Posts tagged ‘fundraising’

February 15, 2010

Reducing Costs through Mailing List Cleansing and Skilled Volunteers at Quest

Another great example of how non-profits can utilize technology and skilled volunteers to reduce costs and improve services is with Quest Food Exchange.

The Quest Food Exchange, run by the Quest Outreach Society, leverages an innovative business model to rescue food that would otherwise be thrown in the garbage and headed for landfills, and redirect it the local hungry who need it most.  The organization is B.C.’s only food exchange, diverting almost 6 million pounds of surplus food from landfills each year, amounting in $7.12 million of food.   The organization serves 40,000 people a month by providing food to hundreds of social service agencies.

The viability and success of Quest’s programs relies on engagements with donors and constituents who need the organization’s services.  As such, having a reliable way to stay in touch is essential.  When SAP employee Annette Bazin showed up to perform some general volunteer support at Quest one afternoon, she was surprised to see how much volunteer time needed to be spent fixing incorrect address labels on direct mail materials and restamping returned mail.  In speaking with Quest staff, she learned that unfortunately 25% of Quest’s direct mail campaign mailings were being returned, resulting in boxes upon boxes of undelivered outreach materials due to wrong addresses, incorrect postal codes, and non-deliverable addresses.  All of this returned mail translated into thousands of lost dollars-worth of postage and printing costs, manpower, and, most importantly, lost participation by constituents and funders who were not able to be kept informed.  Faced with this challenge, Annette recognized the opportunity to address this problem in a more meaningful way by not just licking stamps and resorting envelopes but dramatically reducing the organization’s undeliverable mail by improving the soundness of the organization’s contact database through SAP Business Objects products.

Annette, an SAP  Corporate Engagement Manager for the Global Knowledge team, leveraged her engagement management expertise to set up and manage the relationship with Quest for this project. Given the non-product focus of her experience, Annette approached me to bring in colleagues who could provide the necessary product and implementation expertise, while she played the role of program manager serving as the main conduit between Quest and her colleagues’ technical support.

Annette worked with me to explore what opportunities there were to partner to meet Quests needs and identify the product and support that would have the greatest impact on the organization. Together, we established the framework for the engagement, setting the goals of the project, identifying Quest’s involvement, and making sure the framework of the engagement was mutually agreeable. Once a clear outline of work was established, SAP Business Objects OnDemand Group Product Manager Colin Adler stepped in to manage the detailed implementation of the database address cleansing process with Quest’s Community Relations Coordinator, the primary user of the mailing list database, and a volunteer charged with updating all the information.  Colin led the Quest team through the technical details of the implementation, and also served in an advisory role to ensure that the Quest team would be self-sufficient after the initial implementation completed.

This project was completed in April 2009, and a mailing campaign conducted less than a month after the completed implementation had a return rate of only 1.5%, down significantly from the 25% return rate the organization was experiencing prior to the database address cleansing solution.  By cleaning of the mailing list of over 500 bad and duplicate addresses, Quest estimates that the this support SAP provided is saving the organization over $5,000 annually. Since Quest is able to leverage each dollar into six dollars of food donations, this represents an additional $30,000 of food available to constituents.  “From a cost perspective, we are saving dramatically” says Elizabeth Crudgington, Quest’s Interim Executive Director. “Prior to [the SAP  support], we needed to have volunteers coming in for hours and hours at a time sorting through returned mail… and [Quest] lost hundreds of dollars in each mailing campaign in reprinting and mailing costs.” And the benefits have only just begun. Elizabeth shared that “we were so pleased with the outcome of this first phase, we are already in discussion for phase two of making better use of our data: dashboarding.  We’ll be exploring what we can do with [this database] with SAP Business Object’s products and support.  The Board is very excited about partnering for phase two.”

The SAP employee volunteers also walked away from the engagement with tangible professional development benefits.  Because his day-to-day role at SAP Business Objects is not typically client-facing, Colin found this engagement particularly beneficial for the opportunity to “sit down with the client user of our software.”  He felt that “engineering employees, for example, whose roles often have less direct exposure to clients, can really benefit from this interaction.  Getting exposure to the kinds of problems that customers face will be immensely valuable down the road.”  Similarly, Annette found incredible value in seeing another important facet of SAP’s business first-hand – “prior to this project I hadn’t been as aware of the data cleansing and management portion of our tools.” She also appreciated that this project gave her “the opportunity to work with other people in my office, which my role does not generally allow, and to work closer with Colin and learn more about his job and what he does”. Moreover, she also found worth in the altruistic nature of volunteering.  “I think the biggest benefit [of this type of project] is that you are contributing to the good of society.  I feel that even with this small project, it has saved [Quest] money, which means that they can feed more people thanks to our product and services.”

