How can you measure your fundraising team's productivity using metrics?

1 Revenue per fundraiser

One of the simplest and most important metrics to measure your fundraising team's productivity is revenue per fundraiser. This metric shows how much money each fundraiser brings in for your organization over a given period of time, such as a month, a quarter, or a year. Revenue per fundraiser can help you evaluate the individual performance of your fundraisers, compare them with each other and with industry benchmarks, and reward or motivate them accordingly. To calculate revenue per fundraiser, simply divide the total revenue generated by your team by the number of fundraisers.

2 Donor retention rate

Another key metric to measure your fundraising team's productivity is donor retention rate. This metric shows how many of your donors continue to support your organization over time, which indicates their loyalty, satisfaction, and engagement. Donor retention rate can help you measure the effectiveness of your donor stewardship and communication strategies, as well as the long-term value of your donors. To calculate donor retention rate, divide the number of donors who gave in two consecutive periods (such as two years) by the number of donors who gave in the first period.

3 Return on investment

A third metric to measure your fundraising team's productivity is return on investment (ROI). This metric shows how much revenue you generate for every dollar you spend on fundraising activities, such as events, campaigns, or software. ROI can help you measure the efficiency and profitability of your fundraising efforts, as well as the allocation and optimization of your resources. To calculate ROI, subtract the total cost of your fundraising activities from the total revenue generated by them, and divide the result by the total cost.

4 Conversion rate

A fourth metric to measure your fundraising team's productivity is conversion rate. This metric shows how many of your prospects or leads become donors, which indicates the quality and quantity of your pipeline and the effectiveness of your solicitation strategies. Conversion rate can help you measure the impact of your outreach and cultivation activities, as well as the potential for growth and diversification of your donor base. To calculate conversion rate, divide the number of donors by the number of prospects or leads.

5 Donor lifetime value

A fifth metric to measure your fundraising team's productivity is donor lifetime value (LTV). This metric shows how much revenue a donor generates for your organization over their entire relationship with you, which indicates their commitment, affinity, and generosity. LTV can help you measure the value and sustainability of your donor relationships, as well as the return on your acquisition and retention strategies. To calculate LTV, multiply the average annual donation amount by the average number of years a donor gives to your organization.

6 Fundraising growth rate

A sixth metric to measure your fundraising team's productivity is fundraising growth rate. This metric shows how much your revenue increases or decreases over a given period of time, such as a month, a quarter, or a year. Fundraising growth rate can help you measure the progress and performance of your fundraising goals, as well as the trends and opportunities in your market and sector. To calculate fundraising growth rate, subtract the revenue from the previous period from the revenue from the current period, and divide the result by the revenue from the previous period.