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Fundraising Tuesday: How to Choose Metrics for Your Nonprofit to Measure

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A guest post by Sarah Tedesco of DonorSearch

Picture this: Isabella is the executive director of Academic Stars Network, an organization dedicated to tutoring at-risk high school students in STEM subjects. She’s worked for years to deliver high-quality programming and services to local students, teachers, and parents.

One day, during a meeting with the board of directors, a discussion arises about the need for more data-backed decision-making for the organization. Isabella realizes that Academic Stars Network lacks a strategic approach to evaluating the effectiveness of its initiatives and measuring its overall impact on the community. She and her team decide that it’s time to start tracking metrics for different aspects of their operations—but they aren’t quite sure where to begin.

Many nonprofits find themselves in this same position—wanting a better way to understand just how much of a difference they’re making, but unsure of how to measure success metrics, also known as key performance indicators (KPIs).

In this short guide, we’ll help you get started with choosing metrics for your nonprofit to measure its progress, whether you’re looking to improve your website’s performance or boost your donor retention rate. Let’s begin!

Review your long- and short-term goals.

When it comes to selecting metrics, it can be tempting to simply select a few and begin to gather insights just for the sake of having insights. But this can lead to information overload, giving your team an overwhelming amount of data to organize and analyze.

Instead, start the process by reviewing your organization’s long- and short-term goals. Aligning your metrics with these goals will help ensure that your team gets the insights that it needs on the most important aspects of your organization’s operations. 

For example, say that you have a goal to increase the number of major contributions your organization receives each year by 20%. With this goal in mind, you could consider tracking metrics related to donor acquisition, average gift size, and donor engagement.

Similarly, if your organization wants to improve its Google Ad Grant results, you could start to more proactively track metrics related to your performance online, like the conversion rate on your website landing pages.

Selecting your metrics based on the goals you’re currently working toward will empower you to reach those goals faster as you track your progress and use what you learn to course-correct and improve your efforts to meet your goals.

Consider different metric focus areas.

You might be thinking, “I know what my goals are and what parts of my organization I’m hoping to improve. But what are my options for measuring my progress?”

It’s a good question. The short answer is that if it can be measured, it can be turned into a metric you track over time and use to work toward a goal. The long answer is this: There are many different metric focus areas that you can consider as you choose your own metrics to track. 

According to DonorSearch, here are some of the most popular focus areas and a few examples of metrics within those areas: 

  • General fundraising metrics: cost per dollar raised, fundraising return on investment (ROI), number of gifts secured, matching gift rate, pledge fulfillment rate
  • Donor relationship metrics: donor retention rate, donor churn rate, donor lifetime value, donor acquisition cost, demographic metrics
  • Giving level metrics: gift frequency, average gift size, average giving capacity
  • Engagement metrics: donor or prospect outreach rate, fundraising participation rate, number of asks made
  • Online performance metrics: online gift percentage, email open rate, landing page conversion rate, social media amplification rate, social media applause rate

In addition to these focus areas, you could also look at metrics related to your volunteer program, such as volunteer hours tracked or volunteer acquisition rate; or your events, such as number of event registrations, event attendance rate, and revenue raised. Or, if you’re looking to make improvements to your internal operations, you could focus on metrics like your employee retention rate.

Remember, you don’t want to try to track every metric at once—this will lead to the most important insights getting lost in a sea of information. Instead, choose one focus area to look at or a handful of metrics from a few focus areas.

Determine how you’ll measure your metrics and how often you’ll review them.

Once you’ve selected the metrics you want to track, you still have a few steps to take to set your team up for success. Prepare to get the most actionable insights possible by asking yourself these two questions:

1. What tools will we use to measure and calculate our metrics?

With the right tools, your team won’t have to calculate its metrics by hand and risk errors that could derail your insights. Choose your tracking tools based on the metrics you want to measure.

For example, if you’re tracking metrics related to your major donors and their capacity and affinity markers, you might rely on the help of a nonprofit-specific AI tool to help you gather those markers and make predictions about your prospects and donors.

2. How often will we review our metrics?

Dedicate time to reviewing your metrics on a regular basis. You may do this at the beginning of a fundraising campaign and then again at the end, or at specific times of the year, like at the beginning and end of each quarter.

It may also be helpful to set baselines and thresholds for certain metrics so that you know when to act on the information. For instance, if you start tracking your virtual event registration numbers and see a jump from your baseline number of attendees to your threshold for action, you could take the time to evaluate what made this positive change possible—and keep doing more of it!

As you begin tracking your chosen metrics and getting into the swing of consistently reviewing them, remember to give yourself enough time to see change. Just like waiting for a plant to grow or a pot of water to boil, time has to pass for you to notice changes in your metrics. Be patient as you start your tracking journey—it will pay off as you’re able to identify consistent patterns and trends that you and your team can act on.

