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Fundraising ROI Calculator

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What is fundraising ROI?

Fundraising ROI is a key metric that evaluates the effectiveness of your fundraising efforts by comparing the total funds raised to the costs incurred to raise the funds. Tracking this metric can help you plan your event budgets more effectively.

Relevant channels: Nonprofit events, online fundraising platforms, charity auctions, corporate sponsorship events.

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How to use this fundraising ROI calculator

To calculate your fundraising ROI, enter the total amount raised through donations, sponsorships, and ticket sales (if applicable). Then, enter your total fundraising costs, including marketing, event, staff, and technology costs. The calculator will provide your fundraising ROI, helping you understand how cost-effective your campaign is.

Fundraising ROI formula

An image showing fundraising ROI formula Fundraising ROI = (Total Funds Raised - Fundraising Costs) / Fundraising Costs × 100

Here,

Total Funds Raised = Donations + Sponsorships + Ticket Sales (if any)

Fundraising Costs = Marketing Costs + Event Costs + Staff Costs + Technology Costs

Understanding the fundraising ROI result

Your fundraising ROI must exceed 100% to cover the campaign’s associated costs. However, the ideal ROI will depend on various factors, such as your goals, type of campaign, industry, etc.

  • A high fundraising ROI indicates that your fundraising efforts are profitable, indicating successful management of the event/project
  • A low fundraising ROI means that your costs exceeded the funds raised, suggesting the campaign was inefficient. If the value is negative, it means that your campaign resulted in a loss.

When to calculate fundraising ROI

  • After a fundraising event to assess performance

  • Before planning a future event to estimate cost-effectiveness

  • To compare the success of different fundraising campaigns

  • For strategic budgeting in future fundraising efforts

How to calculate fundraising ROI (with example)

Imagine your fundraising event had the following data:

Donations: $10,000

Sponsorships: $30,000

Ticket Sales: $20,000

Marketing Costs: $5,000

Event Costs: $10,000

Staff Costs: $7,000

Technology Costs: $3,000

You can calculate your fundraising ROI as follows:

Fundraising ROI = (Total Funds Raised - Fundraising Costs) / Fundraising Costs × 100

Total Funds Raised = 10,000+ 30,000 + 20,000 = $60,000

Fundraising Costs = 5,000 + 10,000 + 7,000 + 3,000 = $25,000

Fundraising ROI = (60,000 - 25,000) / 25,000 × 100 = 140%

In this case, your fundraising ROI is 140%, meaning for every $1 spent, you raised $1.40.

How to improve your fundraising ROI

  • Leverage digital marketing to promote your campaign more efficiently and reach a wider audience at a lower cost.

  • Negotiate better deals with vendors for event venues, catering, or supplies to minimize operational expenses.

  • Maximize sponsorship opportunities by seeking more diverse partnerships that increase your total funds raised.

  • Engage volunteers in key roles to reduce staff costs and allocate more funds towards fundraising efforts.

  • Use data from previous campaigns to identify the most effective strategies and refine your approach for better returns.

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