donorcentrics from Target Analytics

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1 donorcentrics Solution Overview donorcentrics from Target Analytics Performance Benchmarking Service

2 the value of a donor-centric performance analysis Your constituent database contains people at many different stages of their relationship with your organization. Each constituent might be a prospect, a newly-acquired donor, a long-time supporter, a monthly giver, a major contributor, or a lapsed donor. The mix of constituency segments and the performance of each are unique to your organization and influence the strategies you use to acquire, retain, recapture, and upgrade donors. Many organizations rely on campaign reporting to assess fundraising program performance. These reports focus on the results of each direct marketing effort; they do not provide insight into constituents who were not contacted or into the cumulative effects of your contact strategies on long-term donor value and retention. Donor-centric reporting puts the donor, rather than the campaign, at the center of the analysis. A donor-centric analysis requires more than knowing this year s topline numbers for a few key populations. Comprehensiveness and detail are critical to discovering opportunities for maximizing donor value within specific lifecycle segments. A donorcentric analysis should span many years since a trend can often be more instructive than a single metric. And a donor-centric analysis should be standardized so it can extend across other organizations to facilitate the sharing of information with peers. Benchmarking your performance metrics with similar organizations provides insight into the commonality of the data trends, builds collaborative communities among fundraisers, and provides a framework for sharing best practices.

3 donorcentrics performance analysis donorcentrics performance analysis reports are designed to help nonprofits develop strategies to maximize the value of their relationships with donors at all stages of giving. They answer key questions such as: Which donor segments have the best retention? How has that trended over time? What is the impact of a sub-par acquisition year on revenue in later years? Is my donor upgrade strategy working? Am I successfully moving donors from basic giving amounts to mid and major levels? What is the lifetime value and loyalty of donors by acquisition channel, such as online or direct mail? How successful am I at recapturing lapsed donors? How can I forecast revenue based on the expected giving of my unique portfolio of donors? How does my performance in all these areas compare with the performance of organizations similar to mine? donorcentrics benchmarking Nonprofit organizations that participate in donorcentrics in order to understand the performance of their own program can also choose to benchmark their metrics with peer organizations. Benchmarking helps you distinguish trends that are unique to your organization from those that are common to all organizations in your group. In addition, donorcentrics benchmarking provides a forum for nonprofits to exchange effective fundraising strategies. key benefits of donorcentrics Shows donor giving behavior patterns over time to help hone contact strategies. Uncovers hidden revenue opportunities for specific donor base segments. Establishes performance goals for specific lifecycle populations, which are more accurate than generalized targets for donors and revenue. Justifies fundraising investments, particularly for acquisition and lapsed donor recapture. Breaks down organizational silos by showing a holistic view of donor value. Helps assess whether performance is influenced by external or internal factors. Provides a unique opportunity for sharing of best practices. Enables peer community building and professional development. Communicates program performance to staff, consultants, and board members. Preserves institutional memory through staff transitions; donorcentrics reports are often one of the first references that new staff use to learn about their fundraising program.

