To measure Return on Investment (ROI), the total investment in fundraising, or fundraising expense, is analyzed against the net revenues generated from fundraising.
Determining a reasonable range for the rate of return per dollar invested on the overall fundraising effort can depend on a multitude of factors. First, it is important to distinguish between those activities and expenses related to individual giving and those that involve overall fundraising, such as grants and public funding.
Prospect research provides the foundation to effectively carry out virtually any fundraising program—effective prospect research delivers a pipeline of highly qualified, prioritized and segmented prospects and donors. Programs that include major gifts, planned giving, campaign components or an annual fund must include some amount of prospect research in order to efficiently focus resources on those donors or prospects that are most likely to have the greatest impact with a single gift or with increasingly higher gifts over time.