Calculating your cost-per-dollar raised: a guide for nonprofits 

Naturally, you want your fundraising strategies to be as  effective  as possible. That’s where  fundraising metrics  come in. Once you get to know them, they’ll unlock the most valuable insights. 

In this article, you’ll learn how to calculate and use your cost per dollar raised (CPDR), also known as the fundraising ratio. Spoiler: It’s a game-changer. 

“It Takes Money to Make Money” 

You’ve probably heard this saying from the business world, right? Well, it applies to nonprofits, too! Fundraising isn’t free—it costs money to bring in money. That’s why it’s  pivotal  to track your spending and return on investment (ROI). You need to know if your programs are pulling their weight and making back their budget.  

What are the KPIs? 

Key Performance Indicators (KPIs) are the leads of metrics—they help you measure progress. And guess what? CPDR is a KPI big name. It answers one simple but powerful question:  

What value are you getting from the money you spend on fundraising? 

What is the cost-per-dollar raised (CPDR) 

CPDR—cost per dollar raised—sounds fancy, but it’s super simple. It tells you exactly how much your nonprofit spends to bring in one dollar in donations. Think of it as your efficiency scorecard—are you spending too much, too little, or just the right amount to hit your goals? 

Your fundraising might  look  amazing—six-figure events, revenue soaring—but hold up! When you dig into CPDR, you might find some sneaky spending leaks. Yikes, right? 

Why CPDR matters? 

CPDR (Cost Per Dollar Raised) is the  ultimate  fundraising metric. It’s like a magnifying glass for your strategies—showing you exactly what’s working and what’s not. Here’s how it helps you: 

1. Know how well a campaign worked 

Picture this: Your spring fundraising campaign brings in $75,000. Awesome, right? But wait—you spent $25,000 to make it happen. That’s 33-cent CPDR. Last spring, you spent  $15,000 and raised $60,000—a 25-cent CPDR. Last year was more efficient. 

Now, why  did last year rock? Can you tweak this year’s approach to spend  $20,000 and raise $80,000? CPDR helps you compare campaigns clearly and aim higher every time. 

2. Spot inefficiencies fast 

Let’s say your gala event pulls in $200,000. Wow! But if it costs $150,000 to host, that’s 75-cent CPDR. Yikes. That’s a lot of cash going out the door. 

The big question: Can you trim costs next year and hit a 50-cent CPDR?  

3. Set smarter goals 

Raw revenue numbers can be  super  sneaky. $200,000 sounds incredible until you realize it costs $150,000 to get there. CPDR cuts through the fluff and helps you set goals that actually make sense. It’s about raising  better. 

So, forget the guesswork and let CPDR lead the way. It’s the ultimate tool for fundraising that’s not just successful but  strategic. Ready to make every dollar work harder?  

4. Efficiency check 

It shows how well you’re using your resources. Are you getting the most bang for your fundraising buck? CPDR tells you. 

5. Strategy smarts 

 It helps you decide which fundraising methods are worth keeping, ditching, or improving. Data-driven decisions for the win! 

6. Transparency  

Donor’s love knowing their money is making an impact. They  love  efficiency. They want their hard-earned cash to fuel your mission, not get lost in the shuffle. And no, efficiency doesn’t mean cutting corners or being cheap. It’s about being  smart—putting your fundraising dollars where they’ll pack the biggest punch. 

So, how do you know if you’re crushing it? Easy. Calculate your CPDR. You can do it for individual campaigns  or  your whole organization.  

7. Benchmarking  

 Compare your CPDR to industry standards or other nonprofits. Are you ahead of the curve or playing catch-up? 

How to calculate CPDR? 

Here’s the formula: 

You can calculate CPDR for specific campaigns, events, or your entire fundraising program.  

Pro tip: Make sure to include  all  costs—staff time, social media ads, printing, event planning, you name it. Leave nothing out! 

Why does CPDR deliver? 

It shows you exactly how efficient your fundraising is. 

It helps you compare campaigns and spot trends. 

It guides smarter spending decisions. 

Cost per dollar examples using the cost per dollar formula 

Example 1 

Your nonprofit hosted a Summer Fun Run and spent  $10,000 on marketing, permits, and swag. The event brought in $40,000  in donations. Here’s the math: 

CPDR =  10,000 ÷ 40,000 = 0.25 
That means you spent  25 cents  to raise  $1. High five—that’s a win! 

Example 2 

Last year, your annual giving campaign cost  $15,000 in staff time, email marketing, and printing. It raised $75,000 in donations.

As the numbers speak: 
CPDR =  15,000 ÷ 75,000 = 0.20 
This time, you spent just  20 cents  to raise  $1. Even better—now  that’s  efficient! 

