ROI? I usually avoid jargon, but these three letters, well, I just love ‘em. And you should too! Return On Investment. This calculation shows the number of dollars raised compared to the amount spent on fundraising. LAPA recommends that every nonprofit take this important performance measure seriously. Check out my video above to learn more.
According to the Maryland Association of Non-Profits' "Standards for Excellence" and other credible sources, an established ROI benchmark for high-efficiency non-profits is three to one, or $3 dollars raised for every $1 spent on fundraising.
Understanding your ROI allows you to make decisions about your fundraising program, strengthen what’s working, and revise weak areas.
This ROI shows the funds LAPA raised, as contrasted with LAPA fees, it does not reflect the whole of the client's development program.
We're the only fundraising firm that tracks and publicly reports our ROI for each client. For every dollar that clients spend with us, we calculate, and publish, what they have received in return; our personal commitment to transparency and accountability.
A snapshot of the last year’s ROI (2015) for LAPA clients is displayed on the left. We are celebrating with our clients, and are proud to report that we meet (or outpace) the industry benchmarks for every client.
Do you measure your agency's ROI? What have you learned from the results? For more information on calculating ROI for your agency, see my first axiom: ROI, It's Not Just a Math Exercise.