Shining a Spotlight on the Growth in Giving Initiative and the Human Services Sector May 1, 2017 Nathan Dietz, PhD Aggie Sweeney, CFRE Erik J. Daubert, MBA, ACFRE

THIS PRESENTATION WILL BE UPDATED WITH NEW RESEARCH BETWEEN NOW AND THE CONFERENCE!

Thanks for Joining Us! Erik J. Daubert, MBA, ACFRE Nathan Dietz, PhD Aggie Sweeney, MPA, CFRE

Erik J. Daubert, MBA, ACFRE Chair, Growth in Giving Initiative and Fundraising Effectiveness Project Chair, AFP Research Council Affiliated Scholar, Center on Nonprofits and Philanthropy at the Urban Institute Past-Chair, ACFRE Certification Board Director, Fund Development Partnerships, YMCA of the USA Instructor, Lilly Family School of Philanthropy at Indiana University, Saint Mary’s University of Minnesota, LaGrange College

SESSION Goals www.afpfep.org Understand what the Growth in Giving Initiative and Fundraising Effectiveness Project are and how they can help your organization make more strategic decisions when working a fund development plan Understand how data is utilized in understanding trends in the Human Services sector and what some of these latest trends are See and understand some case studies on how organizations are taking what they have learned and changing the way they raise money! www.afpfep.org Erik

Growth in Giving Initiative: Organizational Sponsors ERIK – please review if these are the right logos to include. Suggest others or ones to delete.

What is the Growth in Giving Initiative? A set of charitable giving research projects involving many nonprofit and for profit partners. Goal: understand and challenge the United States philanthropic sector to provide more resources to nonprofit organizations working to better serve our world. ERIK

What is the Growth in Giving Initiative? A set of charitable giving research projects involving many nonprofit and for profit partners. Fundraising Fitness Test Fundraising Analytics Research Database Indices Training & Education Fundraising Effectiveness Project (FEP) ERIK Training and Education includes “Planning to Keep Your Donors” Workshop More!

What is the FEP? Helps nonprofit organizations measure and compare their annual growth in contributions by gains and losses in giving Improving Retention: Nonprofits increase net growth in giving by maximizing their gains and minimizing their losses.

Metrics “Game Changers” Billy Beane revolutionized metrics in baseball by looking at statistics as they pertained to players and finding “bargains” in players that others missed to build a high performing baseball team with little money. Pic 1: http://www.google.com/imgres?q=brad+pitt&um=1&hl=en&sa=N&rlz=1C1CHFX_enUS502US503&biw=1366&bih=667&tbm=isch&tbnid=NGqnzPwJhY_rIM:&imgrefurl=http://www.people.com/people/brad_pitt/0,,,00.html&docid=EvlHVBliEJFdXM&imgurl=http://img2.timeinc.net/people/i/2011/database/111010/brad-pitt-300.jpg&w=300&h=400&ei=Reh0UL3KGKHl0gGG24CIAQ&zoom=1&iact=hc&vpx=536&vpy=156&dur=2924&hovh=259&hovw=194&tx=72&ty=137&sig=111184321928842053855&page=1&tbnh=140&tbnw=106&start=0&ndsp=27&ved=1t:429,r:3,s:0,i:161 Pic 2: http://www.google.com/imgres?imgurl=http%3A%2F%2F3.bp.blogspot.com%2F-JhP5V6nav68%2FT1ZzTU_7yxI%2FAAAAAAAAAVM%2FxQBuEGNUCPc%2Fs1600%2Fbilly-beane-brad-pitt.jpeg&imgrefurl=http%3A%2F%2Flateinnings.blogspot.com%2F2012%2F03%2Fhow-true-is-moneyball.html&h=427&w=641&tbnid=KPh8_ccUGiaINM%3A&zoom=1&docid=JqGW8hEdeMzYgM&ei=B6b7U8jMHNO-sQTQiIHQBg&tbm=isch&ved=0CB4QMygAMAA&iact=rc&uact=3&dur=1081&page=1&start=0&ndsp=22 Billy Beane, GM & minority owner of the Oakland As Sabermetrics Moneyball

