Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and...
-
Upload
bloomerang -
Category
Government & Nonprofit
-
view
550 -
download
0
Transcript of Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and...
![Page 1: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/1.jpg)
Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector
Excellence to Attract and Retain Donors
2/25/16 1pm Eastern
The presentation will begin shortly.
![Page 2: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/2.jpg)
3
This presentation is being recorded! The recording and slides will be emailed to you.
Please chat in any questions for our guest. We will answer them in the formal Q&A session
at the end of the presentation.
Follow along on Twitter with #Bloomerang @BloomerangTech.
For best audio quality, dial in by phone. (check your email for dial-‐in info from ReadyTalk)
Before we get started »
![Page 4: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/4.jpg)
3
Our guest presenters »
Barbara O’Reilly, CFRE -‐ @BOReillyWHC
Richard Neustedter
![Page 5: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/5.jpg)
U S I N G S O C I A L S E C T O R E X C E L L E N C E T O A T T R A C T A N D R E T A I N D O N O R S
W E B I N A R
F E B R U A R Y 2 5 , 2 0 1 6
Ratings, Overhead, and Measuring Impact
![Page 6: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/6.jpg)
Presenters
Richard Neustedter Barbara A. O’Reilly, CFRE
![Page 7: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/7.jpg)
Agenda
I. Introduction
II. Understanding What’s Important to Donors
III. Defining A High Impact Organization
IV. Creating New Donor Conversations
V. Conclusion
![Page 8: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/8.jpg)
Introduction
![Page 9: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/9.jpg)
“The Age of Assumed Virtue is Gone”
![Page 10: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/10.jpg)
Key Messages
With a crowded nonprofit market, donors want to invest in successful organizations that have sound business practices for sustainability.
This means that donors will support nonprofits that:
• know where they’re going (vision and strategic plan)
• manage to outcomes (impact, demonstrated results)
• understand their true costs and funding needs (operational performance)
• know if they’re making progress and how to adjust if they’re not (metrics, evaluation, learning)
![Page 11: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/11.jpg)
Key Messages
Responding to a need for donor guidance in philanthropic decisions, charity validators have created metrics to determine nonprofit performance.
• However, these metrics are often limited as true indicators of a nonprofit’s effectiveness.
The result is confusion and misperceptions about the need for ratings and how to effectively incorporate them into a nonprofit’s story-telling to attract and retain donors.
![Page 12: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/12.jpg)
Best Practices Ensure Greater Financial Sustainability
Vision and Strategic Plan
Culture of High Performance
Plans to Evaluate & Grow
Greater Financial
Sustainability Through Donor Investment in
Your Cause
![Page 13: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/13.jpg)
Understanding What’s Important to Donors
![Page 14: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/14.jpg)
Data Influences Social Investment
• Very important the charity has evidence that its programs are effective. Nearly 70%
• Good charity ratings from watchdogs. 54%
• Very important to know that charities spend a low amount on salaries, administration, and fundraising
50%
Source: 2015 Chronicle of Philanthropy poll
![Page 15: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/15.jpg)
VALIDATORS ATTEMPT TO DRIVE
BEST PRACTICES THROUGH
RATINGS.
INSTEAD, THEY CAUSE CONFUSION
AND FEAR AMONG NONPROFITS.
![Page 16: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/16.jpg)
Public Data is Confusing
Fundraising Costs
• 37% reported having no fundraising costs whatsoever.
M&G Expenses
• 13% said that they had no management and general expenses.
Does 90-100% of every dollar raised really go to programs?
• Yes and No. Other unrestricted funding can help to offset administrative expenses. Or non-program costs are built into larger major gift asks.
![Page 17: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/17.jpg)
Lean and Mean=Nonprofit Starvation
Misleading reporting & overhead “phobia”
Unrealistic funder expectations
Pressure on nonprofits to conform
![Page 18: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/18.jpg)
And yet…
“Organizations that build robust infrastructure—which includes sturdy information technology
systems, financial systems, skills training, fundraising processes, and other essential
overhead—are more likely to succeed than those that do not.”
Source: The Nonprofit Starvation Cycle (SSIR, Fall 2009)
![Page 19: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/19.jpg)
RATINGS ARE JUST ONE PART OF THE
STORY.
