Evaluating the effectiveness of an organization’s fundraising program may, quite simply, be one of the most overlooked tasks in fundraising. But, it is extremely important in order to improve your development efforts and, thereby, the long-term health of your development program.
There are common, measurement tools and resources available for the nonprofit industry. If this evaluation process is completed and the tools are utilized correctly, it can help transform your funding program. The end result will be a greater focus with your development efforts and higher returns.
This resource emphasizes the importance of fundraising cost effectiveness, provides clear direction on where to start, and outlines the detailed process for how to properly measure your effectiveness.
In order to get buy-in across the organization so all parties are vested, it is crucial to recognize and understand why it is so important for the fundraising process to be cost effective. Nonprofits have to answer to the public. Appreciating this fact and gaining the knowledge to measure your effectiveness, as well as how to compare your organization to the industry, will mean understanding the implications for all of this on your fundraising process.
There are expectations on an organization to manage their funds efficiently. Donors want to know that their contributions are being used appropriately and wisely, thereby having an impact. They want their generosity to make a difference. Many studies show that prospects will give, and even increase their giving, if they have confirmation that their gifts are being managed properly. Also, it is believed that the decision to give is influenced by the reputation of an organization. In other words, the word of mouth from other donors, those being served, volunteers, etc. are a major influence.
Ensuring that the proper analysis is in place helps to provide security to donors and prospects in the form of measurable results and confidence in the organization’s ability to manage effectively. Therefore, measurement tools demonstrate a good investment of resources for your organization. And, in turn, the outcome provides evidence of a better return on the investment of your donors