Can a small shop benefit from this service? Isn’t it really just for large systems?
Organizations of all sizes can benefit from benchmarking, and it is especially useful for small to medium sized organizations. Smaller development offices benefit because benchmarking can help them avoid reinventing the wheel. By examining the standards and practices of industry leaders, these organizations can adapt them to suit their needs. Although benchmarking can be an expensive proposition for a smaller shop, most organizations find that it is well worth the cost, and that they benefit in a tangible and measurable way from the process.
How is the data collected, and how long does it take to complete the survey?
The online questionnaire is comprehensive. Participating members tell us it takes approximately 60-150 man-hours, depending on how easily information can be accessed and the type of day-to-day data collection your institution normally performs. The types of information you will need to complete the survey include: human resource data, budget and expense breakouts, monthly cash and production revenue results, and activity tracking.
We’re a (small, education-related, rural-based, etc.) organization. I’m sure there aren’t many organizations similar to ours participating in the program, so how can it help my foundation?
One of the interesting outcomes of the benchmarking initiative was the realization that the wonderful differences between our health care philanthropic organizations don’t have as much impact as you might think when you get down to core productivity measures.
This became apparent as large systems began to compare data between their hospital foundations – some of which were large shops, and some very small, some supporting urban areas, other rural areas, etc. What they found was they could apply the benchmarking numbers to all their foundation programs very effectively. For example, if the benchmark for major gift programs is that 1 FTE (full time equivalent) results in $X million raised, that’s a ratio that can typically be applied to all organizations, whether it has 5 major gift officers, or it devotes ¼ FTE to major gift efforts.
You also have the ability to compare your data to “like” organizations as well, of which there is a wide and growing variety. But benchmarking participants find that they are much more likely to compare data by program type than by bed size and other demographic statistics.
I don’t feel comfortable sharing our confidential information with other organizations. Can I participate without sharing our information?
All data is kept confidential. Participants can view the data but cannot connect the data to a specific organization so it can not be traced back to your organization. All participants must complete the questionnaire.
Do you expect the cost to participate to drop in the future?
The original benchmarking service when it started three years ago was available at $15,000 per year. AHP has worked very hard to bring the cost down. In September of 2006 we launched the online database and now you can join for as little as $1,000 per organization a year (with a one time $4,000 set up fee).
I’m not sure I want to participate in a program that might show that our program is not in line with others – quite honestly, if we’re doing fine, why would I want to bring that kind of scrutiny to our program?
Benchmarking is helping organizations grow their development programs and bring in more donations. It is also a way for AHP members to grow and succeed professionally. The measures and processes used in the program are the future of our profession. We truly believe that organizations that fail to adopt these tools will struggle in the future – and that’s when the real scrutiny begins! Hospital CEOs use benchmarking all the time to run hospitals more effectively. It’s not surprising that many are seeing its potential in philanthropy as well, and are asking for it. We encourage you to get ahead of the curve – both for your community, your organization and your own professional development.
