Evaluating Your Fundraising Returns

As competition continues to increase for contributions, donors have begun to look for more accountability and transparency from not-for-profits, especially regarding fundraising. Not only is the sum of money raised in campaigns meaningful, but how efficiently the money is raised is significant as well.

Donors and granting agencies look beyond total dollars raised to also consider associated costs in fundraising efforts. Cost ratios that present fundraising costs as a percentage of funds raised (also known as cost-per-dollar) focus on the expenses of fundraising, while return on investment (ROI) focuses on the returns. It is imperative to track both.

Determining ROI Versus Cost Ratios