Author of Fundraising Analytics
Principal at Bentz Whaley Flessner
Founder of the analytics group donorcast
This was an impressive effort. Nice job FSU! And Nice job Justin Ware, social fundraiser extraordinaire!
Find out more about social media services at Bentz Whaley Flessner.
Do performance metrics actually change behavior? Part 2 of 3
In my last blog post (part 1 of 3), I discussed motivating behavior by being mindful of employee self-interest while outlining organizational priorities. In this week’s posting, I want to discuss the idea of the data-itself motivating behavior.
The concept of the feedback loop describes the interchange of data which influences behavior directly. You might be familiar with the Wired magazine article on the subject which used speed limit radar signs as an example. Even though the speedometer provides you with direct data on your speed, the radar sign declaring “Your Speed is:” has a greater impact on changing your behavior. Even though this is only 20 degrees difference in sight line, it makes a difference. A motivating factor might be that other’s also see your speed.
Data changes your behavior when peer input is a factor (pressure or competition), self interest is a factor (personal security or success) and in gamification (fun). the speed limit sign is an example of peer pressure. A leader board is an example of positive competition.
A good example of personal security is mission control. An astronaut will immediately act upon data because it is tied to his or her well being. Hearing “Fire!” or “Danger!” will cause us to react without being told we need to change what we are doing. The reaction is without persuasion.
Success-based self interest might be seen in the stock market. Based on performance data alone, we might buy or sell securities, rethink our 401K distribution, or change or risk levels. Motivated by success, the data alone changes our behaviors.
We also see this behavior in video games. When I am playing Bioshock, I will switch from Eve to weapons when my Eve levels deplete. Or, I will play more conservatively when my health meter declines. No one is persuading me to change my behavior, the real-time data is all I need.
How on earth does this apply to fundraising? I think your mind is probably racing the same way mine was as I thought through these examples. Motivating gift officer performance is thought to require management intervention based on findings in the metrics. However, if the metrics can be delivered in such a way that influence is immediate, there is a distinct advantage.
Are your reports tapping into peer pressure or fueling competitiveness? In other words, do you communicate these broadly for all people in your organization to see? Do your fundraisers, as described in my first post, see their performance and the resulting organizational benefit as directly tied to their personal benefit? Is it fun?
As you develop or enhance your fundraising performance metrics, consider these examples to see real and immediate change.
In part 3 of 3, I will describe 7 steps to rolling-out effective performance management plans at your nonprofit.
Come hear me speak in NYC, Boston, or DC next week with Justin Ware. (FREE)
Social Media and Fundraising Analytics workshops: Jan. 24-26 in NYC, Boston and DC
We’re hitting the road! Josh Birkholz, Principal at Bentz Whaley Flessner, and Justin Ware, Director of Social Media at BWF) will be in New York City on 1/24, Boston on 1/25 and Washington, DC on 1/26 for the “Navigating Modern Fundraising: Social Media and Fundraising Analytics” workshops. Learn about Bentz Whaley Flessner’s latest innovations in predictive analytics, data analysis, and social media at no cost during these free, half-day events. During the workshops, we’ll be giving tips and sharing techniques on how you can enhance your fundraising operations through technology. We’ll also share with you some new product offerings based on the latest thinking in philanthropy.
To register for the New York workshop, click here.
To register for the Boston workshop, click here.
To register for the Washington, DC workshop, click here.
If you were a successful young entrepreneur, what percentage of your net income would you give to philanthropic causes?LAURA ARRILLAGA and Marc Andreessen are practically a royal couple around here. But when they met, on a New Year’s Eve date in 2005, Ms. Arrillaga didn’t care that Mr. Andreessen had made a fortune in Silicon Valley.
She cared whether he was giving money away. “One of the first questions I asked him on the night we met was what he was doing philanthropically,” she recalled.
Not your usual flirtation, but also not your usual romance. She is the daughter of a real estate billionaire and ended up marrying an almost-billionaire: Mr. Andreessen, co-founder of Netscape.
Yet the question she posed that evening still resonates. She is encouraging tech titans like her husband to become as famous for giving money as they are for making it.
Stars here often get rich in their 20s, but the tech industry over all has been criticized as being stingy when it comes to public charity. Some executives, like Bill Gates, wait until they retire to become active philanthropists. Others, like Steve Jobs, may not give much publicly during their lives. And while there is evidence that the valley is more philanthropic than it seems, Ms. Arrillaga-Andreessen, 41, says more could be done.
“The word ‘philanthropy’ brings up an image of somebody who’s had an illustrious career, has retired and is giving to highly established institutions that may or may not have ivy growing up their walls,” she says. “I personally have felt the need to give philanthropy a reboot.”
While attending the Stanford Graduate School of Business, she created a business plan for an organization that would teach philanthropy and make grants using strategies borrowed from the venture capital industry. The group, SV2, now has 175 donors who have financed 35 early-stage nonprofits over 13 years and last year gave away almost $500,000.
Ms. Arrillaga-Andreessen has taught a Stanford class on strategic philanthropy for 11 years and is on the board of her parents’ foundation. She started a center at Stanford to connect academics and nonprofits, and this fall published a book, “Giving 2.0: Transform Your Giving and Our World.”
Excellent post by Justin Ware of BWF Social.

A relatively new iPhone application is building a somewhat cultish following of amateur photographers. It’s called “Instagram” and the number of dedicated users who have downloaded the app are growing at a rapid pace – the one-year-old Instagram now has more than 12 million users worldwide.
Instagram is as simple as an application gets. To use it, you create a profile, choose pictures to upload, add a filter (filters allow the user to easily adjust color settings, make a picture look like it’s 30 years old and other cool stuff), post a short caption and then share it with all your followers. It might sound like Facebook minus everything else Facebook does, but the growth suggests Instagram is on to something. (I count myself as one of those who’s joined the cult)

So the next question is, how can nonprofits get involved? It’s new, so this does represent a rare opportunity to lead in an uncluttered space …for now. Of course, there are a few early adopters in the Philanthropy world who’ve already jumped on board. Posted here you see a few examples of nonprofit organizations and how they’re using Instagram. The Philippine Improvement Group is using the photo network as both an awareness raising and a fundraising tool, while the Salvation Army is recognizing volunteers.
Soon, the holiday sounds of coins clinking into red kettles may disappear, replaced by the silence of a credit card swipe.
Phones running Square will allow the Salvation Army to accept credit card payments this year.
The Salvation Army has begun shifting into digital donations, as fewer and fewer shoppers carry much change or bills.
This year, the charity is testing the use of Square, a mobile payments start-up that allows anyone to accept credit card payments via mobile devices.
Here is my brief video on lifetime value from the Fundraising Forward Charette.
It was really more of an idea worth exploring than a fully-fleshed approach. I have some things to change in the method. But, it might be interesting for some of you (by some of you I, of course, mean me watching it on my home computer and my iPad so I have at least 3 views).
Justin Ware, my colleague with mad social and video skills will be speaking. I will be listening.
Multi-Channel Giving Infographic.
(via bluewhaleseo)