Director of Media and Conferences
BOSTON, MA—March 10, 2016—A new white paper
by The Bridgespan Group, highlights the potential to apply “share-of-wallet” analysis—an analytical tool used for decades in the private sector—to nonprofit network organizations looking to improve fundraising effectiveness. Bridgespan has launched a free, detailed companion “how-to” guide
and analysis template to help organizations undertake their own review.
According to Mark McKeag, a Bridgespan manager and co-author of both the white paper and guide, “While it is common for large nonprofit networks—such as the YMCA or The Salvation Army—to compare costs and revenues across sites, few have attempted to ask which sites are doing the best job of maximizing fundraising potential. In other words, is Site A not only raising more money than Site B, but is Site A actually capturing more of the available donor dollars in its community than Site B?”
Among the 30 largest U.S. nonprofits listed by The Nonprofit Times
, 23 are sprawling networks. “With their scale and scope,” said McKeag, “these networks have tremendous ability to address major social issues, and fundraising is the fuel that advances these goals.” The Bridgespan study defines fundraising effectiveness as “current fundraising performance compared to fundraising potential as gauged by disposable income of the pool of donors from which you draw.”
According to Dianne Ledingham, a leader of Bain & Company’s Customer Strategy and Marketing practice area, “Any time we work with a multi-site or multiproduct organization, we do a share-of-wallet analysis, which is really just a share of market—it’s an analytical tool that nonprofits can adapt to enhance their fundraising effectiveness.”
McKeag’s co-author Andrew Flamang, a Bridgespan consultant said of both the concept paper and how-to guide, “This kind of data makes it possible for nonprofit networks to answer three key questions:
- Who are my top performers?
- How much variation is there between sites, and where does it occur, and;
- How much value is there in raising lower performers to at least average?”
While there are not yet many nonprofits employing this technique, Bridgespan illustrates how it can work citing The Salvation Army’s six-step share-of-wallet analysis process, focused on individual giving. According to Paul Cornell, The Salvation Army’s Empire State Division’s financial secretary, “Beyond giving funding a boost, the share-of-wallet analysis generated insights about how we should focus our efforts and resources within the Division.”
Bridgespan’s Share-of-Wallet How-To Guide, and Analysis Template includes ideas for how to share learnings across sites and organizations.
“It is our hope,” said McKeag, “that this tool and how-to guide will empower more nonprofit networks to strengthen their fundraising effectiveness.” The share-of-wallet research is part of Bridgespan’s overarching research into the potential of nonprofit networks to effect social change at scale, see “Network Transformation: Can Big Nonprofits Achieve Big Results?
About The Bridgespan Group
The Bridgespan Group (www.bridgespan.org
) is a nonprofit advisor and resource for mission-driven organizations and philanthropists. We collaborate with social sector leaders to help scale impact, build leadership, advance philanthropic effectiveness and accelerate learning. We work on issues related to society’s most important challenges and to break cycles of intergenerational poverty. Our services include strategy consulting, leadership development, philanthropy advising, and developing and sharing practical insights.