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Development

Success Can Be Hazardous to Your Spiritual Integrity

I was in the Army though not by choice. I was drafted. It wasn’t a good time to be a combat soldier. Fighting in Vietnam was at its peak. Fortunately, I did not have to serve in battle and I came home in one piece. But had I seen action, the government would have recognized the danger it placed me in and added what it called “hazardous duty pay” to my monthly paycheck. It was a response to sending soldiers into harm’s way. I was being exposed to danger.

In our profession as fundraisers, we confront hazards on a frequent basis. Not hazards to our health, but hazards to our spiritual integrity. I’m sure we all know Psalm 127:1, “Unless the Lord builds the house, the builders labor in vain.”

We also know our success as fundraisers is frequently measured by statistics. How much was raised? How long did it take? What was the largest gift? All those numbers can appear on a tally sheet. But consider how a good thing – the achievement of a goal – can become a bad thing for us when it becomes a ruling thing.

  • Achievement is a fulfilling thing; it’s also a vital thing.
  • Where in the past we may have been ambitious for what we want, we now must be ambitious to do the will of God.
  • As human beings we’re achievers, meant to build and rebuild, to grow and expand, to plant and to tear down, to dream and to achieve dreams.
  • But unchecked, ambition becomes a spiritual battleground.
  • We cannot allow ourselves to move from being humble, approachable kingdom servants to being rather proud and not-so-approachable institutional achievers.

The prophet Hosea offered a caution to the Jews in the Northern Kingdom when he warned about remembering why the people felt satisfied.

I cared for you in the wilderness,
in the land of burning heat.
When I fed them, they were satisfied;
when they were satisfied, they became proud;
then they forgot me. (Hosea 13:5-6).

  • Has our quest for fundraising success become our dominant motive?
  • Ultimately God is the achiever; our calling is to be usable tools in His powerful hands.
  • Remember, we have no ability on our own to meet financial goals.
  • Are there areas where we have become more focused on doing rather than on being?
  • In Christ-centered fundraising, success and failure are not a matter of results but are defined by faithfulness.

We can fall victim to a fatal flaw if we think we are able to raise multiple millions of dollars. Bottom line, we do not raise the money. We obediently follow God’s guidance leading to where He deposited the money with generous givers. God leads us to success.

Christian author and conference speaker Paul David Tripp has said “Leaders are easily tempted to take credit for what only God, in his presence, power, and grace could produce.”

A favorable response to a six-figure ask can be a temptation. Surpassing a campaign goal can allow pride to trump the real reason for success – the obedient stewardship of God’s faithful people. If we take credit instead of acknowledging the one who sent us and who alone produces fruit out of our labors, we will praise less, we will pray less, and we will plan more. No doubt all of us acknowledge who is ultimately responsible for our success. Still, we can never be reminded too often who we serve.

When we take credit for what we could not have produced on our own, we assign to ourselves a wisdom, a power, and a righteousness we don’t have. We begin to see ourselves as capable rather than needy, as strong rather than weak, and as self-sufficient rather than dependent.

You wouldn’t think success could be a hazard in our profession, but success can lead to complacency and undeserved self-confidence. If we forget who called us into the field, who equipped us to serve, and who brought about the victory, then we may have won a small battle, but lost touch with our supreme commander.

Author: Denny Bender, Consultant
Before joining The Timothy Group, Denny served as Executive Director of Union Rescue Mission in Wichita, Kansas, a 114-bed emergency housing shelter for homeless men that also provides addiction recovery, a residential life-change and re-engagement program, as well as food assistance and infant care items for women and needy families.

Donor Relations, Client Impact, Development, Fundraising

Development Dashboard

Your friendly mechanic uses an automotive scan tool to discover how well your engine is performing. You also need tools to evaluate and adjust your development efforts for better fundraising performance.

Last time, we stressed the importance of using a simple report to track basic fundraising accomplishments. A standard weekly scorecard will tell you where you’ve been. But how do you keep your eyes on the road ahead?

The most common solution is a dashboard that monitors KPI (Key Performance Indicators) and displays them in dynamic visualizations. A fundraising dashboard is akin to the instrumentation on your car. Only, instead of items like a speedometer or a gear indicator, it uses charts, graphs, and status signals to convey point-in-time results. In short, a dashboard is a great way to summarize data and share it in an easily understood manner.

With a dashboard, you not only can report outcomes, but you can also contrast them against budgets and work plans. Variances trigger alerts.

