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Capital campaigns at independent schools are often seen as the primary fundraising strategy to drive strategic change. The potential impact of campaigns is high; however, the conditions of your school’s culture of philanthropy, development infrastructure, and donor readiness must be ripe for a campaign to be highly successful. Your examination of these standards may reveal that conditions are not yet optimal for a campaign. Understanding these barriers can reveal a campaign readiness blueprint with areas of opportunity.

Concentrated efforts to bolster your internal fundraising infrastructure and capacity and to connect with key prospects will drive momentum toward a future campaign and enrich your current fundraising success. These efforts could include strengthening your culture of philanthropy, establishing a major gifts initiative, top prospect cultivation, concentrated donor stewardship, or further developing your annual giving or planned giving programs.

Strengthen your culture of philanthropy

A primary consideration for every independent school’s fundraising is defining a culture of philanthropy within your school. Philanthropy is the lifeblood of the independent school model, influencing every aspect of the student and family experience. From faculty to programs and experiences, philanthropy propels every independent school. Welcoming each family within your school’s community into a culture of giving will provide everyone the opportunity to contribute to a legacy that will endure for generations.

Introduce philanthropy early in a prospective family’s journey by partnering with the admissions team to incorporate specific talking points during their tour of the school. Discuss philanthropy’s impact on the school during conversations about parental involvement opportunities. Further, leverage new parent events to make connections with the development team and introduce the director of development early on. Upholding and celebrating the role of philanthropy at your independent school through communications, programs, and individual relationships will maintain the importance of fundraising in the minds of families representing current and future donors.

Establish a major gifts initiative

A major gifts initiative that supports distinct one-off capital or programmatic projects that align with the strategic vision of the school can be a step in securing transformational gifts for specific goals. These special projects can draw attention to a unique need and further develop a culture of philanthropy within the school to achieve aspirational goals and highlight the significant impact that philanthropy has on a school culture and experience. Addressing one or two projects through a major gift initiative can create momentum within the school community and identify philanthropic champions for a future campaign. It’s rare that a donor’s largest gift is their first or even second gift, making a major gift initiative the perfect opportunity to solicit gifts for transformational impact while also identifying and cultivating lead gift prospects for a future campaign.

Start by prioritizing engaged donors with identified capacity who would be interested in making a major gift to support a special initiative. Stewarding these donors to bring them closer to the school and showcasing the impact of their giving will begin the process of cultivation for a major gift to a future campaign and secure them as a philanthropic champion of the school. Once secured, marketing major gift successes to the rest of your donor base and family community will celebrate achievements and establish trust in the school’s ability to secure major gift support from parents, alumni, grandparents, and others. Use the tangible results of generosity to demonstrate the footprint philanthropy can have on shaping the school experience.

Cultivate and brief top prospects

Cultivation tours or briefing blitzes can offer meaningful chances to advance relationships with your school’s top donors and prospects. Through these types of opportunities, your head of school can engage in personal conversations with top prospects about the school’s strategic vision and priorities. Those touchpoints will help deepen prospects’ connection to the school and their relationship with key school leaders. Additionally, they will help your head of school learn more about top prospects’ philanthropic interests and motivations and explore areas of overlap – important pre-campaign cultivation activities.

Key data points about your top prospects’ philanthropic activity, such as philanthropic motivations, top philanthropic causes, and board involvement will be assets in understanding whether your donor base will be receptive to supporting a future campaign.

Target your donor stewardship

Deepen relationships to the school and position the school to communicate a vision for engagement and giving by engaging your unique donor communities, such as alumni, through special giving societies. Effectively recognizing donors for their level of affinity for the school can build on their existing values and experiences to cultivate their connection and cement an understanding of the impact of their giving. Giving societies build a sense of community which in turn drives donors’ giving and cements their philanthropic commitment.

Refocus annual giving efforts

Drive donor participation through unrestricted giving by focusing on your school’s annual giving program and educating families about the importance of philanthropy. Annual giving appeals are a direct way to lay out your school’s fundraising priorities and establish a clear and cohesive vision of how fundraising impacts outcomes each year. In addition to written and electronic appeals, utilize giving days, mini-campaigns, and other annual giving efforts to foster school pride and a sense of community, and celebrate reaching collective goals. Finally, annual giving programs can be effective training for the development team, the development committee, school leadership, and the board in fundraising best practices, which will translate into future campaign success.

Consider bolstering gift planning

By establishing strong giving habits within your alumni base now, you set the stage for them to be planned giving prospects in the future. Each class’s graduation offers a window for engaging new alumni and launching their future engagement as lifelong donors. Establishing an immediate relationship with each new alumni class will significantly increase the likelihood of their philanthropic participation throughout their lifetime. Develop a post-graduation engagement plan to thoughtfully engage graduating classes and cement a lifelong affinity for giving back.

Each of these opportunities to tighten fundraising efforts can drive your independent school forward in near- and long-term development goals. Consider segmenting constituents by initiative to ensure the most direct strategy to connect with alumni, alumni families, parents, grandparents, or new graduates. Your donors and prospects should always come first in developing a plan to drive their engagement forward. Though your school may not be immediately prepared for a campaign, understanding and investing in opportunities for improvement will ensure short- and long-term successful outcomes.

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CCS Philanthropy Pulse: Primary and Secondary Education Spotlight

February 2025

This Primary and Secondary Education Sector Spotlight is adapted from CCS’s 2025 Philanthropy Pulse report to provide an in-depth look at the data provided by 94 survey respondents from that sector.

SEE ALL IN: Primary and Secondary Education

Over the past several years, foundation giving has grown as a share of total giving across the U.S. CCS Fundraising’s 2022 Snapshot of the Philanthropic Landscape revealed that foundations have increased overall funding and expanded grantmaking strategies to include unrestricted funding. In fact, giving by foundations experienced a 39% increase from 2019 to 2022, and in 2022, foundation giving accounted for 21% of all charitable contributions.

As foundation support steadily increases, nonprofits should understand the differences between the various foundation-based entities and how grantmaking engagement differs across each. Many nonprofits try to engage grantmaking foundations by sending standard letters of inquiry without taking the time to strategize the best approach for each foundation type. This one-size-fits-all process is rarely successful in securing funding, and it does nothing to build enduring relationships between grantors and your organization.

When approaching an institution, fundraising best practices still apply — people give to people. While foundations vary from large operating to smaller private foundations, each plays a role in the ecosystem. Understanding the subtleties enables organizations to stand out among other applicants. 

What is a foundation?

A foundation is a nongovernmental nonprofit organization with its own funds or endowments, managed by trustees or directors, and typically created to benefit educational, charitable, social, religious, or other activities serving the common good. The US Federal Government is technically the nation’s largest grant maker.

The many foundation types include the following:

Public Foundations

This foundation type receives at least 1/3 of its annual income from the public, including government agencies and other foundations, and may make grants or engage in charitable activities. The IRS recognizes public foundations, along with community foundations, as public charities. Their primary focus is grant making, although they may provide direct charitable services to the public like other nonprofits.

