How Administrative Support for an MGO Nets More Money for the Nonprofit
Here's the revenue side (see image 3). Here you see the original first-year caseload value and how that value goes down:
- Down by 20 percent in a fully functional scenario.
- Down by 40 percent in a half functional scenario.
- Down by 55 percent in a no administrative support scenario.
I know that the minute you see these value reductions/drops you will say something along the lines of, "You mean to tell me that I will experience a 20 percent decline in revenue even when I am paying full attention to the caseload?"
Yes, I do.
If you fully manage the caseload as you should and you have not cultivated substantially larger gifts from five to eight top-tier donors on your caseload, the "normal" value attrition we see across clients and prospects is 20 percent. Anything 20 percent and under is "good" attrition. Now, this point does not address the fact that if you are cultivating your top-tier donors your total caseload value should increase year to year. But that is another subject. What I am trying to do in this post is explore the effects of support or lack of it on revenue.
The argument I am also making here is that if an MGO is expected to do all the in-office work as well as meet with donors, he cannot manage the donors as he should. The net effect of this reality is that donor attrition is substantially higher. We have seen this over and over again. Very high attrition for "non-managed" caseloads — a lot lower attrition for those that are properly resourced and managed.
Now, your numbers might not be exactly like this. In fact, they, likely will not be. But, one thing I know for sure is this: There is a net economic benefit to supporting the MGO with good, solid administrative help. If you don't believe it, just think about it this way. If your MGO is actually out there with good donors and not having to do all that work in the office, you will agree that (a) more relationships will be built; (b) more information will be secured; (c) more offers, proposals and matches to donor interests will be made; and therefore (d) more money will be raised.
If you’re hanging with Richard it won’t be long before you’ll be laughing.
He always finds something funny in everything. But when the conversation is about people, their money and giving, you’ll find a deeply caring counselor who helps donors fulfill their passions and interests. Richard believes that successful major-gift fundraising is not fundamentally about securing revenue for good causes. Instead it is about helping donors express who they are through their giving. The Connections blog will provide practical information on how to do this successfully. Richard has more than 30 years of nonprofit leadership and fundraising experience, and is founding partner of the Veritus Group.