By Jonathan Grapsas
This article was first published in Canadian Fundraiser Magazine and is part two of a four part series
I introduced last time the notion of arming yourself with three types of data (environmental, analytical and personal data) to make informed decisions to grow your fundraising programme.
The first I’m going to touch on in detail is the use of environmental data, in other words scanning what’s happening in the marketplace and how you can learn from others to raise more money.
There is a lot of environmental data out there to access.
You can look at annual reports from other charities to see how individual organizations are performing or look at information produced from bodies like Imagine Canada to see where money is coming from across the sector.
All free and publically available data, which is incredibly useful to get a sense of what is and isn’t working for different charities across the country.
Then there is benchmarking.
I’m sure that for many, the notion of benchmarking conjures up thoughts of meaningless, dull data and reams of paper full of graphs and charts.
And whilst there is some element of truth to this, I see benchmarking as one of the most powerful fundraising tools in our armory and anything but dull.
The way I look at it benchmarking is about looking at what others are doing and using this information to raise more money for the causes you work for.
Benchmarking studies come in various shapes and sizes. I’m going to focus on what I believe to be the most useful of those, data benchmarking (as opposed to benchmarking surveys that ask you a series of questions rather than look at your real data). In other words, charities looking at the actual data of theirs and other organizations with the intention of learning more about others in order to further their cause.
There are six key reasons why benchmarking is a must for any successful or ambitious fundraising organization.
1. It helps you identify industry trends
When charities share information and look at performance, both on a big picture scale and in minute detail, it arms fundraisers with information about what’s happening in the marketplace.
What’s working, what’s not. What’s driving growth.
This allows you to then make informed decisions about your own efforts, including reaffirming decisions you have made about areas to invest in. Or conversely giving you evidence that an area you have chosen not to bother with was indeed the right call to make.
2. Gives you a sense of your performance vs. the industry
How do you really know whether your fundraising is up to scratch or not? What on earth does 30% retention of cash donors actually mean? Are you sure that having only 0.2% of your file telling you they have left a bequest is low?
Questions we ask ourselves daily.
Benchmarking helps answers these and many other fundraising questions. It gives you a real sense of how you are doing.
The best way to do this is by looking at your data versus the data of other organizations. Of course there is always context. But where the names of the charities are shared and programs, size and budget are put in perspective, this gives fundraisers a true sense of how they are tracking.
3. You share knowledge
As Sara Campbell Mates from WWF Canada says‘… It opens up a dialogue between us as one organization and our colleagues at other organizations about how we can work together to do better and make the sector stronger. The experience in benchmarking has been priceless from that perspective.’
Sara is spot on.
Benchmarking forces fundraisers to talk to each other. Because let’s face it, when we go to conferences and attend workshops, we’re a polite bunch and we also tend to keep to ourselves.
But when you’re looking at Charity A whose retention rate on new monthly giving recruits in miles ahead of yours, you simply HAVE to talk to them. Find out how they’re doing it, what they’re doing differently, what they’ve tested.
This is debatably the most potent feature of any benchmarking project. Really clever people coming together to share not only data, but brilliant ideas. Can only result in great things happening.
4. Provides a better understanding of fundraising
If you’re not using street recruitment to recruit new donors, then how are you going to learn more about the channel? Of course you could talk to an agency; you may even talk to a colleague who did it once, back in 1998.
But what better way of digging deeper and getting the real lowdown on areas you’re not familiar with than to see firsthand organizations who are doing it? And doing it now.
Benchmarking programs, particularly those that are all encompassing and study each area of fundraising allow you to learn, and do so looking at real, live data and not textbooks.
5. Saves you money and helps you get MORE of it
The biggest barrier to measuring yourself is the cost of doing it. The second biggest barrier is a fear or reluctance to share.
Benchmarking is about value, not cost. If you commit to comparing yourselves with others, then you will not only recoup the upfront outlay, but the information it arms you with will allow you to make more informed and strategic decisions. And that can only mean one thing: more dollars raised.
6. Reduces complacency
Often overlooked as a reason to measure one’s self, yet incredibly important. Benchmarking makes us more accountable. And by accountable, I don’t mean justifying “how much of the donors dollar goes to the cause”.
I mean it makes you accountable. It reduces any possible complacency. It pushes you to become a better fundraiser. You sure won’t allow yourself to have the worst monthly giving attrition next year, nor will you allow Charity X (who frankly you find quite smug) to knock you off your bequest perch. Not a chance in hell.
About the writer
Jonathon Grapsas is the Regional Director for Pareto Fundraising in North America. This is the second in a series of articles where Jonathon will look in detail at how you can use different sources of data to help grow your fundraising program and raise shed loads more money for your cause.
