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BENCHMARKING YEAR IN

REVIEW

“HOW DO WE COMPARE?”

ALIGNING EXPERTS JULY 2014

INTRODUCTIONS

• Brian Gawor

• Associate Vice President

• Benchmarking, Analytics and Strategy

• PhD student at Illinois State

University

• Research Interests:

– Turning “like” into “give”

– Lifetime relationships with alumni.

– Leveraging Millenial behavior

Brian.Gawor

@RuffaloCODY.com

Twitter: @BrianGawor

(309)299-4682

GIVING USA

• Overall Charitable Giving Rose by 4.4%

in 2014 to $335 billion.

• 4.2% increase by individuals.

• 8.7% increase in bequests.

• -1.9% decrease from corporations.

• +8.9% increase in giving to education

• Alumni led the charge

• Chronicle of Philanthropy “Philanthropy 400”:

4% increase at largest charities, expected flat results.

800.756.7483 | www.ruffalocody.com/fundraising

TOTAL GIVING: 1973-2013

(IN BILLIONS OF DOLLARS),

FROM GIVING USA


TOTAL GIVING AS A PERCENTAGE

OF GROSS DOMESTIC PRODUCT,

(in inflation-adjusted dollars, 2013 = $100)


INDIVIDUAL GIVING AS A PERCENTAGE OF

DISPOSABLE PERSONAL INCOME,

1973-2013 (IN CURRENT DOLLARS)

The “Stubborn 2%” pattern continues.

• Havens and Schervish (1999) - $41 Trillion will

transfer between the next two generations.

• Updated recently to $59 trillion.

• 6% or more of this will go to charity given

historical patterns

• Accuracy/assumption is now under question.

• Will the money still be there?

• Longer lifespans, shifting priorities and demands.

THE “GREAT WEALTH TRANSFER”

7

http://www.bc.edu/content/dam/files/research_sites/cwp/pdf/A%20Golden%20Age%20of%20Philanthropy%20Still%20Bekons.pdf

http://www.forbes.com/sites/tomwatson/2014/06/11/the-transfer-of-wealth-trap-why-causes-should-probably-ignore-the-big-numbers/

http://plannedgivingadvisors.com/category/wealth-transfer/

$

http://www.bc.edu/content/dam/files/research_sites/cwp/pdf/A Golden Age of Philanthropy Still Bekons.pdf

http://www.forbes.com/sites/tomwatson/2014/06/11/the-transfer-of-wealth-trap-why-causes-should-probably-ignore-the-big-numbers/

http://plannedgivingadvisors.com/category/wealth-transfer/

2013 VSE Survey: $33.8 billion in gifts was

recorded. This is an increase of 9% over 2012

and the largest total in the history of the

survey.

59.5% of institutions raised more in 2013

than 2012.

Total Giving by alumni increased by 16.9%,

with the average gift increasing by 18.1%.

Keep the celebration brief…

8

THE VOLUNTARY SUPPORT OF

EDUCATION SURVEY (VSE)

vse.cae.org



© VSE from CAE

vse.cae.org

46,26147,938 48,206 48,986

51,598 51,192

54,598

58,318 59,350 60,42262,363

68,87470,939

69,076 68,628

71,83169,321

73,880

79,177 79,39881,219

83,449

28,414 28,918 30,059 30,712 31,971 32,85234,347

35,798 37,016 36,879 37,962

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

ALUMNI OF RECORD

All Higher Education

All Public

All Private

All Bacc Institutions

Bacc Institutions (Private)

Women's Colleges



© VSE from CAE

vse.cae.org

15.3% 14.9%14.3%

13.7%13.1%

12.5%11.5% 11.3%

10.7%10.2%

9.6%

7.9% 7.7% 7.7% 7.5%6.9% 6.6%

5.8% 5.8% 5.4%4.8% 4.9%

20.7% 20.4%19.7%

19.1% 18.7%18.1%

17.1% 16.8%16.1%

15.6%14.7%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

ALUMNI PARTICIPATION


All Public

All Private



Women's Colleges



© VSE from CAE

vse.cae.org

18.3% 18.3% 18.2%17.4%

16.4% 16.0%

14.6% 14.9%13.8% 13.9%

13.2%

7.9% 7.9% 8.1% 8.4%7.4% 7.3%

6.5% 6.6%5.8% 5.8% 5.5%

25.1% 25.1%24.5%

23.4% 23.0% 22.5%21.2% 21.3%

20.1% 19.8%19.2%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

UNDERGRADUATE ALUMNI PARTICIPATION


All Public

All Private



Women's Colleges



© VSE from CAE

vse.cae.org

6,0806,030

5,947

5,717

5,826

5,5425,473

5,6605,574

5,473

5,312

6,758

6,620

6,453

6,019

6,126

5,6625,620

5,742

5,566 5,536

5,441

5,529 5,5205,480

5,427

5,535

5,409

5,319

5,449 5,446

5,336

5,210

4,500

5,000

5,500

6,000

6,500

7,000

ALUMNI DONORS


All Public

All Private



© VSE from CAE

vse.cae.org

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

ALUMNI DONORS


All Public

All Private



Women's Colleges



Alumni giving participation declined once

again.

