Cost per dollar raised divides fundraising expense by the dollars it brought in — the efficiency ratio boards and watchdogs scrutinize. Lower is better; the inverse is the fundraising ROI.
The example
$12,000 cost, $60,000 raised.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Cost | 12000 |
| 3 | Raised | 60000 → $0.20 |
The formula
The formula:
How it works
How it works:
- Divide fundraising cost by dollars raised for the cost per dollar.
- A result of $0.20 means twenty cents spent per dollar brought in.
- Flip it for return:
dollars_raised / cost— the ROI (here 5:1). - Benchmarks vary by method — events and acquisition cost more per dollar than renewals or major gifts.
Cost per dollar varies wildly by channel. Renewing a loyal donor might cost a few cents per dollar; acquiring a brand-new one can cost more than a dollar at first (you make it back over their lifetime). Judge each channel against its own benchmark, not one blended number — and weigh acquisition against donor lifetime value, not just the first gift.
Try it: interactive demo
Fundraising cost and dollars raised.
Variations
Fundraising ROI
The inverse:
Net raised
After cost:
By channel
Compare methods:
Pitfalls & errors
Lower is better. Unlike most ratios, you want this one small.
Channel context. Acquisition costs more than renewal — don’t blend them.
Count all costs. Include staff time and overhead allocated to fundraising, not just direct spend.
Practice workbook
Frequently asked questions
How do I calculate cost per dollar raised in Excel?
How do I get fundraising ROI instead?
What's a good cost per dollar raised?
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