21 Top Fundraising Metrics Every Nonprofit Needs

Today, we're uncovering the essential fundraising metrics that will transform your strategy from good to great. 🌟

We'll break down each key metric with ==> easy-to-follow formulas ✅ real-life examples ✅

So grab your calculator and let's get started on making every metric count! 📊

Introduction to Fundraising Metrics for Nonprofits

Ever wonder how to truly gauge the success of your nonprofit's fundraising efforts? That's where fundraising performance metrics come into play! 

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Think of these metrics as your nonprofit's report card, showing you what's working, what needs tweaking, and where to focus your energy.

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From tracking donations to measuring donor engagement, these metrics give you the insights needed to make informed decisions. 

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Imagine having a fundraising metrics dashboard at your fingertips, displaying all the critical data in one place. 

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It's like having a roadmap to your fundraising success. 🎯

Why Fundraising Metrics Matter

Well…without them,

you're flying blind…🫣

Fundraising metrics that matter can 

• highlight trends, 
• reveal donor behaviors, 
• and show the real impact of your campaigns. 

Whether you're analyzing donor retention rates or the cost to raise a dollar, these metrics provide a clear picture of your fundraising health.

Core Fundraising Metrics: The Essentials

Donor Acquisition Rate

The Donor Acquisition Rate measures the percentage of new donors gained over a specific period. It helps you understand how effectively your nonprofit is attracting new supporters.

Calculation Formula: 

Donor Acquisition Rate = (Number of New Donors / Total Number of Donors) x 100

‍Example: Let's say your nonprofit had 600 donors at the beginning of the year and gained 100 new donors during that time. To find the Donor Acquisition Rate: Donor Acquisition Rate = (100 / 600) x 100 = 16.67%

This means 16.67% of your total donor base is made up of new donors.

Donor Retention Rate

The Donor Retention Rate measures the percentage of donors who continue to give to your nonprofit year after year. It helps you understand how well you're keeping your supporters engaged and committed.

Calculation Formula: 

Donor Retention Rate = (Number of Retained Donors / Number of Donors at Start of Period) x 100

Example: Imagine your nonprofit had 400 donors at the beginning of the year, and by the end of the year, 300 of those donors gave again. To calculate the Donor Retention Rate:

Donor Retention Rate = (300 / 400) x 100 = 75%

This means you retained 75% of your donors from the previous year.

Fundraising Return on Investment (ROI)

It measures the effectiveness of your fundraising efforts by comparing the revenue generated to the costs incurred. It tells you how much profit you’re making for every dollar spent on fundraising activities.

Calculation Formula: 

Fundraising ROI = (Revenue from Fundraising - Cost of Fundraising) / Cost of Fundraising x 100

Example: Suppose you spent $5,000 on a fundraising campaign and raised $15,000 in donations. To calculate the Fundraising ROI:

Fundraising ROI = ($15,000 - $5,000) / $5,000 x 100 = 200%

This means you earned $2 for every dollar spent on the campaign, showing a 200% return on your investment.

Cost to Raise a Dollar (CRD)

Cost to Raise a Dollar (CRD) measures how much it costs your nonprofit to raise each dollar in donations. It’s crucial for understanding the efficiency of your fundraising efforts.

Calculation Formula:

Cost to Raise a Dollar = Total Fundraising Costs / Total Funds Raised

Example: Suppose your nonprofit spent $5,000 on fundraising activities and raised $20,000. To calculate CRD:

Cost to Raise a Dollar = $5,000 / $20,000 = $0.25

This means it costs you 25 cents to raise each dollar. The lower this number, the more efficient your fundraising efforts are.

Average Gift Size

Average Gift Size measures the mean amount of money donated by each donor. It helps you understand the typical donation amount and can guide strategies to increase donor contributions.

Calculation Formula:

Average Gift Size = Total Donations / Number of Donations

Example: If your nonprofit received 50 donations totaling $5,000, the Average Gift Size would be:

Average Gift Size = $5,000 / 50 = $100

So, on average, each donor gave $100. This metric helps you gauge donor generosity and plan for future fundraising.

Donor Lifetime Value (DLV)

Donor Lifetime Value (DLV) estimates the total amount of money a donor is expected to give throughout their relationship with your nonprofit. It’s crucial for understanding long-term donor value and planning retention strategies.

