Category Archives: Data Mining

A High Value Donor and Accountability

What a High Value Donor Thinks Part II

Batsch Group (BG) sat down today with a High Value Donor (HVD), who has played many different roles in our community and in Canada. Some of those roles included CEO of a Melcor Developments, Chancellor of the University of Alberta from 2012 – 2016, a Board member,  a fundraiser and as a donor. These are just a few of his community activities, which makes him the perfect person to ask about his perspectives on giving.

Please meet Ralph Young (RY)and hear what he has to say.

BG:     How do you choose the charities you wish to support?

RY:     First, it is the cause.

Next, it is believing that our contribution will bring value.

Finally, I like to see it’s working, so feedback is important.

BG:     As a developer, what are your thoughts about the foundation that supports a building?

RY:     Well, without a strong foundation, the building doesn’t stand.

BG:     What are your thoughts about charities and their organizational foundation?

RY:     Well, we have worked on many not-for-profit projects and found that their foundations are often dysfunctional. Staff members change, and often little is known on what has been committed or what will happen with donor’s wishes, leaving it in question. There has to be accountability by the organization to donors.

BG:     Accountability is important. You have mentioned several times today.

RY:     Acknowledgement is nice, too. Don’t forget us once the gift has been received.  

BG:     Are you suggesting that once the gift is received, charities forget about you?

RY:     It’s nice to hear from charity staff. They could take a moment to just drop a line, maybe a quick card signed by someone who has worked with you.  This keeps our interest and shows the charity understands we are more than the gift.

Note to readers: What is being expressed here is relationship building and how a charity can maintain a donor’s interest in how projects are proceeding.

            I once heard a fundraiser say they wanted to make friends with donors. Our position is donors are not your friends they are collaborators supporting a common cause.

            We also heard a comment from a young fundraiser who had worked for one of the cancer charities. They bragged that they had acquired so many gifts in kind for an event that they didn’t even bother thanking the donors. If you were the donor what would you think?

RY:     The problem is staff change so often. It is hard to build a relationship. I am working with a Foundation and I thought the development staff worked well, but they have all left.

BG:     The level of disorganization can affect staff morale. It’s hard to be successful when you spend most of your time looking for information or trying to build a donor profile so you can be credible when you meet with a donor.

RY:     Another area is reporting. I have often received very glossy reports but something simpler with more content would be useful.

BG:     Would you consider donating to a charity where they run a chaotic organization?

RY:     It would depend, but chaos and a lack of discipline would be a consideration.

BG:     What do you think of a form of certification for a charity which supports how it works to successfully deliver its programs, and which cannot be undone by every new staff member.

RY:     I think it’s a good idea.

BG:     Ralph, thank you so much for taking time to share your thoughts, your suggestions and some of your frustrations!

Summary Comments

The charitable sector manages billions of dollars annually. In Canada, CRA has some oversight, but what about oversight related to how the charity runs internally. A chaotic environment, run by often untrained staff, who are responsible for donor management practices puts the charity and its funding dollars at risk. What if a charity could say to prospective donors:

  1. We have an annual training budget and all staff engaged with fund development are required to be fully trained.
  2. We have an organizational strategy for all electronic tools, so access to our resources is seconds, not minutes or hours.
  3. Senior managers all participate in adding to our organizational history.
  4. Fund development managers can use the donor management software and collaborate with data entry to ensure all campaigns and appeals are properly defined.
  5. The charity has specific policies and practices for all forms of data management, which we adhere to allowing for corrective actions where needed.
  6. We invest in continuous improvement but all within the context of our current methods of information management.
  7. Our investment in these methods has continued to improve our productivity and our charitable dollars.
  8. Staff change will no longer put the charity at risk as our methods and policies have enabled us to continue work regardless of change.
  9. We have developed a High Performance work environment to achieve our goals and maintain high performance staff.
  10. We have more time to invest in building relationships with our valued donors, so we are a true donor-centric organization.