![Page 20: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/20.jpg)
Defining a High Impact Organization
![Page 21: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/21.jpg)
Social Sector Excellence Defining what it means for you
• Passion & Experience • Strategic & Creative
Leadership
• Financial Health • Capable & Sustainable
High Performance
• External validation • Evidence of success
Evaluation for Impact
• Internal Assessment • Drives strategic changes
Monitoring for Improvement
THE PERFORMANCE IMPERATIVE = HIGH IMPACT ORGANIZATION
Source: Leap of Reason, Mario Morino
![Page 22: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/22.jpg)
Accountability & Transparency More than buzz-words to educated donors
Accountability
• Defined Board of Directors and Staff
• Defined Governance Structure and Policies
• Defined Ethics and Limited Conflict of Interest
• Audited Results and Performance Reporting
Transparency
• Fully disclosed financial information
• Formalized operating policies
• Formal Articles & Bylaws
• Disclosed compensation
• Information publically available on organization website
BEST PRACTICES FOR A & T = DONOR TRUST AND CONFIDENCE
![Page 23: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/23.jpg)
Taking the Mystery out of Ratings Validators drive best practices through performance metrics
Charity Navigator
• 0-4 Stars system is simple for donors
• Rated charities receive 50% of annual giving
• National organizations with operating revenue of $1 million or more
Better Business Bureau Wise Giving Alliance
• Charity Seal program defined to measure operational excellence through accreditation
• Self-application process open to most nonprofit
DIFFERENT VALIDATORS USE MANY OF THE SAME INPUTS
![Page 24: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/24.jpg)
Taking the Mystery out of Ratings Understanding the Charity Navigator Methodology
Objective rating for fiscal management, operational excellence and good governance
7 financial metrics, 6 inputs from 990
Measures financial efficiency and capacity
20 A & T metrics, 6 inputs from website, 14 from 990
Measures good governance through policy and disclosure
A SIMPLE, DONOR-CENTRIC ANALYSIS THAT INDIVIDUALS LIKE
![Page 25: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/25.jpg)
Taking the Mystery out of Ratings BBB Wise Giving Alliance National Charity Seal
Developed the Charity Seal Program to foster public confidence and assist donor decisions
20 Standards include:
Governance and Oversight
Impact – Measuring Effectiveness
Finances
Fundraising and Public Education Materials
BBB PROVIDES A NATIONALLY RECOGNIZED VALIDATION LOGO
![Page 26: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/26.jpg)
Taking the Mystery out of Ratings Validate your impact outside of your own website
GuideStar Exchange • Provides on-line profile of
information you manage
• 3 simple categories, Bronze, Silver and Gold
• Database links to 60+ websites, applications and programs which support nonprofits
GreatNonprofits • Provides on-line reviews
of organizations
• Share impact from testimonials
• Database links to dozens of other nonprofit supporters
• Powers GuideStar Exchange Gold results
TELL YOUR STORY THROUGH EXTERNAL VALIDATORS
![Page 27: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/27.jpg)
Taking the Mystery out of Ratings Positive validation – why ratings matter
Establish Confidence and build donor trust
Donors use financial data from online sources
Individuals use your info even if you don’t know it
Financial advisors direct clients to ratings sites
External validation to support your claims
Primary Sources:
REMEMBER, DATA + VALIDATION BUILDS TRUST
![Page 28: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/28.jpg)
Creating New Donor Conversations
![Page 29: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/29.jpg)
Don’t Assume Trust
"What does this trust exercise teach us? Never take your donors' support for granted."
Source: Chronicle of Philanthropy, May 1, 2008
![Page 30: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/30.jpg)
New Fundraising Normal
Donor Conversations
High Performance
Social Sector
Excellence Results
![Page 31: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/31.jpg)
New Fundraising Normal: Start by Sharing Your Story and Dream
• What is your organization aiming to accomplish? • What are your strategies for making this happen?
Strategic Vision and Plan
• What are your organization’s capabilities for doing this? (internal and external)
Culture of High Performance
• How will your organization know if you are making progress? • What have and haven’t you accomplished so far?
Culture of Learning and Performance
Source: Guidestar Charting Impact and Leap of Reason
![Page 32: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/32.jpg)
New Fundraising Normal: Then Explain Operational Costs
Capacity
• What does it cost to do your work well and reach the desired impact you want?
• Is it a question of “Low pay,” “Make Do,” or “Do Without?”
Outcomes
• What happens if you don’t have the adequate funds you need to run your programs?
OPERATIONAL COSTS BECOME FOCUSED ON
INVESTMENT IN CAPACITY
![Page 33: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/33.jpg)
Conclusion
![Page 34: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/34.jpg)
Validators Can Guide Nonprofit Excellence
Donors Nonprofits
Social Sector Excellence
Stronger Nonprofit Sector
Financial Investment
![Page 35: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/35.jpg)
Questions and Thank You
Barbara O’Reilly, CFRE
Principal
Windmill Hill Consulting
www.whillconsulting.com
@BOReillyWHC
Richard Neustedter
Partner
Nonprofit Financial Specialists
www.npfinancialspecialists.com
![Page 36: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/36.jpg)
https://bloomerang.co/resources
•Nonprofit Wrap-‐Up •Bloomerang TV •Bloomies
•Daily blog post •Weekly webinars •Downloadables
![Page 37: Ratings, Overhead, and Measuring Impact: How to Use Your Social Sector Excellence to Attract and Retain Donors](https://reader031.fdocuments.net/reader031/viewer/2022030123/58a431361a28ab3e3d8b60e3/html5/thumbnails/37.jpg)
Our next free webinar »
Face-to-Face Fundraising: Best Practices & New Initiatives
Wednesday, April 20th - 12:00pm Eastern
Daryl Upsall, FInstF
https://bloomerang.co/resources/webinars