How to Calculate the Cost of Fundraising

There is an analysis I wish every nonprofit leader would do which could transform how the sector is financed. If more nonprofit leaders took a step back and calculated the cost of fundraising, in all the various ways that they raise money, they could focus their efforts on the most effective activities. And stop pursuing things that exhaust their board and staff.

If nonprofit leaders understood the net revenue and cost to raise a dollar of every fundraising activity they engage in they could answer questions like:
•    How much does that gala really get us?
•    How effective is our direct mail campaign?
•    How does it compare with our email campaign?
•    Would it make sense to cancel our annual event and hire a major donor fundraiser instead?
•    Should we keep writing that government grant?

September’s Social Velocity webinar “Financing Not Fundraising: Calculating the Cost of Fundraising” will help you answer these (and more) questions.

And I’m really excited that our new Fall Lineup of monthly webinars will be even more interactive than usual. I’m going to ask for audience participation prior to the webinars. So, when you register for this webinar I will ask you to submit some numbers from one of your past fundraising activities (an event, a direct mail piece, a foundation grant) so that I can calculate the fundraising costs of a couple of participants during the webinar. But don’t worry, you don’t have to submit numbers if you don’t want–it’s completely optional.

Financing Not Fundraising: Calculating the Cost of Fundraising Webinar
Wednesday, September 26, 2012
1:00-2:00pm Eastern
Register Now

This webinar will help you:

• Calculate the return on investment of all your revenue-generating activities
• Give you the net revenue raised and cost to raise a dollar formulas you need
• Analyze which are effective fundraising activities and which are not
• Articulate to board and staff why this analysis is important
• Provide case studies of other nonprofit ROI calculations
• Give you a process for analyzing and making decisions about all of your fundraising activities
• Help you deal with the politics of abandoning poor performing activities

And even if the date and time of the webinar don’t fit your schedule you can still participate because all webinar registrants receive:

• A link to a recording of the webinar, which you can watch as many times as you like
• The PowerPoint slides from the webinar
• The ability to ask additional follow-up questions after the webinar

Register Now

I hope to see you there!

Photo Credit: loco’s photos

About the Author: Nell Edgington is President of Social Velocity (www.socialvelocity.net), a management consulting firm leading nonprofits to greater social impact and financial sustainability. Social Velocity helps nonprofits grow their programs, bring more money in the door, and use resources more effectively. For more information, check out Social Velocity consulting services and clients.

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Related posts:

1. Financing Not Fundraising: Calculating the Cost of Fundraising
2. Financing Not Fundraising: Abandoning Ineffective Fundraisers
3. Upcoming Financing not Fundraising Webinar: Creating a Message of Impact

Tags:  board of directors, cost to raise a dollar, economy, education, emerging, emerging-social, fundraising, fundraising net revenue, marketing, philanthropy

About Nell Edgington

Nell Edgington is President of Social Velocity (www.socialvelocity.net), a management consulting firm leading nonprofits to greater social impact and financial sustainability. Social Velocity helps nonprofits grow their programs, bring more money in the door, and use resources more effectively. For more information, check out Social Velocity services and clients.