Private Foundations

This type is a nongovernmental nonprofit organization with funds (usually from a single source, such as an individual, family, or corporation) and programs managed by trustees or directors to maintain or aid social, educational, religious, or other charitable activities serving the common welfare, primarily through grantmaking. US private foundations are tax-exempt under Section 501(c)(3) of the Internal Revenue Code and IRS, classified as a private foundation as defined in the code. These entities are additionally required to submit a 990-PF each year.

Corporate Foundations

This type derives grantmaking funds primarily from a profitable business’s contributions. The company-sponsored foundation often maintains close ties with the donor company. Still, it is legally separate, sometimes with its own endowment, and subject to the same rules and regulations as other foundations.

Over 2,000 corporate foundations in the US hold some $11 billion in assets. Also known as a company-sponsored foundation, corporate foundation funds differ from corporate giving programs that often allocate funds through marketing, event sponsorships, employee volunteering programs, and other initiatives.

Government Grantors

A government grantor provides financial support to nonprofits through local, state, or federal grant funding and typically has specific objectives and funding priorities. Nonprofit organizations can apply for government grants to support various programs and initiatives, such as community development, healthcare, education, and environmental conservation.

Government grantors are crucial in supporting nonprofit work, helping organizations expand their reach, enhance impact, and address pressing societal needs. Additionally, government grants often have reporting and accountability requirements to ensure public funds transparency and responsible use. For example, the Community Development Block Grant (CDBG) and HRSA’s Ryan White HIV/AIDS Program are government grants.

Note that the Federal Government will often use pass-through organizations to sub-grant out dollars; for instance, a city’s health department or housing department may receive a grant, disperse funding, and oversee the grantee’s performance.

Operating Foundations

An operating foundation is endowed and private, using most of its income to provide charitable services or run charitable programs, such as a school or summer camp. Operating foundations make few, if any, grants to outside organizations and must follow specific and applicable private foundation rules to qualify as an operating foundation. For example, the Carnegie Endowment for International Peace and the J. Paul Getty Trust are operating foundations. This foundation type is also called a private operating foundation.

Other Foundation Types

A Limited Purpose Foundation restricts giving to one or very few areas of interest, such as higher education or medical care.

A Special Purpose Foundation is private with focused grantmaking activities on one or a few interest areas instead of a general-purpose foundation.

A Virtual Foundation has transitioned from grantmaking by mail and face-to-face meetings to grantmaking by email and internet transfers. It exists only on the internet and is able to transfer money from philanthropists to organizations globally.

Guide to successful foundation engagement

We know that people are philanthropically generous and give to other people, so while foundation entities differ in support strategies and funding, remember that people run these grantmaking organizations. Building rapport and relationships with foundation leaders and liaisons better positions your organization for success.

So how do you get your foot in the door?

Research

Foundation engagement starts with research. You should first investigate the foundation’s focus areas, funding priorities, geography, and past grant recipients to understand how their projects and goals align with foundation interests. This research will allow your organization to tailor proposals, which can increase the chances of receiving funding. Additionally, understanding the foundation’s values, criteria, and application process will help save time and effort by prioritizing the submission of proposals to only the most relevant and compatible funders. 

Other than filing a 990-PF, foundations are not required to have a website or social media presence, so finding information on some grantmaking entities may be challenging. However, researching a foundation allows you to know that you have made the best effort to make informed decisions, maximize your chances of success, and set your organization up to build a strong partnership with an aligned foundation for the long term.

Event Attendance

Next, if the foundation aligns with your organization’s work, consider attending its informational sessions or webinars to gain insights into the application process and funding requirements. Not all foundations offer these opportunities, but regularly attending events and webinars will help you understand your sector’s philanthropic landscape. This will also demonstrate your interest and allow you to meet and get to know funders.

You should also contact the foundation’s program officers or staff to introduce your organization and project and to ask questions. Introductory conversations should focus on listening rather than pitching; learn the foundation’s values and priorities before offering a generic pitch. Building relationships and networking within the foundation can provide valuable guidance and increase your chances of success.

Letter of Inquiry

Once you fully understand the foundation and how its priorities align with your organization’s work, consider submitting a brief, customized letter of inquiry (LOI) or concept paper to gauge the foundation’s interest and receive feedback before investing significant time and effort into a full grant proposal. Some foundations have a formal process and an online portal, while others may only provide a mailing address.

Customizing your letter of inquiry and subsequent proposal:

Demonstrates a genuine understanding of the foundation’s mission and funding focus
Increases your chances of appealing to decision-makers
Clearly articulates how your organization’s work aligns with foundation goals
Showcases the project’s relevance and impact
Proves your commitment and effort, and…
Highlights your professionalism and dedication to the cause

Ultimately, crafting a proposal specially written to appeal to one foundation shows respect for the foundation’s individuality and increases the likelihood of securing funding. In many cases, the extra time and effort you take to find the best foundation fit will pay off in the long run. Once you have built a relationship with the foundation’s people and become true partners working toward the same goals and outcomes, your alignment will make applying for renewed funding to continue making a joint impact easier.

Respecting a Foundation’s Guidelines Leads to Greater Success

You may be inclined to access a foundation via its board members, especially if your organization has connections to them. This approach can be risky. While it is often helpful to enlist the help of your well-connected board members to gather information and strategize an approach to a foundation, when it comes to seeking funding, it is always best to adhere to the foundation’s published guidelines. This is especially true of those foundations with staff and an inquiry process included on their website — circumventing the set path and procedures could jeopardize partnership opportunities.

Instead, follow the initial steps in this article to lay the groundwork for a productive and mutually beneficial partnership between your organization and the foundation.

While this article offers a basic overview of the foundation landscape, a strategic approach and tailored messaging is paramount.

Are you seeking to partner with a foundation or funding for your own foundation?

Learn about our work with this sector.

LEARN MORE

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CCS Philanthropy Pulse

February 13, 2025

Uncover the latest fundraising trends in the 2025 CCS Philanthropy Pulse report! Packed with data-rich insights from 600+ nonprofit organizations across diverse nonprofit sectors, this free report will help you plan for success in 2025.

SEE ALL IN: Foundations

Current college/university presidents, C-suite leaders, boards, and supporters all have a role in catalyzing the significant leadership reshuffling ahead. This article offers six actionable strategies and steps to maintain strong fundraising efforts during a leadership transition in higher education.

The Challenge—and Opportunity—of Leadership Transition in Higher Education

Many higher education institutions remain pressured to keep students, staff, and supporters engaged while navigating senior leadership transitions and post-pandemic fundraising challenges, adapting to lean staff capacity, facing an enrollment cliff, and addressing the urgent needs of students, research, and faculty. These and other trends converge on the nation’s campuses, presenting leadership challenges like no other moment in recent history.

In an average pre-pandemic year, US higher education saw about 10% of campus leaders retire, 10% move to another institution, and 10% leave academia altogether. Predictions indicate that those numbers will rise, with presidents, deans, and provosts having the highest likelihood of turnover among top-level administrators. Similarly, 2023 survey data from the American Council on Education (ACE) affirms a horizon of change: over half (55%) of presidents indicated that they plan to step down from their current presidency within the next five years. One in four (25%) presidents anticipated stepping down within the next year or two, and 30% intend to do so in the next three to five years.