Batsch Group Inc

Authors of From Chaos to Control Build a High Performance Team Using Knowledge Management

Risky Business

U Bein Bridge Myanmar
1.2-km bridge was built around 1850 & is believed to be the oldest & (once) longest teakwood bridge in the world.
U Bein Bridge Myanmar

RISK to a charity resides at the top. It is found in the attitudes expressed by Boards and senior management.

Information and knowledge are the drivers behind successful businesses today. This includes the charitable sector.

When information and skills are given short shrift by those who should ensure a well-run organization, you have RISK. Board members and staff change. In the case of staff, they receive salaries, RISK does not directly affect them. When staff leave, the knowledge they have recorded of their interactions and research with donors, funders, and advocates is their legacy.  But what happens when little of that information is recorded? Can the charity be confident they have the most current data? Unfortunately, this is not an unusual situation, where large gaps occur in the knowledge base which the charity uses to engage its donors.

How do you reverse the knowledge loss which affects most charities? We think the answer might be found with their donors. Would donors be more comfortable giving to a charity who offers an ISO (International Organization for Standardization) or TQM (Total Quality Management) form of accreditation? This accreditation would address standards where members of an organization participate in improving processes and the culture in which they work.

There are organizations currently, which look at charity outcomes to recognize the charity’s value. But, what about behind closed doors? What would the outcomes be in a more organized, knowledge-driven environment where data is captured, not lost? Would RISK be mitigated? Would staff change be drastic? Could the black hole often greeting new staff be removed?

We recently sat down with a high-value donor whose gifts fall into the seven-digit  range. Our conversation is next:

What a High Value Donor (HVD) Thinks

Batsch Group (BG) sat down today with a HVD, who has played an important role as a donor in our community, to gain th

eir perspective on how they choose a charity to support. 

We discussed some issues from our perspective regarding how the charity is organized to ensure staff have the tools they need to be successful as they tell the charity’s story, build a funding base and a sustainable future for the charity.

BG:     What is important to you when you select a charity to support?

HVD: For me, it is the Why – How – What. 

Why the charity needs to raise money?

How will it help a situation?

What are the expected outcomes?

            Leaders fail when success stories are second to the ‘shadow of failure’.  When I give, I look for positive results.

BG:  What are your thoughts on whether the organizational structure of a charity impacts their ability to raise funds?

            Physical organization of the tools used.

            Building a Knowledge-base to better understand donors.

            Training, so staff can use the tools they need to do their job.

            Job Descriptions which make staff accountable.

HVD: I don’t like to put people in a box; it curbs their creativity.

            I prefer the words Job Outline to job description.

BG:     We consider physical organization a platform to support staff creativity. Time is important, and if 2 hours are taken to do a 20 minute activity, 1 hr and 40 minutes are lost. When tools are provided like recording key conversations but the staff member chooses to use something different, it undermines the charity.

            I agree with you; creativity is key to success.

HVD:  Charities need to think like a business.  The team, a new staff member, joins, is important in retaining them, as good staff will stay in a less productive environment with a good team, versus good staff hired to work with a bad team.

            The salary differential for charities is huge between different organizations.

BG:     Salaries are usually determined by charitable dollars raised. Where an environment does not support a platform from which fundraising staff can succeed, the result will be fewer dollars.  Another impact is training. Charities often feel training is an expense.

HVD:  I am all in on the importance of training. The cost of a poorly trained employee far exceeds the cost of a trained one.

BG:     Would you donate to a charity, which is highly disorganized.  A charity where there is no training and time is squandered due to a disorganized working environment?

HVD:  No.

BG:     The majority of charities struggle with common issues. Managing their donor data is a big problem. Because we work at the grassroots level, we see the impact of a donor database where only gifts are entered and little else. We call this the BLACK HOLE, as it undermines the charity and hobbles the ability of staff to speak confidently with its donors.

BG:     Thank you for taking the time to discuss an important issue. The charitable sector plays an import role in all communities.

Information is what a charity needs to collect to build a viable future not impacted by change but in spite of change. 