So which KPIs should you track in your Development Dashboard? Some suggestions would be:

  • Monthly Contributions (annual, rolling 12 months, actual vs. forecast, current year vs. prior)
  • Source of Contributions (direct mail, general donations, credit card/ACH, major gifts, tuition/fees, planned gifts, capital campaign, earned income such as a social enterprise)
  • Website Traffic (visits per month, pages visited, donations)
  • New Donors/Lapsed Donors
  • Cultivation Visits/Calls
  • Ask to Close Ratio

Each of these KPIs can be further divided by drilling deeper into the data. Don’t make things so detailed that the compilation takes inordinate amounts of time.

A dashboard gauge only becomes useful when it has context and meaning. They must help the development professional determine what, if any, action is succeeding and where a course correction is required.

The first dashboard I ever built was rather simple but required a good deal of time and effort to update regularly. Since it was a basic way to get started in outcome measurement, I’ll explain how it functioned.

It was driven by two Microsoft products – Excel and PowerPoint. Since I didn’t have an interface between our CRM software (Blackbaud in our case) or QuickBooks, the data had to be retrieved each month and manually posted to an Excel worksheet. The date was then copied into a cell for the corresponding month. A separate cell housed the annual or a running 12-month cumulative total. Parallel rows contained either the budgeted amount for the period, or a comparative matrix such as prior year results.

Using the standard Excel chart tool, a visual depiction was created within the Worksheet for the type of chart that was appropriate for the KPI being measured. For example, Revenue by Month was displayed in a line graph. Revenue by Source was a stack chart. A pie chart was used for Website Pages Visited.

The chart was then copied and pasted into a PowerPoint slide template. Each slide had space for the visual representation of the KPI (the chart), plus various symbols and text to provide background and context.

In the next “What’s New…”, I’ll include sample slides so you can better visualize what I’ve described. This is what my standard dashboard slide contained:

  • Title of the Gauge
  • Description of what was being measured and the source of the data (QuickBooks report, CRM query, etc.).
  • Evaluation Criteria (outcomes versus budget, a monthly standard, what formed a favorable/unfavorable variance)
  • Trend Line (usually depicted by a traffic signal where green represented “on pace,” yellow a variance requiring “vigilance” and “red” indicating corrective action necessary.
  • Champion (the staff member responsible for generating the report).

Once the monthly dashboard was built, it was posted to the agency’s internal network. 11” x 17” copies of the gauges (the PowerPoint slides) were posted on an office bulletin board with a large scorecard listing each gauge and its corresponding Trend Line (traffic signal) for the month. I would also review the dashboard, in summary form, at our quarterly all-staff meetings so everyone in the organization knew how development was performing.

After a while, I created some shortcuts and workarounds for the monthly process of updating the dashboard. Fortunately, there now are powerful tools like Microsoft’s Power Bi, and commercial software that will do most of the heavy lifting for you. That will be part of the next installment in this series.

Until then, treasure what you measure.

Author: Denny Bender, Consultant
Before joining The Timothy Group, Denny served as Executive Director of Union Rescue Mission in Wichita, Kansas, a 114-bed emergency housing shelter for homeless men that also provides addiction recovery, a residential life-change and re-engagement program, as well as food assistance and infant care items for women and needy families.

Donor Relations, Client Impact, Development, Fundraising

Development Wayfinding

“If you don’t know where you’re going, any road will take you there.” This oft-cited but not-quite-accurate quote is from the Lewis Carroll’s classic children’s tale, Alice in Wonderland.

Throughout recorded time, man has searched for wayfinding aids that would ensure a safe arrival or a profitable outcome. If you ask Google, the Chinese, as early as the 12th Century, used magnetic compasses as navigational aids. In the 1990’s, the Global Position System, or GPS, became an indispensable part of society supporting everything from oil exploration to package delivery.

But the fundraising profession hasn’t been quite as quick to embrace the principles of measurement to make day-to-day decisions. To the CEO or the Director of Development, data should serve as a bedrock for corrective actions and in the formation of future strategies.

If your school or non-profit isn’t using metrics daily, especially to further your fundraising objectives, you are operating with self-imposed limitations. A discipline that tracks something that has already occurred may not sound like forward thinking. But if you monitor even simple data, you will be able to spot trends or shortfalls that may require future action.

You don’t need sophisticated (and often expensive) software or glitzy dashboards to help you navigate your fundraising year. The objective is to focus on the right things, the critical measurements that will reveal where you have succeeded and what next steps are appropriate.

There is no single set of right things that every organization should measure. For example, if you depend largely on annual campaign fundraising, you’ll want to monitor donor contacts and major gift close ratios. If your support base is more direct mail responsive, tracking average gift income and lapsed donors could be priority metrics. Regardless, you need to consider the effort and cost involved with gathering the data you track. And the outcomes you measure must be essential to the achievement of your mission.

