TSB 027: Five Key Metrics Areas Every Nonprofit Should Be Tracking

Read Time: 2 minutes

This week's tip: Here are the indicators of your nonprofit's success. 

You've got a lot on your plate, right?  From fundraising to people management, your days are filled with tasks that help your organization make an impact.

Amidst the flurry of activity, it's easy to lose track of the metrics that define your success.  Here are a few reminders...

Fundraising Metrics

Fundraising is the lifeblood of every nonprofit organization. You need to know how much money is coming in, where it’s coming from, and how much it costs you to raise those funds.  You've seen the organizations that host dinner galas that raise less than the cost of the event.  If it weren't for the sponsors, the organization would be in the red.  Don't let that be you.

Key fundraising metrics beyond net dollars raised are donor retention rate, donor acquisition cost, and cost per dollar raised. These metrics help you understand the effectiveness of your fundraising efforts and make data-driven decisions about how to allocate your resources.

Program Metrics

Of course, your nonprofit's programs are the heart of your organization. Tracking program metrics such as program outcomes, outputs, and impact helps you understand the effectiveness of your programs and how well you are meeting the needs of your beneficiaries.

For example, if you run a program to feed the homeless, you might track the number of meals served, the percentage of people who find permanent housing after participating in your program, and the overall impact of your program on reducing homelessness in your community.

Volunteer Metrics:

Volunteers are the backbone of many nonprofit organizations. Tracking volunteer metrics such as volunteer retention rate, volunteer satisfaction, and volunteer impact helps you understand the effectiveness of your volunteer program and make data-driven decisions about how to improve it.

For example, if you notice a high volunteer turnover rate, you might look for ways to improve the volunteer experience or provide additional training to volunteers.

Marketing Metrics

Marketing is essential for raising awareness of your nonprofit and attracting new supporters. Tracking marketing metrics such as website traffic, social media engagement, and email open rates helps you understand the effectiveness of your marketing efforts and make data-driven decisions about how to improve your outreach.

For example, if you notice that your website traffic is low, you might invest in search engine optimization (SEO) to improve your website’s visibility in search results.

Financial Metrics

As a nonprofit leader, you must have a solid understanding of your organization's finances on a weekly, if not daily, basis. Tracking financial metrics such as cash flow, budget variance, and reserve ratio helps you stay on top of your finances and make data-driven decisions about how to allocate your resources.

For example, if you notice that your cash flow is trending negatively, you might look for ways to increase revenue or reduce expenses to improve your financial sustainability. 

In Summary

Tracking these key performance metrics can help you make data-driven decisions about how to allocate your resources and improve your organization's impact. By keeping a close eye on your fundraising, program, volunteer, marketing, and financial metrics, you can stay on track to achieving your organization's mission and making a difference in the world.

That's all for today. I'll see you again next Saturday!

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