BUILDING A CULTURE OF PHILANTHROPY MPS 519, Resource Development DePaul University School of Public Service Meagan Downey, CFRE April 20, 2013

Definition Culture of philanthropy: a set of organizational values and practices that support and nurture development within a nonprofit organization

In Practice Most people in the organization act as ambassadors and engage in relationship building. Everyone promotes philanthropy and can articulate a case for giving. Fund development is viewed and valued as a mission- aligned program of the organization. Organizational systems are established to support the act of giving. The executive director is committed to and personally involved in fundraising.

Climate: Instability in the Development Director Role Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising, Bell and Cornelius, CompassPoint, 2013 Development Directors Leaving the Organization or Field by Organizational Budget Size

Climate: Executive Directors Dissatisfied and Unprepared Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising, Bell and Cornelius, CompassPoint, 2013

Climate: Executive Directors Dissatisfied and Unprepared Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising, Bell and Cornelius, CompassPoint, 2013

Climate: Board Members Not Sufficiently Engaged In Philanthropy Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising, Bell and Cornelius, CompassPoint, 2013 Board Member Engagement as Reported by Executive Directors by Organizational Budget Size

Climate: A Vicious Cycle High turnover rate of development staff, due to dissatisfaction and termination Misunderstanding about the development profession leads to unrealistic expectations of fundraising staff Fundraising becomes “a necessary evil” instead of an opportunity for engagement Donors lack meaningful relationships to the organizations they care about, or worse, they lack trust in organizational leadership and fundraising staff

Breaking the Cycle Continual education Creating and communicating opportunities for engagement Communicating impact

Education and Training Resources Association of Fundraising Professionals BoardSource Donors Forum Chronicle of Philanthropy Fundraising and board development consultants Executive coaching CFRE International IUPUI School of Philanthropy Integration of training in basic staff and board orientation Harvard Business Review Donor surveys and focus groups

Engagement: Demystifying the Donor DONO R

Engagement: Demystifying the Donor Board members Former board members All staff Leadership Volunteers Activists Members/subscribers Beneficiaries Audience goers/attendees Grateful patients “Family” friends

Engagement: Demystifying the Donor Successful fundraising professionals develop close relationships with all staff and volunteers who have contact with these constituencies. They make fundraising success everyone’s success, and fundraising challenges everyone’s challenges.

Impact: Fundraising Metrics Development raised $XX,XXX,XXX!

Impact: Fundraising Metrics Metrics are ideally represented in fund development plan and integrated into organizational strategic and operational plans Metrics address costs (hard and soft), revenues and health of donor base Targeted improvements in metrics are closely tied to budgetary needs/budgetary cuts (staffing, technology, prospect research, etc.) Relevant metrics are regularly communicated to staff and volunteers who are not development professionals Metrics inform rather than overwhelm.

Impact: Fundraising Metrics Metrics can show what is happening, but not necessarily why. Discussing the why can be a valuable engagement exercise for executive directors, board members and fellow staff, and help to create buy-in for fundraising strategies undertaken by the organization.

Impact: Fundraising Metrics Average lifetime value Attrition rate Cost per dollar raised # of meaningful contacts % board giving Renewals Net ticket revenue Response rate # of face-to-face solicitations # of event attendees open rate click-through rate Upgrades/downgrades What is “good”?

Impact: Fundraising Metrics Good is better.

Cost Per Dollar Raised Often an oversimplified metric, at times sensationalized by the media and misunderstood Considerations include type and age of the organization and mix of fundraising programs Returns on investment in fundraising programs don’t necessarily show up in the same fiscal year Generating $4M at a cost of $1M (25% CPD) is preferable to $3M at a cost of $600K (20% CPD) because the end result is $600K more to spend on mission Association of Fundraising Professionals Resource Center; Hot Topic: Fundraising Costs

Cost Per Dollar Raised Dan Pallotta: The Way We Talk About Charity Is Dead Wrong; Ted;

Impact: Fundraising Metrics Identify who needs to know what Give partners simple benchmarks that they can follow over time Communicate trends Engage partner stakeholders in determining the why, then test assumptions together Never underestimate anecdotal feedback to weave into metrics to create a compelling narrative Succeed together, fail together, innovate together Institutionalize opportunities for communicating impact

Discussion