- DonorSearch’s Online Tools – Our suite of online tools is ideal for any nonprofit who is interested in learning more about their donor’s previous charitable giving, real estate holdings, and political giving.
- Fundraising Report Card – A free tool for nonprofit executives who want better insight into their organization’s analytics including donor growth, donor acquisition, and donor retention.
- 360MatchPro – A perfect platform for medium to large nonprofits who want to understand how much they could raise from corporate giving programs and identify their largest matching gift opportunities.
General Fundraising MetricsThese are the big KPIs. They’re the ones most organizations are tracking. They give you a picture of your fundraising success and can point you in the direction you need to go. Remember — you won’t get far with any of these metrics if you have inaccurate or incomplete information on your donors. Perform prospect research to complete your donor data files.
1. Cost Per Dollar Raised (CPDR)Cost per dollar raised is one of the most commonly referenced fundraising success metrics. CPDR answers a very simple question. Did we raise money, lose money, or break even? The definition and means of calculation are explicitly stated in the metric’s name, but let’s walk through the process to provide any necessary clarification. To determine cost per dollar raised, divide expense by revenue for the given fundraiser you’re examining (event, direct mail appeal, etc.). If the expense and revenue are equal, you broke even and don’t need to carry out any calculations. If expense is higher than revenue, you lost money. Your calculation will yield a number more than one. The opposite will be true if you raised money. To keep things simple, imagine you held an event that cost $500 and raised $2,000. Just from looking at the dollar amounts, you know you made money, but if you want to see the exact cost analysis you would do as follows: $500/$2,000 = .25 In this instance, for every dollar you raised, it cost your nonprofit $0.25.
2. Fundraising Return on Investment (ROI)Fundraising return on investment is equally as popular a metric as cost per dollar raised is, and it’s very similar. Instead of dividing expenses by revenue, you divide revenue by expenses. Once you’ve divided the two amounts, a number greater than one indicates that you’ve raised money. Most organizations tend to favor one of these first two metrics over the other, like ROI over CPDR, for example. They both provide near identical information. The differences are almost negligible. Your organization’s preference will probably boil down to the means by which you’re looking to improve. If cost cutting is a priority, nonprofits would likely be more interested in cost per dollar raised; whereas, return on investment is a great indicator of the effects of making strategic changes to increase revenue.
3. Donor Retention RateDoes your organization track how many donors it retains on a year-over-year basis? It needs to be. Let’s face it: the time it takes to cultivate donors is a time-intensive process, and after all the work engaging your supporters you don’t want to have to do the process all over again with a whole new set of supporters. Of course, you can always continue to grow their donor pool through acquisition, but you don’t want to waste all your efforts. Maintaining donors through retention is just as essential as acquiring new donors. The two sides of the fundraising coin work best in conjunction. Your acquisition and retention rates should be improving concurrently. However, more often than not, nonprofits place much stronger emphasis on acquisition than retention. Acquisition of new donors is an expensive endeavor, though. Retention is more cost effective. Tracking your retention rate can reveal a lot about your organization’s performance, including:
- How your nonprofit should prioritize communication with supporters.
- If your organization is acknowledging donors in a thoughtful and immediate fashion.
- The ease in which donors are able to give via your various donation methods.
4. Donor GrowthDonor growth is what one might consider a domino metric. If donor growth is down, it’s likely that it didn’t get that way on its own. Lack of donor growth, or worse donor loss, is often the result of multiple factors. Measuring your donor growth ensures that you’re paying attention to your overall performance and puts your nonprofit in a situation to address any concerns early and quickly. Use this metric in conjunction with some of the others on this list to determine exactly why your number of donors isn’t growing. Essentially, you’ll be back-solving.
5. Conversion RateIn order to determine conversion rate, you need a goal action and a list of donors you’d like to complete that action. The goal action could be anything from attending an event to responding to a direct mail letter, but the most common goal action involves donations. Typically the rate will be investigating how many prospects donated to a specific campaign or took an action as a result of a specific request. To find the rate itself, divide the number of people who completed the goal action by the total number of people who were given the opportunity to do so. Then multiply the number by 100 to get a percent. Let’s take a simple example. Say you sent out an email to 100 donors, asking them to follow a link and make a donation online. Of those 100, 30 followed the link and took the requested step. Therefore, your conversion rate in this instance was 30%. Conversion rate is one of the most cut and dry methods of evaluating the success of a given request for action.
6. Gifts SecuredThis indicator is as standard as it sounds. How many gifts did your organization secure through the month? The quarter? The year? Tracking gifts secured over time is another way of saying you’re tracking donation growth. To delve even further into the data, you can separate the gifts by type:
- major giving
- planned giving
- mid-level gifts
- small gifts
- annual fund donations
- monthly donations