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Fundraising Efficiency
Description:
The fundraising efficiency ratio measures the amount of money spent on fundraising compared to the amount of revenue earned by fundraising (ie. Contributions and Special Events).
Impact:
This ratio is important for organizations that rely on outside contributions and donor funds to finance their programs. Organizations that are more effective in raising capital through its donor base will typically have a lower fundraising efficiency ratio.
Calculation:
[Fundraising Expenses]/([Contributions Revenue] + [Special Event Revenue])
Description:
The fundraising efficiency ratio measures the amount of money spent on fundraising compared to the amount of revenue earned by fundraising (ie. Contributions and Special Events).
Impact:
This ratio is important for organizations that rely on outside contributions and donor funds to finance their programs. Organizations that are more effective in raising capital through its donor base will typically have a lower fundraising efficiency ratio.
Calculation:
[Fundraising Expenses]/([Contributions Revenue] + [Special Event Revenue])
Overall Contributions Efficiency
Description:
The contribution revenue ratio compares the amount spent on contribution generation to the total contributions of an organization. Similar to the fundraising efficiency ratio, this ratio helps to indicate the overall performance of an organization's ability to generate donor funds.
Impact:
This ratio helps to visualize donor fundraising efficiency through contributions and a broader net of associated expenses compared to the event focused fundraising efficiency ratio. Organizations and industries with a lower ratio value indicate that they are more efficient in obtaining contribution funds.
Calculation:
([Advertising And Promotion]+[Fundraising Expenses])/ [Total Contributions]
Description:
The contribution revenue ratio compares the amount spent on contribution generation to the total contributions of an organization. Similar to the fundraising efficiency ratio, this ratio helps to indicate the overall performance of an organization's ability to generate donor funds.
Impact:
This ratio helps to visualize donor fundraising efficiency through contributions and a broader net of associated expenses compared to the event focused fundraising efficiency ratio. Organizations and industries with a lower ratio value indicate that they are more efficient in obtaining contribution funds.
Calculation:
([Advertising And Promotion]+[Fundraising Expenses])/ [Total Contributions]
Return on Investment
Description:
The return on investment ratio is a measure of the gain/loss from an investment in comparison to the cost of the investment. It shows the efficiency of investments to bring in capital to the organization relative to the amount invested.
Impact:
This ratio is mainly applicable to larger/investment-heavy organizations who have a large amount of capital lying in long-term investments. When looking at the ratio, the higher the return on investment the greater amount of revenue the organization generates from their investments.
Calculation:
[Investment Income]/[Investments in Publicly Traded Securities]
Description:
The return on investment ratio is a measure of the gain/loss from an investment in comparison to the cost of the investment. It shows the efficiency of investments to bring in capital to the organization relative to the amount invested.
Impact:
This ratio is mainly applicable to larger/investment-heavy organizations who have a large amount of capital lying in long-term investments. When looking at the ratio, the higher the return on investment the greater amount of revenue the organization generates from their investments.
Calculation:
[Investment Income]/[Investments in Publicly Traded Securities]