Metrics empower your organization to point to specific, quantifiable measurements that illustrate your nonprofit’s progress toward a certain goal, whether it’s a goal related to fundraising or strengthening donor relationships.

Start your metric-tracking journey today by following the three steps outlined above to select the right metrics for your nonprofit and to set yourself up to see changes and trends over time that you can take action on. You’ve got this!

Sarah TedescoSarah Tedesco is the Executive Vice President of DonorSearch, a prospect research and wealth screening company that focuses on proven philanthropy. Sarah is responsible for managing the production and customer support department concerning client contract fulfillment, increasing retention rate and customer satisfaction. She collaborates with other team members on a variety of issues including sales, marketing and product development ideas.

Fundraising Tuesday: Improving Donor Affinity–3 Event Ideas for Nonprofits

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A guest post by Sarah Tedesco, DonorSearch

Donors contribute to your nonprofit because they are passionate about your cause. However, with so many worthy causes out there, you need to nurture each donor’s personal interests in your nonprofit in order to retain their support.

This natural interest in your cause or nonprofit is called donor affinity. Cultivating donor affinity is an effective way for your nonprofit to maintain engagement and ensure donors remain connected to your cause.

So how can you encourage donor affinity? One great way to ensure your donors continue to care about your organization is to host an event that sparks their passion. Here are our top three event ideas for improving donor affinity:

  1. Charity Auction
  2. 5K Run or Walk
  3. Educational Webinar

Each of these events will allow your organization to connect with donors and build a stronger community among your supporters. By growing your community and reminding donors of their impact, you can improve donor affinity and ensure that your supporters remain engaged. Let’s take a closer look at each of these events and how you can plan them successfully.

1. Charity Auction

Auctions are not only a great way to raise money for your nonprofit, but they’re also a very engaging event for your supporters. Auctions provide an opportunity for your donors to support a cause they care about while also purchasing something they truly love. Here are a few tips to keep in mind when planning your auction:

  • Determine what type of auction you’ll host early on. Before you dive into the details of planning your auction, you’ll need to determine what type of auction you’d like to host. Will it be a traditional or silent auction? In-person, virtual, or hybrid? Once you determine the type of auction you’ll host, you can adjust your planning and marketing strategy accordingly.

 

  • Connect with local businesses. Local businesses can have a huge impact on your local community and how involved they become with your work. Consider reaching out to local businesses to see if they’d be interested in donating items to your auction to demonstrate their support for your cause. Local businesses can also connect you with patrons of their establishments who might already have an interest in your cause.

 

  • Emphasize the impact of bids. To cultivate donor affinity, you need to demonstrate how your donors are making an impact. During the auction, be sure to emphasize how donations and bids will help your nonprofit achieve your goals, launch new initiatives, and forward your mission.

While an auction doesn’t explicitly draw on a donor’s natural interest in your nonprofit, there are plenty of opportunities to nurture donor affinity. Because auctions are such engaging events, your donors will likely already be paying close attention to the event, meaning it’s the perfect chance to share important information about your cause.

2. 5K Run or Walk

One reliable way to improve donor affinity is to build community. A strong community of supporters can motivate, inspire, and educate each other, and there’s no better event to build community than a 5K race. These races can gather many of your supporters together and rally everyone around your cause. When planning your 5K run or walk, you should:

  • Encourage teams. Teams are a great way to add some friendly competition while getting more supporters involved! For instance, if you have an active alumni network, encourage them to form their own teams and see which alumni groups can raise the most funds.

 

  • Share content about your nonprofit and mission. In the registration process, follow-up emails, and on the actual day, be sure that you’re reminding participants why they’re there: to support your nonprofit. Consider having beneficiaries of your nonprofit speak at the event and share their story to deepen the personal connection that your donors have to your cause.

 

  • Host a celebration at the end. When the 5K run or walk is over, host a big celebration with food, games, and a ceremony to celebrate your fastest runners and most effective peer-to-peer fundraisers. A celebration will ensure that your participants enjoy their time and associate your nonprofit with happy memories!

To help your event run as smoothly as possible, invest in nonprofit software that allows you to register participants, track their donations, and identify relationships between donors (such as members of the same family who joined the same team). With this information, you can identify opportunities to grow donor affinity even after the event is over.

3. Educational Webinar

In many instances, donor affinity can grow out of newfound awareness or education. Perhaps a potential donor had no idea about the cause that your nonprofit is supporting or they were recently affected by the issue you’re trying to address. They will turn to your nonprofit to provide answers to their questions and knowledge about the issue.

