While tracking your performance is one of the most crucial steps to improving yourself, it’s not as easy as it may seem. There is so much data available to us in this day and age that it becomes difficult to differentiate the useful statistics from the junk.
In the end, we’re left with pages and pages of endless numbers and mind-numbing graphs.
If you want to save the time you waste on sifting through statistics needlessly, we’ve highlighted 5 fundraising metrics that are actually worth your time!
1. Cost Per Dollar Raised (CPDR)
This is one of the most commonly used metrics and for good reason too. As a nonprofit, you will want to generate funds that will help towards fulfilling the mission you stand for. But raising funds does not equate making money. In fact, it can sometimes even mean the complete opposite!
CPRD calculates how much money went into fundraising activities. If the total money raised is less than the cost of hosting, it means bad news for your organization and might mean it’s time to slice some costs!
A good way to do that is to minimize how much you spend on fundraising events in question and look at other, more holistic options to attract donations such as setting up a fundraising website.
2. Donor Retention Rate
Think of donors as friends. It’s much easier to build on relationships with older friends than it is to constantly find new ones with each passing year. Donors are such an essential part of a nonprofit which is why it’s important to track their retention rate and measure how many donors are actually returning regularly.
In the long run, having a trusty donor bank to rely on will make your organization more secure. If you are struggling with donors pulling back, this metric will help you reflect and notice trends that might have affected their decision.
3. Donor Growth
Just because holding on to donors is important doesn’t mean you don’t need to reach out to more. This metric will help you evaluate whether your efforts at attracting new donors are working and to what extent. If donor growth is on the rise, you’re headed in the right direction. If efforts aren’t quite working, this may be a good time to look into why that is before you start operating at a loss.
4. Gifts Secured
Technically, this is another metric to measure how your donor relationships are progressing – from another angle. Instead of looking at how many donors you have and for how long you retain them, you’re also looking at them for the value they hold to you by classifying them further for the kinds of gifts they provide.
5. Email Opt Out Rate
We’ve all opted out of some kind of email subscription. It usually means we don’t have interest anymore. If this is how people are responding to you newsletter, you need to step up your game. Don’t take this metric for granted. Even one or two opt outs can be signaling something bigger!
Indicators are what you make them to be. They can be a way to save your organization from sinking, or a way to push its growth even further. It’s up to you!