Fundraising Basics – What Reports Do You Review?

February 13, 2018

As fundraising consultants, when we work with organizations, we ask for giving reports over 3-years. Before we can help them move forward, we need to know where they’ve been.

Specifically we’re looking for trends in areas like sources of giving, levels of giving, board giving and direct mail. When we know what the trends are, we can then help plan how to move forward. So what are some of those areas?

Sources of Giving – In this report we’re looking at who gave, how many gave in each category, and the total amounts given. The categories include:

Board
Foundations
Corporations
Other Individuals
Events
Other

Levels of Giving – In this report we’re also looking at the number of donors and amounts in each category, but this time we’re looking at amounts in ranges.

$25,000 and above
$10,000-$24,999
$5,000-$9,999
$2,500-$4,999
$1,000-$2,499
$500-$999
$250-$499
$100-$249
$99 and below

Board Giving – If the people closest to the organization aren’t willing to give, it’s difficult to expect others to do the same. We’re looking to see what their board participation rate has been over the last three years. If it’s not 100% then the organization has some work to do to pull that rate up.

In addition, we also look for the average gift. Some boards have minimum expectations for giving, so we first look to make sure everyone meets the minimum. Also, there’s a possibility that a few top donors skew the average. There might be 20 board members with an average gift of $5,500. However, one of them gave $100,000 and the other 19 gave a combined $10,000. Accordingly, we calculate the average, but then we also recalculate the average without including the top two or three donors.

Direct Mail – This is the most expensive and least effective form of fundraising. In fact, many organizations have totally eliminated it. But, that’s a big mistake! First, direct mail is a source of generating ongoing support. Second, it also serves as a medium through which you inform the public. Third, if used properly it can be an effective source for donor acquisition.

When we analyze direct mail, we first want to know how much our client is raising annually and from how many mailings. After that we look at each mailing to review:

Theme
Number mailed
Number of responses
Total received
Response rate
Average gift
Cost of mailing

Once that’s done, we look at the letter itself and ask several questions:

Does the letter have a heading/salutation with a name or does it say simply, “Dear Friend?” The latter is a sure way not to get a response.
Are the sentences and paragraphs short? If not, people won’t read it.
Does the letter make the case or is it asking just because we need the money? How you will use their money is important to the donor.
Is it signed by one person (not several people)? Letters with multiple signatures, make me wonder about their leadership. Who will stand up and take responsibility for writing this?
Is there a note in the margin or an attached posted note with a brief message from a board member? This increases response rates exponentially.
Does it have a clear “ask” or does it beat around the bush?
Does it have a P.S.? Actually, this is one of the first things people will read.

These are just four of many trends we review, but these are also the most important ones. Hopefully this will give you an idea of how to begin your planning. Next week we’ll look at how to set goals.

“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

Fundraising Basics – What Reports Do You Review?

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