With the right approach, your nonprofit can make supporters care even more about the issue, improving donor affinity across the board. To raise awareness about your cause, host an educational webinar featuring informed speakers and representatives of your nonprofit.

To host a successful webinar, you should:

  • Discuss topics that are interesting to your donors. Each donor’s interest in your nonprofit likely grew out of different circumstances, but they probably want to learn more about similar topics. Design your webinar around certain topics that are the most interesting to your donors. And if you’re unsure which topics your donors might be interested in, don’t be afraid to ask!

 

  • Emphasize how your nonprofit has made a difference. While donors may be interested in your cause, they might not have a full understanding of how your nonprofit is making a difference. During your webinar, emphasize the difference that your nonprofit has made and how donations can help you further your impact.

 

  • Host a Q&A session. A great webinar likely prompts questions from your audience, so give attendees the chance to ask speakers their burning questions. Creating a dynamic and engaging conversation will also help donors feel like an integral part of your nonprofit’s dialogue.

Hosting an exclusive webinar is also a great way to nurture affinity among major donors. According to DonorSearch’s guide on major donor fundraising, creating events specifically targeted towards major donors can effectively deepen their engagement and encourage them to donate more. A webinar is the perfect way to combine education with your long-term fundraising strategy.

Cultivating donor affinity is crucial for any nonprofit. Not only can it help you better tailor your nonprofit’s marketing strategy, events, and programs, but it can also help you deepen each donor’s relationship with your nonprofit. Good luck!

Sarah TedescoSarah Tedesco is the Executive Vice President of DonorSearch, a prospect research and wealth screening company that focuses on proven philanthropy. Sarah is responsible for managing the production and customer support department concerning client contract fulfillment, increasing retention rate and customer satisfaction. She collaborates with other team members on a variety of issues including sales, marketing and product development ideas.

Get to Know Your Donors: 4 Tips

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A guest post from Sarah Tedesco of DonorSearch

donors at the center

Donors at the heart

Each year, you and your fundraising team work hard to raise money for your cause and make a meaningful impact on your mission.

In the center of all your hard work are your donors, the people who genuinely believe in your cause and take the time and action to support your nonprofit.

It’s more cost-effective and beneficial to retain donors than acquire new donors, so focus your efforts on developing those current donor relationships. And the right tools can help.

Even though fundraisers are now equipped with amazing tools, you still have to learn the best ways to use these modern solutions to build truly authentic relationships. The better you know your donors, the stronger your relationships will be.

In this guide, you’ll be learning about the best ways to get to know your donors and the tools you can use to truly understand why donors give to your organization. Consider these top tips:

  1. Ask donors for their preferences.
  2. Record all donor data.
  3. Invest in a prospect research tool.
  4. Incorporate donor data into marketing initiatives.

1. Ask donors for their preferences.

In order to foster relationships with donors who continuously support your cause, it’s good practice to determine their engagement preferences at the start. This can be as simple as asking them to check off a box in your donation forms!

The more personal and targeted your fundraising engagements are, the better your donors will respond to your outreach efforts. For instance, say a donor doesn’t want any direct mail sent to their home address. Once you know this preference, the worst thing that you can do is to continue sending materials and physical letters. They’ll just get annoyed with the barrage of mail and start to ignore your engagements.

Ask your donors’ preferences on your online donation form. This way, you can record these preferences in their donor profiles right off the bat. It’s also a good idea to let them change their preference as your engagement continues. You can include a link in your email signatures for easy access.

Make sure you keep track of these preferences:

  • Do your donors want to receive email communications, direct mail, mobile text messaging, or all?
  • How often do your donors want updates? Do they want to subscribe to your newsletter?
  • What kind of communications do they want to receive? Event invitations, volunteer opportunities, or donation request letters?
  • If they opted to give a recurring donation, what is their preferred payment preference?

Once you actively make an effort to meet your donors’ preferences, it’s more likely that they’ll stick around and your retention rates won’t stagger. The best place to keep track of all these preferences is your donor database.

2. Record all donor data.

To truly reach your donors and build life-long bonds, ensure that you’re recording all the important donor data. This will depend on your constituent relationship management (CRM) system, also known as your donor database. 

Your CRM system should be recording every donor engagement and all key donor metrics in relation to your nonprofit organization. This means every email sent, every donation given, and each fundraising event ticket sold.

Investing in a capable CRM system is crucial in order to get a comprehensive view of your donors. Once you know their current relationship with your nonprofit, you can better ascertain the ways to improve your future engagement strategies. For example, if you notice that a lot of your donors are active on social media, maybe consider investing more time in that engagement channel.