Metrics “Game Changers” Nate Silver, Statistician Baseball Prospectus Political Election Forecasting Nate Silver – in his November 2008 presidential election predictions—correctly predicted the winner of 49 of the 50 states—won Silver further attention and commendation. The only state he missed was Indiana, which went for Barack Obama by one percentage point. He also correctly predicted the winner of all 35 U.S. Senate races that year – all using statistics and metrics based information. Blog FIVE THIRTY EIGHT (538) . COM

What can we learn from Billy and Nate? Erik

A Fundraising Metrics “Game Changer” Bill Levis, Data Expert Fundraising Fitness Test Creator Founder, National Center for Charitable Statistics Bill Levis is one of the creators of the original Form 990, founder of the National Center for Charitable Statistics (NCCS)

Fundraising Metrics

How Do Many of Us Look at Fundraising Metrics? Did We Make Our Goal of $X? Is My CEO Content? Is Our Board Satisfied? Are the Budget Needs Fulfilled? Is Our Mission Being Fulfilled (Enough?!)? Other?

What is The Fundraising Effectiveness Project (FEP)? Gains Losses Net

Gain vs. loss Gain 2014 2015 New No gift, no prior gifts Gift Recaptured No gift, but gift prior to 2013 Upgrade Larger Gift! Loss 2014 2015 Downgrade Gift Smaller gift Lapsed New Gift (AND they were new!) No gift Lapsed Repeat Gift, and gifts prior to 2013

Gain vs. Loss Ratios $ Raised with percentage change from 2014 to 2015 262,290 +14.6% New 267,135 +14.8% Recapture 220,715 +12.3% Upgrade GAINS 750,140 +41.7% (186,682) -10.4% Downgrade (241,008) -13.4% Lapse New (639,624) -35.5% Lapse Repeat LOSSES (1,067,314) -59.3% NET $ Raised (317,174) -17.6%

What is the Fundraising Fitness Test? The Fundraising Fitness Test is a tool that nonprofit organizations can use for free that enables them to understand and monitor their philanthropic metrics. It works with any software and relies on only the most basic data to operate. It is free and AFP wants you to use it!

How does the Fundraising Fitness Test work? This slide shows FOUR fields…this nonprofit wanted to analyze only Annual Campaign information so they added a fourth field when they pulled their data from their database. It is shown here only to exemplify how this can be done for campaigns or for overall fundraising in a given period of time. | PRESENTATION TITLE HERE | ©2011 YMCA of the USA

Fundraising Effectiveness Project: Fundraising Fitness Test 150+ Performance Indicators derived from 3 data inputs: donor ID#, gift date, gift amount Allows organizations to use hard data rather than self-reported survey All cash and pledge PAYMENTS – NO UNPAID PLEDGES! Instructions to submit your data file are available at: www.afpfep.org/tools

What does it tell us?

EXERCISE INSERTED HERE

Donors and Dollars…and Focus!

A Few Key Areas of the Fundraising Effectiveness Project… Donor Acquisition Donor Retention Gift Retention Upgrades Downgrades Lapsed Donors

Key Results: 2016 FEP Survey Report Larger nonprofits perform much better than smaller ones New gifts/donors generate the largest growth in gift dollars/donors Downgraded and Lapsed new gifts/donors represent the greatest losses in gift dollars/donors for lowest performing organizations

How can my organization run the Fitness Test?

It is simple to use and FREE at AFP! Download the Fitness Test at: www.afpfep.org 2. Follow instructions on the site and use the information to compare your organization…to yourself! Remember, the ,most important benchmark…is your own nonprofit, but you can also compare with others through the FEP Reports!

