The Truth About Total Caseload Value

I have seen so many situations where a MGO gets unfairly judged because no one sat down and decided what the MGO’s caseload value (the sum of all giving from all the donors on a caseload) should be.  And when this very critical economic topic is not managed, it is a recipe for many arguments, debates and disappointments.

Over the years I’ve seen caseload values where one MGO manages a group of donors and the sum of their giving is as low as $150,000 and as high as $8 and 10 million! And this is for caseloads that do not exceed the 150 donor size we recommend.  Sometimes they are less than that – as low as 10 donors.

There are a lot of variables to be sure – not the least of which is the type of institution, the cause and type of offers and asks.  But I want, in this post, to set forth the most common caseload value metrics we see out in the marketplace.

There are two audiences who should be interested in caseload value : management and the MGO.  Management needs to know that there is a reasonable return on investment.  The MGO needs to know that he or she is actually meeting expectations.

But what is the right number?

My first rule of thumb is to look at return on investment (ROI).  Jeff and I have said that the ROI for a direct mail program these days is in the 1:3 to 1:4 range – one dollar out, three or four dollars back.  If a MGO is just starting, I would be happy with a ROI that is the same as direct mail, leaning toward the 1:4 number.

Remember, on the expense side, to include:

  • MGO compensation
  • MGO support compensation
  • Office Expenses
  • Travel and Entertainment/Major Donor Expenses

As the program matures the ROI should rise to 1:5, then 1:8 and finally 1:10  or more.  I’ve seen ROI’s as high as 1:20!

So if the total expenses are $150,000, then the caseload value should be $1.5 million.  How long should this take?  Two to four years.  And, for most situations, the following yearly performance targets should be right on the mark:

Year 1 – $400,000 to $600,000

Year 2 – $500,000 to $750,000

Year 3 – $800,000 to $1 million+

Year 4 – $1 million to $1.5 million+

I’d like to hear what your experience is in this area.  Do these numbers look like your situation?

One thing is for sure – it is very important to have a clear handle on what your caseload value currently is and if that number is meeting the expectations of management.

If you’re a manager reading this, please take the time to have a discussion with your good MGO and arrive at a mutually acceptable number for his or her caseload.  It will build confidence and help them focus on taking care of donors, which is exactly what you want.



About Jeff Schreifels and Richard Perry

Jeff Schreifels and Richard Perry have over 55 years of experience fundraising for non-profits. Richard Perry was co-owner of Domain Group until 2005. Jeff Schreifels was a Senior Strategist for Domain Group for 12 years. They came together a few years ago to start Veritus Group, a full-service major gift fundraising agency. Veritus Group has a unique, data-driven approach unlike any agency focused on major gifts. Jeff and Richard are passionate about their work, passionate about life and hopes this blog will provide you with insights and tangible benefits for you and your work. Thank you for reading!
This entry was posted in Development Directors, Major Gift Officers, Major Gifts, Non-Profits, Philanthopy and tagged , , , , , , . Bookmark the permalink.

One Response to The Truth About Total Caseload Value

  1. Pingback: Why Quality is better than Quantity in Major Gift Fundraising | Passionate Giving

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