Using a Logic Model Approach to Developing Fundraising Performance Measures Presented by: Matt H. Evans June 15, 2006

1. Using a Logic Model Approach to Developing Fundraising Performance MeasuresPresented by: Matt H. EvansJune 15, 2006 Easy Way to Print these Slides: Turn Background Printing Off as follows: From the Main Tool Bar, Select Tools → Options → Print Tab → Uncheck Background Printing. Print the slides in Gray Scale.

2. Agenda • Logic Model Concepts • Logic Model Examples • Measuring Performance • Advanced Concepts • Useful Resources

3. Logic Model Concepts

4. Logic Model Defined “A program logic model … provides a roadmap of your program, highlighting how it is expected to work, what activities need to come before others, and how desired outcomes are achieved.” Source: WK Kellogg Foundation Evaluation Handbook (1998)

5. The Basic Flow Inputs This is what we need – staff, facilities, funds, board members, conditions, etc. This is what we will do – actions taken to deliver the products and services Activities Outputs This is what we will deliver – tangible work products or services These are the results we expect – derived from the delivery of outputs to customers Outcomes This is the ultimate goal behind the outcomes – Sustain or grow the organization Impacts

6. Logic Model ExampleDonor Program Program Plan Program Results Inputs Activities Outputs Outcomes • Conditions: • Strong Economy • Timing: • After Labor Day • Resources: • Staff • Supplies • Facilities Research conditions - Public Giving, etc. Back Plan from 9/10/07 and issue Timeline Staff Activities and Assignments See Supplies List See Budget Confirmation Memo to Board on Public Giving, etc. Program Timeline and Work Schedule Mailing Packets New Donor Listing Financial Report People are willing to give to nonprofits All milestones were met per the work schedule Funding targets were met Expanded donor base Budget Final Desired Outcome

7. Why use the Logic Model? • Clean process for capturing cause-effect relationships, covering the life cycle of the fundraising program • Easy to follow and understand – Left to Right • Drills down to the Activity Level where execution takes place • Forces pro-active planning and adjustments before you reach the end of the fundraising campaign

8. Working Right to Left – Three Simple Steps • Set performance targets at the highest level – final outcomes • Define the outputs needed to create the targeted outcomes • Develop a plan of activities and resources required for generating the outputs. Donor Plan + Grant Application Process Meetings with Key Donors and Startup Grant Need to raise $ 100,000 for new clinic

9. Important Concepts • Inputs = Variables: Include those inputs that you have the ability to influence and control (similar to the Six Sigma approach) • Activities = Collection of tasks that can be summarized in terms of a milestone after a few weeks • Outputs = Tangible products or services that are delivered to someone. Add recipients to the model when your outputs have clearly defined customers • Measurements = Control: Used for feedback to correct the fundraising process from start to finish Tasks < 2 weeks Activities 2 to 6 weeks Process > 6 weeks

10. Outcomes over Time Immediate Intermediate Long Term • Response • Feedback • Comments • Receipts • Mid Term Results • Targets • Short Term Goals • Funding Status • Growth • Trends • New Levels • Final Results # of donations received with first mailing % of targeted funds reached at end of program % increase in overall donor base Strategic Impact: Nonprofit is able to expand the scope of its services

11. Logic Model Examples

12. Source: Research Utilization Support and Help (RUSH) project, National Institute on Disability and Rehabilitation Research Grant #H133A031402

16. Strategic Logic Model

17. Measuring Performance

18. Three Simple Rules for Good Metrics 1. Relevant Does the measurement fit with the performance objective? Objective: Need to have five volunteers in place by October 1st Measure: Number of volunteers in place Can you collect the data and report a measurement that makes sense? 2. Measurable Can you act on the measurement in a timely way to correct and improve what is happening? 3. Actionable

19. Expressing Performance Numeric Percentages Ratios Easy to Measure and Report May not be very insightful in understanding performance Commonly used for inputs and outputs EXAMPLES: # of volunteers available # of workshops conducted # of donors solicited # of grant applications submitted Relatively easy to Measure and Report More insightful in understanding performance Used for inputs, outputs, and outcomes EXAMPLES: % of participants who made pledges % of budget used for outside help % of association members renewing Relatively easy to Measure and Report Very meaningful and useful for comparative benchmarking Used for inputs, outputs, and outcomes EXAMPLES: Total Funds Raised to Total Costs Average Donation per Donor Volunteer to Donor Ratio Total Funds Raised to Total Days Required

20. Benchmarking Performance across Fundraising Programs Inputs Volunteer to Donor Ratio Measure Resource Utilization Man Hours Required per Event Total Inside Resources to Total Resources Outputs Telephone Solicitation Success Rate Measure Efficiency, Effectiveness, Waste Number of Grant Revisions per Board Review Excessive Fund Raising Materials not used Outcomes In Kind Contributions to Total Contributions Measure Long Term Patterns and Trends Donor Retention Rate Actual Funds Raised / Targeted Funds