How do you know if your CRM is doing the best it can for your nonprofit fundraising? Consider its integration capabilities. When the tools within your entire fundraising system are integrated with your CRM, you ensure that your donor data is centralized and accurate. Even as actions and engagements are happening in real-time, the information seamlessly flows into your CRM.

Make sure you’re receiving data from these key fundraising tools:

  • Online donation tool. Ensure your CRM captures the donor name, key financial information, donation amount, and any other information that was required in your form.
  • Event registration tool. If your nonprofit often hosts events, ensure that your CRM records data regarding event attendance, registration level, payment preference, and more.
  • Email marketing tool. Make sure you have all the essential information to communicate effectively with your donors. For example, as soon as a donor makes a gift, your CRM should keep track of their email and send them an appreciation email thanking them for their contribution with that donor’s name and donation amount. Additionally, track which emails are opened and which are ignored to know which engagements are working.

3. Invest in a prospect research tool.

Prospect research is a fundraising strategy that involves screening your donor database to identify high-impact donors. 

While it’s possible that prospect research can be done manually and in-house, the efforts and resources your staff will use up might not be worth it. Many modern fundraisers turn to a digital solution to help. With a capable prospect research tool, you can effectively screen your donors against the nation’s largest philanthropic databases.

To determine which of your supporters are likely to be high impact donors, your prospect research tool is looking out for wealth markers and philanthropic indicators:

  • Wealth markers provide a clue about your donors’ capacity to give. Your prospect research tool is looking at your donors’ real estate ownerships, stock ownerships, and business affiliations.
  • Philanthropic indicators help determine how charitable your donors are and their affinity to give. Your prospect research tool is looking at your donors’ past giving, political giving, and other nonprofit involvement.

Your prospect research tool is great at highlighting donor metrics that you can incorporate into targeted and high-impact marketing initiatives. Donors with both wealth markers and philanthropic indicators are likely to want to give and have the means to give. Read on to learn how you can leverage this information to increase fundraising.

4. Incorporate donor data into marketing initiatives.

Major gifts make up a large percentage of your revenue, with 76% of yearly giving coming from only 4% of donors. Because your prospect research tool is screening for both a donor’s affinity to give and capacity to give, this tool can accurately highlight those who might become major donors.

Identifying your major donor prospects doesn’t mean that they’re automatically going to make large gifts. You need to cultivate this relationship and set the stage for future giving. Your best bet is to segment these potential high-impact donors for targeted communications and other meaningful engagements. For instance, segment these donors and:

  • Give them event perks like early-bird registration or a discount code.
  • Consider writing a handwritten letter instead of an email for a more personal touch. Make sure to keep in mind their communication preferences!
  • Other non-ask communications like interesting nonprofit announcements, upcoming events, and volunteer opportunities.

Not only can your prospect research tool identify potential major donors, but it can also supplement other fundraising efforts.

Increase your corporate matching gifts.

Corporate matching gift programs are great opportunities for nonprofits, but are not taken advantage of as often as they should. Eligible donors can double or even triple their donations if they just submit a matching gift request. According to one study, an estimated $4-7 billion in matching gift funds goes unclaimed per year.

Corporate matching gift programs aren’t as well known as other fundraising initiatives, so often donors don’t even know that they can increase their gift without giving any additional funds.

Using your prospect research tool and a corporate philanthropic database, screen each of your donor’s business affiliations. Then, send out specific matching gift letters to let them know of their eligibility! For a list of matching gift letter templates from a wide range of organizations, click here.

Target donor advised funds.

Another way you can leverage your prospect research data in smart ways is to look out for donor advised funds (DAFs). As stated in this DonorSearch flash class webinar, DAFs are the fastest growing form of philanthropy today.

A DAF account is a dedicated savings account for charity where an individual will deposit cash, stock, or other assets. However, the donor doesn’t choose a recipient right away and instead makes this decision later on.

Finding out one of your supporters has a DAF is an exciting opportunity for your nonprofit. The supporter has already dedicated these funds to charity, it’s just up to you to convince them that your organization is the right one.

Use your prospect research tool and highlight donors who might have DAFs by screening their wealth metrics. Segment those donors and start fostering those relationships to increase the likelihood of them choosing your nonprofit as their DAF recipient. Focus on non-ask communications so they know that this relationship isn’t purely based on them giving you money.

Getting to know your donors is one of the most important jobs for your fundraising team. After reading this guide, you now know how to effectively reach them and can genuinely develop those donor relationships for future engagement. Good luck!

Sarah TedescoSarah Tedesco is the Executive Vice President of DonorSearch, a prospect research and wealth screening company that focuses on proven philanthropy. Sarah is responsible for managing the production and customer support department concerning client contract fulfillment, increasing retention rate and customer satisfaction. She collaborates with other team members on a variety of issues including sales, marketing and product development ideas.

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