Evaluating the effectiveness of an organization’s fundraising program may, quite simply, be one of the most overlooked tasks in fundraising. But, fundraising metrics are extremely important in order to improve your development efforts and, thereby, the long-term health of your development program.
There are common, fundraising 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 fundraising effectiveness.
A Sneak Peak Into This Ebook: Calculating Your Key Fundraising Metrics
Take an inside look into the five chapters of this ebook:
Chapter 1: Understanding the Importance of Fundraising Cost 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…
Chapter 2: Where to Begin?
A thorough calculation of your fundraising effectiveness begins with some critical, initial steps. It’s necessary to develop and establish certain key plans, budgets, and reports, and specific analysis must also be conducted. Finally, once established, the reports and processes must be reviewed periodically – annually, bi-annually, and monthly…
Chapter 3: Developing Your Measurement Tools
So, you understand that costs should be managed well to be effective. Metrics help to highlight opportunities for increased productivity and profitability. These calculated results can define performance and identify areas of improvement. Reviewing and analyzing these results can help an organization to then design a program that will help them to achieve unrealized potential.
There is also a need for nonprofits to justify their budgets for their fundraising profit center. This means proving efficiency and effectiveness. It also involves forecasting how much…
Chapter 4: Analyzing Strategies
Once you’ve determined your metrics and calculated the results, the next step is to analyze the data. At the same time, you are also analyzing the existing strategies of your organization and the solicitation activities that are conducted.
Reasonable cost guidelines for solicitation activity are*
Chapter 5: Using Data for Revenue Forecasting
Adequate details are now available to predict results for each solicitation, especially if you have three or more years of data. So, you can now make investment decisions regarding how to best invest your fundraising budget. You’ll want to invest in programs with a high expected rate of return and net income that more than justify the decision to commit the same, or increased, budget resources to solicitation activities.
WHERE TO INVEST?
Choose solicitation activities for which there is, has been or expects to be potential growth and where there is anticipated net income potential to be realized. Ideally, you’ll want…
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Download this ebook and learn how to Calculate Key Fundraising Metrics for your nonprofit. Let’s get started!