This document discusses various metrics that can be used to measure fundraising effectiveness and efficiency. It outlines frameworks like Greenfield's 9 points and the Feldman pyramid that identify key metrics around donors, income, expenses, participation rates, and more. The document also discusses metrics for measuring donor loyalty and retention based on Sargeant and Jay's loyalty model focusing on service, risk, shared beliefs and other factors. Finally, it recommends starting with a limited set of metrics and benchmarks before implementing measurement and assessing the costs and benefits of different approaches.

1. Melissa S. Brown
Principal, Melissa S. Brown & Associates, LLC
March 16, 2010
AFP - Indiana

2. Why do we measure?

Word of
mouth or
“word of
mouse”
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3. Accountability Goals

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4. Effective AND Efficient

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5. But compared to what?

Declined by
Increased by 19 15 more than 15%
Vehicle Reasonable cost guidelines
more than 15%
18 Declined by less Acquisition $1.25-$1.50 / $1 raised
Increased by less 24 than 15%
than 15%
24
Planned $0.20-$0.30 / $ raised
Stayed the same
Giving
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6. Major

Intermediate
Annual donors
Constituency
Followers
Following
Feldman
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7. General public
Self-Identified Advocates

z
Mailing List
Melissa S. Brown & Associates Carmel,
2/4/2001 7
IN

8. Greenfield’s 9 points
Baseline data

1. Number of donors (or donations)
2. Income from this appeal or group of appeals.
3. Expense, including indirect costs, for this appeal or
group of appeals
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9. Effectiveness

4. % Participation : Donors/Number receiving appeals
5. Average gift : Income/# Donors (or donations)
6. Net income: Income  Expense
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10. Efficiency

1. Average cost per gift: Expense/Donor
or donation
2. Fund-Raising Cost: Expense/Income
can be cents/dollar or %
1. Return: Net Income/Expenses * 100
(for percentage)
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11. z
z
z
z


12. What about loyalty?

A. Sargeant, Donor Retention, AFP
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13. Sargeant & Jay Loyalty
Model

 Service Quality
 Risk
 Shared Beliefs
Learning
 Personal Link
 Multiple Engagements
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14. Loyalty Metrics:
Quantitative Info

Attrition rate
Gains/Losses
Transaction Frequency
Donor Lifetime Value
Sargeant & Jay
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15. Loyalty Metrics:
Qualitative Info

 Donor Satisfaction/Commitment and Trust
 Exit Polling
 Number (and Categories) of Complaints
Sargeant & Jay
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16. Other Metrics Proposed

 Monitor % of new donors who report learning of
organization from existing donor or volunteer
 Track MEDIAN, not mean, gift amount
 Track % of gift $ that are “over the transom”
dzo Strategies
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17. Going Forward

 Before picking metrics, have a plan for what can
change when metrics employed.
 Determine “compared to WHAT”. Without a
benchmark, even an internal one, data not helpful.
 Start modestly, test, review, revise.
 Assess “cost” of implementation against “benefits”
of use (time, particularly).
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18. Resources

www.AchieveGuidance.com Feldman pyramid
www.AFPNet.org FEP, Nonprofit Research
Collaborative
Achieving Excellence in Fundraising Greenfield’s table
3rd Edition, eds: Tempel, Seiler
and Aldrich
www.GivingUSAReports.org Giving USA 2010
www.studyfundraising.info Sargeant on Donor Loyalty
www.dzostrategies.com Beyond cash dashboard items
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