Fundraising ROI: raising money shouldn’t cost a fortune

RU Ready to boost your fundraising?

Ah, fundraising events—the lifeblood of many nonprofits and the perfect excuse to break out the fancy name tags. But here’s the hard truth: if your event costs more than 30 cents for every dollar raised, it’s time to rethink the strategy.

Let’s talk about a classic offender: the golf tournament. It seems like a great idea—sunshine, networking, and a leisurely 18 holes. But when you add up the cost of the course rental, catering, prizes, and promotional materials, suddenly your “fundraiser” is barely breaking even. (And let’s be real, many of your guests are just there for the free lunch and an excuse to leave work early.)

So, what’s a non-profit to do?

ROI: The Magic Number You Can’t Ignore

First, do an analysis of the cost per dollar raised (CDR). If your event costs less than 30% of what it brings in, you are shooting under par. If it’s creeping above that? You’ve found the sand trap!

Here are some ways to keep your fundraising events efficient & effective

• Choose high-ROI event types. Galas, auctions, and peer-to-peer fundraising events tend to perform better than costly, logistically complex gatherings (looking at you, golf).

• Find sponsors. Sponsorships can cover a big chunk of event costs, improving your bottom line.

• Limit unnecessary expenses. Do guests really need a swag bag full of branded stress balls? (Spoiler: They do not.)

• Track and analyze past event performance. If an event consistently underperforms, it’s time to pivot.

Fundraising should raise funds, not drain them. So, before you book a venue, ask yourself: Is this a good investment? The magic number (CDR) will give you the answer.