Five Questions with an OG, Greg Hagin: Nonprofit Organizations

MissionOG is fortunate to be supported by a deep network of experienced operators and entrepreneurs. This entry is part of a blog series where we share perspectives from “OGs” – original innovators from specific market segments and/or business disciplines.

 

Greg Hagin is a Principal & Managing Director at CCS Fundraising, the leading strategic consulting and fundraising management firm to nonprofit organizations worldwide.

 

PLEASE DESCRIBE YOUR BACKGROUND.

I grew up in New York playing competitive soccer in the Olympic Development Program. Had the good fortune to earn a liberal arts degree from Boston College and MBA from Wharton, and leveraged that philosophy and finance training in advising nonprofit client partnerships on strategy and fundraising, including many of “America’s Favorite Charities,” for more than two decades. I’ve traveled to all seven continents through some combination of education, business and adventure, so I tend to bring a natural curiosity and innovative mindset to most things.

 

WHAT ARE THE KEY PRIORITIES AND CHALLENGES OF YOUR CUSTOMERS TODAY?

Our CCS Fundraising client partners are very focused on mission impact and revenue diversification, especially in today’s environment where public funding flows are shifting (outright stopping in select instances) and private philanthropic capital is in high demand. Nonprofits are looking to raise more money, more sustainably, and more efficiently. Donor acquisition and retention are recurring challenges facing most fundraising leaders according to our annual CCS Fundraising Pulse Survey. Consequently, direct response and tailored stewardship programs are essential. Overall, we’re seeing many nonprofits launch historic campaigns to attract major gifts while also broadening participation commitments. These large undertakings help accelerate strategic imperatives and exceed financial goals. Many of our most successful clients raise 2x in campaign years or 2x their baseline performance over the duration of the initiative.

 

WHAT KEY DIFFERENCES DO YOU SEE BETWEEN NONPROFIT ORGANIZATIONS THAT ARE GROWING AND HAVING THE LARGEST IMPACT FOR THEIR CAUSES AND THOSE THAT ARE NOT?

The most successful and impactful NPOs share a number of characteristics. They build decidedly good reputations. They offer a unique philanthropic value proposition. They have highly competent and credible leadership at the board and staff levels. They have sustainable funding models, including a mix of earned, investment and contributed income, including a healthy donor base comprised of individuals, foundations and corporations. Crucially, they possess a growth mindset. They are willing to invest in themselves and place strategic bets on their programs, positions and people. Talent is key. They invest smartly in their operations and budget accordingly to meet ambitious targets.

 

HOW IS CCS AND ITS CUSTOMERS LEVERAGING TECHNOLOGY TO ENHANCE FUNDRAISING EFFORTS?

CCS is helping its client partners leverage technology to boost fundraising results in a variety of ways. First, systems. It’s critical that nonprofits have a well functioning CRM that serves as a single source of truth, increases visibility into donor pipelines, and creates better reporting and feedback loops to make strategic and tactical adjustments when necessary. The best systems save time and money, and unlock enterprise value. Second, data analytics. It’s increasingly table stakes for nonprofits to perform recency, frequency, monetary (RFM) analysis, run simulations to forecast probabilistic outcomes and create predictive models to best cultivate a specific type of donor behavior e.g. annual gifts, major gifts, planned gifts. With these tools, we’re helping our clients make better decisions, increase donor lifetime value and enhance fundraising efficiency. Third, no surprise, AI. AI in terms of precision, automation and generation. Pinpointing the best prospective donors by way of capacity and inclination. Doing repetitive yet important tasks such as stewardship communications personally, swiftly and at scale. And developing tailored content that speaks to donors in a meaningful and moving manner. Creating segmentation, where n = 1.

 

HOW DO YOU SEE NPO OPERATIONS EVOLVING OVER THE NEXT FIVE YEARS?

We see NPO operations thinking more and more holistically around people, process and technology. And in a way that’s balancing significant concepts and potential polarities between automation and authenticity, speed and risk. Doing more with less but also doing more, differently. Data minimalism and change management are on the rise. The world is awash in data right now but what really matters. Where are the signals. Better concentrations on what’s most important in terms of KPIs and dashboards. With respect to change, it’s the one constant. Particularly now in a VUCA environment. Volatile, uncertain, complex and ambiguous. Helping advancement and operations leaders imagine a better way, visualize the future state and move forward energetically and enthusiastically, together, with key stakeholders. Journey mapping. People tend to give more to an organization if they believe their gift is making an impact. It’s usually the #1 reason. Operations plays a vital role in helping fundraisers better communicate the impact of donor contributions.

 

WHAT DEVELOPMENTS IN THE INDUSTRY ARE YOU MOST EXCITED ABOUT?

I’m really bullish on the future of fundraising and philanthropy. And the two go hand in hand. Better fundraising approaches will help attract more impactful philanthropy, which will help nonprofits realize their missions and assist donors in making wise decisions to create a better world (and make a more meaningful difference). More specifically, thinking about donor journeys, gift planning, and next generation giving. Approximately $80 trillion in the US is expected to transfer from older generations to younger ones in the next 20 years and $10 trillion of that will likely go to charities. I also think systems solutions to complex problems will become more and more the norm, including collaborative capital across philanthropic contribution, private investment and public finance. Impact investing funds, instruments and platforms, too. Data informed decision making will be essential to these developments. Finally, I remain committed to (and excited by) first principles. Without first principles related to strategy and fundraising, everything else falls apart so it’s important for nonprofits to keep in mind the basics no matter how advanced and complex things get. People still give to people. They give to people who champion a worthy cause. They give in relation to the person who is asking. Trust and simplicity.