When evaluating the effectiveness of your nonprofit or ministry’s fundraising program, there are seven key performance indicators (KPIs) that provide valuable insights into how well you are doing. Monitoring these indicators helps you identify both successes and areas that need improvement before problems grow.
Here are the top 7 fundraising KPIs to track for a healthy, effective program:
- Donor Growth (Year-Over-Year)
It is important to see a steady increase in the number of donors year over year. If donor numbers drop, it is a clear sign that changes are needed.
- Gifts Received
This measures the total number of donations received during a specific period (monthly, quarterly, or annually). If you notice a seasonal dip in donations, it is time to launch initiatives to boost giving. Gifts received should show consistent growth year-over-year.
- Average Gift Amount
Improving your average donation size is a simple way to boost overall fundraising. To calculate it, divide your total revenue by the number of gifts in a given time frame. Tracking this across different channels (social media, direct mail, etc.) helps you see where you are most effective.
- Donor Retention Rate
Keeping your current donors is more cost-effective than acquiring new ones. Track the percentage of donors who give year after year. A drop in retention signals the need for better engagement strategies.
- Recurring Gift Percentage
This tracks the percentage of donors who give regularly. Increasing recurring donations provides a predictable revenue stream and signals strong donor commitment.
- Cost of Donor Acquisition
Finding new donors can be expensive but necessary. It is important to track how much it costs to acquire each new donor and work toward converting them into repeat donors for better long-term returns.
- Conversion Rate by Channel
This KPI tells you how well different fundraising channels (social media, email, direct mail) are performing. By tracking which channels drive the most donations, you can focus your efforts where they are most effective.
By regularly reviewing these metrics, you will have a clear view of your organization’s fundraising health and can make informed decisions to keep improving.
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Article courtesy of Infinity Concepts