Watch Your Fundraising ROI

• any up-front expenditures that are required
• the costs associated with the assets that are utilized
• the value of people's time spent fundraising

Some key points about ROI in fundraising:

1) Analyze your up-front expenditures vs. your net gain
2) Lowering costs boosts your ROI, but maybe not your net
3) Always consider the hourly value of each volunteer's time


Put an ROI value on upfront expenditures

The most important point is to analyze all of your up-front spending versus the net gain from each expenditure. Obviously, don't spend money if nothing is actually gained.

One example would be evaluating advertising expenses for a capital campaign. Before you commit to it, run a small series of test ads to determine the response rate.

If you don't get the desired response, either revise your ad campaign or consider not spending any more money on advertising.

Look for areas where the returns are greatly magnified for every dollar spent. This generally includes effective publicity, quality communication, targeted prospect lists, and timely reminder campaigns.


Put an ROI value on cost reduction vs. net profits

Lowering costs boosts your ROI measurement, but your net can be impacted by the lack of investment. If there is an area where money spent in the past produced excellent results, then be sure that this year's plan provides additional investment capital for that effort.

A good example involves possibly cutting the funding for your capital campaign mailing. Sure, you can cut your expenses by not mailing to anyone that didn't respond last year.

However, the law of large numbers will catch up to you. Less people contacted means less money contributed.

Remember, it doesn't always take money to make money, but not spending money where it is really needed can seriously impact your results.


Put an ROI value on your fundraising volunteers time

Another important ROI point to remember is the value of each volunteer's time. Each volunteer-hour worked to raise money for your fundraiser should at least be equivalent to minimum wage. Otherwise, your group is wasting their time by not working smart.

An example would be spending a total of 1,000 volunteer hours coordinating an auction event that only raised $5,000. Chances are that many groups would be happy with the $5,000 net, but the ROI on everyone's time was marginal.


Put an ROI value on your merchant partners

In this instance, you want to maximize the value of everyone's time by giving them specific tasks and full instructions. Don't take a scattershot approach by going all the area merchants and asking for donations of merchandise.

Instead, develop rapport with those merchants by providing value for them all year long before you ask them for a large donation.


Ways to improve your fundraising ROI

Focus your efforts where you'll get positive responses and avoid wasting your time on unproductive endeavors.

Each person who helps out in a fundraiser is offering their time in exchange for something that benefits everyone.

Give them specific assignments that focus on maximum results. Don't waste people's time or you will discourage future participation.


Why your fundraising ROI is important

Watch your ROI. It's a good indicator of the health of your non-profit organization. If the number is too low, your group will be constantly recruiting people to replace those who aren't interested anymore.

Your donors and volunteers won't return because their time wasn't valued, they saw their money being wasted, and they also saw penny-pinching where open purse strings would have been a better solution.

Design your organization to maximize your fundraising ROI and you'll position your group for success for many years to come.

Related Pages

Internet Fundraising - Three examples of Internet websites - SolvePoverty, SmartMall, and PermaWorld.

Easy Fundraisers - Three easy fund raisers for for any size group for maximum weekend profits.

Fundraising Events - Portrait Photography, Rubber Duck Derby, Clean Comedians.

Event Ideas - Part 1 - Includes Auction, Group Dinner, Dinner Theater, and School Athlet-A-Thon.

Event Ideas - Part 2 - Funny Beauty Pageant, Mondo Yard Sale, and Charity Golf Tournament.

Event Ideas - Part 3 - Musical Theater, Night At The Races, Bed Race cancer fundraiser event.

Fundraising Letters - See what fund raising letters work for other non-profit groups.

Fundraising Letter - How to generate the best response with your donation request letters.
 

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Ideas For Fundraisers

Art Raffle
Auction
Bake Sale
Band
Baseball
Bingo
Bowling
Bracelets
Brick
Candle
Candy
Candy Bar
Capital Campaign
Car Donation
Car Raffle
Car Wash
Cash Calendar
Casino Night
Cell Phone
Chair-ity Event
Charity
Charity Poker
Cheerleading
Cheesecake Calendar
Chinese Auction
Christian
Christian Event Ideas
Christmas Carols
Christmas Trees
Church
Church Festival
Church Fund Raisers
College
Cookbook
Cookie Dough
Corporate Grants
Cow Chip
Credit Card
Dance
Dance Team
Discount Cards
Donation Request
Donor Recognition
Earth Friendly
Easy
eBay
Event Tips
Events
Events - Part 1
Events - Part 2
Events - Part 3
Flower Bulbs
Flowers
Food Sales
For The Cure
Free
Fruit
Fun
Fundraising Sample
Gift Wrap
Golf Ball Drop Raffle
Golf Fundraiser
Golf Tournament
Grant Requests
Halloween
Healthy
Hockey
Home & Garden
Holiday Carnival
Individual
Inkjet Recycling
Internet
Jamba Juice
Jingle Bell Run
Jingle Bell Walk
Karaoke
Kathryn Beich
Krispy Kreme
Lip Sync
Location
Lollipop
Magazine
Mardi Gras
Merchant Plan
Mini Golf Tournament
Non-Profit
Pancake Breakfast
Photography
Pink Flamingo
Pizza
Pizza Hut
Political
Popcorn
Product Ideas
Promo
Publicity
Raffle
Raffle Prizes
Raffle Tickets
Relay For Life
Relay For Life Events
Rubber Duck
Sales Tips
Sample Thank You
School
Scratch Card
Scrip
Silent Auction Tips
Soccer
Softball
Spaghetti Dinner
101 Tips
Top Five
Tried & True
Tupperware
Valentines Day
Whiskey Tasting
Wine Tasting
Worlds Finest
Youth Group
Youth Sports