How to calculate KPIs for non profit organizations
There is nothing that compares to the helpfulness of KPI’s when you are trying to see how you are doing within your company. It is important to know your key performance indicators no matter what type of business you are running. That being said, here is a list of some of the top KPIs for non profit organizations.
Average Growth in Gift Size
Higher donations, means better revenue for your non-profit organization. That is an easy obvious point. You calculate how much your donations and gifts, so you need to be sure to calculate the size of the gifts as well. To do this, you are measuring the percentage of gift size and how it increases overtime. You may have a goal of increasing the size of your gifts and donations by 15% over the year. You can try reaching out for new donors, but if this does not have a positive result you can instead focus on your current donors. 25,000 is 25,000 regardless of whether it is from 40 people or 400 people.
The KPI for this topic keeps your fundraising from getting stagnant. The way to find this information is to take and divide the sum of donations from the previous year by the total donations received that year. Then take away the average of that year and divide the difference. Multiply by 100 to get your percentage.
Pledges Fulfilled in Percentages
Getting a pledge is both exciting and scary because if you rely on that amount, and it never comes, it hurts your business. It is hard to know what you will actually see when it comes down to the full total amount.
To determine this, divide your amount of pledges that have been fulfilled, then you multiply this number by 100. This way you can better understand the number of pledges that you actually receive. It will help you in the long run and will help to grow your knowledge.
(CPDR), or the Cost Per Dollar Raised
You need to know what your spending in order to gain the donations that you are getting. Is it costing you more than you are making? This is how you will find this out.You can even see how much you have raised and how much you spent when you calculate your CPDR.
The way to calculate your CPDR, is to divide your total funds that is raised by the total costs. For this, you want your answer to be more than 1. Doing this can help you realize whether you need to adjust your costs so that you can have less cost and more revenue for your non-profit.
Growth in Donations Over Years Time
The growth in donations over the years is an important step. Determining this is the best way to know how your non-profit organization is growing. It measures your growth or shrink over the time frame that your business has grown. If this KPI turns out to be a negative result then you realize that you may be losing some ground in a different area.
This KPI can also tell you if your problem deals with acquisition rather than dealing with retention. To calculate this KPI, you will need to divide your total donor numbers that is in your base. Take this by your total donor numbers that are in your base for the year. Then multiply this number by 100.
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