Essential Donor Metric: Fundraising Efficiency Ratio

Olivia Watson18 Feb, 2025News

The Fundraising Efficiency Ratio is an essential donor metric that helps measure the effectiveness of a nonprofit's fundraising efforts. It is calculated by dividing the total cost of fundraising by the total funds raised. A lower ratio is generally better, indicating that the organization is spending less to raise more money. This ratio helps donors and organizations evaluate whether the fundraising strategies are cost-effective.