With this data in mind, it seems clear that many institutions may experience leadership transitions more frequently than in the past. In fact, since 2006, the average presidency has been 2.6 years shorter; academia’s top leaders now remain in their role for an average of just 5.9 years.

In an already stretched sector, a leadership transition can seem overwhelming. However, when navigated wisely, it is a unique opportunity to build new momentum and energy toward primary fundraising efforts. Turnover also presents a significant opportunity for US higher education to improve racial and gender diversity in its leadership ranks, a reality already evidenced by several recent appointments.

1. Assess the Donor Landscape

Before the transition occurs, the advancement department must assess the current state of key donor relationships and fundraising initiatives. This assessment sets the stage for aligned communication and prioritized prospect engagement, ensuring all relationships transition smoothly.

2. Develop a Transition Plan (and Then Collaborate)

A comprehensive transition plan crucially maintains fundraising momentum and minimizes disruptions. A plan should outline action steps for the fundraising department during the transition, prospect engagement plans, and key communications schedule. Each task should include clear timelines and goals. Transitions can be a fluid process, so it’s essential for this plan to be flexible and the team nimble to manage inevitable adjustments. Regularly tracking transition benchmarks and maintaining annual fundraising goals will help identify areas that require additional support or change.

Open and transparent communication is vital during a leadership transition in higher education. An outgoing leader should be engaged regularly for transition planning insights, to document institutional knowledge, and to keep the team informed.

3. Consider the Message

How will the community react to the news of this transition? How can the team convey stability and a bright future with authenticity? If a leader is well-regarded in the community, a transition can honor an outgoing leader, motivating prospects to consider making a gift to recognize this legacy. Conversely, a new leader can offer a fresh perspective and an opportunity to connect with new donors under a recharged strategy and message. When crafting your message, it will be important to leverage other institutional leaders and those closest to your organization (for example, board members, trustees, and other main insiders).

A transition like this inevitably becomes an engagement touchpoint with your donors. Ask yourself, “How can we seize this opportunity to convey urgency and momentum for our institution’s needs?”

4. Engage Constituents in a Tiered Fashion

It can seem overwhelming to consider all the layers of communication needed when planning a leadership transition in higher education. A phased approach to communication can make this more manageable. Setting communication tiers determines the who, what, when, and how of donor-personalized communication. It is important to consider who from your donor base, versus a member of the advancement team, should hear directly from leadership before a public announcement. When considering communications with board members and trustees, you can engage them as recipients of crucial communication and partners in strategy, messaging, and even as communicators.

Personalized outreach will show key constituents that they are necessary to your institution’s community and that you value their partnerships and insights during this critical transition. These touchpoints present an opportunity for cultivation and stewardship and act as a starting point in transitioning critical relationships to the advancement team. When personalized outreach is not possible, the team should consider what broader methods or channels are possible ahead of a formal announcement and press release.

During a transition, many engagement opportunities will emerge. Town halls, search committees, and task forces can intentionally involve a diverse group of individuals in the process. As a fundraising leader, you can ensure that this group represents your institution’s many facets, aligns with your goals for donor development, and fosters inclusivity and diversity in your engagement efforts.

5. Involve the Outgoing Leader

The departing leader likely has a significant legacy and a deep connection to the institution. Exploring opportunities to foster a lasting impact through their continued engagement is paramount. One avenue to consider is inviting them to make a legacy gift to honor their contributions to the institution’s advancement. Additionally, exploring ways this leader can remain formally engaged is essential, such as through mentorship or consultancy for the new president. Long-term possibilities could include offering a structured emeritus position, involving them in the Board, or seeking regular support as an advocate in fundraising and at events. Former leaders are pivotal in shaping an institution’s legacy and can be vital champions for a cause.

6. Support the Incoming Leader

It is crucial to provide support and resources to the incoming leader while staying flexible and giving space for the inevitable unpredictability of transition. The team should prepare comprehensive onboarding materials, consider internal introductions to the advancement team, and provide ample opportunities for listening and learning. Encouraging a collaborative and inclusive environment will help the incoming leader build rapport quickly and model successful change management during a period of uncertainty for staff.

Leadership transition in higher education poses significant fundraising challenges. However, these challenges can be transformed through precise planning and proactive measures into opportunities for revitalized momentum and meaningful donor engagement.

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CCS Philanthropy Pulse: Higher Education Spotlight

February 2025

This Higher Education Sector Spotlight is adapted from CCS’s 2025 Philanthropy Pulse report to provide an in-depth look at the data provided by 53 survey respondents from that sector.

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The journey to a donor’s first gift to your healthcare institution starts before they ever become a patient. Once a person schedules their first appointment or has an unexpected visit to the hospital, how are you embedding giving and the importance of their support into their overall experience as a patient?

In the 2023 CCS Philanthropy Pulse report, 143 healthcare institutions ranked more than 12 fundraising challenges they face today. Donor acquisition has remained one of the top-ranked challenges of the last few years, but in 2023, more people ranked it than ever before. Why has this remained an issue for several years in a row?

Healthcare’s landscape has evolved at a rapid pace since the global COVID-19 pandemic in 2020. We have seen growing shifts across multiple dimensions, from community hospitals to health system acquisitions, in-person doctor visits to telehealth appointments, hard copy patient records to digital patient feeds, and innovations in health informatics. Healthcare institutions have the unique benefit of constantly acquiring new patients and communities to serve, all of whom have the potential to become donors. As healthcare evolves, the patient experience adapts— our approach to grateful patient donor acquisition should too.

UNDERSTAND YOUR PATIENT AND DONOR POPULATIONS

Just as a prospect research team or gift officer would research a prospect before a meeting, you can maximize engagement strategies and increase the likelihood of reciprocity by leveraging data insights to understand your patient population. This can be as simple as researching the average household income or home value in your patient’s geographical catchment. Does it vary across counties? How does your patient population vary in age? Gender? How many of your patients are on government assistance? While many of these details are searchable online, building a relationship with your hospital’s marketing or patient experience team will enable you to leverage their expert insights.

Similarly, assessing your current patient donor population and evaluating their past engagement will provide context for what has been most successful in generating a first gift in the past. Was it a particular solicitation? A physician referral? A website or social media post? These insights can ensure that you maximize the strategies that have worked in the past and prioritize opportunities for the patient population you serve.

MAKE GIVING VISIBLE…

…Not just with names on buildings, but through the fabric of your hospital’s culture. This does not mean placing signs throughout the lobby that read “MAKE A GIFT!” Rather:

Embed ways a patient can say “thank you” in their welcome packets or post-care surveys. Patients frequently want to say, “thank you” and don’t know the best way. Make it easy to know how.
Promote stories of impact for gifts of all sizes. Embedding stories of how giving has impacted a patient, a physician or nurse, a hospital program, a breakthrough in science, or more, will set a precedence for the value the organization and patients place on all levels of philanthropic support.
Educate hospital professionals on the importance of giving and its role in their work, division, hospital, and the system overall. They serve as the frontline fundraiser before a patient connects with the foundation and can be your strongest partners and champions for giving.

