#donorcast

...Calling All Nonprofit Analytics Professionals and Data Scientists!

Bentz Whaley Flessner would like to invite you to participate in our 2016 Fundraising Analytics Survey.

Bentz Whaley Flessner has conducted the Fundraising Analytics Survey since 2010. This survey provides a comprehensive snapshot of the fundraising analytics profession and covers compensation, professional development, methodology, software, and institutional culture.

We use this survey to check the pulse of fundraising analytics, which is why we want to survey everyone in the community. Help us provide the community with important information to support, inform, and advance our field. 

 If you are a fundraising professional at a non-profit please participate here.

The FREE Summary Report of this 2016 Fundraising Analytics Survey will be available this summer. Highlights of previous year surveys are available online at www.bwf.com.

Dynamic scoring for predictive modeling was the topic of my recent Client Advisory highlighting BWF analytics services.  Here it is.  

Prospecting at the Speed of Philanthropy

Predictive modeling, the process of using data patterns to predict future activity, is well established in fundraising for identifying prospects, prioritizing portfolios, and increasing return on annual giving investments. However, for many organizations, these likelihood indicators remain static for many years despite the dynamic nature of donor relationships. Now, it is within the reach of development programs to have scores that change as donor activity change.

From Wealth Screening to Predictive Modeling

Screening and modeling initially emerged to scale the filtering process in prospect identification. A seasoned major gift officer knows to assess capacity and inclination upon meeting a prospect for the first time. Prospect researchers have assessed these same criteria using found indicators of wealth, connection, and aligning interests. Yet, historically this work was done one prospect at a time. Through the establishment of consolidated data providers, fundraising programs were able to scale the capacity assessment to include large sections of the database. This wealth screening brought efficiency to the research process. Predictive modeling enabled these teams to scale the inclination question. In other words, fundraisers could screen for propensity. As fundraising programs became more complex, we saw an increase in the frequency of wealth assessment. Perhaps the most frequent iteration is found in grateful patient programs because of the time-sensitive nature of patient affinity. We also see more frequent assessments in membership programs in the arts, in new parent populations in education, and following gift-level triggers in complex programs. For most organizations, though, the frequency of modeling remains about once every three years.

A Prospecting Innovation

Now, we are at a point where the frequency of inclination assessment can match the frequency of wealth assessment.

A few innovative organizations have embedded the characteristic weightings from predictive models directly into their donor relationship management systems. As constituents give new gifts, volunteer, participate in activities, attend performances, or respond to appeals, their scores change dynamically.

The benefits of dynamic predictive modeling scoring include:

Managing the flow of new prospects by fresh levels of urgency.

Removing the often stagnant nature of major gift portfolios.

Targeting the timing of appeals.

Converting members to donors.

Increasing our responsiveness with our closest constituents.

Your Opportunity

We are excited to announce that DonorCast, the analytics division of Bentz Whaley Flessner, has successfully produced dynamic scoring with predictive modeling clients across nonprofit sectors. Dynamic scoring is now an option for any predictive modeling project.

Perhaps I should be looking for more astronomers!  -Interesting read on the aligning skills of astronomers and data scientists.

A few years ago the role of Data Scientist was described as the sexiest job of the 21st Century. In the big data jungle Data Scientists are the apex predators, and yet they are relatively few in number. They have been described as being as rare as unicorns, with estimates that by 2018 the US alone will experience a shortage of 190,000 skilled data scientists (a shortfall of approximately 60%). More recently the number of job postings for Data Scientists rose by 57% for the first quarter of 2015, with searches for Data Scientists growing by 73.5% in the same period.

... How will we meet the projected demand in the meantime? At least part of the solution may come from an unexpected source: astronomy and astrophysics.

The Expansion of Fundraising Analytics.  

2014 State of Fundraising Analytics Study.  See the full whitepaper here.

Don't miss this video!  Defenders of Philanthropy. Just in time for APRA!

7 steps to rolling-out effective performance management plans at your nonprofit.