Takeaway 

Tracking CPDR helps you: 

• Make smarter decisions: Should you invest more in email campaigns or try something new? CPDR gives you the data to decide. 

• Boost financial health: A lower CPDR means more money goes straight to your mission.  

• Improve efficiency: A lower CPDR (or higher dollar-raised ratio) means you’re stretching every dollar further. 

But wait—there’s more! 

While CPDR is super helpful, don’t forget to look at the bigger picture. Factors like  donor retention, campaign impact, and  long-term sustainability  matter too. (link to KPI article) For example, spending a little more to keep loyal donors happy might be worth it in the long run. 

So, keep an eye on your CPDR, but don’t let it steal the whole show. Use it as one piece of the puzzle to build a fundraising strategy that’s both efficient  and  effective.  

The dollar-raised ratio 

Here’s a fun twist: The dollar-raised ratio (link to the article) flips CPDR on its head. Instead of showing how much you spend to raise a dollar, it tells you how many dollars you raise for every dollar spent. 

• CPDR: Spend 0.50 to raise $1. 

• The dollar raised ratio: Raise $2 for every $1 spent. 

Both metrics are two sides of the same coin, giving you a complete picture of your fundraising efficiency. 

Factors affecting the cost-to-raise a dollar 

Fundraising methods 

1. Online fundraising: Often low-cost, but results vary based on platform. 

2. Events:  Can be expensive (e.g., galas). 

3. Major gifts: High upfront effort, but low CPDR if successful. 

4. Grants: Time-intensive but can yield high returns. 

5. Direct mail:  Higher costs. 

Organization size and age 

1. New organizations: Higher CPDR due to startup costs and building donor bases. 

2. Small organizations: May struggle with economies of scale, leading to higher CPDR. 

3. Large organizations: Often lower CPDR due to established systems and donor pools. 

4. Established organizations: Benefit from brand recognition, often lowering CPDR. 

Donor demographics 

1. Donor age: Younger donors may prefer online giving (lower CPDR), while older donors may respond better to direct mail (higher CPDR). 

2. Donor income level: Wealthier donors can reduce CPDR through larger gifts. 

Causes 

1. Popular causes: Often attract more donors, potentially lowering CPDR. 

2. Niche causes: May require more effort to reach the right audience, increasing CPDR. 

Benchmarks and industry standards 

Fundraising costs by the nonprofit sector 

Fundraising costs by method 

Key sources for fundraising benchmarks 

1. Charity Navigator 

2. BBB Wise Giving Alliance 

3. Urban Institute (NCCS) 

4. Blackbaud Institute 

5. Association of Fundraising Professionals (AFP) 

6. Candid (Guidestar & Foundation Center) 

7. The Chronicle of Philanthropy 

8. Nonprofit Quarterly 

9. Nonprofit Hub 

10. Direct Marketing Association (DMA) 

1. Leverage low-cost fundraising methods 

• Focus on online fundraising: Use email campaigns, social media, and crowdfunding platforms to reach donors at a lower cost. 

• Invest in major gifts: Cultivate relationships with high-capacity donors. Major gifts often have the lowest CPDR. 

• Optimize grant writing: Apply for grants that align with your mission. Grants typically have a low CPDR but require skilled staff or volunteers. 

2. Streamline fundraising events 

• Cut unnecessary costs: Evaluate event expenses (venue, catering, etc.) and find cost-effective alternatives. 

• Hybrid events: Combine in-person and virtual elements to reduce overhead while expanding reach. 

• Sponsorships: Secure sponsors to cover event costs, reducing your out-of-pocket expenses. 

3. Improve donor retention 

• Retain existing donors: It costs 5–7 times less to retain a donor than to acquire a new one. Focus on stewardship and engagement. 

• Personalized communication: Send thank-you notes, updates, and impact stories to keep donors connected. (link to the post)  

• Donor surveys: Ask donors for feedback to improve their experience and build loyalty. 

4. Use data to make smarter decisions 

• Track CPDR by campaign: Identify which fundraising methods yield the best results and allocate resources accordingly. 

• Analyze donor data: Use CRM tools to segment donors and target them with tailored appeals. 

• A/B testing: Test different messaging, formats, and channels to see what resonates most with your audience. 

5. Build stronger donor relationships 

• Focus on mid-level donors: These donors often have the potential to become major donors with proper cultivation. 

• Monthly giving programs: Encourage recurring donations, which provide steady revenue and reduce acquisition costs. 

• Donor appreciation: Recognize donors publicly (with their permission) to build goodwill and encourage repeat giving. 

