
Build a more engaged Board of Directors
Listen and learn from research and the community around you
Plot a future course based on strategic thinking and acting
Develop a plan to enhance your revenues and state your case more effectively with supporters
About Cause & Effect Inc.
Together, President, Gayle L. Gifford, ACFRE and Vice President Jonathan W. Howard bring almost 50
years of combined experience to their work.
Gayle served as a senior manager and fundraiser at PLAN USA, Save The Bay, and City Year RI. She
teaches organization development at Simmons College and Brown University. An in-demand consultant,
trainer and provocative writer, Gayle writes a column for Contributions Magazine and is the author of
How are We Doing? a popular, easy to read guide to evaluating your Board.
Jon’s expertise includes research, interviewing, strategic and business planning and production of all
aspects of internal and external organizational communications including direct mail, collateral
materials, videos, newsletters, manuals, exhibits and international project management. Jon’s work has
taken him around the world, including staging two major exhibits on habitat presented at the United
Nations in New York City, Turkey and Japan.
Our clients have included, among many others, , Community Works Rhode Island, House of the Seven
Gables Settlement Association, John H. Chafee Blackstone River Valley National Heritage Corridor
Commission, New Roots Providence, PLAN USA and PLAN International, Progreso Latino, Grassroots
International, Rhode Island Foundation, and WaterFire Providence.
You’ll find free articles and tools that you can use today at www.ceffect.com. You can also subscribe to
our blog, The Butterfly Effect at www.ceffect.com/blog or follow our Tweets @gaylegifford.
* Forces for Good: Six Practices of High Impact Nonprofits. Leslie Crutchfield and Heather McLeod Grant. Jossey-Bass. 2007.
Copyright (c) 2010 Cause & Effect Inc. Permission to reprint. Not for commercial use.
www.ceffect.com gayle@ceffect.com 401.331.2272