It may be nice to know how many visits were made to your “About Us” website page, but a more important statistic may be how frequently visitors navigated to your donation page but left without making a gift.

If you are a small nonprofit, or new to data analysis, you might want to start with the basics – a simple weekly scorecard. I’ve attached a sample that uses key indicators like income dollars, donor activity and number of gifts received. These are values that should be easily and quickly retrieved from a CRM or financial tool. Review this data during your weekly one-on-one with leadership as well as with your development colleagues.

Statistics can be the scaffolding that supports your fundraising efforts. Use them to build strong practices and grow your income.

NEXT ISSUE: How to design, populate and share a Fundraising Scorecard built specifically for your organization.

Author: Denny Bender, Consultant
Before joining The Timothy Group, Denny served as Executive Director of Union Rescue Mission in Wichita, Kansas, a 114-bed emergency housing shelter for homeless men that also provides addiction recovery, a residential life-change and re-engagement program, as well as food assistance and infant care items for women and needy families.

Donor Relations, Major Donors

How Often Should I Ask?

We don’t have to look far to understand our responsibility when it comes to forgiveness. Christ was very explicit when Peter asked how often he should forgive a brother who sinned against him. “… Up to seventy times seven” was Jesus’ reply (Matt. 18:22). Clearly there is no limit on how often we should forgive. But as fundraisers, is there a cap to the number of times we can ask a supporter to give?

I learned a valuable answer to that question during my time as the director of a men’s homeless shelter and recovery center. We had just completed a very successful capital campaign to build a transitional housing unit for graduates of our discipleship program. The lead gift of $1 million was provided by the owner of a multi-national business with plants in the U.S. and South America. He was a generous, long-time supporter of the mission. Since he was one of our Top 10 lifetime contributors, I personally managed the relationship and would meet with him periodically to share news about our ministry.

During one of these cultivation appointments, a month or two after completion of our capital campaign, I happened to mention that the mission hadn’t yet found a way to purchase a bus to gather homeless men and bring them to the mission for a meal and a warm bed. It was not an ask. I merely wanted to share how our outreach program was expanding.

The donor looked at me rather sternly, “How much do you need to buy a bus?” When I quoted the cost he said, “Why didn’t you come to me for the funding?” Apologetically, I told him we were looking to other donors because “you’d given us a million dollars just two months before.” I explained that I felt awkward asking for more so soon after such a large gift.

I’ll never forget what he said to me next, “Denny, don’t deny me my joy.” Though he was an extremely successful business owner, this donor found his greatest fulfillment in the stewardship of the profits God had entrusted to him. He felt a deep-seated responsibility to help those in need, but he relied on organizations like our mission to point out those needs.

So, is there a limit to how often a development officer can ask a supporter to give? My answer is a lose translation of James 4, “we have not because we ask not.” You’ll never raise the resources necessary to support your ministry if you don’t ask people directly. But how do you know when it’s too much or too often. Here are three thoughts:

The donor will show you.
Part of cultivating a fruitful donor relationship is understanding the motives and rhythm of a donor’s giving. Some supporters prefer to time their giving with specific events such as tax refunds, the last week of December, employment bonuses or investment dividends. Others have more personal giving triggers. I once had a couple who always made their annual contribution on their wedding anniversary. Use your CMS database to track donor giving habits and be sensitive to your donors’ patterns and preferences.

Ask when to ask.
Especially with your mega- and major donors, it’s not only appropriate but especially helpful to ask how a donor prefers to be approached. Some may only want to meet annually with your director or CEO. Others will appreciate more frequent contact. Asking about timing also allows you to identify areas of your ministry that are the most appealing to a donor, such as woman’s programs, scholarship needs, campus expansion, etc.

Also, donors who are direct mail responsive will quite often tell you how frequently they want to receive your appeals. Don’t yield too easily to donors who promise to give without a reminder. Ask permission to mail them at least appeal a year, rather than honoring their request to be dropped from your file to save the printing and postage cost.

One-to-One
As my mentor in fundraising says, “People give to people for people.” Invest in knowing your donors, particularly those of high capacity, so you can invite them to partner with your organization when and how they prefer.

“God loves a cheerful giver” (2 Corinthians 9:7). You do, too! Give your donors something to cheer about by asking them again and again to partner with your ministry. Don’t deny your donors the joy of giving!

Author: Denny Bender, Consultant
Before joining The Timothy Group, Denny served as Executive Director of Union Rescue Mission in Wichita, Kansas, a 114-bed emergency housing shelter for homeless men that also provides addiction recovery, a residential life-change and re-engagement program, as well as food assistance and infant care items for women and needy families.

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