The 10 Digital Fundraising KPIs Your Non-Profit Must Track
Inbound marketing has flooded us with information and data. Some of us data geeks have never been happier. For others, the volume of metrics and KPIs (key performance indicators) can be overwhelming.
If you’re a non-profit focused on increasing donations and donors, here’s a list of the 10 KPIs, put together by Network for Good, of digital fundraising KPI’s you must have a handle on.
New donor acquisition rate
This KPI is a simple and as broad as it seems. You can look at by time frame: How many new donors come on by month, each year? You can also look at it by channel and by campaign. You can also look at new donor acquisition growth as percentage over similar timeframes or campaigns.
Donor renewal rate
The most immediate donor renewal rate is year-over-year. Get the number of donors from last year (LYD) and determine how many of those same donors gave again this year (TYD). Then divide TYD/LYD to get your donor renewal rate. So if you had 100 donors last year and 80 of them donated again this year, your donor renewal rate is 80%. The challenge here is how far back do you go to consider a donor a “renewal” or “lapsed.”
Net new donors
Net new donors looks at your new donors and renewed donors to reveal if you’re treading water, falling behind, or gathering force. Your donor acquisition rate is usually a raw number. If 100 people donated this year who’d never donated before, that’s 100 new donors. But what if your donor renewal rate is only 50% (50 people who donated last year didn’t donate again)? The low donor renewal rate undercuts the value of your newly acquired donors. Calculating your net new donors highlights this critical gap and adds context to your new donor acquisition rate. This KPI is also important for gauging the engagement level of your donor base.
While new donor acquisition rates are important, relying on them too much to fund your organization puts a lot of pressure on your development team. You’ll see when we talk about metrics such as cost to acquire donor and average donation. Repeat donations are vital to a strong, consistent flow of donations.
Time to first/second gift
This is a measure of time elapsed between a first and second gift. In essence, making sure your new donor is retained, and doesn’t become a net new donor casualty. According to the Fundraising Effectiveness Project’s 2015 report, only 19% of first time donors donate are retained, whereas 63% of repeat donors are retained. This argues strongly in favor of keeping the time lapse between first and second gifts as short as possible. The earlier you get a donor into a habit of giving to your organization, the higher that donor’s lifetime value is likely to be.
Donor reactivation rate
Let’s say you consider any donor who hasn’t donated in the past five years to be lapsed. This is the pool you’ll use …read more
Source:: HubSpot Blog