The NonProfit Times - November 1, 2008 - (Page 29)

THE 2008 NPT TOP 100 A Red Cross truck is parked outside a warehouse near Orlando, Fla., during the aftermath of Tropical Storm Fay this summer. friends and colleagues attend. “If you’ve got the right honoree, you’re still going strong,” Kurre said, but many of the events run in the traditional way are down. The American Heart Association (25) saw revenue from special events jump 11 percent last year, but in 2008 the organization is expecting an increase of less than 2 percent in that category, which would appear under “other revenue.” Program expense eclipsed $3 billion at the American Red Cross (5), a total $3.4 billion, including a jump in administrative expense to $225 million, from $187 million last year. Fundraising expenses remained in the neighborhood of $142 million. The administrative expense was a result of the disaster relief agency pouring $80 million into pre-position supplies, communication equipment and worker training across the country. “Today as we deal with back-to-back hurricanes, that investment is paying off. The Red Cross is better prepared today because we have better systems in place, more trained workers and more partnerships than we did prior to Katrina,” said Mary Havell, an American Red Cross spokesperson. The American Cancer Society (ACS) (9) shaved almost 5 percent off fundraising expenses last year, down to $198 million. Atlanta-based ACS initiated an integrated fundraising plan several years ago that identifies and implements efficiencies to focus on ROI.“When allocating staff time, we’ve refined our ability to identify high-return vehicles for the organization,” said Guy Fischer, chief development officer at ACS. The integrated fundraising develop- ment provides “a refined ability to define high-return strategies, markets and staff,” Fischer said, giving ACS the ability to “understand what kind of margins we’re getting for the investment of time and resources we have across the board, whether in the region, local area, an individual staff person or strategy.We can evaluate the production value of our investment of resources,”he said, and share best practices across the organization. Data from the affiliate level becomes the basis for decision-making, Fischer said. If one area is doing a great job at reducing cost, best practices are identified and then implemented across the organization, becoming the basis for training other staff. “It’s a very business-oriented approach, in using data to identify best practices,” he said.“It’s not easy to do, but we’ve got it down very efficiently, with processes in place to share data on a regular basis with key leaders within the organization and those people who are implementing,” Fischer said. The intent is to maximize resources, particularly in a difficult fundraising environment like this, Fischer said, when revenue might not increase.“It enables you to make better investment decisions,” he said. In some cases though, it’s more than just ROI when deciding on a plan. For instance, when it comes to direct mail, Fischer said it might take more spending to raise the same amount or more money this year. Other benefits also are important to consider, including lifetime value of a donor, reaching key target audiences and cross selling. “There are a lot of benefits that wouldn’t necessarily make it based on ROI in the short term,” he said. NPT Red Cross Truck Photo By Melissa Golden/American Red Cross NOVEMBER 1, 2008 THE NONPROFIT TIMES www.nptimes.com 29 http://www.mitchstuart.com/destinations http://www.mitchstuart.com/destinations http://www.mitchstuart.com/destinations http://www.nptimes.com

Table of Contents Feed for the Digital Edition of The NonProfit Times - November 1, 2008

The NonProfit Times - November 1, 2008 Reach Out Community Investment Loans Agencies Aim For Back Office Savings Contents Page 4 Special Report: An In-Depth Study of America's Largest Profits Charity Accounts Foretold Ecomonic Meltdown Liquid Assets Groups Shaving Expenses With An Eye Toward ROI Green Is Good Governance Becoming Institutionalized National September 11 Memorial & Museum Finds Its Footing NPT 100 Groups Turning Real Estate Into Cash NPT 100 Investments Beat Broader Market The NPT Power & Influence Top 50 Gala Calendar NPT Jobs Resource Directory

The NonProfit Times - November 1, 2008

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