Return on Investment in Philanthropy

Posted by admin on Aug 9, 2018 4:48:09 PM

Many Boards and non-profits spend unprofitable time agonizing about return on investment in fundraising. The cost per dollar raised can range on average from 10 cents to 90 cents. Yet, the IRS is disturbed that 25% of all non-profits filing 990s, and reporting contributions of $500,000 or more annually, report $0 (Yes, that’s “Zero!”) on fundraising costs. As a rule, if an organization tells you that the overall cost is less than 20 cents, or more than 80 cents, per dollar raised – there is something wrong or not revealed, and you need to check how they are counting, especially for labor, what labor they use and the type of fundraising.

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Topics: Capital Campaigns, fundraising cost effectiveness, Fundraising Principles, fundraising return on investment, fundraising tips, General Articles, Major Gifts

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