DEMONSTRATE GIVING IS A RESOURCE For ALL

Individuals are more likely to support an organization or cause when they understand its impact on others, including themselves. Before a patient receives a solicitation from the hospital foundation, use your communications to emphasize 1) the role that giving plays in making the services, programs, and breakthroughs possible and 2) the benefits that a donor can experience based on how they give. Illustrate or prove the valuable resource your healthcare organization is to them as an individual and the community at large.

BE TIMELY

Data shows 5 communications within the first 90 to 120 days post-hospital visit (one direct mail and four emails) increases the likelihood of a gift on the 2^nd or 3^rd communication (between 30 – 60 days). Most importantly, insights from the Woodmark Summit indicate a patient or patient family is 76% more likely to make a gift if they receive a communication within the first 30 days post-hospital visit or care.

Patient privacy is most important, so it’s essential to work with your hospital staff to ensure any data you receive is HIPAA-compliant. Access to your hospital’s HIPAA-compliant patient data is an optimal opportunity to implement an automated patient data feed that allows the flexibility to automate and optimize your acquisition communications. This is not the case for all hospitals, in which case you can still leverage communications monthly based on the data you’re able to receive. Without access to patient data, you should plan and collaborate on a strategy forward with your hospital partners, ensuring you are substantively engaging potential donors for future sustainable support.

TEST AND EVALUATE YOUR COMMUNICATION STRATEGIES

Whether you’re communicating with recent patients or your catchment population at large, every communication should include an A/B test. It deepens your understanding of your potential donor community by investigating how they interact with your email or direct mail piece. With this test, you can answer questions like: Which links did they click? What call to action or gift string generated a higher gift? What subject line yielded a higher open rate? By regularly evaluating these results, you will be able to enhance future communications and increase the likelihood of a first gift.

A patient’s journey to giving back starts before they step foot in your hospital or doctor’s office. Building a program focusing on the patient journey and donor benefits maximizes the likelihood of their philanthropic investment, enhances overall engagement with your healthcare organization, and optimizes your ability to request and secure major, principal, and planned gifts. A culture of philanthropy that centers the patient-donor and highlights the potential in major gifts of assets, illustrates the extraordinary work you do, and collective impact that is possible when everyone participates!

Part II of our Building a Patient-Centric Journey to Giving series will explore how to implement data-driven communication journeys that lead to donor conversion and maximize your pipeline towards major, principal, and planned giving potential. Stay tuned!

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CCS Philanthropy Pulse: Health Spotlight

February 2025

This Health Sector Spotlight is adapted from CCS’s 2025 Philanthropy Pulse report to provide an in-depth look at the data provided by 81 survey respondents from that sector.

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Some campaigns manifest success right from inception. However, sometimes an organization has a strategic campaign vision but requires assistance with its execution and to build momentum. In this article, we share an example of how a Catholic institution partnered with us at CCS Fundraising to reinvigorate their campaign. Ultimately, they surpassed their initial goal of $70 million by an impressive $20 million.

Our Approach to an Effective Campaign

Launched in 2018, this diocesan campaign aimed to raise $70 million to support Catholic education and formation, clergy and seminarians, evangelization and discipleship, and charity and justice. Despite a well-defined strategic vision, the campaign needed help gaining traction. By the end of its first year, it had only achieved 40% of its multi-year fundraising goal. Recognizing the need for expert support, the organization sought assistance from CCS.

A Comprehensive Assessment

Upon the engagement’s commencement, CCS comprehensively evaluated the campaign’s foundational elements through an intensive two-month rapid assessment. We used our tried-and-true method to enliven a stalling campaign, in which we focus on and analyze five crucial areas:

Assessing the feasibility of the identified goal: CCS diligently examines whether the established goal remains attainable within the prevailing circumstances.
Evaluating the case for support’s reception and articulation: CCS meticulously appraises how the campaign’s rationale resonates with stakeholders and its communication effectiveness.
Identifying potential opportunities at the lead gift level: CCS explores the potential for substantial contributions at the highest giving tier. This helps to overcome any initial setbacks or limitations.
Gauging engagement levels of organizational, volunteer, and donor leadership: CCS assesses the enthusiasm and commitment of key individuals and groups responsible for driving the campaign forward, determining their willingness to undertake the necessary efforts to achieve the established goals.
Conducting a comprehensive audit and review of campaign methodology: CCS conducts an exhaustive examination of the campaign’s strategies and tactics, aiming to identify any missteps or inefficiencies. Subsequently, we devises a clear plan of support that collaboratively aligns leadership and operational organization.

Unleashing the Power of Clarity

Through strategic interviews and diligent efforts, CCS helped meticulously redesign the case for support. This ensured effective communication of the campaign’s significance, its profound impact on local churches, and the specific areas to benefit from the funds. Refining the message resulted in a newfound clarity. Additionally, it instilled a renewed sense of purpose that resonated deeply with donors and volunteers, igniting their passionate commitment to the cause.

Achieving Operational Excellence

CCS also streamlined campaign operations to achieve success. With meticulous attention to detail, we formulated a comprehensive week-by-week plan encompassing well-defined fundraising benchmarks. Every campaign facet, from strategic considerations to implementation procedures, underwent thorough standardization. Thoughtful reevaluation and redesign of campaign materials ensured clear and concise communication with donors and volunteers. This methodical approach instilled a profound sense of organization and cohesion, fostering confidence and bolstering engagement levels.

Embracing Multiculturalism for Campaign Success

Recognizing the dynamic demographics of the Catholic community in the US, we place great significance on a multicultural approach. Clear and effective communication emerged as a priority in this diocese, where nearly half of the priests were foreign-born. Additional fundraising training resources addressed potential language and cultural barriers. By bridging gaps, fostering trust, and developing campaign materials in multiple languages, we effectively engaged the burgeoning population of Spanish-speaking Catholics and foreign-born priests in the Green Bay area. The result was an elevated level of participation and enthusiastic contributions as fundraisers approached these families for the first time to contribute to a capital campaign.

Captivating Donors With a Compelling Message

In the face of the challenges imposed by the COVID-19 pandemic, we supported remarkable resilience and adaptability across parishes. Recognizing the prevailing circumstances, we urged parishes to perceive the campaign as an opportunity to foster reconnection with their parishioners in the aftermath of the global crisis. Emphasizing the utilization of campaign funds to restore Mass attendance to pre-pandemic levels, we underscored the urgent need and the substantial impact on local communities. This poignant narrative struck a deep chord with parishioners, reigniting their faith and rekindling their commitment. Remarkably, more than twenty parish communities experienced a revitalization in Mass attendance. In turn, this infused renewed vitality into their faith communities and reaffirmed the profound impact of the campaign.

A Winning Campaign Strategy

Revitalizing a challenged campaign necessitated a strategic assessment of its shortcomings, rallying support from parishes, and effective communication with stakeholders. CCS Fundraising’s comprehensive approach, encompassing a range of strategic initiatives, played a pivotal role in the campaign’s resounding success.