6. Optimize direct mail campaigns 

• Targeted mailing lists: Use data to send mail only to donors most likely to respond. 

• Bulk mail discounts: Take advantage of nonprofit postal rates to reduce costs. 

• Combine efforts: Pair direct mail with digital follow-ups (e.g., email or social media) to increase response rates. 

7. Invest in training and technology 

• Staff training: Equip your team with skills in donor relations, grant writing, and digital fundraising. 

• Fundraising software: Use tools like donor management systems (e.g., RallyUp) to streamline processes and track performance. 

• Automation: Automate repetitive tasks like thank-you emails and donation receipts to save time and resources. 

8. Collaborate and partner 

• Collaborate with other orgs: Partner with similar nonprofits to share resources and reduce costs. 

• Corporate partnerships: Work with businesses for sponsorships, matching gifts, or cause-related marketing campaigns. 

• Volunteer fundraisers: Engage volunteers to help with events, outreach, and peer-to-peer fundraising. 

9. Focus on high-impact campaigns 

• Year-End giving: Maximize year-end campaigns, which typically yield the highest donation amounts. 

• Matching gift drives: Promote matching gift opportunities to double donations without additional effort. 

• Crowdfunding: Use platforms like RallyUp, GoFundMe or Kickstarter for specific projects with clear, compelling goals. 

10. Communicate impact effectively 

• Tell stories: Share success stories and testimonials to show donors how their contributions make a difference. 

• Transparency: Be clear about how donations are used to build trust and encourage giving. 

• Visuals: Use photos, videos, and infographics to make your case more compelling. 

11. Benchmark and adjust 

• Compare to industry standards: Use resources like Charity Navigator or AFP to see how your CPDR stacks up. 

• Set goals: Aim to reduce CPDR by a specific percentage each year and track progress. 

• Learn from others: Study successful nonprofits in your sector to adopt best practices. 

12. Segment your donor database 

• Why it matters: Not all donors are the same. Segment your database by giving level, engagement, or interests to tailor your outreach. 

• How it helps: Targeted appeals = higher response rates = lower CPDR. 

• Pro tip: Use your CRM to group donors into categories like “loyal donors,” “first-time givers,” or “lapsed donors.” 

13. Prioritize high-dollar donors 

• Why it matters: Major donors and mid-level donors often give more while costing less to cultivate. 

• How it helps: Focus your resources on building relationships with these donors to maximize ROI. 

• Pro tip: Create a major gifts program with personalized outreach and stewardship plans. 

14. Monitor all fundraising channels 

• Why it matters: Not all channels perform equally. Track which ones deliver the best results. 

• How it helps: Shift resources to high-performing channels (like email or social media) and cut back on low-performing ones. 

• Pro tip: Use analytics tools to measure performance across channels in real time. 

15. Consider Donor Lifetime Value (LTV) 

• Why it matters: LTV measures how much a donor will give over their lifetime, not just in one gift. 

• How it helps: Investing in retaining a donor with a high LTV can lower your CPDR in the long run. 

• Pro tip: Calculate LTV by tracking donor retention rates and average gift size over time. 

Putting it all together 

• Segment + prioritize: Use segmentation to identify high-dollar donors and focus your efforts there. 

• Monitor + optimize: Keep an eye on all fundraising channels and double down on what works. 

• Think long-term: Use LTV to guide decisions about donor retention and stewardship. 

How RallyUp helps you lower CPDR 

RallyUp gives you all the tools you need to track and optimize your fundraising efficiency. 

No upfront costs 

RallyUp is a digital platform with no setup fees or hidden costs, making it a low-risk, high-reward solution for nonprofits of all sizes. 

Automated campaign tracking 

Say goodbye to spreadsheets and manual calculations. RallyUp automatically tracks your campaign performance. 

Real-Time insights 

Get instant access to key metrics like funds raised, donor engagement, and ROI. See what’s working and adjust your strategy on the fly. 

Custom campaign reports 

Generate detailed reports that include donor data, campaign performance, and more. Share these insights with your team, board, or donors to show your impact. 

Start tracking your cost per dollar in fundraising 

Track your  CPDR  year over year, and you’ll spot the big-picture trends for your nonprofit. It’s like a fundraising report card—see where you’re acing it and where you can level up! 

Stack your CPDR against similar orgs or the nonprofit industry average. It’s like checking your fundraising GPS to see if you’re on the right track. 

Watchdog groups like GuideStar by Candid,  Charity Navigator, and  Great Nonprofits  keep an eye on these benchmarks too. They use metrics like CPDR to rate nonprofits, so you’ve got even more reason to stay on top of yours. 

