Finance, Fundraising and Technology:*Beyond the Bottom Line

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Information about Finance, Fundraising and Technology:*Beyond the Bottom Line
Business & Mgmt

Published on November 8, 2008

Author: dharkins

Source: slideshare.net

Alzheimer’s Association Finance Directors Meeting April 5, 2003 - Dave Harkins VP, Director of Strategic Services The Jackson Group Finance, Fundraising and Technology: Beyond the Bottom Line

What We’ll Cover Overview of philanthropic giving in the U.S. and how it has evolved How it will impact what you do Focus on Finance Best Practices for Finance leadership It’s more than just the numbers!

Overview of philanthropic giving in the U.S. and how it has evolved

How it will impact what you do

Focus on Finance

Best Practices for Finance leadership

It’s more than just the numbers!

Charitable Giving 2001 Contributions $212.00 billion by contribution source Source: AAFRC Trust for Philanthropy/Giving USA 2002

Charitable Giving 2001 Contributions $212.00 billion by recipient type Source: AAFRC Trust for Philanthropy/Giving USA 2002

Charitable Giving Total Giving 1971 - 2001 Source: AAFRC Trust for Philanthropy/Giving USA 2002 $ in Billions Inflation-Adjusted Dollars Current Dollars * Recessions in purple: 1973-1975; 1980; 1981-1982; 1990-1991; 2001

Charitable Giving Individual Giving and Personal Income Adjusted for inflation Source: AAFRC Trust for Philanthropy/Giving USA 2002

Charitable Giving Individual Giving and the Stock Market Adjusted for inflation Source: AAFRC Trust for Philanthropy/Giving USA 2002

Charitable Giving Wealthiest 20% of Americans contribute 67% of all philanthropy Total individual giving Source: “Trends in wealth and Philanthropy”, Boston College Social Welfare Research Group Formula applied from 1999 giving to 2001 giving.

Charitable Giving Individual Giving As a percentage of personal income 1990 – 2002 Source: AAFRC Trust for Philanthropy/Giving USA 2002 1.9% 1.8% 1.8% 1.8% 1.7% 1.6% 1.8%

Charitable Giving Growth in 501(c)(3) organizations 1991-2001 Source: AAFRC Trust for Philanthropy/Giving USA 2002

Charitable Giving Giving behavior is not changing Our generosity as a nation is driven by our resources as a nation Competition for donations is growing

Giving behavior is not changing

Our generosity as a nation is driven by our resources as a nation

Competition for donations is growing

Beyond The Numbers The contributor “pie” is about the same Contributions will tend to be “shifted” from one area to another Individuals have more causes to which to contribute Causes are becoming more and more individualistic Some level of consumerism will appear “ What have you done lately” syndrome Clarity in purpose is needed Not just at the national level, but at the local level Aside from research dollars, donors may want to see more dollars allocated for local efforts There is a movement of financial firms into philanthropy Increased importance of professional advisors

The contributor “pie” is about the same

Contributions will tend to be “shifted” from one area to another

Individuals have more causes to which to contribute

Causes are becoming more and more individualistic

Some level of consumerism will appear

“ What have you done lately” syndrome

Clarity in purpose is needed

Not just at the national level, but at the local level

Aside from research dollars, donors may want to see more dollars allocated for local efforts

There is a movement of financial firms into philanthropy

Increased importance of professional advisors

What Others Are Finding… Operating model has to change How do we engage and manage multiple constituents across multiple channels? Must agree on the primary “customer” (Donor, Foundations/Corporations, Chapters, Recipients, etc.) Organization and governance as to be evaluated Are we working as a team to solve key “business” challenges Are we structured properly to execute efficiently? How do we make decisions as a “system” to show a unified front to various constituents? How do we define success? Revenue generation Maximizing use funds raised Creating higher level of impact for the cause

Operating model has to change

How do we engage and manage multiple constituents across multiple channels?

Must agree on the primary “customer” (Donor, Foundations/Corporations, Chapters, Recipients, etc.)