4 rigorous, accurate, collaborative, and trusted Comprehensiveness is the key to any donor lifecycle analysis. The Overall Program Assessment Report and Collaborative Benchmarking Report each contain over 100 pages of data tables and graphics. The reports present key performance measures for donors at every lifecycle stage so you can tailor effective strategies for well-performing and under-performing segments. donorcentrics relies on a computerized analysis of your transactional data. This assures consistency and accuracy across reporting years and organizations critical factors for analysis and benchmarking. The processes which create the donorcentrics reports have been developed over 20 years and their accuracy is tested annually by hundreds of customers. The benchmarking component of donorcentrics brings leading fundraisers together so they can collaborate and learn from each other. The collaborative reports are unique in that they include each organization s individual performance metrics, since comparison to group averages often hides important detail. The discussions that take place at the collaborative group meetings provide important context for the data, clarifying the data trends and facilitating the sharing of best practices. We take our stewardship of your data seriously. We have worked with transactional data from leading nonprofits for nearly 20 years and have developed rigorous safeguards for data security. We stress confidentiality among benchmarking participants and provide guidelines for use of the metrics that appear in the reports. Sample from an Overall Program Assessment Executive Overview Giving Profile Donors Total Revenue Revenue per Donor Gifts per Donor FY03 FY04 FY05 FY06 FY07 FY08 412, , , , , ,071 $24,592,277 $24,316,363 $25,342,858 $27,271,434 $28,684,154 $28,086,446 $59.58 $60.25 $65.78 $71.08 $74.93 $ % New Donors 28.5% 21.2% 16.9% 19.1% 22.6% 21.6% -24.1% 18.4% -4.4% % Retained Donors 55.9% 55.0% 59.1% 58.8% 58.0% 59.2% 6.0% -1.3% 2.1% % Donors Giving 2 Cons. Years 15.6% 15.2% 18.1% 17.1% 16.7% 16.9% 7.9% -2.6% 1.3% % Donors Giving 3-4 Cons. Years 15.1% 13.3% 15.0% 15.9% 16.1% 16.3% 7.9% 1.4% 1.2% % Donors Giving 5+ Cons. Years 25.1% 26.5% 26.1% 25.8% 25.2% 26.0% 3.6% -2.2% 3.2% % Reactivated Donors 15.6% 23.8% 24.0% 22.1% 19.4% 19.2% 22.5% -12.4% -1.1% % Donors $0-$9 % Donors $10-$24 % Donors $25-$49 % Donors $50-$99 % Donors $100-$499 % Donors $500+ % Revenue $0-$9 % Revenue $10-$24 % Revenue $25-$49 % Revenue $50-$99 9.8% 7.8% 5.5% 5.0% 4.1% 3.7% 42.6% 43.4% 41.7% 39.9% 38.8% 38.1% 19.7% 20.6% 21.9% 21.8% 21.7% 22.5% 13.5% 13.7% 15.0% 15.6% 16.3% 16.3% 12.8% 13.0% 14.1% 15.6% 16.7% 16.9% 1.6% 1.6% 1.8% 2.2% 2.4% 2.5% 0.8% 0.6% 0.4% 0.3% 0.3% 0.2% 9.6% 9.6% 8.8% 7.9% 7.4% 7.3% 10.2% 10.5% 10.3% 9.4% 8.9% 9.0% 13.8% 13.7% 13.7% 13.1% 13.1% 12.6% Percent Change % -0.2% -4.6% 14.2% 5.2% -2.1% 29.1% 5.4% 2.7% -8.0% -0.2% -0.8% -61.8% -17.9% -8.8% -10.7% -2.7% -1.9% 14.4% -0.2% 3.8% 20.2% 4.5% -0.3% 32.3% 7.0% 1.1% 54.0% 9.7% 4.6% -69.7% -23.5% -11.5% -24.0% -6.2% -1.6% -11.8% -5.1% 1.1% -8.4% -0.4% -3.4%

