Running a nonprofit organization can feel more like an art than a science. And at times, it can feel more like a carnival than an art. But you can bring order to your workplace and track your mission’s impact by monitoring some basic key metrics. Consider the KPIs (key performance indicators) that make the biggest impact on your organization. Tracking these will help you make informed decisions, improve programs, and demonstrate accountability to stakeholders. Here are the six that we recommend focusing on:
Fundraising efficiency
How much are you spending to make money? Whether it’s on ad space, a yearly gala, or other marketing efforts, keeping track of money spent vs. money brought it will help you calculate what it costs to raise a dollar. The lower the ratio, the more efficient your organization is at fundraising. Setting a goal to reduce your ratio will help you think more carefully about your spending.
Donor retention rate
To paraphrase the song, find new donors, but keep the old. By tracking when and how you’re gaining donors and where you’re losing them, you can get a sense of what’s working. The percentage of donors who make repeat contributions indicates how strong and sustainable your relationships with them are.
Program effectiveness
Determine the extent to which programs are achieving their intended outcomes. How many people have you served? What contributions has your organization made to the community? How has your mission been put to work? Whatever indicators you choose to measure, track them month over month and year over year to see where you’re excelling and where there are challenges.
Client satisfaction
Your organization is nothing without the people it serves. Find out how they’re feeling with surveys and checkins. This helps gauge the quality and effectiveness of your programming and will likely reveal surprising areas of improvement that might not have occurred to you before.
Overhead rate
You probably run a pretty lean ship already, but find out what you’re spending on administration. Reducing your overhead rate will allow you to put more resources into your mission. That’s a win-win.
Volunteer retention
Almost as important as donor retention is volunteer retention. You likely rely heavily on the work of volunteers. Make sure you’re tracking the percentage of volunteers who stay involved. This signifies the efficiency of your engagement efforts.
One Metric at a Time
If you’re not used to tracking KPIs, don’t get overwhelmed. Taking it one at a time will help you ease into it. And don’t forget to have your staff be part of the effort. Delegate tracking tasks based on job role. You’ll be amazed at what the data will tell you.
Metrics Table
Fundraising Efficiency
- This metric calculates the cost to raise a dollar. A lower ratio indicates greater efficiency.
Donor Retention Rate
- It measures the percentage of donors who contribute again, indicating strong relationships and sustainability.
Program Effectiveness
- Assesses the extent to which programs are achieving their intended outcomes and impact on beneficiaries.
Client Satisfaction
- Gathering feedback from those served helps to gauge the quality and effectiveness of programs.
Overhead Rate
- This metric shows the portion of expenses spent on administration versus program activities, impacting transparency.
Volunteer Retention
- Tracking the percentage of volunteers who stay involved signifies the efficiency of engagement efforts.
