If you don’t measure it, it didn’t happen. How often are you measuring digital performance, reporting on it, and making decisions based on the data you see? If you’re anything like me, it’s probably not often enough! I wrote this article as much for you as for me.
To ensure your digital fundraising efforts are successful, it’s essential to track key performance indicators (KPIs) that provide actionable insights into the effectiveness of your strategies. In this article, we’ll explore 21 critical digital fundraising KPIs across five categories: donor acquisition, donor retention, email marketing, social media, and fundraising campaigns. By monitoring these metrics closely, you can make data-driven decisions to optimize your fundraising performance and maximize your impact.
1. Website Traffic
Website traffic measures the number of visitors to your nonprofit’s website over a given period. This KPI is important because it indicates the overall reach and visibility of your online presence. Higher traffic volumes provide more opportunities to engage potential donors and convert them into supporters.
To calculate website traffic, use web analytics tools like Google Analytics to track the number of unique visitors, pageviews, and sessions. For example, if your website receives 10,000 unique visitors in a month, your monthly website traffic would be 10,000.
2. Conversion Rate
Conversion rate measures the percentage of website visitors who take a desired action, such as making a donation or signing up for your email list. This KPI is crucial because it reflects the effectiveness of your website in persuading visitors to engage with your nonprofit and support your cause.
To calculate conversion rate, divide the number of conversions (e.g., donations) by the total number of website visitors and multiply by 100. For instance, if your website receives 10,000 visitors in a month and 500 of them make a donation, your conversion rate would be 5% (500 ÷ 10,000 x 100).
3. Cost Per Acquisition (CPA)
Cost per acquisition (CPA) measures the average amount your nonprofit spends to acquire a new donor through digital channels. This KPI is important because it helps you assess the cost-effectiveness of your donor acquisition strategies and optimize your marketing budget.
To calculate CPA, divide the total cost of your donor acquisition campaign by the number of new donors acquired. For example, if you spend $5,000 on a digital ad campaign that brings in 100 new donors, your CPA would be $50 ($5,000 ÷ 100).
4. New Donor Acquisition Rate
New donor acquisition rate compares the number of new donors gained over a given period to your total donor base. This KPI is important because it indicates your nonprofit’s ability to attract new supporters and grow your donor base.
To calculate new donor acquisition rate, divide the number of new donors by the total number of donors and multiply by 100. For instance, if you gain 100 new donors in a year and have a total donor base of 1,000, your new donor acquisition rate would be 10% (100 ÷ 1,000 x 100).
5. Bounce Rate
Bounce rate measures the percentage of website visitors who leave your site after viewing only one page. This KPI is important because a high bounce rate may indicate that your website content or user experience is not engaging enough to keep visitors interested.
To calculate bounce rate, divide the number of single-page sessions by the total number of sessions and multiply by 100. For example, if your website has 10,000 total sessions and 5,000 of them are single-page sessions, your bounce rate would be 50% (5,000 ÷ 10,000 x 100).
6. Donor Retention Rate
Donor retention rate measures the percentage of donors who continue to give to your nonprofit year after year. This KPI is crucial because retaining existing donors is more cost-effective than acquiring new ones, and it reflects the strength of your relationships with your supporters.
To calculate donor retention rate, divide the number of repeat donors in the current year by the total number of donors from the previous year and multiply by 100. For instance, if you had 1,000 donors last year and 600 of them give again this year, your donor retention rate would be 60% (600 ÷ 1,000 x 100).
7. Recurring Donor Percentage
Recurring donor percentage represents the proportion of your donor base that gives on a regular basis, such as through monthly donations. This KPI is important because recurring donors provide a predictable and sustainable source of revenue for your nonprofit.
To calculate recurring donor percentage, divide the number of recurring donors by the total number of donors and multiply by 100. For example, if you have 1,000 total donors and 200 of them are recurring donors, your recurring donor percentage would be 20% (200 ÷ 1,000 x 100).
8. Donor Lifetime Value (LTV)
Donor lifetime value (LTV) represents the total amount a donor is expected to contribute to your nonprofit over the course of their engagement with your organization. This KPI is important because it helps you understand the long-term value of your donors and make informed decisions about donor acquisition and stewardship.
To calculate LTV, multiply the average donation amount by the average number of donations per year, then multiply that by the average donor lifespan. For instance, if the average donor gives $100 per year, makes 2 donations per year, and remains active for 5 years, their LTV would be $1,000 ($100 x 2 x 5).
9. Donor Churn Rate
Donor churn rate measures the percentage of donors who stop giving to your nonprofit over a given period. This KPI is important because it indicates the health of your donor relationships and can help you identify areas for improvement in your donor stewardship and retention efforts.
To calculate donor churn rate, divide the number of donors who lapse during a given period by the total number of donors at the beginning of that period and multiply by 100. For example, if you start the year with 1,000 donors and 200 of them lapse by the end of the year, your annual donor churn rate would be 20% (200 ÷ 1,000 x 100).
10. Reactivation Rate
Reactivation rate measures the percentage of lapsed donors you successfully re-engage and bring back into your active donor base. This KPI is important because it reflects the effectiveness of your efforts to rebuild relationships with donors who have stopped giving.
To calculate reactivation rate, divide the number of reactivated donors by the total number of lapsed donors you attempted to re-engage and multiply by 100. For instance, if you reach out to 500 lapsed donors and 100 of them make a new donation, your reactivation rate would be 20% (100 ÷ 500 x 100).
11. Email Open Rate
Email open rate measures the percentage of recipients who open your email campaigns. This KPI is important because it indicates the effectiveness of your subject lines and the overall relevance of your email content to your subscribers.
