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The Urban Institute
Fundraising Effectiveness Project
AFG 11th Annual National Conference on
Association Foundations and Fundraising
May 9, 2013
Elizabeth T. Boris, Ph.D., Director
Center on Nonprofits and Philanthropy
The Urban Institute
The Urban Institute
Fundraising Effectiveness Project
FEPGain
Loss
Net
Helping nonprofit organizations measure, compare, and maximize their annual growth in giving
http://www.afpnet.org/FEP [email protected]
The Urban Institute
Project Founding Sponsors
•Association of Fundraising Professionals (AFP)
•Center on Nonprofits and Philanthropy at The Urban Institute
The Urban Institute
AFP Donor Software Workgroup
• DonorPerfect Fundraising Software• eTapestry (Blackbaud)• GiftWorks (Mission Research)• Metafile• MatchMaker FundRaising Software• PhilanthrAppeal (FundTrack Software)• The Raiser’s Edge ® (Blackbaud)• ROI Solutions• Sage Software• Telisma Fundraising/ Campus Management Corporation • Telosa Software (Exceed!)
The Urban Institute
Series1
$(1,500)
$(1,000)
$(500)
$-
$500
$1,000
$1,500 Gains= $1,129
Losses= $(1,128)
Net= $1
For every $100 gained in 2011, almost $100 was lost
Basic Fundraising Effectiveness Project concept:Growth in giving is the net of gains minus losses
$Millions
The Urban Institute
Series1
(2,000,000)
(1,500,000)
(1,000,000)
(500,000)
-
500,000
1,000,000
1,500,000
Gains= 1,325,542
Losses= (1,411,979)
Net= (86,437)
Gain/Loss Growth in Number of Donors
For every 100 donors gained in 2011, 107 donors were lost
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Donor Retention By Overall Retention Rate (2009-2010)
70 and above 60-70 50-60 40-50 30-40 20-30 10-20 10 or below0%
10%
20%
30%
40%
50%
60%
70%
80% Chart Title
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Overall Donor Retention Rates (2004-05 through 2009-10)
2005 2006 2007 2008 2009 2010 20110%
10%
20%
30%
40%
50%
60% Chart Title
The Urban Institute
New and Repeat Donor Retention Rates (2009-2010)
70 and above 60-70 50-60 40-50 30-40 20-30 10-20 10 or below0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
New Repeat
The Urban Institute
Key Finding on Donor Retention:
• According to Adrian Sargeant, improving donor retention by 10% can improve “lifetime value” between 150 and 200%.
• Dr. Sargeant defines “lifetime value” as “a measure of how much a donor will be worth to an organization over the duration of the relationship.”
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• Only three fields for each gift transactiono Donor ID (anonomous)o Date of gift o Amount of gift
• 14 donor software firms have agreed in principleo Their combined clients are over 50,000 o Database to be housed at The Urban Institute
• Extensive growth-in-giving research possibilities
Significantly Expanded Research PossibilitiesWith the new gift-transaction data collection strategy
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• Trends over time• Gift ranges • Size (total amount raised, total revenue)• Nonprofit subsector (arts, education, etc.)• Region (based on first digit of zip code)• Age of fundraising program • Rate of growth (dollars and donors)
Performance indicators can be reported according to:
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• What is the potential for giving in the United States in terms of percentage of GDP? More than the current two percent?
• What are the barriers that for more than 40 years have stood in the way of contributions achieving a higher share of GDP?
• What factors influence growth in giving?
• Can investing more money in fundraising result in corresponding increases in charitable giving? If so, how much investment would be necessary to move giving up to three percent of GDP or more?
• How much would the nonprofit sector need to invest in fundraising to reach its potential of X percent of GDP?
Growth-in-Giving Research QuestionsGoal: To increase giving as a percentage of GDP beyond two percent
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Growing Future Donorsand other research questions…
The Urban Institute
Resources on Donor Attrition and Donor Retention:
Tom Ahem and Simone Joyaux, Keep Your Donors: The Guide to Better Communications and Stronger Relationships, AFP Fund Development Series, John Wiley & Sons, 2008. Joshua M. Birholz, Fundraising Analytics, John Wiley & Sons, 2008. Penelope Burke, Donor-Centered Fundraising, Burk & Associates, Ltd./Cygnus Applied Research, 2003. Ken Burnett, Relationship Fundraising: A Donor-Based Approach to the Business of Raising Money, 2nd Addition, Jossey-Bass, 2002. Adrian Sargeant, Elaine Jay, Building Donor Loyalty: The Fundraiser’s Guide to Increasing Lifetime Value, Jossey-Bass, 2004
Elizabeth Boris, Ph.D., DirectorCenter on Nonprofits and PhilanthropyThe Urban [email protected]
If you would like to learn more or would like to consider participating in the new FEP Analytics Initiative, contactBill Levis, [email protected], 240-418-7984