FROM SURVIVAL TO THRIVAL!

High Performance: Moving From Chaos to Control

CamelPetra

Camel at rest in Petra

How important is the information your charity uses to sustain itself?  The information we refer to is found in donor gifts and interactions, funding research and grants, sponsorships and planned gifts.

This information is an asset. We can add to this asset by including all the tools that an organization builds to perform its fundraising activities. These tools take time to create, they reflect the organization and they are built at a cost thereby having value. When we hear that information is dull we wonder who is dull, could it be the person who doesn’t understand its value?

How can information be dull when it tells you so many things that enable a charity to react in a timely manner; address a donor at a critical time; enter into discussions that result in a major gift or build a planned giving program with committed donors?

This information is hardly dull it is a charity’s lifeline.

When information is not well tended it gets lost, it’s incomplete, it results in a charity looking less than credible, and it puts the charity at risk.

No matter how important staff members may think they are to a charity, they do change. They move to new jobs and what do they leave behind? In many cases, very little is left for new staff to work with and this loss is a setback to the charity. How many setbacks has your charity experienced? We suggest you look at staff changes in the fund development department and see how it has impacted over the years.

If you took everyone out of your fund development department today, how credibly would your organization be able to continue its fundraising activities? We use the word credibly because the loss or inaccessibility of information also pays a toll.

Story: The new fund development manager came from a high tech company. She met with a key donor for the first time. They discussed the donor’s interest in the charity. She asked if he would be attending the Christmas gala … I always attend came the response. Would you be interested in being a sponsor? … I am already a sponsor was the answer.

For an asset that is called dull … we begin to understand dull is not the right word … essential and valuable is a better way to look at it.

The next question is “whose responsibility is it to manage this information”? We think it is the charity’s responsibility backed up by some very well defined job descriptions that ensure staff members know what is expected of them and how those expectations address the charity’s most valuable asset, its capture and retention.

Dull is not the right word; under-estimated would be more accurate.

From Chaos to Control moving your charity to a High Performance Organization

http://tinyurl.com/ChaostoControl1

Treating your Donors like Customers

FunSmall Blue Butterflydraising has become very much a business and if it hasn’t become a business at your site, it may be time to reconsider.

A charity is a business that offers a product or service that a customer can purchase. Ultimately, what when I am a customer I take home the sense that I have made a contribution, it may be big or small but within my world I have purchased the sense that I am helping someone or some organization and I have made a small difference.

How you treat a customer is very dependent and whether they do repeat business. In some cases, a customer continues to do business no matter how shoddy the service because it’s the only place to purchase what they are looking for. This scenario reeks with potential problems because as soon as a better option comes along the customer is gone.

Consider your favour shopping haunt. When you made your first transaction, did they make you feel they appreciated your business? When you returned a second time, did they recognize you or greet you in a positive manner? If you were interested in a specific product line did, they recognize it … and even better, as you they became more familiar with you did they track your preferences?

Over time were you recognized as a valued customer? How did that make you feel? Did it encourage your patronage? Did you speak to others about your experience and encourage them to support the shop as well? Were you ever invited to a VIP customer evening or did they ever do anything for you in the form of a special gift? Did they update you when changes were forthcoming relative to product lines you select? Did you ever receive a thank you from the service staff that simply acknowledged how much they appreciated your business?

These are the customers a charity wants and needs. And these are the things a charity must be prepared to do if they want embrace and retain their customers. There is a great deal of competition in the marketplace for valued donations and I think valued is the key word. When charities become too entitled or too forgetful or too “busy” to look after and engage its customers, we have long term relationships that fade into one off gift experiences.

If you are shaking your head, it may be time to review the tools you are using to manage your customers and whether the information you want and need to retain is being captured in a form that makes every one of the ideas above not only attainable but easy to manage. Great customer relationships start with a plan that is delivered consistently year after year with the appropriate data capture tools to ensure the job can be performed and performed well.

“The relationship with ones’ donors is as fragile as a butterfly.”

Are you Struggling with a Mining Disaster?

