Calculate Return on Investment and Cost Per Dollar Raised to Measure Fundraising Performance
Return on investment and cost per dollar raised calculate the effectiveness and efficiency of your fundraising efforts. They measure fundraising performance and can inform your fundraising strategic plan.
Return on investment
Return on investment calculates the effectiveness of every dollar you spend on a fundraising strategy.
Cost per dollar raised
Cost per dollar raised is the inverse of return on investment and calculates the revenue generating efficiency of your fundraising expenses.
By using these two metrics your organization can…
- Compare the performance of two dissimilar fundraising strategies.
- Benchmark the same strategy to past performance.
- Increase the performance of each strategy by affecting the revenue and expense variables in each calculation.
- Invest in strategies that are effective and divest of strategies that are ineffective.
- Test the effectiveness of fundraising strategies before scaling them into major investments.
To learn more about these two metrics and take action from these metrics, follow the link below.