In addition, For the 951 schools that

responded in 2012 and 2013, total alumni

donors declined by 1.7%.

All alumni donors in higher education down

19% since FY2003 .

Is dollars up, donors down the new reality?

vse.cae.org

THEMES

• “Dollars Up, Donors Down.”

• Young Alumni/Millenial Giving

• “How do we track that?”

• “Fundraising Fusion.” - Multichannel

• Burden of data management and getting

good ROI on data enrichment.

• Impact of Annual Giving on the

major/planned Gift pipeline

• Hidden ROI of phonathon and other

annual fund efforts

$

#

THE ADVANCEMENT

COMMUNICATIONS TOOLKIT

Reality:

A “like” is

not a check.

GENERATIONAL GIVING

17

From Edge Research/Blackbaud’s “Next Generation of American Giving”

- http://npengage.uberflip.com/i/147711

“What motivates Millennials

is a desire to affect their

cause through your

organization with their

friends.”

-Derrick Feldmann

The Millenial Impact Project @ AFP Int’l 2014

themillenialimpact.com

MILLENIAL CAUSE MOTIVATION

18

MILLENNIAL GIVING

• Tremendous opportunity with youngest alumni.

• Gift values increasing

• Millennials view tine and network as equal to money.

• Value small, incremental acts.

• Volunteer, Volunteer, Donate cycle--97% prefer to use their skills to help.

STUDENT PHILANTHROPY PROGRAMS

• CASE Survey: 63% of institutions

funding at least one student

organization or working group.

• Only 8% had “no activity” with

student philanthropy.

• Institutions that spend at least 50

cents per student have significant

results in student giving.

• Crowdfunding an excellent vehicle

for involving students (and faculty!)

Currents, Summer 2014Whitepaper on its way FA14

GROWTH OF ONLINE GIVING

• Online Charitable donations grew 14% in 2013

(M+R/Non-Profit Technology Network)

• 5.5 Million gifts and $325 Million raised

• - likely an understatement.

• Average number of Facebook fans increased 37%

• Twitter followers increased 46%

• Average Gift: $57 (one time)

• Average Monthly Gift: $20

• Steady increase in “sustaining donors” or monthly

commitments.

FUNDRAISING FUSION

• Difficult to track what “made

the difference” to arrive at the

gift.

• Timing of direct mail/e-

mail/phone/social media up in

the air—different at each

institution.

• “Fundraising Fusion is the

new “ROI.”

CASE STUDY:

CALENDAR AND FISCAL YEAR END

APPEALS

• Results of a RuffaloCODY survey Q1

2014.

• 80% using direct mail, email and

phoning together.

• Timing: post-Thanksgiving and 6-8

weeks out of fiscal year end.

• 50% of respondents didn’t know how

their appeals were performing.

PHONATHON BENCHMARKING

REPORT PROJECT

• Started in Q4 2013 as an effort to give CAMPUSCALL

users and other phonathon programs good information

to evaluate their programs.

• Answers the question “how do we compare?”

• 182 CAMPUSCALL and other software users

• 139 RuffaloCODY managed on-campus sites

• = 321 Institutions

• Will continue in 2014

OVERALL IMPRESSIONS

• Phonathon is not dead.

• Institutions are continuing to have success.

• No significant differences outside of broad categories (Public/Private, Small/Medium/Large)

• Small Publics and Large Privates vary widely.

• Almost all divergences from cohort are institution-specific.

• A professional manager in call center nightly will greatly increase results.

• Data management is a struggle for many institutions.

• “Who you call” and “How much you get through” (Completion Rate) are a big contributor to results.

PHONATHON SUCCESS METRICS FLOW

26

Include Everyone (Yes, Everyone)

Enrich Your Data

Complete Records

Pledge Rate

Average Gift and Credit Cards

Update Info

RECURRING THEMES

• Contact Rates: Highest where

institution has sought and called

prospect mobile phone numbers.

• Dials to make a Contact: Seem to

be increasing; best in programs

calling many mobile phones.

• Credit Cards: Increase in rate as

prospects get younger, very strong

results with youngest alumni.

BENCHMARK COHORTS

• 51 Larger Public Universities

• 36 Smaller Private Universities

• All CAMPUSCALL users and using standardized coding

• All with RuffaloCODY on-site management

• Cohort group completed at 60% or greater within a pool generally

about 80% the size of their alumni of record

• 100% solicitation calling

• All engaged in aggressive data enrichment

• All called mobile phones

• Few accept “Unspecified Pledges” (Maybes)

CONTACT RATE

• Defined as the % of “Completed” calls that result in a

solicitation – a “yes, no or maybe.”