Hanoi

You can’t Mine what you don’t have!

Successful fund raising is based on the relationships you build with your donors.  Some of those relationships may be more distant than others but still effective as you work to reduce the distance and engage long term support.  The use of a database to record gifts and information concerning donors is essential to a formal fund development program. There are no secrets and no short cuts to managing this high value resource which gives financial support to your organization. The donations received and knowledge gained, need to be managed as an entrepreneurial asset that requires well thought out policies supported by procedures and standards.

When you sit down to prepare your fund development plan for the next year and you want to include some projections, your success rate will be directly related to the quality and quantity of the data / information you have to work with.

The misfortune for many organizations is they have not managed their donor information with an eye on the present nor the future.  Spreadsheets used to record events, no profile data on high value donors, information kept in notes are a few examples of information found in a less than useful form.

What makes data mine-able?

Think of a bank. You are creating a bank account of information about how your donors have invested in your charity. Determining first and last gift, as well as accumulated donations, requires accuracy. One of the biggest perils is duplicate donor records where multiple entries for a given donor makes this information unattainable. Imagine contact with the donor only to have them point out inaccuracies. It’s not only a personal embarrassment but it exposes poor methods inherent in how the charity manages its business.

Complete information is essential. Surprising as it may be, poor data management is more prevalent than one would think. A basic tenet of successful fund raising is knowing what and how a donor has interacted with a charity. This only occurs through good recording methods and definitely not through staff memory.

A well run charity wants to know what donations have been gifted; which events donors have attended; if they have volunteered; did they spent money on auction items at an event; whether they donated an auction item; have they been an event sponsor; or a participant in a walk or a run.  The answer to all of these questions should and needs to reside in the donor database making data mine-able.

All members of the fund development team should participate so that transactions are recorded accurately and in a timely manner. Gift information, when well recorded provides further depth about a donor’s interest in a charity. For example, recording a donation as a “designated” gift, does not provide the same impact as using a fund account that establishes a specific interest. Knowing that a donor supports a particular program, service, facility or equipment purchase enables the fund development department to engage the donor with further support or interaction with the charity.  These activities build commitment and commitment is what we are looking for.

The Other Information that makes data mine-able will address donor characteristics. For example, type of business, special interests, family and friend relationships. These are just a few ideas that would benefit the charity. The possibilities are endless but they must be relevant to the charity. How this is collected can be part of an annual review of major donors. We have prepared forms that help to establish the basic information that is required when entering donors. Using a template to help fill in information is helpful.

Something as simple as a correctly formed address, phone number (s) and email give access to donors based on special criteria that a charity has captured. When we discuss capture for essential pieces of information we are not suggesting notes as a primary method. Notes are useful as a secondary resource but they DO NOT provide accurate access. Spelling errors, typing errors, different methods of saying basically the same thing are a real waste of time and make data unsearchable and results unreliable.

A system can be developed that is in the best interest of the charity.  This system supports data capture and management where staff members become accountable for the completeness and quality of what they record.

Staff, who are non-compliant, are a risk to an organization and marginalize one the charity’s most valuable assets.  Training is a further issue. Would you give a multi-million dollar asset to someone who thought they could figure things out or someone completely untrained or would you prefer competence as the preferred option? It’s always interesting to find out that training has been all but eliminated from an annual budget. By guess and by golly, does not make for a successful outcome! Boards and senior management need to support training and skill sharing, if a charity staff are to work effectively.

If you choose to have mine-able data, it will be up to you and your organization. Poor donor data management provides low quality data and yeilds poor or mediocre results. It erodes staff time and diminishes morale as the same problems crop up again and again.  Hands-off managers, procrastinators, and those who are too busy, should never be given the responsibility for managing a charity’s financial future.

If you want mine-able data start by looking at how you are managing what you learn about your donors and how you record their interactions with your charity. It’s the responsibility of the charity and its staff to manage; the database used is just the tool!

If you would like sample profile forms, please email your request to ease@batschgroup.com.