Track Your Progress for Fundraising Growth

September 29, 2016

Often our firm is called on to conduct a planning study prior to a capital campaign. This used to be called a feasibility study, but our studies encompass far more than whether or not an organization can raise a certain amount of money. That is part of the study, but our studies also include much more.

The Necessity of Reviewing Key Operations

Just because you are in a capital campaign, doesn’t mean that the rest of your operation shuts down. On the contrary; if the plan is effective it will incorporate strategies for all areas related to fundraising. This includes public relations, donor relations, operations and in particular, annual giving.

In fact, often the most important funds a nonprofit organization raises each year are its annual funds. That’s why we ask organizations for three-year trends. Among those trends we request the following report on source of funds:

Foundation Giving – We want to know what foundations have given to you over the past three years. Even if it is nothing, that tells us something. We are then better able to help you develop strategies to improve in this area.
Corporate Giving – What have local and regional corporations given? This includes co-branding, which normally comes from marketing budgets.
Board giving – Here we review both the participation rate and the average gift.
Non-board individual giving through direct mail – Direct mail is frequently not tracked. Organizations simply send out mailings without considering how they might be improved. We have our clients track the cost of the mailing (materials, postage, etc.), gross revenue, net revenue, response rate and average gift. We also have them test as much as possible and we encourage clients to send mailings at least 6 times per year. Finally, we recommend that each mailing have a theme. That might sound like a lot, but believe me it’s not.
Non-board individual giving through solicitation of major gifts – It normally occurs through face-to-face solicitations. This is really where the action is or should be in the development office. Even though it’s labor intensive, it is the most productive and least expensive form of fundraising. We track the number of solicitations made over each of the last three years, the number of “yes” or “I’ll consider” responses and the percentage of those to the total. It should be at least 70% or more, and if it’s not we usually conduct some cultivation/solicitation training.
Bequest giving– If you have a good program, you should receive bequests. However, if you don’t ever mention bequest and other planned giving opportunities, the likelihood of receiving them is not high. We’ve had several of our clients who had zeroes in that column for years, but with a few key strategies we’ve also helped them begin to fill those columns up. It takes both discipline and patience, but most donors have far greater capacity to give in their death than they did in their lifetime.
Special events-We review special events to determine cost and net revenue. We try to advise our clients on ways to keep the cost of the event under 50%.
Giving levels– Starting at $100,000, we work our way downward and analyze giving amounts at various levels including $50,000, $25,000, $10,000 to $100 and below. We’re looking for gaps at each level and strategies to improve.

Measurement Equals Positive Changes

Now we usually look at all of these areas in organizations who are planning for a capital campaign, because they need to be sustained and hopefully improved during the campaign. However, organizations would do well to track these items regularly to help ensure long-term success and sustainability. Remember, very little changes until it’s measured.

“I really support The Covenant Group’s strategic planning process because their approach encourages staff-based support with board buy-in, and I felt that was important given what we were trying to achieve. The outcome is an effective plan that builds consensus and provides a clear sense of direction.”
- Jennifer Scott, Director of Development - The Cabbage Patch Settlement House

“The Covenant Group is highly competent, very experienced and knowledgeable. They provided a broad perspective by equipping us with useful data…and best practices in the field. All in all, they are excellent.”
- Dan Jones, CEO - 21st Century Parks

“The campaign has truly been a miracle. People were committed from the beginning, but…even raising $650,000 seemed like a stretch. To nearly double that amount is incredible! When the plan they developed allows you to hit a goal like that, it builds such a sense of community. The momentum built by the campaign is spilling outside the walls of our church and benefiting others in the process.”
-Father John Hollowell - Annunciation of the Blessed Virgin Mary Catholic Church

“For those of us who don’t do this everyday, The Covenant Group instilled confidence in us. They helped us get through the fear and apprehension by providing us with a process, training and motivation. They taught us and helped us plan in a way that was for the better. We have built lasting relationships with donors and we will continue to steward these relationships long into the future.”
- Sue Finke, Director of Institutional Advancement - Covington Catholic High School

“No one anticipated we could raise this amount. Even the Archdiocese is surprised. The funds raised represent about 15 times our annual giving. But it’s not just the financial results. People stand around talking more than they did before the campaign. There is also a renewed and energized spirit among the parishioners. It’s the most exciting thing to happen in our parish in the last 100 years.”
- Gary Libs, Campaign Co-Chair - St. Mary of the Knobs Catholic Church

“The Covenant Group’s process involved a lot of people in our congregation doing small tasks … that built ownership. They took our vision and put it into a concrete plan. They helped us understand the importance of making our vision clear and laid out the steps to make the vision a reality. Their process built consensus and showed people how they could help. Their methods are based on a solid theological foundation that includes key documents, prayer support, and requisite training … all of which were invaluable.”
- Daniel Montgomery, Pastor - Sojourn Community Church

“Everything The Covenant Group did to help us…in the initial stages was helpful…the development of the case statement; our materials; the training of our Board members; strategies; all these steps laid the foundation for eventual success. They brought such a high level of professionalism, a wealth of experience and a strong track record of integrity and success… just being associated with The Covenant Group helped us.”
- Nancy Doctor, Development Director - Wellspring

“The structure The Covenant Group provided was excellent. It allowed our members to use their God-given talents to benefit the church community They helped us develop a plan and identify key leadership candidates to chair the effort, as well as engaging between 80 to 100 people to carry out the work of the campaign. It was truly a whole congregation effort and The Covenant Group helped facilitate that. They helped us reach our full potential as a congregation.”
- Ron Poisel, Pastor - Christ Lutheran Church

Track Your Progress for Fundraising Growth

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