|
Home / Finance / Financial Planning
Getting the Best Return on Investment for your Fundraiser
By:Kimberly Reynolds
Return On Investment (ROI) is a fundamental business concept. Its also something that every fundraiser needs to take into consideration.
A business investment consists of working capital, physical assets, and peoples time.
ROI is the net gain that results from a business spending money and utilizing physical assets, along with the expenditure of employees' time, in an effort to produce tangible profits.
So, the investment in a fundraiser consists of: any up-front expenditures that are required the costs associated with the assets that are utilized the value of people's time spent fundraising
Some key points about ROI in fundraising:
1- Analyze your up-front expenditures vs. your net gain
2- Lowering costs boosts your ROI, but maybe not your net
3- Always consider the hourly value of each volunteers time
Put an ROI value on upfront expenditures
The most important point is to analyze all of your up-front spending versus the net gain from each expenditure. Obviously, don't spend money if nothing is actually gained.
One example would be evaluating advertising expenses for a capital campaign. Before you commit to it, run a small series of test ads to determine the response rate.
If you don't get the desired response, either revise your ad campaign or consider not spending any more money on advertising.
Look for areas where the returns are greatly magnified for every dollar spent. This generally includes effective publicity, quality communication, targeted prospect lists, and timely reminder campaigns.
Put an ROI value on cost reduction vs. net profits
Lowering costs boosts your ROI measurement, but your net can be impacted by the lack of investment. If there is an area where money spent in the past produced excellent results, then be sure that this year's plan provides additional investment capital for that effort.
A good example involves possibly cutting the funding for your capital campaign mailing. Sure, you can cut your expenses by not mailing to anyone that didn't respond last year.
However, the law of large numbers will catch up to you. Less people contacted means less money contributed.
Remember, it doesn't always take money to make money, but not spending money where it is really needed can seriously impact your results.
Put an ROI value on your fundraising volunteers time Another important ROI point to remember is the value of each volunteer's time. Each volunteer-hour worked to raise money for your fundraiser should at least be equivalent to minimum wage. Otherwise, your group is wasting their time by not working smart.
An example would be spending a total of 1,000 volunteer hours coordinating an auction event that only raised $5,000. Chances are that many groups would be happy with the $5,000 net, but the ROI on everyone's time was marginal.
Put an ROI value on your merchant partners
In this instance, you want to maximize the value of everyones time by giving them specific tasks and full instructions. Don't take a scattershot approach by going all the area merchants and asking for donations of merchandise.
Instead, develop rapport with those merchants by providing value for them all year long before you ask them for a large donation.
Ways to improve your fundraising ROI
Focus your efforts where you'll get positive responses and avoid wasting your time on unproductive endeavors.
Each person who helps out in a fundraiser is offering their time in exchange for something that benefits everyone.
Give them specific assignments that focus on maximum results. Don't waste people's time or you will discourage future participation.
Why your fundraising ROI is important
Watch your ROI. It's a good indicator of the health of your non-profit organization. If the number is too low, your group will be constantly recruiting people to replace those who aren't interested anymore.
Your donors and volunteers won't return because their time wasn't valued, they saw their money being wasted, and they also saw penny-pinching where open purse strings would have been a better solution.
Design your organization to maximize your fundraising ROI and you'll position your group for success for many years to come.
Digg
del.icio.us
Blink
Stumble
Spurl
Reddit
Netscape
Furl
Article keywords: fundraising, fundraiser, fundraisers, non-profit fundraising, school fundraiser, school fundraising, PTA fundraiser, youth fundraiser, fundraising ideas
Article Source: http://www.articles2k.com
Kimberly Reynolds writes about fundraising practical advice for getting the best return on yourfundraiser on her website FundraiserHelp.com. Sign up for her free monthly newsletter at www.fundraiserhelp.com
|
|
| Top Financial Planning Articles |
|
|
- 2). Officially Licensed Products Give A Kick To Your Youth Or School Fundraiser By : D. David Dugan
Fundraisers have changed somewhat from when I was a kid. We sold one thing and one thing only, candy. Candy for the school basketball team, candy for the local baseball league and yes, candy for the football team too. Don’t get me wrong, it was good candy, but we didn’t have the choices today’s organizations do.
