Targeting Your Fundraising Using Key Metrics Anne Arundel

Targeting Your Fundraising Using Key Metrics Anne Arundel Medical Center Foundation: A Case Study Jan Wood, CFRE – Anne Arundel Medical Center Tim Nurvala – CCS Fundraising June 10, 2019

About Anne Arundel Medical Center FOUNDED IN 1902 425 BEDS 25, 000 INPATIENT 98, 000 EMERGENCY A not-for-profit regional health system headquartered in Annapolis, Maryland, Anne Arundel Medical Center Serves an area of more than one million people. 2 Mission: To enhance the health of the people we serve.

About CCS 1947 Founded Strategic Consulting and Management Services Managing Partners 350+ 40% 95% Permanent Professional Staff of America’s Top 100 Performing Charities 21 Repeat and Referred Business New York Washington DC Baltimore Boston Chicago Los Angeles Philadelphia San Francisco St. Louis London 3

How We Analyze and Use Data Analysis on Recent Performance Prospect Identification Goal Setting Resource Optimization 4

Leveraging Data to Drive Fundraising 5

The CCS Analytics Process ASSESSMENT Assess recent revenue performance and year-overyear key performance indicators to identify the greatest areas of opportunity 2 INCLINATION Build a portfolio of customized predictive models to forecast an individual’s likelihood to become a top donor to the organization 3 GIVING CAPACITY 1 4 ACTIVATION 6 Assess wealth screen scores to identify unknown prospects with the inclination and capacity to become major donors Activate strategies to engage new prospects with cultivation strategies

Data Used to Design Models Giving History Interactions with the Institution Demographics PREDICTIVE MODEL DESIGN 7

Why Predictive Modeling? • Optimize donors • Non performing donors eliminated • Better ROI with resources • Better impact for MGOs 8

Predictive Modeling - Overview Predictive modeling exercise is designed to forecast the future giving behavior of our client’s prospective donors. Identify individuals with capacity and inclination to give Segment prospects based on geography, constituency, and other characteristics Build prospect pipelines for major gift and campaign strategies Ø Ø Ø Inclination To Give Capacity To Give Each individual record in the database is typically scored on a scale of 1 – 100 forecasting inclination to be a good donor. 1 100 Least Likely to Give Most Likely to Give 9

Predictive Modeling Focus Major Donor Prospect Identification Grateful Patient/Family Identification Donor Retention Donor Acquisition Planned Giving Prospect Identification Optimal Use of MGO Resources 10

Sample Predictors of Giving 11

The Best Prospects: Inclination & Capacity 12

Anne Arundel Medical Center Goals Identify and prioritize major and planned giving prospects to optimize gift officer portfolios Support annual fund strategy by prioritizing LYBUNTS, SYBUNTS, phone bank and young giving society members Ensure each donor/prospect was categorized correctly (MG, annual fund, BTS who were ready for next stage) 13

Anne Arundel Medical Center Process: 14 Ø Designed three predictive models to forecast the inclination of constituents to become major donors, planned donors, new donors and retained donors. Ø Screened top scorers to identify net worth, giving capacity, and other indicators of wealth. Ø CCS analyzed the results by: Ø Distribution of wealth for the top model scorers Ø Quality of currently managed portfolios and the performance of fundraising from those prospects Ø New major gift prospects that are currently not managed.

Newly Identified Top Prospect Segmentation 68, 823 16, 234 5, 184 Households scoring in the top 25% of the major donor model, top 20% of the loyal model, or are assigned Top 20% of model scorers with at least $100, 000 gift capacity 1, 438 Top 20% of model scorers with at least $200, 000 gift capacity 1, 319 Top 20% of model scorers with at least $200, 000 gift capacity and are not assigned 447 15 Total constituents AAMC’s database Top 20% of model scorers with at least $200, 000 gift capacity, $1 K+ gift capacity, and are newly identified

Anne Arundel Medical Center Results Ø 16 Significant volume of quality prospects in AAMC’s pipeline with high inclination to give and high levels of estimated gift capacity: Ø 1, 319 unmanaged households rated in top 20% of CCS’s models returned a gift capacity rating of at least $200, 000. Ø CCS prioritized individuals that have already donated at least $1, 000 to AAMC: Ø 447 are not assigned and returned a gift capacity rating of at least $200, 000. Ø 26 are not assigned and returned a gift capacity rating of at least $1, 000.

Anne Arundel Medical Center Results Ø 17 AAMC’s MGO portfolios are filled with high quality prospects: Ø Large majority scored in the top 20% of the predictive models Ø Managed prospects that have donated over the past five years seem to hold AAMC as a philanthropic priority Ø 293 households in the top 20% have a second address in Florida Ø However, more than 25% of managed prospects have not donated over the last five years

Anne Arundel Medical Center Results Ø 18 Annual Fund: Ø Prioritized 13, 562 (or 27%) of LYBUNT, SYBUNT, Lapsed and Acquisition households Ø Identified over 1, 200 prospects that should be managed Ø Identified 3, 984 households as planned giving prospects (354 had given at least $1, 000 and had a giving capacity of $200, 000 or more) Ø Found 305 households (under 40 yrs old) with giving capacity of $25, 000+ (BTS Society)

Key Findings & Takeaways 01 MGO’s culled medium-level donors in portfolio to AF. Overall improved ROI 19 03 05 Prioritized top potential donors for additional mailings, cultivation, and requests. 02 Targeted appeals for operational gifts vs. program gifts 04 Makes MGO’s more effective

Key Upside for AAMC Closing 5% of newly identified potential = $4, 470, 000 20 Spent 1% of budget, now have a 3 -year plan for cultivation and engagement of new donors Helps justify requests for increased budget and personnel

Questions & Discussion Jan Wood, CFRE Chief Development Officer Anne Arundel Medical Center jwood 3@aahs. org Tim Nurvala Corporate Vice President CCS Fundraising tnurvala@ccsfundraising. com 21