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February 11, 2010

Cutting Reporting Time and Improving Fundraising with Skilled Volunteers at Arts Umbrella

Last time I talked in general about how skilled volunteers can contribute to community organizations. This time I want to talk about a specific example where SAP employees worked with Arts Umbrella to improve reporting and fundraising processes. This is a great example of how technology, combined with business skills (in this case sales processes) can be applied in partnership with a community organization and have a big impact.

Arts Umbrella is Canada’s preeminent arts institute for young people, ages 2 to 19. The not-for-profit began operating in a small rented space in 1979, with 45 children attending. Today, Arts Umbrella operates in a 22,000-square-foot facility in Vancouver, British Columbia, and has numerous partnerships with other organizations across the province of BC. Arts Umbrella estimates that, during 2006 and 2007, more than 36,000 children attended classes, workshops, and outreach performances. Arts Umbrella has more than 150 staff and faculty members, making it the second largest employer of artists in the province. In addition, over 300 volunteers assist in a variety of ways, predominantly in fundraising efforts.

While Arts Umbrella has grown steadily to become a world-class art center, technology in general at the organization has been a slow-going process. In the year 2000, Arts Umbrella changed its database system over to Raiser’s Edge, a database used primarily by not-for-profits in the fundraising sector. “Unfortunately,” says Scott Elliott, director of development at Arts Umbrella, “we didn’t have the capacity in-house to run that system properly. And we had no training. So we floundered around, not able to pull any reports out of the database at all.”

Arts Umbrella requires the production and distribution of a variety of reports, but two reports are especially critical – on a weekly basis. One is a forecast report, which summarizes the other report needed: a full listing of who the organization’s canvassers are, who the canvassers’ prospects are, what kinds of funds are expected from these prospects, and so on. Compiling these reports was a difficult, time-consuming process. “I would export pretty much raw numbers from Raiser’s Edge into an Excel file,” says Scott. “And then I’d spend literally days massaging those numbers to get them into some kind of report. I never had any confidence in the finished report. Another problem was that I wasn’t able to correct errors in a quick manner because we were running two systems. Whatever I had in the Excel system, I had to re-input back into Raiser’s Edge. It just wasn’t dynamic at all.”

Because Arts Umbrella had already worked in partnership with the Business Objects Foundation, which funded core curriculum and technology programs for children and youth, the organization had heard about Crystal Reports and its effectiveness within other organizations. “We knew we had to come up with a better solution,” Scott says, “so we began talking to SAP Business Objects about how Crystal Reports could be integrated with Raiser’s Edge.”
Troy Anderson, SAP Business Object’s Group Vice President, Sales: Small – Mid Size Enterprises, attended the organization’s board meetings to understand how the organization approached raising operating funds, and quickly noted the challenge of having to increase their fundraising capacity while also having to predict whether or not they were on track for expected revenue. “My observations were very similar to ones we see [at SAP]”, Troy noted. “Multiple paper copy reports, not tracking the success of different fundraisers, and making sure the data was accurate instead of having conversations about what the data meant.”

Over the next six months, Troy worked with the organization to articulate what there reporting needs are, and then building those reports. “Key people from Arts Umbrella started attending Crystal Reports training,” says Scott, “so we now have in-house experts who know what questions to ask the experts at SAP Business Objects. We learned that good training was absolutely essential to the success of this deployment.”

Today, with Crystal Reports, says Scott, his “fundraising life” has improved significantly. “For example”, he says “we can now better project our annual campaign. We worked with SAP Business Objects to identify the three or four characteristics that, when tracked, are great indicators of the likelihood that a pledge will or will not actually close. This ‘probability formula’ helps us predict – with a high degree of accuracy – who’s going to eventually give and who isn’t.”

This level of reporting, Scott says, allows Arts Umbrella to motivate its canvassers by being able to say, “You have this prospect, and they’re currently at a 10% chance of coming through with their pledge. Here’s what you need to do to move them up to 70%.” So what Crystal Reports has done “very clearly,” says Scott, “is increase our efficiency – not only within our office, but also with our canvassers. We have the tools now to evaluate our situation midpoint, rather than waiting until it’s too late. We can now react quickly as a business and fix things before they become a major problem.” “And just being able to customize our reports,” Scott says, “it is huge – to get our data out and formatted in the way we need it formatted. Reports that used to take hours or days to produce are now available with the click of a mouse.”

For me, this is the key takeaway from this example. It wasn’t just the technology or the people that made a difference here. It was taking the time to listen and really understand the problem and being creative in applying knowledge and expertise from one sector (software sales) to another (fundraising). We have now taken this example and turned it into a case study, made a template project plan and determined technical requirements so that employees around the world can implement a similar solution with non-profits in their region.

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