5 how to participate in donorcentrics Participation in donorcentrics is easy. We work with downloads from any fundraising software and can accept data in any format. Unlike survey-based benchmarking, we don t require you to complete detailed surveys on your donor counts and revenue totals; these metrics are calculated directly from your transactional files. After signing up, you will send your giving transactional data to Target Analytics and complete a short questionnaire on fundraising practices and how to interpret gift source codes on the transactional records. A data analyst will contact you with any questions about your data file and associated coding. Target Analytics then loads and processes the data and issues a diagnostic report with revenue and gift totals for each appeal code. The donorcentrics reports are not published until your organization reviews and approves the diagnostic report. Once the diagnostic reports are approved, Target publishes the series of donorcentrics reports and convenes the collaborative benchmarking meeting (if applicable). Sample from a Collaborative Benchmarking Report Active Donor Comparison by Donor Loyalty (2008) Org Name 1 Org Name 2 Org Name 3 Org Name 4 Org Name 5 Org Name 6 New 35.6% 33.2% 34.6% 31.1% 31.5% 32.3% Reactivated 4.6% 4.6% 4.6% 4.7% 4.7% 4.7% 2 Yrs Consecutive 12.0% 19.5% 15.0% 25.9% 24.7% 22.1% 3/4 Yrs Consecutive 16.4% 21.2% 18.3% 25.4% 24.6% 22.9% 5+ Yrs Consecutive 31.5% 21.4% 27.5% 12.9% 14.5% 18.0% solution at-a-glance donor performance analysis collaborative benchmarking Overall Program Assessment (OPA) Analyzes donor lifecycle behavior and fundraising program performance over several years for your individual organization. Executive Program Overview (EPO) Distills key findings from the OPA into a high-level summary document, making it a great resource to share with board members and senior executives. Collaborative Benchmarking Report (CBR) Presents key metrics from all organizations in a benchmarking group. Shows individual metrics for each organization, providing important detail for effective comparison and collaboration. Collaborative Group Meeting Provides an opportunity for all participants to review the collaborative report, discuss discoveries with industry experts, and share effective fundraising strategies and best practices.

6 Analytic Discovery Services and the donorcentrics Explorer Target Analytics has a team of experienced consultants who can work with you and your team to get the most out of donorcentrics. Arrangements are flexible and can be tailored to meet your needs. Many donorcentrics customers bring their entire staff to a day-long meeting facilitated by one of our consultants; by understanding donorbased metrics, staff can develop more effective cultivation strategies. The donorcentrics Explorer is an interactive analytic application that accesses the donorcentrics metrics through Excel PivotTables (or any other desired business intelligence application). Advanced users of donorcentrics can customize the donorcentrics Explorer with analytic dimensions unique to their organization, providing additional power and flexibility. Each of our consultants can use the donorcentrics Explorer to gain additional insights into your program, and to create custom reports as needed. Organizations with their own fundraising analysts on staff may choose to receive training on the donorcentrics Explorer and access the application from their own offices. Samples from an Overall Program Assessment Lifetime Value Trends for Donors Acquired in 2005 Mail Online Other % of Original Donors Giving in Current Year Lifetime Revenue per Original Donor 100% 50% 0% $400 $300 $200 $100 $0 100% 100% 100% 49% 42% 35% 40% 46% 43% 33% 32% 37% $352 $279 $241 $257 $204 $181 $171 $127 $121 $68 $76 $96 FY05 FY06 FY07 FY08 FY05 FY06 FY07 FY08 FY05 FY06 FY07 FY08 Retention Summary by First and Multi-Year Donors First Year Donors Prior Year Donors Prior Year Revenue Retained Donors Donor Retention Rate Revenue Retention Rate Rev % Chg for Retained Donors Percent Upgraded Percent Downgraded FY 03 FY 04 FY 05 FY 06 FY 07 FY , ,664 85,557 65,234 73,373 86,661 $3,510,082 $2,803,976 $2,314,873 $2,154,142 $3,498,310 $4,142,874 34,855 32,495 27,363 24,539 26,142 29, % 27.6% 32.0% 37.6% 35.6% 33.8% 44.5% 51.1% 57.4% 61.7% 50.8% 46.0% 22.9% 42.1% 40.8% 38.1% 35.9% 29.2% 47.2% 47.1% 49.4% 46.0% 47.4% 45.4% 29.5% 24.8% 22.7% 26.3% 23.9% 26.1% % 18.0% -15.9% 9.4% 3.4% 27.3% -4.0% -11.5% Percent Change % 62.4% 6.5% -5.3% -17.6% -5.9% 3.0% -9.3% 18.1% 18.4% 12.1% -5.1% -9.4% -18.6% -4.3% 9.2% Multi-Year Donors Prior Year Donors Prior Year Revenue 303, , , , , ,140 $23,487,293 $21,788,300 $22,001,490 $23,188,716 $23,773,124 $24,541, % 4.5% -3.0% 2.5% -4.6% 3.2% Retained Donors Donor Retention Rate Revenue Retention Rate Rev % Chg for Retained Donors Percent Upgraded Percent Downgraded 195, , , , , , % 64.2% 63.0% 62.8% 63.1% 63.1% 74.8% 78.5% 82.8% 79.9% 79.9% 77.1% -3.7% 1.2% 7.6% 4.4% 6.2% 3.3% 36.5% 35.5% 38.9% 36.1% 36.9% 36.0% 37.7% 35.6% 30.0% 33.2% 31.6% 32.3% -4.5% -2.2% 3.0% % -1.5% -14.5% -2.5% 0.5% 0.0% 40.4% 2.3% -4.7% -4.6% -0.1% -3.6% -47.0% -2.4% 2.0%