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Catholic Fundraising: Tips for Success From the Diocese of Helena’s Campaign

February 21, 2025

In this article, we explore five key Catholic diocese fundraising campaign strategies that helped make this campaign a success.

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We learned about the applications of Artificial Intelligence (AI) in fundraising in Revolutionizing Fundraising Part I: Six Ways AI is Transforming the Nonprofit Sector, but what are some real-time insights into how nonprofits use AI to boost donor engagement and drive lasting impact?

AI can create efficiencies, such as making existing processes uncomplicated and faster, reducing chances of errors, getting better data, and helping staff focus on more challenging issues. Here are some examples of nonprofits using AI to help them reach their goals more efficiently.

AI Applications

Natural Language Generation to Create Donor Narratives

Natural Language Generation (NLG) uses machine learning and natural language processing to create human-like texts based on given prompts. NLG can turn donor data, including donation amounts, dates, and impact metrics, into personalized and captivating stories that connect with donors. This technology allows organizations to share the transformative impact of each donation, engaging donors and maintaining a high level of personalization while saving time and resources.

Example: See examples and screenshots of ChatGPT’s use to generate thank-you emails, social media content, announcements, etc.
How to get started: Get a deeper understanding of large-language models (LLMs) with Coursera co-founder and AI expert Andrew Ng’s course series on building applications using LLMs.
Note: Some online tools may use your input as training data for their models. Avoid entering sensitive and confidential information. Since these models are built on text from websites on the internet, the generated language could be biased, non-inclusive, and offensive. Finally, these models and tools often make things up. Always verify the generated text for accuracy and propriety.

Natural Language Processing to Analyze Sentiment

The Natural Language Processing (NLP) toolkit includes tools and techniques to analyze the sentiment of a text, categorizing it as positive, negative, or neutral. These tools can assess donor engagement or feelings about a nonprofit by studying donor emails or gift officer visit reports. In addition, nonprofits can build an organization-level dashboard to monitor their donor population’s sentiments.

Example: Amnesty International built Troll Patrol to detect online abuse using Twitter data.
How to get started: Review Hubspot’s list of sentiment analysis tools to experiment with.

Grateful Patient Data Technology to Reveal Opportunities

Healthcare fundraising often relies on the generosity of grateful patients and their families. However, identifying potential supporters among hundreds or thousands of visits and patients remains challenging. AI-enabled automation offers a new solution for nonprofits to connect with potential donors effectively. This technology automates data extraction and analysis, allowing organizations to identify patients who express gratitude for their care. Using the nonprofit’s criteria, the technology generates lists of qualified prospects based on wealth capacity, prospect information, and machine learning. This significantly reduces the time required for data gathering, analysis, and prospect identification.

Example: This research paper describes the prediction of patient experience using machine learning. Similar methods apply to any healthcare organization to predict patient satisfaction and turn positive experiences into qualified donor prospects.
How to get started: The CCS Data Analytics team can create a data management, augmentation, transformation, and dissemination solution for your organization. This solution will drastically reduce the time taken from data intake and clean-up to prospect recommendations. It will focus on ensuring that your institution uses this data successfully and strengthen a culture of philanthropy to raise transformational and sustainable support from patients.

Chatbots to Engage Website Visitors 24/7

Nonprofits use AI-powered chatbots on their websites to engage with visitors, answer questions, and facilitate donations. Such chatbots are trained on vast amounts of proprietary data and tailored with if-and-then rules. Chatbots can provide information to visitors and encourage them to donate to the cause. This helps reduce response time to common questions and helps direct donors to programs aligned with their giving priorities.

Example: World Wildlife Fund’s Facebook Messenger assistant
How to get started: Tools like Chatfuel will let you create a chatbot without complicated programming.

Image Recognition to Categorize Media Assets

AI-powered image recognition helps organizations catalog their media assets. The technology allows the nonprofit to easily search and retrieve images for use in fundraising campaigns and other outreach efforts, making the appeals more relevant and compelling while reducing staff time searching for images.

Example: National Geographic Society
How to get started: Amazon Rekognition allows you to automate image recognition.

The Power of AI to Maximize Resources

Nonprofits can benefit significantly from using AI, as seen in these examples. AI can help simplify work, reduce mistakes, gain valuable insights from data, and allow staff to focus on meaningful work. With AI, nonprofits can better engage donors, save time and money, and meet their goals. Taking the first steps to use AI can help nonprofits make strong connections, create lasting impact, and build a bright future for fundraising. Now the question is: What approach will you take to unlock the potential of AI within your organization?

Explore Part III of this Revolutionizing Fundraising series, which provides guiding questions to help your nonprofit decide whether and how to implement AI.

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Custom GPTs for Fundraising: A Nonprofit Guide

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Learn about Custom Generative Pre-Trained Transformers (GPTs), their application in fundraising, and how you can harness their capabilities to streamline your fundraising efforts and forge deeper connections with donors.

I once knew a man named Lauren, a name that was once popular for men but has since “gone out of fashion.” In a previous nonprofit position, I was surprised to find him in our database—and even more surprised to see someone had marked his gender as female and going so far as to add a “Ms.” to his salutation. I quietly corrected the mistake.

Someone else quietly changed it back.

Their intentions were good—they wanted to expand our data collection, ensuring that all the Johns and Janes of the world had appropriate gender markers and salutations for future event invites and direct mailings. However, without proper protocols about when and how to update donor records, they contributed to what is known as dirty data.

The database kept an audit log of all changes, so I found the culprit and explained that, no, this donor is not a woman; can you please leave the record as you found it? This honest mistake could have resulted in a slight to Lauren, someone whom I knew had been on the receiving end of honest data mistakes his whole life and who would appreciate an organization to which he donated a significant sum to correctly address him as “Mr.”

The world is full of Laurens—donors with unusual names, donors whose data points invite contradictions of how we expect to categorize people. Our world exists beyond binaries, but that’s not always the case for the tools that we use. It’s time to think about how we ensure that our data honors our donors through data integrity and inclusion. Below are some considerations for thoughtful and intentional data collection and application.

steps toward data inclusivity

Tracking Meaningful Data

We tend to think that the more data we have, the better. However, I often work with organizations with too much data—too many options to choose from upon data entry, data tracked in the wrong field, and data collected in online donation forms that are never used.

A key data integrity component is tracking the data that will lead your organization to relevant insights and outcomes. In the case of the dirty data culprit mentioned above, they wanted to invite women to events hosted by our organization’s women’s giving circle in the hope that they would become more philanthropically involved. Gender was a meaningful data point to track (though I would argue that gender is rarely relevant outside of specific gender-targeting initiatives like the women’s giving circle). The problem was that the data was not donor-provided—it was employee-assumed.

Your organization should determine what data is most important to achieving success. Often this starts by asking, “What does success look like for us?” and then working backward to understand what data points will inform your goals. For instance, if you want to expand your direct marketing, you would require addresses and emails on forms that donors and prospects fill out and run queries to check for inaccuracies in either field (such as gmal.com vs. gmail.com). Creating data standards and protocols that outline when and who enters integral data is equally important—these guardrails help organizations keep their data clean and trustworthy.