Calculation Formula:

Donor Lifetime Value = Average Donation Amount x Average Number of Donations per Year x Average Donor Lifespan (in years)

Example: Imagine an average donor gives $100 per donation, donates 3 times a year, and stays with your nonprofit for 5 years. To calculate DLV:

Donor Lifetime Value = $100 x 3 x 5 = $1,500

This means the typical donor is expected to contribute $1,500 over their lifetime with your organization. 

Donor Acquisition and Retention Metrics

Donor Acquisition Cost

Donor Acquisition Cost measures the average expense incurred to gain a new donor. It helps you assess the efficiency of your donor recruitment efforts.

Calculation Formula:

Donor Acquisition Cost = Total Cost of Donor Acquisition / Number of New Donors

Example: If your nonprofit spent $2,000 on marketing and outreach to acquire 100 new donors, the Donor Acquisition Cost would be:

Donor Acquisition Cost = $2,000 / 100 = $20

This means it costs $20 to acquire each new donor. 

Donor Attrition Rate

Donor Attrition Rate measures the percentage of donors who stop giving over a specific period. It indicates how well you're retaining your supporters.

Calculation Formula:

Donor Attrition Rate = (Number of Lost Donors / Total Number of Donors at the Start of the Period) x 100

Example: If your nonprofit had 500 donors at the beginning of the year and 50 of them stopped giving, the Donor Attrition Rate would be:

Donor Attrition Rate = (50 / 500) x 100 = 10%

This means 10% of your donors have stopped contributing, highlighting areas where you might need to improve donor engagement and retention.

Conversion Rate

Conversion Rate measures the percentage of individuals who take a desired action, such as making a donation, after being exposed to a fundraising campaign.

Calculation Formula:

Conversion Rate = (Number of Donors / Number of Prospects) x 100

Example: If you sent out 1,000 fundraising emails and 150 recipients made a donation, the Conversion Rate would be:

Conversion Rate = (150 / 1,000) x 100 = 15%

This means 15% of the people who received your email decided to donate.

Donor Survey Responses

Donor Survey Responses measure the feedback and opinions collected from donors through surveys. This metric helps you understand donor satisfaction and areas for improvement.

Calculation Formula:

Donor Survey Responses = (Number of Completed Surveys / Number of Surveys Sent) x 100

Example: If you sent 200 surveys to your donors and received 50 completed responses, the Donor Survey Responses rate would be:

Donor Survey Responses = (50 / 200) x 100 = 25%

This means 25% of your surveyed donors provided feedback. 

Donor Demographics

Donor Demographics involve analyzing the characteristics of your donors, such as age, gender, location, and income. This helps you tailor your fundraising strategies to better match your donor base.

Calculation Formula:

Donor Demographics is typically presented as a breakdown of donor characteristics rather than a formula. However, you can calculate demographic trends by analyzing survey data or donor records.

Example: If your donor base consists of 60% women, 30% men, and 10% non-binary individuals, analyzing these demographics helps you understand who your donors are. For instance, if you see that a significant portion of your donors is aged 30-40, you might tailor your outreach efforts to better resonate with this age group.

Donor Growth Rate

Donor Growth Rate measures the percentage increase in the number of donors over a specific period. It helps you track the expansion of your donor base.

Calculation Formula:

Donor Growth Rate = [(Number of Donors at End of Period - Number of Donors at Start of Period) / Number of Donors at Start of Period] x 100

Example: If your nonprofit had 400 donors at the start of the year and 500 at the end of the year, the Donor Growth Rate would be:

Donor Growth Rate = [(500 - 400) / 400] x 100 = 25%

This means your donor base grew by 25% over the year, indicating successful expansion efforts.

Lapsed Donor Rate

Lapsed Donor Rate measures the percentage of donors who have stopped giving after a certain period. It helps you identify and address issues related to donor retention.

Calculation Formula:

Lapsed Donor Rate = (Number of Lapsed Donors / Total Number of Donors) x 100

Example: If you had 600 donors, and 100 of them have not made a donation in the past year, the Lapsed Donor Rate would be:

Lapsed Donor Rate = (100 / 600) x 100 = 16.67%

This means 16.67% of your donors have become inactive. Understanding this rate can help you develop strategies to re-engage lapsed donors.

Giving and Donation Metrics

Donation Frequency

Donation Frequency measures how often a donor gives to your nonprofit. It helps you understand donor engagement and identify trends in giving behavior.

Calculation Formula:

Donation Frequency = Total Number of Donations / Number of Unique Donors

Example: If you had 300 donations from 100 unique donors in a year, the Donation Frequency would be:

Donation Frequency = 300 / 100 = 3

This means each donor, on average, made 3 donations over the year. It helps you gauge how frequently your supporters are contributing.