21. Metric Examples Cause Effect Relationship Lead Lag Lead Lag Inputs Outputs Outcomes % of Staff Positions filled for Fundraising Program % of fundraising packets issued # of new donations received % of fundraising events moderated by board % of fundraising target reached # of Board Members assigned to Program % of Funds Needed Available to Program # of packets delivered to major donor groups % of key outputs completed % of Supply List Filled # of grant submissions % of grants submitted that were approved % of Computers & Printers Installed # of mailings created % of mailings issued that were returned completed % of raffle items received for auction % of raffle items sold off % of funds raised through the auction portion of program # of facility items delivered # of fundraising events Total $ raised by event

22. Weighting the Metrics Warning: You may have to convert some metrics so they are equivalent to the other metrics before applying the weights Quantitative Qualitative Specific, Quantifiable Numbers (Hard) Descriptive, Revealing (Soft) Easy to Measure and Execute (Important) Inputs 5 % 9 % Least Significant Easy to Measure and More Difficult (Very Important) Outputs 14 % 19 % Most Significant Difficult to Measure and Execute (Most Important) Outcomes 24 % 29 %

23. Reporting Performance: Inputs Phase I: Resourcing and Planning the Event (August thru October 2006) As of 9/15/06 Phase I Metrics = Inputs. Final Report assigns 5% to Quantitative and 9% to Qualitative Metrics.

24. Reporting Performance: Outputs Phase II: Event Outputs (early November 2006) As of 10/15/06 Phase II Metrics = Outputs. Final Report assigns 14% to Quantitative and 19% to Qualitative Metrics.

25. Reporting Performance: Outcomes Phase III: Event Results (late November 2006) As of 11/30/06 Phase III Metrics = Outcomes. Final Report assigns 24% to Quantitative and 29% to Qualitative Metrics.

26. Different Levels of Users Inputs % Staffing, % prize inventory, % of contracts in place, Donor Listing Supervisors, Coordinators, Staff, etc. Outputs # of mailings issued, # meetings with key contributors, etc. Event Manager, Senior Staff, Committee Chair Outcomes % target reached, % membership renewed, % increase in donor base Senior Leadership, Directors, Board, etc.

27. Advanced Concepts

28. Some Pitfalls to Look out for . . • Cause Effect Relationships are not always valid – Test early-on and adjust • All outcomes are not usually captured or quantified, distorting the ROI (Return on Investment) of the Program – Where possible, recognize the peripheral benefits (new volunteers, ideas, etc.)

29. Z Logic Model Organizing your activities into a sequential flow allows you to put your entire program into a single baseline plan Volunteer Staffing Activity Plan Catalog Order Merchant Visits Event Program Arrange Facilities Sell Tickets Advertise Event Process Prizes Prize Buckets Print Programs Banquet Contract Sell Tickets Sell Tables Event Staffing Event Setup Fundraising Event

30. Program Baseline derivedfrom Z Logic Model Use Project Management Software such as Microsoft Project to automate your Logic Model into a Program Baseline

31. Thinking Outside theLogic Model Box Logic Model Situation / Priorities Inputs Outputs Outcomes OUTPUT: Case Statement – Common Theme for driving Fund Raising Assumptions / External Forces OUTPUT: Business Rules to Follow, such as 80 / 20 Rule (80% of our funds come from 20% of our contributors), Personal Face to Face is ten times more effective than mailings, Formal Events are ten times more costly than mailings, etc.

32. Overlap between Logic Models and Balanced Scorecard Balanced Scorecard Logic Model Impacts Mission Outcomes Customers and Constituents Activities / Outputs Internal Processes Learning and Growth Inputs / Resources Resources / Org Capabilities Operating Plans (Short Term) Strategic Plan (Long Term)

33. Useful Resources

34. Internet Resources Kellogg Logic Model Development Guide: http://www.wkkf.org/Pubs/Tools/Evaluation/Pub3669.pdf Logic Model Workbook: http://www.innonet.org/?section_id=62&content_id=143 United Way - Outcome Measurement Resources: http://national.unitedway.org/outcomes/library/pgmomres.cfm Logic Model Course: www.uwex.edu/ces/lmcourse Logic Model Templates: http://www.uwex.edu/ces/pdande/evaluation/evallogicmodelworksheets.html

35. Program Evaluation Books touch on Logic Models

36. Flow Charting Tools for drawing Logic Models http://www.rff.com/ http://www.igrafx.com/Products/flowcharter/ http://www.smartdraw.com/exp/dia/home/ http://www.patton-patton.com/ http://www.polarsoftware.com/index.asp

37. Questions and Comments Matt H. Evans6903 29th St NArlington, VA 22213Phone: 1-877-807-8756Web Site: www.exinfm.com