You Can't Find A New Land With An Old Map

You can't find a new land with an old map

I was struck by a few recent experiences that painted an incredible picture of the challenges and opportunities in today's market place.

Several weeks ago I was sitting with a friend who has been in the business a very long time, we were discussing the level of job satisfaction for many professionals in our industry. We didn't see many challenges through the same lens at all. Our perspectives were completely different. At one point, with a bit of frustration he said Jay you have all the answers. To be fair I love a good intellectual debate fueled with passion about the business of philanthropy. However,  I am always seeking answers because I think that they are continually changing and in addition that our questions become stale. While doing the same thing and expecting different results is insanity, it is equally insane to keep doing the same thing and expecting the same historical results. 

Last week I was captivated by this interview with Russell Brand. I was impressed with his ability to

stay on task and simply challenge the status quo. To begin conversations about new governing models was not what I was expecting to hear from this comedic actor. I encourage you to watch the clip from beginning to end, it wraps up with some how real powerful language. Now I am not on the same page with Russell regarding the need for a revolution for the philanthropic community, but there is great energy in passion. 

Putting these two experiences together helped me realize a couple things. While my friend could've been frustrated with me the biggest story is that the answers he has always known to be true are becoming less relevant in today's marketplace. The way we've done business over the last five decades will not address the unique challenges we face in today's marketplace.  Look around and study closely the “experts”, most of what is being sold is repackaged yesterday’s news.  Do you need to bring Russell's message into your organization?

Take a look at your own world. Are you measuring the same things that you did 10 years ago?  Are you always testing old assumptions? Over the next 4 weeks I am putting together several mini-sessions that give you the tools to challenge the status quo in your organization with new questions and new metrics that challenge decades of conventional wisdom.  If you are interested click here.

Russell Brand

AF Strategy Habit Or Data Driven?

40 years ago this month Art Garfunkel sang this tune “All I Know”. In those four decades all we have seemed to know in the nonprofit sector is to continue doing the same things and measuring things the same as well.  Almost a decade ago the concept of donor centric fundraising hit the street and today I can't find where that model has led to significant increases in donor retention. The reason is really quite simple. Saying the words donor centric but not creating any new metrics or implementing new strategy has just become a catchy phrase for the status quo. 

As you prepare for this year's annual fund initiative I'm sure you're acutely aware that the single activity that will generate the majority of your success in the current fiscal year will be related to your organization's ability to renew your donors from last year.  The donor centric model conversation never seemed to advance anything that changed the nature of the questions regarding this highly critical fact.

Peter Drucker made a wonderful statement decades ago that every business model reaches a point of

diminishing return. To use the title of Art Garfunkel's song, “all I know” is the way we've measured and designed our fundraising is pretty much over. Best Practice, as we've known it, is of little value, look at national statistics on sustaining donor relationships. The rock bands of yesterday don't fill the seats based on their latest hit, they are living off of what use to be. How many bands do you see able to do that for 5 decades? It may work in music despite their venues get smaller. Is your operation a breath of fresh air and original or are you

going through the same old motions. Are you and Mick Jagger trying to figure out how to keep living off Jumpin Jack Flash?

Today's donors require significantly different customer experiences and this new thinking requires a

completely new dashboard and strategy. I had the privilege in the last month of being part of two board retreats. What was exciting for me was seeing that the data in the new dashboards were compelling from a measurement perspective and logical when reviewing the organizations track record over a decade. Both boards could quickly see that the logic of the past four decades was simply no longer able to generate the kind of roi needed in today's development effort. One example: we did an exercise on naming a single invoice that could be paid by a participation number. zero

I would love the opportunity to discuss how your organization can dramatically benefit from shifting from decades of similar metrics to a new and dynamic dashboard that will accelerate your fundraising success. Email

If you are interested in an online tutorial of new annual fund strategies that can accelerate your operational cash flow click here.

What If Our Measures Undermined Our Mission

This past week I witnessed a thread on Linkedin focused on the roi measurement of money raised by Major gift officers. Measuring for money raised leads directly to mediocrity and our industry statistics seem to prove that point. Now please know I fully understand what the outcomes of an advancement effort need to be, however what I have experienced first hand is that you can push results much much further then imagined by focusing on another set of metrics that will drive the results you seek.

Do a google search for Harvard Business school professor Clay Christensen. After a little research one of the many things you will find is that he very simply describes why successful companies fail. The reason is simple....they are looking to be profitable in the short term. By focusing on the short term profit they loose sight of the really key long term stuff.

Now marry that to our world of philanthropy. We are all about short term metrics. Cost per dollar raised, average size gift, participation and many others. The majority of our measures are focused on the transaction, the money part.

I thought we were about relationships? What relationships are build via measuring transactions? Looking at the AFP Fundraising Effectiveness it is quite clear that our short term focused measures isn't working if we are looking to build and relationship momentum. Another indicator for us to pay attention to is the fact that the nonprofit sector has not gained any market share in 4 decades.  In forty years we have not been able to gain any ground on the for profit sector with giving remaining at 2% of GDP. How many indicators will it take for us to just stop and pivot to something else. But where?

So what should we measure for optimal success? Over the past year the New Science Of Philanthropy team has beta tested a tool to measure the momentum and financial impact of donor connections. If we can agree that a retained donor is better than a lapsed one than please read on :-).  The raising of money requires having a donor, not one that leaves in 2 years.  In addition most people do not lead with their very best gift. Keeping donors significantly longer than our national averages will be required in order to successfully fund our missions. But, as Clay Christensen suggests, if we continue to measure for short term profitability we will keep up our 40 year trend of zero market gain, lose donors at a 58% annual rate, un-fund our important work but most importantly not design the opportunity for so many to lead a life of value and service. Measuring for our ability to sustain and grow relationships is the most important metric to understand and it requires long term questions.