Running a nonprofit without tracking your key metrics is like driving without a map. You might eventually get where you want to go, but it will take longer, cost more, and create more frustration along the way.
The right data shows you what is working, what needs improvement, and where to focus your time and resources. Measuring your progress allows you to make decisions based on facts instead of guesswork.
Here are the most important metrics every nonprofit should track and how to use them to achieve your goals.
1. Fundraising Return on Investment (ROI)
What it is:
The amount of money raised compared to how much you spent to raise it.
Why it matters:
Fundraising ROI helps you identify which campaigns and channels are worth your investment. A high ROI means your fundraising is efficient, while a low ROI might mean it is time to adjust your strategy.
How to calculate:
Divide the net revenue from a campaign by the total expenses and multiply by 100.
2. Donor Retention Rate
What it is:
The percentage of donors who give again from one year to the next.
Why it matters:
Retaining existing donors is typically less expensive than finding new ones. A high donor retention rate means your supporters feel connected to your mission.
How to calculate:
(Number of returning donors ÷ Number of donors from the previous year) × 100
3. Donor Acquisition Cost (DAC)
What it is:
The cost of acquiring a new donor.
Why it matters:
Knowing your DAC helps you decide if your outreach efforts are sustainable. If it costs too much to bring in a new donor, you may need to refine your marketing strategy.
How to calculate:
Total cost of acquisition efforts ÷ Number of new donors acquired
4. Average Gift Size
What it is:
The average amount donors give per gift.
Why it matters:
This metric helps you understand giving patterns and adjust your appeals. If your average gift size increases, it often means your messaging and stewardship are working.
How to calculate:
Total donation revenue ÷ Number of gifts
5. Online Giving Percentage
What it is:
The percentage of total donations that come through online channels.
Why it matters:
With more donors giving online, this number shows how effective your digital fundraising strategy is.
How to calculate:
Online donation revenue ÷ Total donation revenue × 100
6. Program Efficiency Ratio
What it is:
The percentage of your total expenses spent directly on programs rather than administration or fundraising.
Why it matters:
Donors want to know their money is making an impact. A strong program efficiency ratio builds trust and credibility.
How to calculate:
Program service expenses ÷ Total expenses × 100
How to Use These Metrics
Tracking metrics is only valuable if you use them to guide your decisions. Regularly review your data to:
Identify the campaigns and activities that deliver the highest returns
Spot trends and adjust strategies before small issues become big problems
Demonstrate transparency and accountability to donors and board members
How Kindly Helps You Track What Matters
Kindly’s built-in CRM and reporting tools automatically track donor behavior, campaign results, and giving trends in one place. You can see donor retention rates, average gift size, and fundraising ROI without juggling multiple spreadsheets or systems. With customizable dashboards and AI-powered insights, you can quickly spot patterns, measure impact, and make data-driven decisions that strengthen your mission.