Addressing Donors With Respect

I once worked at an organization with around 60 salutation options on their online donation form. Trying to choose a title was one long, seemingly endless scroll. With the approval of the chief development officer, I narrowed the list down to a reasonable number of salutation options to improve the donor experience—and added an option as well.

Mx. (pronounced “mix”) is a gender-inclusive salutation often used by individuals who are not strictly male or female. Adding this option to the form signaled to donors that our organization valued and made space for donors who live outside the binary of Mr. and Mrs./Ms. As a trans person, it was vitally important to me that our data reflected the diversity of our donors.

Donors trust organizations to keep their data safe. If someone shares their information with an organization, it’s up to that organization to honor it. Adding gender-inclusive options to data fields allows organizations to accurately and respectfully capture information about their donors. Beyond salutations, organizations should consider tracking pronouns—pronouns are used daily and are critical to referring to someone with dignity. Capturing and using the correct pronouns is another way of valuing donors, and expanding data to account for gender diversity gives organizations helpful markers to aid stewardship.

Connecting the Donor Dots

With the passing of the Obergefell ruling, nonprofits are seeing an increase in LGBTQ+ philanthropy, as more couples who can legally marry now choose to donate together. Often the spouses do not have the same last name—leading to a data integrity breach. Each person in the relationship receives separate solicitations because they have not been labeled as a single household in a database.

HOW GOOD DATA AFFECTS DONOR STEWARDSHIP

This challenge is not limited to LGBTQ+ donors—over the years, I’ve seen the use of “Mrs.” decrease as younger donors seem less interested in titles or adopting their husband’s last name. However, it’s important that organizations do their best to link these donors and develop stewardship plans involving both partners. Linking and soft crediting the donors accurately captures their combined donation totals and ensures both partners are involved in their philanthropic giving. Treating spouses who wish to donate together as a single entity demonstrates that your organization respects their union and appreciates their giving—no one should allow poor data practices to get in the way of good donor stewardship.

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Traditionally, those who make a gift every year are schools’ most loyal supporters. These individuals are bonded to the organization’s mission through consistent communication and engagement. As fundraisers, it is our responsibility to keep donors informed, understand what motivates them, and share the impact of their gift — no matter the size. Major gifts come to fruition through dedicated donor cultivation and engagement. By building and stewarding relationships with existing donors rather than working to acquire new ones, we can bridge the gap between annual and major gifts.

Understanding how and when to transition a mid-level or leadership annual giving donor to major gifts is crucial for strengthening an organization’s major gift pipeline. While this transition starts with exploring one’s giving potential, it ends with a shift in the donor’s mindset. As fundraisers, we can raise donors’ sights and inspire them to think deeply with us on what they hope to accomplish philanthropically.

building a strong major gift program is important for the education sector

In partnering with various nonprofits, CCS found that the top 10% of all donors contributed 92% of total fundraising dollars over ten years.

Notably, education partners have great confidence in major gifts in 2023.
• 45% of an institution’s fundraising comes from major gifts
• 84% anticipate mid-level gifts will either increase or stay the same
• 87% anticipate major gifts will either increase or stay the same

Defining a leadership annual giving prospect

What constitutes a leadership annual giving prospect at an organization can vary. For example, some organizations consider a leadership annual giving donor to be someone who makes an annual contribution of $1,000 to $25,000. Organizations that choose to invest in engaging leadership annual giving staff and a formal moves management process are building a major-gift-centered donor pipeline. This pipeline is focused on identifying and qualifying emerging prospects and ensuring that loyal, recurring donors feel connected.

How to transition a leadership annual giving donor to major gifts

Ensure the following are well thought out and successful before considering moving a leadership annual giving donor to your major gift pipeline.

Personalized Communication and Engagement

Development team members should send personalized communication to leadership annual giving donors, in addition to broad-based newsletters and emails. Providing a donor with the opportunity to have an assigned point of contact on the development team creates a deeper connection to the organization. Donors want to hear from you and understand how their gift is being put to work and their impact on the community.

Strong Stewardship

Leverage stewardship to inspire donors to dream big. Consider sharing stories of those directly impacted by your organization’s mission and what can happen when philanthropy is put to work. If you have giving societies in place, determine how a mid-level or consecutive giving society can create a natural cadence of communication. Provide meaningful touchpoints with key personnel at the organization, recognition, and opportunities for donors to see their gift in action. Strong stewardship can motivate donors to keep giving and, more importantly, consider an increased gift. Donors of all gift sizes who receive exceptional stewardship are able to see first-hand how your organization is handling their gifts. This, in turn, furthers their trust in your school.

WHen leadership Annual Giving Donors Should be Moved to the Major Gift Pipeline

Consider these key indicators when determining if a leadership annual giving donor should be moved to the major gift pipeline:

Note: Not all of the following need apply to move a donor into the major gift pipeline.

Qualify the donor. Prioritize consecutive, longtime donors who can make a major gift. Utilize a wealth screening tool to determine the donor’s capacity, including assets, current employment, and business holdings. Ensure your interests are aligned, and determine if a relationship exists either personally or with someone close to them.

Understand the donor’s philanthropic involvement within the community. Explore their giving (size and focus) to similar organizations or other nonprofits within your community.

Identify any shifts in the donor’s giving to the organization. Either the vehicle in which they give has changed and/or they have increased their annual gift amount. Vehicles to flag include giving through a family foundation or donor advised fund, a stock gift, or through their IRA.

Note a first-time unrestricted gift that falls within your organization’s major gift threshold (ex: greater than $25K). Also note if a donor shares one of the following:

They have included the organization in their will.
They are interested in serving in some volunteer leadership capacity (board, campaign, etc.).
They have experienced a major life change such as selling a business, retiring, or finding a new job.

As you build and grow your major gift pipeline, consider those closest to your organization as a starting point. Look at your leadership annual giving donors’ access, affinity, and ability to give — there may be a few diamonds in the rough.

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EXPLORE ALL INSIGHTS

Health organizations are complex institutions with comprehensive, nuanced, and meticulously created operating budgets. While perhaps best known for delivering patient care, executive leaders are obligated to ensure efficient operations and outcomes for wide-ranging responsibilities, including but not limited to:

Facilities
Personnel
Research
Training
Government Relations
Marketing
Equipment and Supplies
Legal and Compliance
Billing and Insurance
Medical records
Data systems
Food Service
Security
Parking

Each function is vital to the organization’s overall health and well-being and requires significant consideration, oversight, and resources. Amid the competing priorities necessary to run an efficient healthcare organization, C-suite leadership sometimes overlooks or deprioritizes philanthropy.

Despite being one of the few revenue drivers within a healthcare organization, the aggregate amounts raised through fundraising pale compared to clinical or other organizational revenue streams. Our historical experience and industry analysis have shown that philanthropy typically accounts for 1-3% of total health system revenue. Nonetheless, the philanthropic activity return on investment is unparalleled and can result in significant unencumbered monies for a healthcare organization.