Recurring Gift Percentage

Recurring Gift Percentage measures the proportion of donations that are set up as recurring gifts. It indicates how many of your donors are committed to regular contributions.

Calculation Formula:

Recurring Gift Percentage = (Number of Recurring Donations / Total Number of Donations) x 100

Example: If your nonprofit received 200 donations, and 50 of them were recurring, the Recurring Gift Percentage would be:

Recurring Gift Percentage = (50 / 200) x 100 = 25%

This means 25% of your donations are from recurring gifts, showing the level of donor commitment to ongoing support.

Average Giving Capacity

Average Giving Capacity estimates the typical amount a donor is able and willing to give. It helps you set realistic fundraising goals and tailor your appeals.

Calculation Formula:

Average Giving Capacity = Total Giving Capacity of All Donors / Number of Donors

Example: If you estimate that the total giving capacity of your donor base is $200,000 and you have 100 donors, the Average Giving Capacity would be:

Average Giving Capacity = $200,000 / 100 = $2,000

This means, on average, each donor has a giving capacity of $2,000. 

Average Gift Size Growth

Average Gift Size Growth measures the increase in the average donation amount over time. It helps you track how your donors' giving amounts are changing.

Calculation Formula:

Average Gift Size Growth = [(Average Gift Size in Current Period - Average Gift Size in Previous Period) / Average Gift Size in Previous Period] x 100

Example: If the Average Gift Size last year was $80 and this year it is $100, the Average Gift Size Growth would be:

Average Gift Size Growth = [(100 - 80) / 80] x 100 = 25%

This means the average donation amount has grown by 25%, indicating increased generosity from your donors.

Matching Gift Rate

Matching Gift Rate measures the percentage of donations that are matched by employers or other organizations. It helps you understand how effectively you're leveraging matching gift opportunities.

Calculation Formula:

Matching Gift Rate = (Total Amount of Matching Gifts / Total Amount of Donations) x 100

Example: If your nonprofit received $10,000 in donations, and $2,000 of that was from matching gifts, the Matching Gift Rate would be:

Matching Gift Rate = (2,000 / 10,000) x 100 = 20%

This means 20% of your donations were matched by other organizations, showcasing how well you’re utilizing matching gift programs.

Event Conversion Rate

Event Conversion Rate measures the percentage of event attendees who make a donation or take a desired action after attending an event. It helps assess the effectiveness of your events in driving contributions.

Calculation Formula:

Event Conversion Rate = (Number of Attendees Who Donated / Total Number of Event Attendees) x 100

Example: If 150 people attended your fundraising event and 30 of them made a donation, the Event Conversion Rate would be:

Event Conversion Rate = (30 / 150) x 100 = 20%

This means 20% of your event attendees went on to donate.

Pledge Fulfillment Percentage

Pledge Fulfillment Percentage measures the proportion of pledged donations that are actually received. It helps you evaluate the effectiveness of your pledge collection process.

Calculation Formula:

Pledge Fulfillment Percentage = (Total Amount Fulfilled / Total Amount Pledged) x 100

Example: If your nonprofit received pledges totaling $50,000 and has collected $40,000 of that amount, the Pledge Fulfillment Percentage would be:

Pledge Fulfillment Percentage = (40,000 / 50,000) x 100 = 80%

This means 80% of the pledged donations have been fulfilled, indicating how well you’re meeting your fundraising goals.

Non-Donation Revenue

Non-Donation Revenue includes all income sources other than direct donations, such as grants, sponsorships, or revenue from fundraising events. It helps you understand the full spectrum of your organization’s revenue streams.

Calculation Formula:

Non-Donation Revenue = Total Revenue from Non-Donation Sources

Example: If your nonprofit earned $15,000 from grants, $10,000 from sponsorships, and $5,000 from merchandise sales, the Non-Donation Revenue would be:

Non-Donation Revenue = 15,000 + 10,000 + 5,000 = $30,000

This means $30,000 of your revenue comes from sources other than direct donations, providing a broader view of your funding.

Conclusion

Understanding important fundraising metrics is vital for improving your nonprofit’s impact. By focusing on community fundraising metrics, you can better connect with local supporters, while digital fundraising metrics offer insights into your online efforts. 

Keeping an eye on fundraising campaign metrics helps you adjust strategies for better results. Tracking these metrics will help you refine your campaigns and achieve meaningful outcomes.

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