Before We Dive In…
We’ve talked about this in past videos, but fundraising isn’t just about raising money today—it’s about building a sustainable donor base for the future. So, the three key metrics below will help you grow long-term support.
1. Measure Donor Retention 📊
I’ve talked about this before, but just to recap – it’s more cost effective to keep a donor than to attract a new one!
Donor retention is where the real magic happens. Right now, about 40-45% of donors give again. That means more than half don’t, so that’s a huge opportunity to strengthen donor relationships!
Here’s how to keep donors engaged… AFTER they give:
- Say thanks—quickly! A thank-you within 48 hours makes a lasting impression. Bonus points if you can do a short video or handwritten note!
- Keep in touch beyond fundraising. Make sure you’re not asking for money every time you talk to donors. Do other stuff too. Like… Share impact stories, invite donors to events, and even invite them to volunteer to see up close how things work. (Did you know? People who volunteer are also more likely to donate!).
- Show their impact. Let supporters see the difference they’re making through real stories and updates.
Want to track progress? Use this formula:
Donor Retention Rate = Returning Donors (This Year) ÷ Total Donors (Last Year) × 100
Example: If 100 donors gave last year and 30 gave again this year, your retention rate is 30%.
2. Track Your Average Gift Size 💰
Want to set better fundraising goals and boost donations? Start by tracking your average gift size—aka, the typical amount a donor gives.
Here’s how to track and grow it (this one’s pretty simple):
- Calculate your average gift size: Total dollars raised ÷ Total number of donations = Average gift size.
Example: If you raised $50,000 from 500 donations, your average gift size is $100—and that insight can help shape future fundraising goals!
- Segment your donors: Use Google Sheets or Excel to group donors by gift size (small, mid-level, major) and spot trends.
- Encourage larger gifts: On your donation page, emails, and direct asks, suggest giving levels ($25, $50, $100) and highlight the impact of each gift amount.
3. Calculate Your Fundraising ROI 📈
Fundraising takes time and work (and time and work cost resources)—so we want to make sure it’s working for you.
That’s where Fundraising ROI (Return on Investment) comes in. It helps you see how much your nonprofit earns for every $1 spent, so you can focus on what’s working and trim what’s not.
Formula: Total Fundraising Revenue ÷ Total Fundraising Costs
Example: Raise $50,000, spend $10,000 → ROI = 5:1 (Earn $5 for every $1 spent!)
Not happy with your ROI? Here are some tips to increase it:
- Compare efforts: Track ROI across events, donor appeals, and online campaigns to see what’s performing best. (Hint: Not all fundraisers are worth the effort!)
Pro Tip: Time is also a resource, just as important as money (some say, time IS money). If it takes 100 hours to raise $5,000 one way and 20 hours to raise it another, which would you choose…? 🤔
- Seek out savings: Look for low-cost fundraising ideas, leverage volunteers, and improve efficiency.
- Use tracking tools: Google Sheets is a simple place to start, but tools like Google Analytics (for website donations) and QuickBooks Nonprofit Edition or other accounting software (for tracking revenue vs. expenses) can help too!
What are you already tracking?
Hit reply and let me know what’s working for you. 😊
PS – if you need a few fundraising ideas, I did this video a few weeks back – hope it sparks some inspiration!
