Tag Archives: goals

Are Your Numbers Lying To You?

Whether you are a frontline fundraiser or a prospect researcher, at some point you are faced with decisions about how much time and effort to put into measuring your fundraising success. But watch out! It’s all too easy to be deceived by the numbers you measure. You might be measuring the wrong items, get the wrong numbers altogether or get slowed down with numbers that don’t move you forward.

Are you measuring the right things?

No matter what size our organization, time and resources are limited. So where do you start in your fundraising office? With your donors, of course!

We know that we need to acquire and keep donors in order to provide sustaining income to support our organization’s mission. A recent client of mine was excited to tell me that his direct mail acquisition had a high rate of return. Nice!

But where were those donors now? It turned out that he had retained 14% of them. Ouch. Measuring acquisition without measuring retention is a mistake. Be careful that your measurements tell you the whole story about your donors.

Do you have the right numbers?

As you decide what to measure, keep asking yourself if the resulting number means better fundraising. For example, it might be exciting to count the number of people attending your event as it grows, but wouldn’t dollar-raised-per-person reveal whether your goal of raising more money was met? You may have a lot of attendees, but more people do not always translate into more dollars raised.

Are your numbers slowing you down?

Take the time to think about your goals and choose measurements that will reveal whether you are reaching your goals. Most of us have goals more or less like these:

  • Acquire X number of new donors = more dollars raised
  • Retain/renew X percent of all donors = more dollars raised
  • X number new major gift prospects identified/assigned = more dollars raised
  • Raise X dollars = more dollars raised

This is a very basic description, and your office may need a more complex set of measurements. For example, you may want to track different kind of dollars raised – direct appeals, major gifts, events. But don’t get caught in the trap of measuring too many things! You want to choose the most critical elements that will move everything else forward.

For example, my client decided to measure the retention rate of all donors instead of breaking it down to the retention of new donors acquired through direct mail. With a staff of three they only have time to focus on the most important measurements.

Ask yourself, “What are the key items that will move all of our efforts forward”? Set goals and measure those items religiously.

If you try to measure too many things or perform more complex analysis all of the time, you run the risk of bogging down your fundraising energy and effort.

No matter what your fundraising role you play, your actions should result in more money raised. As fundraising leadership, you need to determine the key goals that will move everything forward. As a prospect researcher you often play the role of “data translator”, helping frontline fundraising to translate goals into measurements. No matter what your role is, always ask if the items being measured and the numbers being reviewed translate into more money raised.