Prepare your own Fundraising fitness test at www. afpfep Prepare your own Fundraising fitness test at www.afpfep.org/tools and compare with benchmarks at www.afpfep.org/reports Thank you!

Nathan Dietz, PhD University of Maryland, Do Good Institute Senior Research Associate, Center on Nonprofits and Philanthropy at the Urban Institute Member, AFP Research Council

Figure 1: Increase in Participating Organizations, Growth in Giving Initiative

Figure 2: Overall Growth in Giving HSOs Compared to Other Nonprofits , 2005-2015

Figure 3: Overall Growth in Giving, HSOs Compared to Other Nonprofits, 2005-2015 (Panel Data Only)

Figure 4: Number of Contributions HSOs Compared to Other Nonprofits , 2005-2015

Figure 5: Number of Donors HSOs Compared to Other Nonprofits , 2005-2015

Figure 6: Contributions per Donor HSOs Compared to Other Nonprofits, 2005-2015

Figure 7: Donors per Organization HSOs Compared to Other Nonprofits, 2005-2015

Figure 8: Dollars Contributed per Organization HSOs Compared to Other Nonprofits, 2005-2015

Figure 9: Overall Retention Rate HSOs Compared to Other Nonprofits, 2005-2015

Figure 10: Donor Retention Rate HSOs by Gift Size, 2005-2015

Figure 11: Repeat Donor Retention Rate HSOs Compared to Other Nonprofits, 2005-2015

Figure 12: Repeat Donor Retention Rate HSOs by Gift Size, 2005-2015

Figure 13: Lapsed Donor Rate HSOs Compared to Other Nonprofits, 2005-2015

Figure 14: Lapsed Donor Rate HSOs by Gift Size, 2005-2015

Figure 15: Retention Rate by Total Contributions Received, HSOs, 2005-2015

Figure 16: New Donor Acquisition Rate HSOs Compared to Other Nonprofits , 2006-2015

Figure 17: New Donor Acquisition Rate by Total Contributions Received, HSOs, 2006-2015

Figure 18: Percentage of Donations Received by Month, 2015

Figure 19: Percentage of Donations Received by Month, 2008

Benchmarking for Human Services How do you compare? July 27, 2016 NOREA

Aggie Sweeney, CFRE Senior Counsel, Campbell and Company Chair, Giving USA Foundation 40 years working in and providing counsel to human services organizations Based on the left coast!

From Research to Application What we know about giving to HSO Comparisons for small, mid-sized, and large fundraising programs Recommendations for improving your organization’s results AGGIE

2015 contributions: $373.25 billion by type of recipient organization (in billions of dollars – all figures are rounded) AGGIE Religious organizations received the largest share of charitable dollars in 2015, at 32 percent of the total.4 The education subsector received the second-largest share of charitable dollars in 2015, at 15 percent of the total. Human services organizations received 12 percent of total charitable dollars in 2015, ranking third of total gifts received. Gifts to independent, community, and operating grantmaking foundations amounted to the fourth-largest share of charitable dollars in 2015, with 11 percent of the total. The health subsector received the fifth-largest share of charitable dollars in 2015, at 8 percent of the total. Public-society benefit organizations received 7 percent of total charitable dollars in 2015, ranking sixth of total gifts received. The arts, culture, and humanities subsector received the seventh-largest portion of charitable dollars in 2015, at 5 percent of the total. Gifts to the international affairs subsector amounted to the eighth-largest share of charitable dollars in 2015, with 4 percent of the total. Environment/animals organizations received 3 percent of total charitable dollars in 2015, ranking ninth of total gifts received. Gifts made directly to individuals amounted to 2 percent of total charitable dollars in 2015.

