Measuring the P2P Fundraising Success. 6 KPIs Every Charity Should Track
BlogMeasuring the P2P Fundraising Success. 6 KPIs Every Charity Should Track
- January 14, 2016
- 8 min read
While understanding and measuring big data can be time-consuming and daunting, ignoring it is no longer a solution. Data is power. No matter what sector we are in, what goals we have or who our target audience is, we must work with data. Why? Because it helps us to make better decisions, gives us direction, and brings light into the darkness.
In the nonprofit sector data is as important as in any other. An organisation will not go to the next level if the employees fail at understanding what brought them to the current point, and which areas can they influence. There are numerous examples of how charities can use data, but in the current economic climate, where budgets are being cut to the bone, online fundraising has become an area of special interest for nonprofits.
So, which are those specific metrics that a charity should track to better succeed with online fundraising? The answer is in the graphic below. The image is actually a logic scheme that includes six of the most important KPIs, and the correlations between them.
Image: KPIs for online fundraising, and the correlation between them
1. Total amount fundraised in a time period
The total amount fundraised is the the most obvious KPIs in online fundraising. It is basically the sum of all amounts collected by your fundraisers. And here by “fundraisers” we understand charitable initiatives created by a private person or a company, for a charitable organisation.
To estimate the total amount fundraised for a certain time period we use the formula:
Total amount fundraised = Number of fundraisers * Average amount fundraised/person
This means that, the total amount fundraised can be influenced either by getting more fundraisers (no. of fundraisers) or by increasing the average amount collected by a fundraiser (average amount fundraised).
2. Number of fundraisers created in a time period
The second metric that we consider highly important is the number of fundraisers created for your organisation. If you follow this metric for a couple of months, you will be able to calculate an average and, by multiplying it with the average amount fundraised, you can estimate the amount expected to be collected in a certain time period—a month, a quarter, a year. That’s how fundraising estimations are made.
In order to grow the number of fundraisers, one can develop campaigns to convert the existing donors, members, volunteers or the website visitors, and the social media followers, into fundraisers. It is recommended to send email campaigns to existing supporters and encourage them to start a fundraiser. This emails can be pre-event reminders (pre-birthday, pre-Christmas, pre-charity-run etc) or simple messages explaining how they can multiply their impact by starting a fundraising page.
Another benefit of tracking this metric is that you can compare how different projects are performing, and which type of campaigns are more appealing to your network. For example, in 2015, Scleroseforeningen (The Danish Multiple Sclerosis Society) have been part of a running event, YOU RUN Copenhagen, and have organised their own charity-run-event, Femina. Because they have created separate projects for each event, they have always had a clear overview on how the events are performing.
3. Average amount fundraised per person
This KPI indicates the average amount collected by your fundraisers, and is the sum of the amount fundraised divided by the number of fundraisers. (Average amount fundraised = Total amount fundraised / Number of fundriasers)
To influence this metric one can either increase the average donation or increase the number of donations a fundraiser receives.
To measure it properly it must be a cohort analysis, where the time dimension must be the creation (week/month). In this way, you will be able to see the effect of changes on the average.
And if you want to go deeper into analysing the data, you can compare this metric across different projects and time spans–as many variables influence this metric (e.g. fundraiser’s income, fundraiser’s network), this analysis is truly significant when you have roughly the same population. The observation also applies to the KPI no. 4.
4. Average number of donations per fundraiser
Peer-to-peer fundraising is about tapping into your fundraisers’ network and increase the number of supporters for your charity. In this type of fundraising, the initiator of a campaign is not necessarily the one who gives the most donations; the donations come from his or her network–which means it is essential to get fundraisers to share their page and to ask for donations.
A best practice is to email the inactive fundraisers and help them get started and get the first donations. A good way to motivate them is by sending personal messages or post thank-you-notes on their page, where someone from the organisation expresses their gratitude to the fundraiser and cheers them on in their fundraising adventure.
Read how we found branding influences average number of donations to a fundraiser.
5. Average donations
The other way you can affect the average collected by your fundraisers is by raising the average donation. On the BetterNow platforms, the average donation in 2015 was 33 euros. We have managed to increase that by simple tactics like raising the default amount on the donation form, and by advising the fundraisers to donate just a bit more than they expect of their donors.
6. Active fundraisers
From our experience, quite a surprising number of people get excited about the idea of online fundraising, so they create a page, upload a picture, write about their motivation, and maybe even share the fundraiser a couple of times; but they still don’t receive any donations. That’s discouraging! And, as not everyone is a professional fundraiser, people get stuck and don’t know what to do next.
So if you start analysing the numbers and notice that you have many passive fundraisers, remember that it is ALRIGHT. It is actually an opportunity to start a conversation with them.
A best practice to influence this metric is to send out emails with tips and examples. At BetterNow we have defined a complex user flow, and when a person creates a charitable initiative but does not receive any donations or becomes passive, our system triggers personalised emails and sends out advice on how to take it from there.
And to spice it up a bit, the opening rate for one of those emails last month was over 57%, and 17% of the inactive fundraisers started receiving donations.
It is essential to track the number of passive fundraisers, because it’s easy to influence it, and it can make a huge difference.
We hope these metrics will help you get a better overview of your fundraising results. There are, of course, many other interesting KPIs that can provide you with actionable insights, but we believe that these five are fundamental for your success with peer-to-peer fundraising.
Use the comment box below to tell us about the KPIs that you track.
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