People like to measure – our waist, our speed our time. We have an innate desire to gage how we are doing compared to others and compared to yesterday. Professional fundraisers are no different. We constantly ask the question, “How am I doing.”
We need to see results and share results with our board, our donors, and our community. Truly the most important result is funds raised; however, professionals understand there are actions in between the final result. The focus needs to be based on activity because realistically you’re not going to raise funds unless you are out asking.
The challenge is that leaders sometimes forget that the team needs perspective. We need to know if we are on the right course doing the activities that will raise funds. Planning and benchmarking are instrumental to success. Measuring doesn’t need to be complicated but it does need to be consistent and constant - measuring the right activities over the appropriate period on time.
Consistent: Don’t bury yourself in data.
From funds raised, to number of donors, number of gifts, acquisition rate, retention rate, cost per dollar raised, ROI, donor growth, conversion rate, gifts secured, average size gift, frequency of contact, participation rate, and number of asks – the list of data that can be collected is extensive.
Step one ask the question – What matters most?
Does our team need to know how many prospects are in the pipeline? How often are we talking to them? How often are they saying yes? How long have they been giving? The reality is that we should only measure what matters and data only matters if it relates to the plan.
Step two – look at the goal in the annual plan.
Measure the activities that will take the team to achieving the goals in the annual plan. Starting with the basic revenue goals is the most realistic – no matter how small your team, it is imperative to have a revenue line for each area of business (i.e. major gifts, bequests, events etc.).
Match each measurement to the goal. Determine what you need to measure in order to determine if you are working towards success in the goal.
Constant: Plan for the long-term
Step three - determine what you want to measure for the long term. The data will only matter if you can gain long term perspective –this could mean over a span of 12 months but plan to measure over at least 3 to 5 years.
There may be new objectives that arise in the annual plan that you will need data for in order to gain perspective but keep these special projects to one or two.
Step four – determine your audience. Who needs what information? Start with your immediate team, the board and your donors. Data tells a story and stories can be used to educate your stakeholders. For example if you want to focus your board on resources than use data that demonstrates return on investment for specific activities. Over time the data will show patterns that will be used for planning including resource development.
Step five – determine how to present the data. Data for data sake can be overwhelming. Ensure you present the information appropriately for the audience. Just as you can gather too much information you can also disburse too much information. Data should inform decisions and also give credibility to actions. Too much information simply overwhelms and confuses. Keep it simple is a good guiding principle. Keep data visual. Most people aren’t statisticians so use easy to follow charts.
Information is influence. Use data to gage if you are on the right track. Use data to change your course if necessary and use it to motivate and celebrate success. Having the numbers to reference gives your team credibility. If you aren’t measuring it is easy to get lost. Take the time to use data, you will see the results and best of all you will know when you have reached your goals.
Rebbeca Truax MBA, CFRE
Director of Philanthropy
Royal Victoria Regional Health Centre Foundation
