Is Your Donor Management System Hurting Your Fundraising?

Here is a 5 Question Audit - to Help Avoid Hidden Costs and Lost Revenue

Many organizations believe that developing a relationship with the patron will increase their participation and giving. Key to that relationship building method is maintaining records and notes on each patron. But does it actually translate into more dollars raised?

Not necessarily.

The reasons are variable - but the results of over reliance with Donor Management tools are discouraging. Traditional fundraising models promise 15% increases by effectively managing information. However the results are treading down. Organizations are also noticing losing donors - which posing a grave concern to the fundraising goals.

To evaluate the claims, ask yourself five questions:

1) Where do my donations come from?
Do a survey of your donation campaigns. How much revenue is generated from membership fees, subscription fees, high net worth patrons, registration fees and sponsor fees to participate in special events, grants from government or private foundations, or product sales?

Using traditional fundraising programs has benefits - that they are easily understood and they are limited in scope and reach. They appeal to similar patron groups, but are traditional fundraising campaigns working in today's economy? Many patrons have suffered greatly during lean times and have cut back their charitable giving.

2) Are my traditional fundraising campaigns and methods providing enough money to fund the organizations core projects this year? Next year? Beyond? Most non-profit organization's yearly project budgets grow. To match the program growth an organization needs to increase their fundraising goals - but how? Either by increasing average gift amount or increasing the number of patrons, grants or appeals. Budgeting growth and planning ahead are important factor is designing a growth path.

3)What are the hidden costs? Besides costs to acquire, implement, and maintain donor management systems - campaign costs should include training, workshops expenses and then add the costs for design, marketing, advertising, printing, sorting, assembly of direct mail pieces whether it is for a newsletter, invitation, reminder, or thank you receipt. Staff and volunteer time should also be included. It is important to be frugal with an organization's volunteer capital and be effective managers of their staff's time.

It is important to consider all the costs. The easiest costs to quantify are the out of pocket or monetary expenses, other costs are in-kind contributions - which give a perceived value for providing material or service that otherwise would have needed to be paid for. The most elusive hidden cost is time... How much time is invested by the staff, key volunteers, board members and supporters to create, manage, control, use and follow-up with an appeal or community building activity.

4) How is the donor information used in campaign development? Many Donor Management Systems suggest multiple messaging depending on patron factors such as size of gift, where the patron lives, and what programs they historically supported. This approach might suggest a target donation amount to different level donors - which implies giving limits for those who would give more or makes smaller gifts seem insignificant.

5) Does it provide a growth path and fundraising reach beyond our current members, patrons, and donor database? A limiting factor of Donor Management systems is also the way it treats patrons outside the database. In some donor management systems then you establish relationships first before asking for support. Is that an effective method?

Speaking to a regional arts and humanity non-profit organization about the prospect of doubling their donor base, I was surprise at their response. The organization could not manage doubling the number of patrons. The costs of inputting and maintaining would be cost prohibitive. They suffer from a Donor Management system that limits their potential fundraising.

So what should a non-profit do that is suffering from a fundraising 'machine' that is slowing down, and isn't generating a growth path to support the mission? Step through this 5-step audit. evaluate the findings, scaling back traditional campaigns that do generate substantially more donations than the total cost to run the event, look for innovative ways to significantly expand the reach beyond the boundaries of the donor database, and then find ways to automate the process so that the fundraising costs are reduced.

The author, Wayne Miller, teaches non-profit executives how to increase fundraising results by 35% or more with strategies and tools that expand the donor base and provide new funding sources for programs. His website offers more free tips about improving non-profit fundraising at http://www.donate.net/.

View the original article here

Donor Management System is hurting Your Fundraising?

Here are 5 audit question-help to avoid hidden costs and lost revenue

Many organizations believe that expanding relations with the patron will increase their participation and giving. The key to this relationship, building method is to maintain records and notes on each patron. But he actually translate into more dollars raised?

Not Necessarily.

The reasons are variable-but the results of reliance on donor management tools are frustrating. Competitions of traditional models were 15% growth through effective information management. However, the results are treading downwards. Organizations also are first losing donors-which presents a grave concern for charitable purposes.

To evaluate the claims, ask five questions:

1) From My donations come from?
Carry out a survey campaign donation. Revenue is generated from contributions, fees, subscriptions, high net patronów, registration fees and charges of the sponsor, participate in special events, grants from Government or private foundations or product sales?

Using traditional competition benefits-which are easily understood and limited in scope and reach. The patron could be similar groups, but the traditional League campaigns are working in today's economy? Many patronów have suffered much in times of lean and back was limited, their charitable giving.

2 are traditional games), campaigns and methods of providing money to finance the projects of the Organization this year? The next year? In Addition To? The organization most non-profit annual budgets of projects increase. To adjust the growth of the Organization must increase its fundraising goals-but how? Or by increasing the amount of the average gift or an increase in the number of patronów, grants or appeals. Budgeting and planning ahead are important, that factor is the design path of growth.

(3))What are the hidden costs? In addition to the cost of acquisition, implement and maintain donor management systems-costs campaign should include training, workshops, and then add the costs of design, marketing, advertising, printing, sorting, direct mail, sewing is lodging newsletter, invitation, reminders or thank you. Staff and volunteer time to also be incorporated. It is important to be focused on the Organization's volunteer capital and effective managers of time their staff.

Consider all the costs. The easiest to quantify the costs are out of pocket money costs, other costs are shares that give perceived value--for providing the material or services that otherwise would have paid for. The most elusive hidden cost is the time ... How much time is invested by staff, key volunteers, Board members and supporters to create, manage, control, use and follow-up of the appeal or Community building activity.

4) the use of Information in the campaign development donors? Many donor management systems suggest multiple messages depending on the patron to factors such as the size of the donation, where lives the patron and what programs they have historically supported. This approach might suggest putting the target amount for the level-presenting the various donors, giving the limits for those who have more or less gifts that appear to be insignificant.

5) It provides a path of growth and fundraising reach outside of our current members, patronów and donor database? The limiting factor of donor management systems is also a way to treat patronów outside the database. In some donor management systems, then you can establish relationships first, before asking to give them support. Whether this is an effective method?

Speaking to a regional arts and non-profit organization humanity about the prospect of doubling their donor base, I was surprise in their response. The organization may not manage by doubling the number of patronów. Costs of implementation and maintenance would be cost prohibitive. Suffer from a donor management system, which limits their potential for fundraising.

So what should do non-profits, who is suffering from the collection of funds "machine" is a slowdown, and is not to generate the path of growth to support the mission? The individual steps of the audit step 5. evaluate the findings, the scaling back of traditional campaigns that generate donations substantially more than the total cost to run the event, to explore innovative ways to significantly extend the range beyond the donor database, and then find ways to automate the process, so as to reduce costs of fundraising.

Author, Wayne Miller, teaches nonprofit managers how to increase the results of the competition by 35% or more of the strategies and tools that expand the donor base and to provide new sources of funding for programs. His site offers more free tips on improving nonprofit fundraising at http://www.donate.net/.

View the original article here