Fundraising & Development and Outreach & Advocacy Measures- Comment

Fundraising Efficiency Ratio would be used by the Housing for All organization to measure how efficient the agency is at raising money. It is calculated by dividing the unrestricted contributions by the fundraising expenses, or the money spent by the agency to raise the unrestricted contributions. The higher the result, the more efficient the organization is at raising money. By monitoring this ratio, management can gauge whether or not its fundraising efforts are becoming more or less efficient and re-evaluate as necessary (GBQ, 2016).

Donation growth is an example of fundraising and development performance ratio that compares gifts secured over two different time periods that are usually chronological, showing whether the number of donations receive is increasing or decreasing over the time period observed (Grella, 2021). Outreach and advocacy performance ratios are used to assess the number of community events held, number of advocates trained and number of community commitments made verses completed FMA (2015).

Monitoring financial performance provides key insights that helps management answer questions about how well the organization is gaining or losing financial strength, performing in line with the agencies objectives and business plan, and identifying the most and least profitable areas of the organization (Authors,  2018).

References

Authors (2018). The importance of monitoring financial performance. Dolfiblue Chartered Accountants Business Advisers. Retrieved from: https://dolfinblue.com/the-importance-of-monitoring-financial-performance/

FMA (2015). Key Performance Indicators (KPIs) for Nonprofit Organizations https://fmaonline.net/wp-content/uploads/2015/09/Sample-KPIs-all-areas.pdf

GBQ, (2016). Key Performance Indicators for Nonprofit Organizations https://gbq.com/key-performance-indicators-for-nonprofit-organizations/