A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a nonprofit (or another type of organization) is achieving its key organizational objectives.
Data can be analysed for insights that lead to better decisions and strategic business moves.
Starting with the basics, this metric simply measures how many donation your nonprofit received within any given time frame (1 month, 1 year, 3 years).
Growth refers to the increase in the size of something over a period of time.
Donor retention rate is the percentage of donors who have given more than once. Recurring donors are incredibly valuable to nonprofits. Not only do most donations trickle in from existing donors, but gaining new relationships is always more costly than cultivating existing ones.
ROI or “Return on Investment” is essential, especially to nonprofits who often operate on a limited budget. This KPI is simply an evaluation of the number of dollars coming in per dollars spent on fundraising. This fundraising KPI matters because it can help your nonprofit evaluate the fundraising efforts and adjust the course accordingly.
This KPI tells you how many donors took an action when prompted by your organization and where they took the action. It’s very helpful to look at donation conversions by Service
Why are KPIs important?
If used properly, KPIs can make a world of a difference to your nonprofit.
- They’re navigational instruments.
- They help organizations adapt.
- They help organizations make decisions.