Do performance metrics actually change behavior? Part 3 of 3 

In the third installment of my thoughts on performance metrics in nonprofit fundraising, I hope to present an approach to implementation.  As we discussed, an understanding of the interests and drivers for each staff member is requisite for establishing a system of motivating them.  And, the data only serves to motivate independent of human intervention in cases of peer input, aligning self-interest, and fun - none of which are really mutually exclusive.

Ideas are only as good as your ability to make them happen.  I've worked with many organizations to transform their operational approach to fundraising.  These systems all start with great ideas.  Those that succeed, followed a process for implementation.  There is no perfect process, but any process is better than no process.  Where to start?  I've found these 7 steps remarkably and consistently present among succeeding organizations.

Task Force of Early Champions.

Identify those precious individuals who understand the need for a new approach and will rally their friends.  Assemble them into a task force.  Even if they are only somewhat on board, the involvement with the task force will likely strengthen their adoption.  Ideally, pursue a cross-functional team.  I recommend a member of leadership, 1-2 major gift officers, a prospect researcher or management specialist, and a report writer / IT representative.  

Project planning

The task force should be responsible for assembling the initial project plan.  Some of the success-factor steps below should be part of the plan.  But the tactical elements I won't address, such as system coding, report writing, documentation, and materials, should also be included.  As with all plans, it is important to assign responsibility for steps, set timelines, and establish a regular meeting schedule or communication to keep on task.

Communication (Group and Personal)

Whenever you roll-out new responsibilities to your organization, you must anticipate ambiguity of understanding by the recipients.  Whether willfully or otherwise, staff will not understand or will not believe this is real without evidence.  Regular communication to each individual is necessary.  But, it is even more critical to communicate with the group.  Knowing ones peers receive the same message is the start to implementing peer input as a behavior driver.

Ongoing Feedback Loop

Through the interpersonal and group communication process, you should learn the personal drivers of each gift officer or staff member.  As a manager, this is your responsibility nevertheless.  So, at this point in the process, it is time to consider those self-interests, peer delivery mechanisms, and fun challenges to tie-in to your performance process.  Feed the competitive performers with contests to work in the stadium box for a big game, to attend a premier event, win a new GPS for donor calls, or even a cash bonus.  Post a large report in the break room for all to see.  Set individualized targets with progress towards goals on the dashboard or periodic reports.  The idea is to deliver data tied to peer inputs, self-interests, and/or fund with regularity and consistency.

Transparency

Nothing kills trust faster than secrets.  Nothing kills organizational performance faster than lack of trust.  Don't change the rules.  Don't keep secrets.  Apart from donor intentions and privacy, there is no need for secrets in fundraising.  When people make mistakes, talk openly about them.  Showing your forgiving side will propel an innovative spirit among your team.  Be open about how performance or lack thereof makes you feel.  When things work, celebrate.  When they don't, be honest.

Really Listen (Actually Consider Feedback)

Most leaders are afraid to really listen.  We might assume that feedback reflects a dislike or disapproval of us and our abilities.  We might also assume that feedback is just excuses for nonperformance.  But, sometimes feedback is just feedback.  Our team has a perspective we may not see.  Whether input is constructive or otherwise, it is your responsibility to really listen and find out.  If the feedback is constructive, actually consider it.  You will build trust with your team.  And, you might fast-track right past employee compliance to the prized stage of employee engagement; where employees actually perform, not because they have to, but because they choose to perform.

Thank Adopters Publicly

Nonprofits will have entire strategies for thanking donors.  If you don't, you have issues more serious than employee performance.  Normally, these donor relations strategies will consist of acknowledgement, recognition, and stewardship of gifts.  When your employees choose to perform, it is a remarkable behavior worth acknowledging.  Thank these employees publicly; so all might see your appreciation.  Tell the employee what it means to you and what it means to the organization.  You should be good at thanking donors.  Try to be that good with your team. 

I hope my musings on performance management provide you with some value.  If not, I sincerely apologize for wasting your time.  Please drop me a note or give me some feedback.  I read every note and try to soak it in.  

 Josh Birkholz

Contact me at BWF