Giving to human services, 19752015 (in billions of dollars) AGGIE Contributions to the human services subsector comprised 12 percent of all donations received by charities in 2015.41 Giving to human services organizations grew 4.2 percent in 2015, totaling $45.21 billion. Adjusted for inflation, giving to human services increased 4.1 percent between 2014 and 2015. Contributions to human services in 2015 totaled the highest inflation-adjusted amount recorded to date. More human services organizations reported increases in giving in 2015 than in 2014. In addition, more human services organizations reported increases in giving than did the percentage of charitable organizations overall.42 Human services organizations analyzed by the Blackbaud Index saw a greater increase in online giving than giving received through all types of channels combined. Charitable receipts received in 2015 by this subsector increased the most during late summer, as compared with 2014.43

Philanthropy 400 List for 2015 Rank Organization Contributions #2 United Way Worldwide $3.71 billion, -4.2% #3 Feeding America $2.15 billion, +6.6% #5 Catholic Charities USA $2.01 billion, -4.2% #6 Salvation Army $1.90 billion, -10% #12 The Y $1.20 billion, +28.6% #13 Food for the Poor $1.16 billion, +27.3% AGGIE Includes affiliates for each category Share how Erik is Director of Fund Development Partnership for YMCA of the US 2015 was the first year that Fidelity Charitable was #1, and the first time that United Way lost that distinction

Let’s Hear Your Pain Points… What are you interested in learning: How to increase your average gift size? Tips for increasing donor retention? Successful acquisition strategies? How your program compares to other organizations? NOREA Under $1,000,000 $1,000,000 - $2,499,999 $2,500,000 and up

Growth in Giving Initiative AGGIE Will start this and then turn it over to Erik for more background For 30% off all Giving USA products, enter our firm’s special code: give4

4 Benchmarks to compare your results to other human services organizations Annual amount contributed per donor Retention rate by gift size Retention rate by size of giving program Aggie New donor acquisition rate by size of giving program

Annual Amount Contributed per Donor Erik Annual giving per donor in 2015: $1,000, up from just under $600 ($586) in 2005; 70.7% increase Most organizations are not focusing enough on upgrading their donors

From the field… AGGIE FareStart story, implemented giving club of $1000 up, helped increase average amount as well as retention rate. Responding to annual gala attendees. KATE Food Lifeline

Retention Rate by Gift Size Erik Annual giving per donor in 2015: $1,000, up from just under $600 ($586) in 2005; 70.7% increase

From the field… ERIK larger gift amount = larger retention rate. Story: huge drop off when donations are under $250. Weren’t writing thank you notes to under $250. Changed practice and increased rate by 10% for under $250 group. Data from fundraising effectiveness project AGGIE and KATE – consider other examples to share AGGIE can bring in YMCA example, unless Erik wants to cover that. Also, focus on stewardship and levels that constitute a major gift in various organizations (generally $500 - $5,000 in HSO) KATE - ???

Retention Rate by Size of Giving Program Erik

From the field… AGGIE

New Donor Acquisition Rate by Size of Giving Program ERIK During recession, orgs weren’t confident about investing in acquisition strategies. Uptick in donor acquisition in last two years. Combination of donor and nonprofit confidence.

From the field… FamilyWorks: Person to Person FamilyWorks bank story. Best-kept secret. Community Art Walk. Yes, We Can Canned Food Drive. AGGIE: Hopelink, marketing strategy, giving day. ERIK: AHP study on size and maturity of program, relationship to retention

How can human services improve giving results? Annual amount contributed per donor Retention rate by gift size Retention rate by size of giving program Tie back to 4 benchmarks Fundraising fitness test plug Can we also add a plug for asking software vendors to particpate in the GiG Initiative? New donor acquisition rate by size of giving program

Your Turn!

t Thank You and Contact Us. Aggie Sweeney, MPA, CFRE aggie t Thank You and Contact Us! Aggie Sweeney, MPA, CFRE aggie.sweeney@CampbellCompany.com Erik J. Daubert, MBA, ACFRE daubert.erik@gmail.com www.afpfep.org Nathan Dietz, PhD ndietz@urban.org