To calculate email open rate, divide the number of unique opens by the total number of emails delivered and multiply by 100. For example, if you send an email to 10,000 subscribers and 2,500 of them open it, your open rate would be 25% (2,500 ÷ 10,000 x 100).
12. Click-Through Rate (CTR)
Click-through rate (CTR) measures the percentage of email recipients who click on one or more links within your email. This KPI is important because it reflects the engagement level of your email content and the effectiveness of your calls-to-action (CTAs).
To calculate CTR, divide the number of unique clicks by the total number of emails delivered and multiply by 100. For instance, if you send an email to 10,000 subscribers and 500 of them click on a link, your CTR would be 5% (500 ÷ 10,000 x 100).
13. Conversion Rate from Email
Conversion rate from email measures the percentage of email recipients who take a desired action, such as making a donation, after clicking through from your email. This KPI is important because it indicates the effectiveness of your email campaigns in driving meaningful engagement and support for your nonprofit.
To calculate conversion rate from email, divide the number of conversions (e.g., donations) by the total number of unique clicks and multiply by 100. For example, if 500 people click on a link in your email and 50 of them make a donation, your conversion rate from email would be 10% (50 ÷ 500 x 100).
14. Unsubscribe Rate
Unsubscribe rate measures the percentage of email recipients who opt out of your email communications. This KPI is important because it reflects the relevance and value of your email content to your subscribers, as well as the health of your email list.
To calculate unsubscribe rate, divide the number of unsubscribes by the total number of emails delivered and multiply by 100. For instance, if you send an email to 10,000 subscribers and 100 of them unsubscribe, your unsubscribe rate would be 1% (100 ÷ 10,000 x 100).
15. Email List Growth Rate
Email list growth rate measures the rate at which you’re adding new subscribers to your email list over a given period. This KPI is important because a growing email list indicates an increasing audience for your nonprofit’s communications and a larger pool of potential donors.
To calculate email list growth rate, subtract the number of unsubscribes and bounces from the number of new subscribers, then divide by the total number of email addresses on your list at the beginning of the period and multiply by 100. For example, if you start the month with 10,000 subscribers, add 500 new subscribers, and have 100 unsubscribes and bounces, your monthly email list growth rate would be 4% ((500 – 100) ÷ 10,000 x 100).
16. Follower Growth Rate
Follower growth rate measures the rate at which your nonprofit is gaining new followers on social media platforms. This KPI is important because a growing follower base indicates increased brand awareness and a larger audience for your content and calls-to-action.
To calculate follower growth rate, subtract the number of unfollows from the number of new followers gained over a given period, then divide by the total number of followers at the beginning of the period and multiply by 100. For instance, if you start the month with 10,000 followers, gain 500 new followers, and lose 100 followers, your monthly follower growth rate would be 4% ((500 – 100) ÷ 10,000 x 100).
17. Engagement Rate
Engagement rate measures the level of interaction (likes, comments, shares) your social media posts generate relative to your follower count. This KPI is important because it reflects the resonance and relevance of your content to your audience and the strength of your community on social media.
To calculate engagement rate, divide the total number of engagements (likes, comments, shares) by your total number of followers and multiply by 100. For example, if you have 10,000 followers and your posts receive a total of 1,000 engagements in a month, your monthly engagement rate would be 10% (1,000 ÷ 10,000 x 100).
18. Click-Through Rate from Social Media
Click-through rate from social media measures the percentage of your social media followers who click on links in your posts to visit your website or donation page. This KPI is important because it indicates the effectiveness of your social media content in driving traffic and potential donors to your online properties.
To calculate click-through rate from social media, divide the number of clicks on your social media posts by the total number of impressions (views) and multiply by 100. For instance, if your posts receive 10,000 impressions and generate 500 clicks, your click-through rate from social media would be 5% (500 ÷ 10,000 x 100).
19. Conversion Rate from Social Media
Conversion rate from social media measures the percentage of visitors from social media who complete a desired action, such as making a donation, on your website. This KPI is important because it reflects the effectiveness of your social media efforts in driving meaningful engagement and support for your nonprofit.
To calculate conversion rate from social media, divide the number of conversions (e.g., donations) from social media visitors by the total number of visits from social media and multiply by 100. For example, if you receive 1,000 visits from social media and 50 of those visitors make a donation, your conversion rate from social media would be 5% (50 ÷ 1,000 x 100).
20. Campaign Return on Investment (ROI)
Campaign return on investment (ROI) measures the total donations generated by a specific fundraising campaign relative to the cost of running that campaign. This KPI is important because it helps you assess the cost-effectiveness of your fundraising efforts and make informed decisions about future resource allocation.
To calculate campaign ROI, subtract the cost of the campaign from the total donations generated, then divide by the cost of the campaign and multiply by 100. For instance, if a campaign raises $20,000 and costs $5,000 to execute, its ROI would be 300% (($20,000 – $5,000) ÷ $5,000 x 100).
21. Average Gift Size by Campaign
Average gift size by campaign measures the average donation amount for a specific fundraising campaign. This KPI is important because it helps you understand which campaigns are most effective at encouraging larger donations and how different campaign strategies impact donor behavior.
To calculate average gift size by campaign, divide the total donations generated by a campaign by the number of individual donations. For example, if a campaign raises $10,000 from 100 donations, the average gift size for that campaign would be $100 ($10,000 ÷ 100).
Tracking digital fundraising KPIs is essential for nonprofits looking to optimize their online strategies, build stronger relationships with supporters, and maximize their impact. By monitoring key metrics across donor acquisition, retention, email marketing, social media, and fundraising campaigns, you can gain valuable insights into the effectiveness of your efforts and make data-driven decisions to improve your performance. Regularly reviewing and acting upon these 21 KPIs will help you navigate the complex digital landscape, adapt to changing donor behaviors, and ultimately, advance your mission more effectively.
