What Should Your Total Caseload Value Be?

I have seen so many situations in which a major-gifts officer (MGO) gets unfairly judged because no one sat down and decided what the MGO's caseload value (the sum of all giving from all the donors on a caseload) should be. And when this very critical economic topic is not managed, it is a recipe for many arguments, debates and disappointments.

Over the years, I've seen caseload values where one MGO manages a group of donors and the sum of these donors' giving is as low as $150,000 and as high as $8 million and 10 million! And this is for caseloads that do not exceed the 150-donor size we recommend. Sometimes they are less than that — as low as 10 donors.

There are a lot of variables to be sure — not the least of which is the type of institution, the cause, and type of offers and asks. But I want to, in this post, set forth the most common caseload value metrics we see out in the marketplace.

There are two audiences who should be interested in caseload value — management and the MGO. Management needs to know that there is a reasonable return on investment. The MGO needs to know that he or she is actually meeting expectations.

But what is the right number?

My first rule of thumb is to look at ROI. Jeff and I have said that the ROI for a direct-mail program these days is in the 1:3 to 1:4 range — $1 out, $3 or $4 back. If an MGO is just starting, I would be happy with a ROI that is the same as direct mail, leaning toward the 1:4 number.

Remember, on the expense side, to include:

• MGO compensation
• MGO support compensation
• Office expenses
• Travel and entertainment/major-donor expenses