Consider These 3 Healthcare Fundraising Points

Fundraising leaders should consider three key points when encouraging their C-Suite Executive Leadership to maintain or increase investment in their fundraising operations regardless of organizational size or financial position.

1. No other revenue stream within the organization can generate philanthropy’s outsized returns.

Several measures help gauge healthcare organizations’ efficiency and effectiveness in raising philanthropic funds. One such metric is Return on Investment (ROI), which calculates the return, or profit, generated by an investment.[1] At many organizations, the fundraising team produces the highest ROI of any department. According to AHP’s 2022 Report on Giving, for every $1 invested in philanthropy, healthcare organizations return an average of $5.41, with the highest performers delivering as much as $7.78 per dollar invested. In comparison, for every $1 invested in patient care, hospitals and health systems will return on average between $1.01 and $1.03. [2]

2. Philanthropy is less resource-intensive than operational revenue streams.

When your organization’s C-Suite considers investment options to generate revenue, very few options are cheaper than philanthropy. A philanthropy-generated dollar takes less organization-wide effort, resources, and space to produce. It can cost up to 250x more to invest in clinical care than in philanthropy to net the same dollar amount.

Many hospitals and health systems face flat or declining profits due to increased headcount costs, clinical innovation and population health initiative investment, and core business commoditization and decreased utilization. COVID-19 pandemic-related elective surgery decline also greatly exacerbated declining profits. Consequently, increasing patient volumes may no longer improve the organization’s operating margin, a profitability indicator showing patient care operations income. [3]

Industry analysis indicates that most healthcare organizations already have razor-thin operating margins of 1-3%. In view of these margin pressures, the quantity of clinical services needed to net even $1 million is significant.

However, philanthropy can significantly impact healthcare organizations’ operating margins. According to AHP, the average healthcare organization’s fundraising “cost-to-raise-a-dollar” (CTRD)[4], a measure of fundraising efficiency, is $0.19, with the highest performers reducing that cost to $0.13. In comparison, a healthcare organization would need to invest closer to $0.97 – $0.99 in patient services to get a $1 revenue return. Using these metrics, the chart below illustrates the patient service dollars needed to net those of philanthropy.

Net Return	Patient Services Costs[5]	Gross Patient Services Revenue	Total Fundraising Expenses[6]	Total Fundraising Revenue
$10 million	$323 million – $990 million	$333 million – $1 billion in services	$2.34 million	$12.34 million
$5 million	$162 million – $495 million	$167 million – $500 million in services	$1.17 million	$6.17 million
$1 million	$32 million – $99 million	$33 million- $100 million in services	$230,000	$1.23 million

Utilizing the table figures from above, if a hospital’s chief financial officer (CFO) needs to produce $10 million in new revenue, what would be the most efficient route? At a 1% operating margin, the hospital would need to provide $1 billion in services, costing $990 million, compared to investing $1.9 million in fundraising operations.

Philanthropy provides undeniable value to healthcare executives looking for more complementary revenue sources. Of course, the argument is more nuanced than simply injecting additional fundraising operations capital to produce a guaranteed result, and most healthcare organizations’ primary mission surrounds patient care, which will always come first. Generating fundraising revenue differs from the supply and demand transactional nature of patient services. Yet, with payment cuts for care delivery on the horizon, philanthropy will likely have a more substantial ROI, become an even cheaper investment opportunity, and play a more significant role in alleviating margin pressures.

Fundraising operations investments should be monitored and reviewed regularly discern metrics such as ROI and CTRD, and to ensure that investments were wise. Organizations can pressure test additional and continual fundraising investments until the long-term ROI and CTRD diminish to the point that such investments are no longer an efficient or effective organizational practice.

3. In times of increased financial stress, philanthropy can be a good investment.

Philanthropy adds directly to an organization’s net operating margin, relieving margin pressure.

At first glance, it is not surprising that fundraising might seem inconsequential within overall healthcare organizational finances; AHP’s 2022 Report on Giving shows that health systems average $16.42 million [7] in annual philanthropy, perhaps marginal at billion-dollar health systems. However, the healthcare industry’s low operating margins also indicate that philanthropy could determine whether a hospital ends up in the red or black in any given year. In fact, according to the Kaufman-Hall analysis of 900 hospitals nationwide, 2022 closed out with operating margins at just 0.2% for December, with an average annual margin of -1.3%. Given this statistic, philanthropy can be vital to the bottom line.

Case Study: A West Coast-Based Nonprofit Healthcare System

To illustrate how financially impactful philanthropy can be on a healthcare institution, here is an example of a West Coast-based nonprofit healthcare system.

Operating Data (includes only patient services, not philanthropy financials)

Operating Revenue	$3,243,046,000
Operating Expenses	$3,157,320,000
Operating Income (Operating Revenue – Operation Expenses)	$85,726,000
Operating Margin (Operating Income/Total Operating Revenue)	2.6%

Philanthropy Data

Fundraising Revenue (Contributions and Grants)	$50,586,862
Fundraising Expenses	$8,615,529
Fundraising Income (Fundraising Revenue – Fundraising Expenses)	$41,971,333
CTRD (Fundraising Expenses / Fundraising Revenue)	$0.17

Operating and Philanthropy Combined Data

Total Revenue (Operating Revenue + Fundraising Revenue)	$3,293,632,862
Total Expenses (Operating Expenses + Fundraising Expenses)	$3,165,935,529
Net Income[8] (Total Revenue – Total Expenses)	$127,697,333
New Profit Margin (Net Revenue / Total Revenue)	3.9%

Philanthropy can be a critically powerful tool for an organization with negative operating margins. The $51 million fundraising revenue accounts for only 1.5% of the organization’s $3.3 billion total revenue, yet, the $42 million in net fundraising revenue represents an impressive 33% of the organization’s $128 million net income. Given the organization’s low operating margin (2.6%), philanthropy significantly contributes to the organization’s bottom line and overall fiscal health.

Philanthropy Is a healthy Investment for Healthcare Organizations

Health organizations now recognize philanthropy as a core business strategy to provide operational and capital dollars for organizational advancement, particularly during recent changes in healthcare economics. For any CEOs, CFOs, and healthcare leaders looking to improve their financial performance and operating margins, philanthropy is a worthy investment.

[1] For the purposes of this article, ROI is based on cash, not production accounting. ROI is calculated by dividing gross funds raised by total fundraising expenses.

[2] Assuming an operating margin of 1-3% per section 2.

[3] The operating margin is calculated by dividing the difference between the total operating revenue and total operating expenses by the total operating revenue.

[4] CTRD is calculated by dividing total fundraising expenses by total fundraising revenue.

[5] Assuming an operating margin of 1-3%.

[6] Assuming a CTRD of $0.19.

[7] Based on cash accounting.

[8] Net Income is the equivalent of the Operating Income + Fundraising Income.

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EXPLORE ALL INSIGHTS

In an increasingly competitive job market, nonprofits must recruit and retain the best talent. These are important considerations, especially around fundraising roles in nonprofit organizations that rely heavily on philanthropic revenue. Insights from CCS’s extensive experience with major higher education institutions confirm the following:

Maximized talent leads to thriving development teams and greater fundraising results.

