GRANT WRITING, FUNDRAISING ISSUES, MISC.
FACTORS AFFECTING FUNDRAISING COST-EFFECTIVENESS
By: Michael W. Gerrity, ACFRE

Analyses by CASE, the Association of Healthcare Philanthropy (AHP) and the American Association of Fundraising Counsel (AAFRC) reveal that the following factors are key in determining a Return On Investment for fundraising:

1. Public view of the importance of the organizations mission, vision and programs.
2. Quality board volunteers and number of other trained volunteers raising funds.
3. Age and history of the organization for which funds are being raised.
4. Type of organization (e.g. United Way, church, Hospice, private school).
5. The wealth of the potential donor base.
6. Donors interest I or affinity for the cause and organization.
7. Age and stability of the fundraising program.
8. Number and quality of fundraising staff dedicated to fundraising not support).
9. Focus of the fundraising strategy check these rates of return per $1 invested:

New donor acquisition by mail, $.90 to $1.20 for each $1 spent
Renewing donors by direct mail, $5 for each $1 spent
Annual Funds, $3 to $5 for each $1 spent
Capital Campaigns, $5 to $10 for each $1 spent
Individuals Major Gifts Programs, $5 to $10 for each $1 spent
Special events, $2 to $3 for each $1 spent

Some other useful guidelines for your benchmarking include:
Is the Board making gifts, helping identifying prospects, and making calls?
Number of donors Is it growing annually?
Number of donors making more than one gift in one year.
Number of donors increasing their gift size annually.
Number of donors increasing their gift size annually.
Is overall amount of giving exceeding the rate of inflation?
Is the overall amount of fundraising going up and staying ahead of any increase in expenses?

2001 ANALYSIS
DEVELOPMENT DOLLARS INCOME VS. STAFF TIME INVESTED
REVIEW OF 1,000 UNITED STATES FUNDRAISING OPERATIONS
Prepared by Michael W. Gerrity, ACFRE

ACTIVITY % OF INCOME % OF STAFF TIME

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