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

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Using a Logic Model Approach to Developing
Fundraising Performance MeasuresPresented by
Matt H. EvansJune 15, 2006
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Agenda

• Logic Model Concepts
• Logic Model Examples
• Measuring Performance
• Advanced Concepts
• Useful Resources

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Logic Model Concepts
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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)

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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
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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
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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

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Working Right to Left Three Simple Steps

1. Set performance targets at the highest level
   final outcomes
2. Define the outputs needed to create the targeted
   outcomes
3. 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
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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 lt 2 weeks
Activities 2 to 6 weeks
Process gt 6 weeks
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Outcomes over Time
Immediate
Intermediate
Long Term

• Mid Term Results
• Targets
• Short Term Goals
• Funding Status

• Growth
• Trends
• New Levels
• Final Results

• Response
• Feedback
• Comments
• Receipts

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
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Logic Model Examples
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Source Research Utilization Support and Help
(RUSH) project, National Institute on Disability
and Rehabilitation Research Grant H133A031402
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Strategic Logic Model
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Measuring Performance
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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
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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
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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
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Metric Examples
Cause Effect Relationship
Lead
Lead
Lag
Lag
Outputs
Outcomes
Inputs
of new donations received
of Staff Positions filled for Fundraising
Program
of fundraising packets issued
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 funds raised through the auction portion of
program
of raffle items sold off
of facility items delivered
of fundraising events
Total raised by event
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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)
Inputs
Easy to Measure and Execute (Important)
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
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Reporting Performance Inputs
Phase I Resourcing and Planning the Event
(August thru October 2006)
As of 9/15/06
Performance Objective Measurement Description Current Performance Comments
100 Fully Staffed for Event by October 1, 2006 Staffing that is complete 70 May need to pull from other staff
1,000 donors identified and compiled by 10/20/06 of donor listing that is complete 50 Need more research
Develop complete program and donor packet of packet complete 30 Waiting on artist layout to proof
Full Inventory of all prizes and gifts for fund raising event of inventory items cataloged 40 2 orders forth coming in 2 weeks
Phase I Metrics Inputs. Final Report assigns 5
to Quantitative and 9 to Qualitative Metrics.
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Reporting Performance Outputs
Phase II Event Outputs (early November 2006)
As of 10/15/06
Performance Objective Measurement Description Current Performance Comments
Program and Donation Packets for Event Ready to go Programs Delivered 100 No errors or mistakes
Prizes and Gifts delivered and tagged for event of items cataloged 50 Will be done in two weeks
All facilities and logistics finalized of vendor contracts executed 75 Waiting on release
Event staff and helpers signed up to work tables of tables with assigned help 70 Need 4 more girl helpers
Phase II Metrics Outputs. Final Report assigns
14 to Quantitative and 19 to Qualitative
Metrics.
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Reporting Performance Outcomes
Phase III Event Results (late November 2006)
As of 11/30/06
Performance Objective Measurement Description Current Performance Comments
50 of donations received from existing donor base of returning donors to event 55 Same as last year
Total targeted donations needed 100,000 Total amount donated 105,000 On target
10 of donations received from new members of donations from new 12 On target
Target Donation to Cost Ratio of 2.5 Total Donations / Total Costs 2.2 Meal Cost went up 20
Phase III Metrics Outcomes. Final Report
assigns 24 to Quantitative and 29 to
Qualitative Metrics.
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Different Levels of Users
Inputs
Supervisors, Coordinators, Staff, etc.
Staffing, prize inventory, of contracts in
place, Donor Listing
Outputs
Event Manager, Senior Staff, Committee Chair
of mailings issued, meetings with key
contributors, etc.
Outcomes
Senior Leadership, Directors, Board, etc.
target reached, membership renewed,
increase in donor base
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Advanced Concepts
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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.)

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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
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Program Baseline derivedfrom Z Logic Model
Use Project Management Software such as Microsoft
Project to automate your Logic Model into a
Program Baseline
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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.
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Overlap between Logic Models and Balanced
Scorecard
Balanced Scorecard
Logic Model
Mission
Impacts
Customers and Constituents
Outcomes
Internal Processes
Activities / Outputs
Learning and Growth
Resources / Org Capabilities
Inputs / Resources
Strategic Plan (Long Term)
Operating Plans (Short Term)
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Useful Resources
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Internet Resources
Kellogg Logic Model Development
Guide http//www.wkkf.org/Pubs/Tools/Evaluation/P
ub3669.pdf Logic Model Workbook http//www.inno
net.org/?section_id62content_id143 United
Way - Outcome Measurement Resources http//natio
nal.unitedway.org/outcomes/library/pgmomres.cfm
Logic Model Course www.uwex.edu/ces/lmcourse
Logic Model Templates http//www.uwex.edu/ces/p
dande/evaluation/evallogicmodelworksheets.html
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Program Evaluation Books touch on Logic Models
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Flow Charting Tools for drawing Logic Models
http//www.rff.com/ http//www.igrafx.com/Produc
ts/flowcharter/ http//www.smartdraw.com/exp/dia/
home/ http//www.patton-patton.com/
http//www.polarsoftware.com/index.asp
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Questions and Comments
Matt H. Evans6903 29th St NArlington, VA
22213Phone [phone]Web Site
www.exinfm.com