Misappropriation of time and resources impacts productivity, dollars raised, and job satisfaction.

Staff turnover is costly.

The Center for American Progress has found that the average cost to replace an employee such as a major gift officer is up to 213% of the salary and benefits of the person being replaced. How can you mitigate some of the risks leading to turnover in your development office? Create a positive, inspiring work environment by maximizing your team’s skills. Ensure that all staff can professionally thrive by optimizing their work.

How are Your Frontline Fundraisers Spending Their Time?

Utilizing data gathered from over 70 annual higher education partners, CCS has found a ratio of 1:3 – 1:5 frontline fundraisers to support staff is optimal. In this model, “support staff” includes far more than administrative team members. Consider any member of your team who provides resources for your frontline fundraisers part of this definition of “support staff.”

A ratio below 1:3 may indicate your fundraisers are not dedicating enough time to active donor engagement. This results in an under-optimized fundraising team, fewer dollars raised, and increased burnout. Your fundraisers do not have the opportunity to do what they do best; deepen donor relationships and inspire new prospects.

A ratio above 1:5 may indicate an environment where “back of house” team members dominate, creating a high volume of red tape and potentially inefficient systems and processes. This results in an under-optimized fundraising team that is unable to focus on relationship building through strategic cultivation and solicitation leading to transformational gifts.

If your frontline fundraisers conduct any of the following indirect fundraising tasks, read on!

Event planning and/or management
Proposal writing and gift agreement administration
Program support
Prospect research

Administrative responsibilities (e.g., data entry)

the case for retention

Last year, CCS supported over 70 colleges and universities and worked with a total of 700 organizations located in over 350 cities across 18 countries. We frequently encounter frontline fundraisers with inordinate responsibilities that keep them from direct fundraising, which we define as cultivating, soliciting, and expertly stewarding prospective supporters and donors.

Though it might seem reasonable for fundraisers to wear multiple hats, this approach will cause frustration and increase turnover. Fundraisers need time to build relationships and time spent elsewhere can be costly especially when more than 67% of giving in the United States is driven by individuals. Individual philanthropy thrives on personal connections to your organization’s mission, and the time required to build those relationships is critical to fundraising success.

Retaining your fundraisers has a huge financial impact. It takes multiple years for a fundraising professional to meet their peak potential. In fact, the Chronicle of Philanthropy found that it took, on average, four years for major-gift fundraisers to “mature into their roles.” After four years, frontline fundraisers dramatically increased the average dollars they raised.

The Impact of an Imbalanced Development Operation

Examples abound demonstrating how the misappropriation of fundraisers’ time negatively impacts philanthropic revenue. Consider an organization that spends less than $0.20 to raise a $1 for their primary annual fundraising event. On the surface, this type of result is commendable. After closer consideration, however, this event’s low cost may mean that the development staff, including frontline fundraisers, carry too great a burden to optimize the cost to raise a dollar. This would certainly impact their ability to cultivate donors, build relationships, and solicit gifts—all of which could be avoided with a simple shift in resourcing for the event.

In addition to assessing how various activities impact fundraising, you can also assess how your frontline fundraisers individually make an impact. Here is one example:

Deon, whose salary is $100,000, is responsible for raising $1,000,000 each year. If 25% of Deon’s time is focused on non-fundraising activities, one could extrapolate that the organization is risking $250,000 in possible gifts each year (not even factoring in compouned growth). The organization is also indirectly budgeting $25,000 every year (a quarter of Deon’s salary) to support this non-fundraising activity.

This example does not account for the time it takes to develop meaningful donor relationships. With 25% less time to focus on fundraising, Deon has lost incalculable opportunities for relationship building and future revenue generation. For example:

Would a donor have given twice as much if Deon had the time to more deeply engage them?

This calculation will be further exacerbated when Deon is tasked with responsibilities that don’t play to his strengths and take him away from activity that will allow him to hit his goals. You can anticipate this situation will ultimately lead him to give notice, leaving your donors without a steward they know and trust.

If you think your organization would benefit from revisiting the delegation of responsibilities across the fundraising team, take these steps to determine your current fundraising-to-support staff ratio.

how to optimize Your Team

1. Evaluate and Redistribute Responsibilities

Begin by defining who you consider a frontline fundraiser and who you consider support, noting that support does not always equate to strictly administrative responsibilities. The simplest approach is to consider support staff as any role that does not hold direct fundraising responsibilities. Some roles may be split (e.g., roles that include managerial, administrative or other responsibilities), and for those roles you can divide their time across both categories (.25, .5, .75 etc.).

Here are some examples of how this might be approached:

Sample Role	Frontline	Support
Director of Development	.5	.5
Manager of Individual Giving	1
Major Gift Officer	1
Manager of Institutional Giving/Corporate Relations	1
Planned Giving Officer	1
Communications Coordinator		1
Research Analyst		1
Database Manager		1
Development Associate/Assistant		1
Special Events Manager		1
Alumni Relations Staff		1
Advancement Communications Staff		1

If the fundraising to support ratio falls short of our recommended 1:3 – 1:5 ratio, you should determine where you can delegate more of your fundraisers’ indirect work to support staff.

2. Consider Hiring Support Staff

Next time a vacancy opens up on your team, or you have an opportunity to add headcount, pause to reflect on this ratio and how your staff are currently spending their time. Consider asking your staff to spend two weeks tracking their time. This exercise will provide data for an informed assessment to support potential changes in the way you delegate and/or how you reallocate tasks.

To maximize your team’s efficiency with limited resources, CCS often encourages our clients to consider adding these support staff positions before adding costly frontline fundraisers:

Areas of Support	Impact
Proposal or Grant Writing	Frontline staff can advise on content but are not tasked with the considerable time necessary to produce stellar proposals.
Stewardship Report Writing	Frontline staff can focus on amplifying the stewardship process (e.g., arrange to hand-deliver a report) if not tasked with writing the content.
Event Coordination	Frontline staff can focus on inviting prospects and engaging attendees during and after the event, ensuring positive experiences, and deepening relationships.
Data Entry	This reduces desk time and ensures both efficacy and continuity of information included in the CRM.
Data Analysis	Harnessing your data to make informed decisions (e.g., portfolio analysis) can improve fundraising performance.
Prospect Research	Frontline staff can focus instead on research insights, connecting their donors to demonstrated areas of interest.
Board Management	Boards are frequently the biggest drivers of fundraising activity and expert management is key. Dedicated staff ensures that your Board is leveraged to their fullest extent and ensures a seamless donor experience.
Volunteer Management	Connecting donors to meaningful volunteer opportunities (such as Advisory Boards, Alumni Councils, Admissions, Career Development, etc.) frequently results in greater philanthropic investments. Frontline staff should connect the dots, while others should manage logistics such as volunteer assignments, training, and data collection.

Where your team spends its time is where your organization spends its money. Investing in the right kind and amount of support for your frontline fundraisers will reduce turnover, increase funds raised, and can make all the difference.

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