It’s not news to tell you coronavirus has dominated fundraising conversations in 2020.
From March this year, the sector faced bleak uncertainty with the threat of declining income, restructures, and impending recession. Some charities took action while others waited it out with varying results.
As predicted, some larger organisations like Macmillan are expecting a multi-million-pound drop in income for flagship fundraising events, but others, like UNICEF, have experienced record-breaking fundraising success.
But are these results purely driven by coronavirus, and what does success really look like in the new sector into which we’re emerging?
How can we ensure other important drivers in charity success like anti-racism, climate emergency, and discrimination are still highlighted when considering covid’s impact?
And with another lockdown on its way, mixed messages from the Government, and uncertainty once again rising, how can we be sure the decisions we are making for the future of our fundraising are the right ones?
How do we know what success looks like in 2020?
Benchmarking is crucial for fundraisers to make the right decisions on what to do next.
By looking at another charity’s performance against your own you can break down what makes such superior performance possible, and then comparing those processes to how your own charity operates, you can implement changes that you know will bring significant improvements.
What worked before as a reliable income stream, face to face for example, now needs to be innovated to continue. Because of the changes in delivery, the outcomes too will change; affecting what success will look like.
How will you know if your fundraising activity is a success if you don’t know what success now looks like?
Nor can we assume that every activity’s outcome in 2020 is because of covid.
For example, Shelter raised £3m from this video in March this year. Was this because of timing and need, or because of their ongoing work to center the beneficiary as the voice of their charity?
What benchmarking can do for you
You’re being asked to re-forecast or even restructure, huge decisions that will have a lasting impact on your organisation, without knowing the bigger picture. That is a huge responsibility to undertake without proper insight or support.
You can either take your best guess or compare your performance and plans with other leading charities – that’s where benchmarking comes in.
By comparing your own performance and activities against that of the UK’s leading charities you can find confidence and clarity that the important decisions you make today will have a positive, lasting impact on what’s to come.
The benefits to benchmarking include identifying performance gaps that need improvement, gain clarity on what actions to take based on what’s working in the wider sector, and improve efficiencies in the activities you’re already doing well.
In the current situation, the benefit to benchmarking is a solid understanding of what success now looks like and how you measure against that; and if not, what you need to do about it.
How to benchmark
Benchmarking is data-driven insight that requires good relationships within the sector, an eye for detail and crunching the numbers, and time to properly analyse and deliver the results.
The components are as follows:
- Select a product, service or process to benchmark
- Identify the key performance metrics
- Choose companies or internal areas to benchmark
- Collect data on performance and practices
- Analyse the data and identify opportunities for improvement
- Adapt and implement the best practices, setting reasonable goals and ensuring charity-wide acceptance
Top tip: to ensure an adequate comparison of data you must compare your charity against more than just a few charities.
We’re here to help
Over the coming months, we’ll be sharing more resources from our Planning team to help you make a solid plan for how to respond to 2020’s challenges in a way that won’t create further problems for you in future.
And if you don’t want to go it alone
In previous years we’ve delivered our Charity Benchmarks service to provide UK fundraisers with the information they need to make better decisions, to help raise more money and maximise the impact of their causes.
“A great, insightful report that really does add to our sector knowledge. I’m so pleased we got involved.”
– Joe Jenkins: Executive Director of Engagement & Income Generation, The Children’s Society
In 2020, an annual report won’t cut it.
We too have reflected and adapted, and in partnership with Allan Freeman of Freestyle Marketing have launched the Impact Monitor; a quarterly, fully detailed report to provide fundraising Heads, Directors or their CEO’s with a relevant and timely view of their programme’s performance against other charities.
We’ll prepare a tailored report just for your charity that shows how you perform against the rest of the data set in a few useful areas:
- Revenues by fundraising area
- Costs by fundraising area
- Supporter volumes (new and retained)
- Recruitment performances and CPAs
- Retention rates
- Staffing levels and resource
Through a survey and interviews, we’re also collating more qualitative data about the future:
- Fundraising plans and priorities
- Targets and confidence levels
- Fears for the future
- Innovation and diversification
- Team function, culture and morale
In a matter of weeks you will be comparing your performance with the rest of our participants.
We’ve listened to our sector colleagues and are able to offer all of this at a discount to organisational members of the Chartered Institute of Fundraising. Just £3,450 (exc. VAT).
We’re closing applications to the first round of benchmarking on September 30th with the final few places available for new charities to take part.