For many non-profit organisations, fundraising is a critical part of their operations. The more funds a charity can raise, the more impact they can have on their community and the world. However, simply raising funds isn’t enough – it’s important to make sure that your fundraising campaigns are succeeding in their goals. That’s where measuring your fundraising success comes in. We will explore different metrics and key performance indicators (KPIs) you can use to track your fundraising success, from donation conversion rates to donor retention.
Donation Conversion Rate
The first metric to consider when measuring fundraising success is donation conversion rate. This refers to the percentage of people who donate after visiting your fundraising page or attending an event. A high donation conversion rate suggests that your messaging and call-to-action are effective in motivating people to donate. On the other hand, a low conversion rate may indicate that there are barriers preventing people from donating, such as a confusing user experience or unclear messaging. By tracking donation conversion rate, you can spot areas where you need to improve and optimise your fundraising campaign.
Donor Retention Rate
Another important metric is donor retention. It’s not just about getting people to donate once – it’s about building a relationship with your donors and encouraging them to donate again in the future. Donor retention measures the percentage of donors who donate more than once over a given period of time. A high donor retention rate indicates that your charity is building strong relationships with your donors and keeping them engaged in your mission. Conversely, a low retention rate may suggest that your charity isn’t doing enough to maintain connections with donors and encourage them to stay involved.
Average Gift Size
Average gift size is another useful metric to track. This measures the average amount that donors contribute to your charity. Tracking average gift size can give you insights into how your fundraising message is resonating with donors – if the average gift size is increasing, it could be a sign that your message is motivating people to give more. On the other hand, if the average gift size is decreasing, it may suggest that your message isn’t connecting with donors or that your fundraising campaign needs to be re-evaluated.
Return on Investment (ROI)
One often overlooked metric is the cost to raise funds or Return on Investment (ROI). It’s important to understand how much it costs to fundraise as a way to measure the efficiency of your fundraising campaigns. To calculate the cost to raise funds or your ROI, simply divide the amount spent on fundraising by the total amount of funds raised. If the cost to raise funds is high, it may indicate that your fundraising campaign is not cost-effective and needs to be adjusted. Conversely, a low cost to raise funds is a good sign that your fundraising campaign is efficient and effective. Make sure you compare your ROI for your different fundraising channels (e.g., online, direct mail, social media, events) to see which is the most optimal and cost effective way to fundraise so you can ensure you focus on the best returns or look at ways to optimise the ones that are not giving the return you would expect.
Track overall Fundraising Performance
Finally, it’s important to track overall fundraising performance to gain a big-picture view of your campaign’s success, ensuring you capture this in a central system like SupporterHub for future analysis. This data point reflects the total amount of funds raised during a given period, and can be an important indicator of whether your fundraising campaign is meeting its goals. Tracking overall fundraising performance allows you to compare campaign success over time, see how different campaigns perform against each other, and make strategic decisions about future fundraising campaigns.
Successfully tracking fundraising metrics and key performance indicators requires a comprehensive and data-driven approach. Fundraising can be an art and a science, and the best campaigns combine creativity with measurable outcomes. By using metrics such as the ones listed above charities can gain insights into their fundraising success and make data-driven decisions for future fundraising campaigns. As the fundraising landscape continues to shift, non profit organisations that effectively measure and improve fundraising performance will be poised for success in the years ahead.