Here’s the deal: Metrics and benchmarks are tools, not the endgame. Use them to fine-tune your fundraising strategy, not just to hit random numbers. 

Say your big goal is growing your donor base. You might  choose  to spend more to attract new supporters—and that’s totally okay! In this case, a higher CPDR isn’t a red flag—it’s a  green light  that you’re investing in growth. 

And don’t forget to track new donors acquired—that’s your KPI for success here. More donors = mission accomplished! 

You run an email campaign, a direct mail blitz, Google Ads, display ads, and a social media push. Each brings in cash, but which one’s the  real MVP? 

Cost per dollar raised (CPDR) measures every campaign using the same standard, so you can see which one’s crushing it and which one’s just coasting. 

But never judge a campaign by one metric alone. For example: 

• Your email campaign costs  $500 and raises $2,500. That’s a rock-solid 20-cent CPDR. 

• Your Google Ads campaign costs  $10,000 and raises $40,000. That’s a 25-cent CPDR—slightly less efficient, but hey, $30,000 net is way more useful than $2,000! 

The takeaway? CPDR shines when you’re comparing campaigns of similar size. It’s your go-to tool for spotting what’s working and what’s not. 

Benchmarking: How do you stack up? 

Benchmarking often compares your CPDR to big players like the  United Way. But remember, costs vary based on: 

• Organization type: Are you a local charity or a national powerhouse? 

• Campaign type: Major gifts? Annual fund? Events? Each has its own CPDR. 

• Campaign stage: Early campaigns often have higher CPDR due to startup costs (think galas, prospect research, or new systems). 

• Central services: Does your org handle everything in-house, or do you outsource? 

For example: 

• If you’re raising  major gifts, your CPDR might be lower than an org relying on an annual fund. 

• At the start of a campaign, expect higher CPDR—it’s normal with all the upfront investments. 

Track your trends 

Don’t just calculate CPDR once and forget it. Monitor it over time! Ask yourself: 

• How has your CPDR changed over the last  5 years? 

• Are you getting more efficient—or less? 

Takeaway: CPDR is your roadmap to smarter, more responsible fundraising. 

Common cost-per-dollar raised questions answered

1. What Affects CPDR in Fundraising?

Short answer: a lot of things.

• Type of campaign. (Events? Major gifts? Totally different beasts.)
• Org size. (Small shops usually pay more to raise money.)
• Donor focus. (Acquisition costs way more than retention.)
• Volunteers. (They can lower your costs—big time.)

Example: Getting new donors through direct mail can run you $1.00–$1.25 per dollar raised. Renewing donors by mail? More like $0.20. See the gap?

2. How Can Nonprofits Lower CPDR?

Here’s what works:

• Go where the ROI is. Think major gifts, monthly giving, digital campaigns.
• Cut fees. Ask donors to cover processing costs. Many will.
• Keep donors around. It’s way cheaper than chasing new ones.
• Track your numbers. Use tools like Fundraising Report Card.

Oh, and skip the stuff that barely moves the needle, like mass mailings with low returns.

3. Why Does CPDR Even Matter?

Because money efficiency = mission power.

• It shows how smart you are with donor dollars.
• It helps compare campaign results.
• It earns donor trust.

Lower CPDR means more dollars go to the work, not the overhead. But don’t chase low CPDR in a vacuum. Balance it with retention, lifetime value, and impact.

4. How Much Does CPDR Change by Fundraising Method?

A lot. Here’s the breakdown:

• Major gifts: Super efficient — $0.05–$0.10
• Direct mail (acquisition): Expensive — $1.00–$1.25
• Online campaigns: Middle ground — $0.15–$0.30
• Special events: Can be flashy, but pricey — $0.50–$0.75

Sources like Blackbaud back this up.

5. How Can Small Nonprofits Track and Improve CPDR?

Start simple. Use what you’ve got:

• Try tools like Fundraising Report Card (free!).
• Go digital. Low-cost, big reach.
• Focus on repeat donors. They’re your best bet for lowering costs.
• Use volunteers instead of paid staff when you can.

Track it. Test it. Tweak it.

6. What’s the Link Between CPDR and Donor Retention?

It’s huge. Here’s why:

• New donors are pricey — $1.00+ per dollar raised.
• Renewed donors? Way cheaper… maybe $0.10–$0.20.

So, if you hang onto your people? Your CPDR drops over time. And better engagement, like personalized outreach, makes that happen.

How nonprofits maximized their cost per dollar with RallyUp 

For more articles on fundraising metrics, KPIs, and everything online fundraising, visit our blog hub today!

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