Organization and governance as to be evaluated

Are we working as a team to solve key “business” challenges

Are we structured properly to execute efficiently?

How do we make decisions as a “system” to show a unified front to various constituents?

How do we define success?

Revenue generation

Maximizing use funds raised

Creating higher level of impact for the cause

What Others Are Finding… Demand for “localized” accountability for chapters as individuals request more of their contributions stay “at home” for local programs Increased need to better educate donors on local vs. “Association” contribution Requirement to better understand the needs, values and expectations of donors Will impact systems and technology Direct Marketing/Fundraising

Demand for “localized” accountability for chapters as individuals request more of their contributions stay “at home” for local programs

Increased need to better educate donors on local vs. “Association” contribution

Requirement to better understand the needs, values and expectations of donors

Will impact systems and technology

Direct Marketing/Fundraising

Focus on Finance Finance’s role in leading the organization through change… It’s not just about the bottom line.

Best Practices – Finance Leaders Business Leadership Approach everything from the “business perspective” Pragmatic about execution of programs, plans and initiatives Asks the difficult ‘show me’ questions “ Can we realistically expect that many new donors…?” “ I don’t see how the users of this system will gain the value anticipated…” “ Have we really had enough time to prove the value of... that fundraising offer, that data, or that screen design” General Planning Provides guidance and direction on programs, marketing and technology investments Helps determine the actual costs of programs, as well as fundraising campaigns Goes beyond basic math…really gets to the heart of the real cost, no matter how difficult

Business Leadership

Approach everything from the “business perspective”

Pragmatic about execution of programs, plans and initiatives

Asks the difficult ‘show me’ questions

“ Can we realistically expect that many new donors…?”

“ I don’t see how the users of this system will gain the value anticipated…”

“ Have we really had enough time to prove the value of... that fundraising offer, that data, or that screen design”

General Planning

Provides guidance and direction on programs, marketing and technology investments

Helps determine the actual costs of programs, as well as fundraising campaigns

Goes beyond basic math…really gets to the heart of the real cost, no matter how difficult

Best Practices – Finance Leaders Budget Leadership Key process – “Top down” approach Provides base data and assumptions to “departments” Built on program needs, admin costs, projected growth in other costs Conservatively estimates revenue growth based on input from fundraising and other sources Finance sets the published figure for revenue Usually far more conservative than Fundraising’s Fundraising folks will still try to meet their target (wo-hoo!) Generally assumes costs for fundraising and technology are accurate as provided

Budget Leadership

Key process – “Top down” approach

Provides base data and assumptions to “departments”

Built on program needs, admin costs, projected growth in other costs

Conservatively estimates revenue growth based on input from fundraising and other sources

Finance sets the published figure for revenue

Usually far more conservative than Fundraising’s

Fundraising folks will still try to meet their target (wo-hoo!)

Generally assumes costs for fundraising and technology are accurate as provided

Best Practices Compliance Management and Support Keep the organization honest about the numbers Help the organization understand and meet guidelines (CBBB Standards/BBB Wise Giving Alliance) Particularly important for those marketers/fundraisers to understand!

Compliance Management and Support

Keep the organization honest about the numbers

Help the organization understand and meet guidelines (CBBB Standards/BBB Wise Giving Alliance)

Particularly important for those marketers/fundraisers to understand!

Best Practices Reporting and Analysis Forecasting Revenue Cost “ True Cost” of programs and/or campaigns Donor Value Cost of acquisition Long-term value of a donor

Reporting and Analysis

Forecasting

Revenue

Cost

“ True Cost” of programs and/or campaigns

Donor Value

Cost of acquisition

Long-term value of a donor

Questions?

Thank You! Dave Harkins VP, Director of Strategic Services The Jackson Group [email_address] Direct: 630.820.2087 5804 Churchman By-Pass | Indianapolis, IN 46203 | 1-888-Jackson | www.jacksongroup.com

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