• Increased by having very good contact information and

phone numbers for your prospects.

LARGE PUBLIC SMALL PRIVATE

PLEDGE RATE

• Defined as the % of “Specified Pledges” – with a dollar

amount, per contact.

• “Unspecified Pledges” or “Maybes” not included.


AVERAGE PLEDGE

• Defined as the total pledge amounts, including matching gifts,

divided by the number of pledges.


CREDIT CARD GIFTS

• Defined as the % of “Specified Pledges” that fulfill

instantly by providing their credit card number on the

phone.

• Rose despite significant card security breaches in US.


PHONATHON CREDIT CARD GIFTS

BY DECADE OF GRADUATION

LARGE PUBLIC

SMALL PRIVATE

ATTEMPTS PER HOUR

• The number of “dials” per Telefund hour.

• Greatly increased through automation.


COMPLETED CALLS PER HOUR

• Defined as the number of Completed Calls per Telefund

Hour – Hours spent dialing.


CONTACTS PER HOUR

• Defined as the number of Contacts per Telefund hour.


DOLLARS PER HOUR

• Defined as the total funds pledges, including matching

gifts, divided by Telefund hours.


SOME EFFICIENCY IMPRESSIONS

• Contacts per hour are declining but not as

much as the hype has indicated

• Many institutions have reported more attempts

needed

• Institutions stemming the tide with data

enrichment

• Very wide range of dollars per hour and this is

influenced by strategy and maturity of the

annual fund program

• At about 1 pledge per hour, we need to make

every call count!

PHONATHON BEST PRACTICES

• Phonathon is not dead, but like any animal,

it needs to be fed.

• Professional manager in the center each

night

• Call everyone and seek leadership gifts.

• Ask more than once: both per call and

through second gift programs.

• Seek and call mobile phones.

• Invest in the best data enrichment available.

• Use phonathon as a powerful database

update tool.

SOLICITATION SUCCESS METRICS

FLOW

40

Include Everyone (Yes, Everyone)

Enrich Your Data

Complete/Solicit Records

Pledge/Response Rate

Average Gift and Credit Cards/Online

Update Info

HIDDEN ROI: THEORETICAL VALUE OF

GOOD ADDRESSES + EMAIL ADDRESS

CASE STUDY:

• Alumni Giving Rate: 10%

• Average Alumni Annual Gift: $100

• Planned/Major Gift Rate: 1%

• Minimum Major Gift/Bequest: $25,000

• Marginal Effect of Multichannel Program: 10%

• (recipients of mail/email 10% more likely to make a MG)

• Value per Address: $225

• (assuming 20 successful annual gifts + effect on MG)

• Annual Phonathon Contacts: 15,000

• Total Value of Confirmed Addresses: $3.375 million

VALUE OF THE ANNUAL FUND

• Nonprofit Research

Collaborative, July 2014

NPResearch.org

RC360 INSIGHTS

CASE STUDY

RC360 INSIGHTS

CASE STUDY

$604

$3,487$4,098

$3,603

$21,135

$0

$5,000

$10,000

$15,000

$20,000

$25,000

1 year 2 years 3 years 4 years 5+ years

Alumni "Lifetime" Donor Value vs Maximum Donor Consistency

FUNDRAISING EXPENDITURES

• Of the “Philanthropy 400” – average “Fundraising Expenses”

averaged 8.9% of the average raised in 2013.

• VSE Advancement Investment Survey 2013:

– Mean Fundraising/Development Expenditures:

$3.961 million

– Median Fundraising/Development Expenditures:

$1.307 million

– About 60% higher at privates.

– Rose from 2012 in 2013 in CPI-Adjusted dollars.

– Rebound from big cutback in publics 2011, 2012

• Note: Survey has less coverage than broader VSE

philanthropy.com

“HOW DO WE COMPARE?”

• “Dollars Up, Donors Down” is very common.

• If you are thinking about a giving day or challenge you are not alone.

• Data is a heavy burden and all top-achieving programs are investing in data enrichment.

• Fundraising Fusion is the new, confusing “ROI.”

• Expect to have to justify your annual fund in the age of mega-gifts.

• The “Great Wealth Transfer” is under debate but clearly affecting results.

• If you are spending more, you are not alone.

WHITE PAPERS

YEAR END APPEAL WHITE PAPER

Download at: http://www.ruffalocody.com/multichanneltrends.

What are you doing in December?

http://www.ruffalocody.com/multichanneltrends

FIND OUT MORE

• As for a no-cost custom benchmarking report for your

phonathon, or ask for a VSE study.

• Check out our FM blog, whitepapers and other

information at www.ruffalocody.com/fundraising-

management.

• Consider RuffaloCODY consulting services.

• Don’t be shy! RuffaloCODY.com

Twitter: @BrianGawor

Let’s turn like into give!

http://www.ruffalocody.com/fundraising-management/

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