These national institutions collectively developed and recommended a new, more holistic, framework for measuring fundraising effectiveness. Three primary measures are the foundation for this new integrated framework: total fundraising net – the bottom-line results; the cost of fundraising (an important, but often overemphasized, measure of efficiency), and the “dependency quotient” as a new barometer for risk. This report provides the formulas to calculate each measure, and how to balance risk and reward.
A companion PowerPoint articulates the conversation boards and leadership teams should have regarding how to measure fundraising effectiveness.
Supporting Document: MFE A Conversation Guide for Boards & Leadership Teams
Source: BoardSource | January 2017 | BoardSource, Association of Fundraising Professionals, BBB Wise Giving Alliance, GuideStart
Tags: nonprofit, fundraising, measurement, effectiveness, risk