GuideStar Blog

Measuring Fundraising Effectiveness—It’s Time to Get it Right

Measuring Fundraising Effectiveness—It’s Time to Get it RightThere’s lots of public scrutiny about how much nonprofits spend to raise the money they need to fund their missions and work. But there is more to effective fundraising than low costs—and the obsession with minimizing fundraising costs can actually put our organizations at risk. That’s why BoardSource, along with our partners at GuideStar, BBB Wise Giving Alliance, and the Association of Fundraising Professionals, has released a new framework and calculation for measuring fundraising effectiveness

We have created what we believe is a responsible and reasonable way of thinking about fundraising effectiveness, which is grounded in the following principles: 

  • We believe in the work of nonprofit organizations and know that the most important measure of our effectiveness is the impact that we are having in our communities and society as whole.
  • We know that charitable support from donors and funders is what makes impact possible, which means fundraising is absolutely mission critical.
  • We think that it’s reasonable to expect nonprofits to care about efficiency and return on investment in their fundraising efforts, but that it is not the only way of measuring fundraising effectiveness. 

We think this new framework gets it right, and invite you to learn more about these measures and how to apply them within your organization. Learn more and download the free Measuring Fundraising Effectiveness tool kit for boards and leadership teams.

Measuring Fundraising Effectiveness—It’s Time to Get it Right

Measuring Fundraising Effectiveness—It’s Time to Get it RightThe preceding post is by Erin Berry, vice president of marketing and communications at BoardSource. BoardSource's mission is to inspire and support excellence in nonprofit governance and board and staff leadership.

Topics: Fundraising Fundraising costs