Everything imaginable is generating funds for our children’s sports these days.
|
- 3). Fundraising Ideas: Keep It Safe By : Kimberly Reynolds
When your youth group is doing a fundraiser, it is imperative to make sure that the proper safety precautions are followed.
Never allow door-to-door sales without direct adult supervision. Period.
In a sad case, an 11-year-old boy selling candy for a PTA fundraiser came to the door of a 15-year-old boy who was home alone at the time. The youngster was invited inside, sexually molested, and then murdered.
|
- 4). Fundraising For Youth Groups By : D. David Dugan
Youth Groups are almost always in need of funds. Holding fundraisers to finance important trips like tournaments, museums, and musical events are just some of the needs that have to be met through fundraising. Others include the need for uniforms, sports equipment, art supplies, musical instruments, and more.
There are a lot of different ways your youth group can raise the funds they need.
|
|
|
- 6). Getting the Best Return on Investment for your Fundraiser By : Kimberly Reynolds
Return On Investment (ROI) is a fundamental business concept. Its also something that every fundraiser needs to take into consideration.
A business investment consists of working capital, physical assets, and peoples time.
ROI is the net gain that results from a business spending money and utilizing physical assets, along with the expenditure of employees' time, in an effort to produce tangible profits.
|
- 7). New And Unusual Fundraising Ideas By : Steve Gillman
Need some new fundraising ideas? When your organization or group needs to raise money for a trip or project, there's nothing wrong with another bake sale. Do something a little different, though, and you may get more volunteers for the event. You might also get more media exposure, meaning more people will participate, which means more money raised.
|
- 8). Car Wash Fundraiser Ideas By : Kimberly Reynolds
Car wash fundraisers are a proven money-maker in virtually every community. All you need are willing volunteers, a high-traffic location with good visibility, and some attention getting signs.
You can put a car wash fundraiser together on short notice, but they work best with a little planning. Here's how to get started...
Things To Do List
1- Line.
|
- 9). How to Avoid Car Financing Pitfalls By : Joseph Kenny
If you are considering the purchase of your first car or even your next vehicle if you’re not a first time car buyer, you may be concerned about the prospect of financing your vehicle. This concern is not totally unfounded.
|
- 10). Stock Market Trading By : Sandro Azzopardi
The stock market offers various opportunities for trading. Apart from the main securities, which one can trade on various exchanges like the New York Stock Exchange and Nasdaq, there are other forms of trading like forex trading, currency trading and ‘contracts for difference’ also known as CFDs.
|
| New Financial Planning Articles |
|
|
|
|
- 3). Setting and Achieving Your Financial Goals By : Marjorie Salada
Financial goals are something you are going to want to put in writing and at some point in time and if you have a partner, they should do the same. If you have a partner you are going to want to discuss your goals together to see how compatible these goals and desires are. If they are completely different, you will need to find a common ground that is going to work for both of you.
|
|
|
|
|
|
|
|
|
|
|
- 9). Stock Market Trading By : Sandro Azzopardi
The stock market offers various opportunities for trading. Apart from the main securities, which one can trade on various exchanges like the New York Stock Exchange and Nasdaq, there are other forms of trading like forex trading, currency trading and ‘contracts for difference’ also known as CFDs.
|
- 10). Stock Market for Dummy By : Sandro Azzopardi
It is not easy to start trading on the stock market when you have no financial background at all. It shouldn’t be difficult to prosper, though, if you follow certain guidelines. Being organized and disciplined are two very important factors in this business. Don’t let all the information you gather confuse you. Make sure important decisions are taken before you start risking your money.
|
|
|
