Keeping track of the right key performance indicators (KPIs) can give you a framework to measure the health and growth of your nonprofit over time. It’s important to remember that nonprofits are idiosyncratic, and the KPIs you prioritize will likely be different from the ones a for-profit company would track. However, dedicating time to understanding your nonprofit’s specific KPIs will tell you whether you're on track to reach your objectives.

12 KPIs to track

The following twelve KPIs are helpful for many nonprofit organizations to track:

1. Donor retention rate: The percentage of donors who give to your organization repeatedly.
2. Donor lifetime value: The amount a single donor is likely to generate from first to last donation.
3. Average gift size: The average value of a single donation.
4. Donation growth rate year over year: The growth in the total value of all donations.
5. Recurring gift percentage: The rate at which previous donors return to keep giving to your organization over time.
6. Fundraising return on investment: The difference between the funds raised by a campaign and the total cost to run that campaign, divided by the cost of the campaign. Ideally, all your campaigns will return more than 100% of their cost.
7. Donor life cycle migration/conversion: How donors go from learning about your organization to becoming a recurring or major donor. Keep track of the stages of your donor engagement and stewardship efforts.
8. Donor churn: A measure of how many donors you lose each year.
9. Pledge fulfillment percentage: The proportion of pledges that are fulfilled.
10. Online gift percentage: The proportion of your total donations that come from your digital solicitation efforts.
11. Email open and click rates: The percentage of email recipients who open and click links in the email you send.
12. Social media engagement: The rates at which your supporters are amplifying your message by sharing and engaging in conversation.

However, there may be different KPIs that are meaningful for your organization specifically, and overtime, your KPIs may change as your nonprofit grows.

Why tracking KPIs is helpful

If your organization measures KPIs over time, not only will you better understand the performance of your nonprofit, but you will also have data that you can benchmark to compare against similar nonprofits. Benchmark data lets you and your board assess your team's performance compared to organizations of a similar size or cause. With time, you'll gain a better understand of how your actions affect your KPIs and your nonprofit's performance, which will also help you evaluate your success at reaching your targets.

Final thoughts

When deciding which KPIs are right for your organization, work closely with financial professionals who specialize in nonprofits to make sure you are measuring the right items to assess your organization's health. If your KPI results aren’t revealing the outcomes you were hoping for, it may be time to make changes.

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