Fundraisers routinely check their return on investment (ROI), but they don’t always take a close enough look at just what they are tracking or hoping to learn.
Speaking during the Association of Fundraising Professionals’ international conference, Bill O’Connor of the U. S. Naval Academy Foundation and Robert Rice of consultancy CCS said ROI is a simple calculation, a measure of outright and comparative efficiency used to evaluate the efficiency of an investment and to compare the efficiency of different investments.
ROI is one of many useful metrics that can be useful as a measure of performance, what can be called the inverse of cost to raise one dollar. Further, ROI should be used to:
With all that in mind, they suggested the following benchmarking best practices:
As to what should be in a performance scorecard, O’Connor and Rice highlighted:
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