Rethinking Fundraising Metrics

Data is increasingly driving the world of development. The ability to access and utilize data has changed how teams are shaped, how donors are engaged, and where resources are allocated. In addition, development organizations and major gift teams have rapidly expanded, and new data tools allow real-time fundraiser activity reports to evaluate fundraiser performance.

Simply tracking metrics to evaluate performance, however, will not always predict or measure real performance by these team members. Focusing on one key performance indicator (KPI) can lead to ignoring other meaningful activities and successes. Organizations that don’t reflect on the meaning and strategy related to metrics can inadvertently encourage inefficiencies and non-productive actions in development officers’ quests to meet their annual goals.

Additionally, organizations that don’t properly implement the use metrics to drive performance evaluation can create a disconnect between activity and strategic goals, causing managers to focus on tracking behavior over improving performance. According to BWF’s 2014 Survey of Frontline Fundraisers, approximately half of fundraisers believe that their metrics don’t reflect important activities. For those who have dual responsibilities (managing a volunteer program, leading a team, all while managing a portfolio, for example), there frequently are not concrete measurements for activities that make up sometimes over half of their workload. For others, uniform metrics do not adequately match the workload they face, depending on variance in the warmth of their portfolio, capacity of their prospects, or structural obstacles like leadership vacancies or lack of clarity on priorities that impede their performance.

Unintended side effects of poorly implementing three of the most common metrics in the industry are highlighted below.

Common Metric Rationale Unintentional Side Effect
Number of Visits Fundraiser performance is closely correlated with the amount of time he or she spends in the field and in front of donors. Development officers meet with the same donors repeatedly and do not focus time on discovery or solicitation.The quality of the visit declines, and few strategic objectives are met during meetings with prospects.
Number of Asks Fundraisers should be expected to ask for gifts consistently and proactively. Development officers ask too early in a relationship.Fundraisers ask for smaller than necessary gifts from high-capacity donors, seeking to get a gift on record over working for a long-term investment by the donor.

Cultivation activities are recorded as “asks” when a meaningful solicitation has yet to be made.

Total Gift Income
Raised
At the end of the year you look at what’s counted. Fundraisers’ primary responsibility is raising money. High performers can be penalized for larger asks that are closed after the fiscal year.Low performers can be rewarded by large gifts that come in on their own but are assigned to their portfolio.

There is a desire to “own” as many prospects as possible.

Credit sharing is misused to “tag into” large gifts, creating the impression of performance.

The answer is not to abandon metrics altogether. Many of the challenges described above can be mitigated through proactive management by supervisors and accurate and thorough reporting on metrics. Measuring performance and especially facilitating feedback sessions with team members on the interpretation of those results is a critical component of talent management. Metrics need to therefore:

  • Act as only one component of a larger system of understanding, creating accountability for, and evaluating performance.
  • Take into account a development officer’s tenure and portfolio composition.
  • Be created via collaboration between development officers and supervisors.
  • Be implemented consistently and reported on frequently.

Discussions about areas for skill and knowledge growth and training needs should go hand in hand with this process. This way, professional development can be targeted towards and influence the right activities by development officers.

BWF’s TalentED practice provides customized training and workshop programs to help grow the capacity of development teams. For more information contact us at training@bwf.com.

Originally published May 14, 2015

Copyright © 2015 Bentz Whaley Flessner & Associates, Inc.

Four qualities of strong potential development officers

In a previous post we discussed how frequently fundraisers do not fall into an even bell curve. It’s very difficult to find and keep those frontline fundraisers who excel and consistently bring in big gifts. A good first step in the process is thinking critically about how to identify a potential star fundraiser in the first place.

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There are four consistent, personality-based attributes that make individuals more successful fundraisers:

  • Strong communication skills: from picking up the phone to in person calls to drafting acknowledgement letters to preparing leadership for prospect meetings a fundraiser needs to excel at communication. Think about the sort of person who can talk about almost any topic – the individual who always finds something interesting to say. While communication skills can be taught and improved to a certain extent, those who have a natural inclination will always be a step ahead. Do not underestimate writing skills in this area as well. Written outreach and engagement with prospects will be included in almost any cultivation strategy and a poorly written or impersonal message can do more damage to a relationship and be harder to redress than a stutter in person.
  • Independence: We like to talk about fundraising teams a lot. And, while development operations/advancement service, support staff, and management do provide huge contributions to the fundraising process, much of frontline fundraising is one-on-one. A development officer is frequently the only person in the room with a prospect. Moreover, no matter how many KPIs (key performance indicators) or metrics that a manager might set ultimately it is the DO that controls the management of her fundraising portfolio as well as scheduling and outreach to prospects. Effective fundraisers thus tend to be fairly independent and self-motivated. They should be comfortable with and capable of making strategic decisions while working with prospects without second guessing themselves or choosing inaction. (We can talk later about the fine line between finding independent workers and having to deal with fundraisers who take it too far and “go rogue”).
  • Perceptiveness: The ability to read people and situations can never be underestimated. The entire discovery process is devoted to discovering information about/inclination of a prospect, and fundraisers can expect at least half of those details to come from non-verbal cues (indicators of wealth and interests from home/office decor, comfortable body language, excitement and allusions to interesting projects, etc.). Fundraisers then must be both strong talkers as well as engaged listeners and observers. They should be able to come out of a meeting able to not only recap the conversation that transpired but also estimate the prospect’s reactions to the meeting and have a sense of what would be the most effective next step.
  • Versatility: Meetings with prospects can happen anywhere; the ideal setting is one where the prospect is at ease. Fundraisers must therefore be able to blend in at everything from sports events to hunting lodges to black tie events. This does not just apply to wardrobe. An fundraiser’s ability to adapt to the conversation topics and situations at hand help to create a bond with a prospect as well as demonstrate the value that your organization places on donors’ time and interests. While some content can be taught (understanding high level finance for example is usually vital for principal donors) the best fundraisers are those that can translate such knowledge readily towards enriching interesting conversations and scenarios.

The truth of the matter, however, is that innate ability and personality only gets fundraisers so far. The attributes above must be matched with a certain set of behaviors and management structures in order to create a top performer.  There are many people with all four attributes who never progress beyond being mediocre development officers. In the next posts we will talk about the behavior that sets the best fundraisers apart as well as the structures that encourage accomplishment.

 

 

Want to learn more? Part II (Five behaviors of top fundraisers) and Part III(Six best practices top development shops offer to set fundraisers up for success)  are now up!