When researching our book The Leaky Bucket: What’s Wrong With Your Fundraising…And How to Fix It, my coauthor, Ellen Bristol, and I found that few development offices measure the right things or, even worse, measure anything at all. Our finding was consistent with anecdotal experiences that were shared with us by thousands of development professionals in workshops and webinars.
This is one of the lessons nonprofits can learn from the business world—measurement is critical for improvement.
Some basics every nonprofit should be measuring include:
- total dollars raised through fundraising
- total dollars raise in each category of fundraising, for example—grants, corporate funding, special events, direct mail, telephone fundraising, in person fundraising, and online fundraising
- total number of new donors attained each year
- total number of donors who increase their giving this year
- total number of donors who decreased their giving this year
- total number of donors who stopped giving this year
- total cost of fundraising program
It’s Not Just About the Dollars
Remember, though, it’s not just about the dollars. You should be measuring things such as number of donors in your pipeline, number of grant proposals being written, and percentages of your database to give it all.
It’s important to remember that you can measure things “upstream” and “downstream.” These are called leading indicators and trailing indicators. Trailing indicators are generally measured more than leading indicators, but both are important.
Trailing indicators would include things such as:
- total number of grants received this year
- total dollars netted at our special event
- total number of planned gifts received
Leading indicators include items such as:
- number of visits to major donor prospects made this month
- number of major donors who attended our cultivation event and will be added to our prospect list
- total number of potential grant funders researched
Measure, Measure, Measure
So don’t forget to measure, measure, measure, both before and after the fundraising transaction, and both monetary and nonmonetary goals.