7 a premier source for nonprofit analytics donorcentrics was introduced in 1989 and now serves over 400 organizations annually. All twelve nonprofits from the first benchmarking group still participate and have never missed a year and over 90% of all participants renew every year. Many of the largest, most successful nonprofits in the United States rely on donorcentrics. donorcentrics serves nonprofits across many sectors, including societal benefit organizations, advocacy organizations, cultural institutions and museums, hospitals, health organizations, environmental organizations, humane societies, human services organizations, international relief and development organizations, food banks, colleges and universities, and public television and radio stations. The donorcentrics product family also includes the Index of National Fundraising Performance, which is the leading source of quarterly information about direct marketing fundraising performance for large national organizations. Target Analytics is a data analytics shop, not a fundraising consulting firm. Our goal is to present data accurately and objectively and we have no stake in the interpretation of the data. All of our analytic services can use data from any fundraising software provided in any format. Many of our customers extend donorcentrics with analytic discovery services, quarterly updates, access to the interactive donorcentrics application, and customized analytic dimensions and reporting. As an impartial provider of donor analytics we are often part of a strategic team comprised of the organization s staff, the direct marketing consultant, and the database services provider. get started today Contact us to request sample reports or learn more about donorcentrics at

8 get started today Contact us today to schedule a solution demonstration or learn more about donorcentrics at about Target Analytics Target Analytics, a Blackbaud company, delivers data-driven, collaborative solutions to help nonprofit organizations increase support from their constituents and further their missions. Target Analytics, a Blackbaud Company 1030 Massachusetts Avenue Cambridge, MA Phone: Blackbaud Corporate Headquarters 2000 Daniel Island Drive Charleston, SC Phone: solutions@blackbaud.com Target Analytics offers the only comprehensive analytics solution for donor acquisition and cultivation, prospect research, and collaborative peer benchmarking, as well as access to exclusive data and fundraising expertise, to maximize fundraising results at every stage of the donor lifecycle. about Blackbaud Blackbaud is the leading global provider of software and services designed specifically for nonprofit organizations, enabling them to improve operational efficiency, build strong relationships, and raise more money to support their missions. Approximately 19,000 organizations use one or more of Blackbaud products and services for fundraising, constituent relationship management, financial management, direct marketing, school administration, ticketing, website management, prospect research, consulting, and analytics. Since 1981, Blackbaud s sole focus and expertise has been partnering with nonprofits and providing them the solutions they need to make a difference in their local communities and worldwide. Headquartered in the United States, Blackbaud also has operations in Canada, the United Kingdom, and Australia. 2008, Blackbaud, Inc. This solution overview is for informational purposes only. Blackbaud makes no warranties, expressed or implied, in this summary. The information contained in this document represents the current view of Blackbaud, Inc., on the items discussed as of the date of this publication. All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc. The names of actual companies and products appearing herein may be the trademarks of their respective owners.