Nonprofit Development: 5 Metrics that You Should Be Measuring
For your nonprofit organization to succeed, you have to measure growth over a certain period of time, especially within your development department. It could be monthly, annually, or over a 5-year span, but measuring success and getting cold, hard numbers is important because it will help the decision makers within your organization to figure out what direction it needs to go in. To properly measure your success as a nonprofit, you need to know what metrics to focus in on. And for your nonprofit development department, there are several metrics that can be measured to let you know what you are doing, how well you are doing it, and what needs to change.
A nonprofit development department is a place where metrics must be measured properly every single time for the purposes of fundraising. If they are not, the likelihood of miscounting donations and using data that misrepresents the true nature of a nonprofits’ progress increases substantially. So it is important to measure the right aspects of fundraising and development. That said, there are many different metrics that can be measured with regard to your nonprofit development department.
Some of the metrics that a nonprofit development director and development department will focus in on include general fundraising metrics (cost per dollar raised, fundraising return on investment), giving metrics (average gift size), and online performance metrics (online gift percentage, email opt out rate). For our discussion, we have targeted five metrics that would be good for a development department to measure.
Donor Retention Rate – This rate measures how many donors a nonprofit retains on a year-to-year basis. This can reveal how a nonprofit should prioritize communication with supporters, as well as if acknowledgement of donors is actually happening. In other words, donor retention rate shows you what needs to be done to keep the people who are keeping your nonprofit going.
Donor Growth– This metric is just what it says. Lack of donor growth and/or donor loss is usually caused by multiple factors. Measuring it ensures that you are paying attention to overall performance and allows your organization to address issues of growth quickly, so that you can act quickly. This is a metric that should have special attention paid to it.
Gifts secured– This is a measurement of how many gifts does your organization secure throughout the month. Including major gifts, planned gifts, mid-level gifts, annual fund donations and monthly donations. What was the number of gifts your organization received throughout the month, the quarter and the year?
Email conversion rate– This measurement tells you how you are doing through email conversions so that you can appropriately readjust what you are doing with emails. With a lot more donations and fundraising going online for a new generation, this metric is going to become even more important in coming years.
Fundraising participation rate– Tracks how many of a fundraisers participants are actually raise funds for it. This can mainly be applied to peer-to-peer fundraisers, team fundraisers, and more. These types of fundraisers are only growing in popularity. This means that measuring fundraising participation rate’s importance will also grow.
Giveffect helps with tracking these metrics through Smart Automation. Smart Automation is the signature Giveffect tool that ensures that all of the software systems contained within the main system are integrated, connected, and speak to each other. This means that there whatever metric you are tracking becomes that much easier to locate and track since you never have to leave the Giveffect platform. It also means that everything that happens on the front end will be automatically updated on the back end. So there is no need to enter information into an Excel spreadsheet or into a Google Doc. This is something that is done automatically for you.
Also within Giveffect, you can use the reports & queries tools to create customized reports and grab hold of canned reports that are most important to your organization and your development and fundraising efforts. Now, Giveffect makes it easy to create or get a report on any of the above-mentioned metrics, and only within a matter of seconds or minutes. Simply log into the back end of the Giveffect database platform, use the left navigation bar and locate the “Reports” tab, click it, and you are taken to an area where you can find and create the most robust reports about the metrics you need up-to-date information.
It’s vital to keep your development department on track, and measuring the proper metrics helps your nonprofit organization to do that. Furthermore, Giveffect can help you to be more streamlined and convenient in taking account of these metrics.
Want to learn more about how Giveffect and Smart Automation can make your development department more effective? Schedule a demo with us today by visiting us online at giveffect.com.