Direct Mail Renewal $0.20 per dollar raised
Planned Giving $0.25 per dollar raised
Special Events $0.50 of gross dollar raised
National Average $0.20 per dollar raised
Obviously, results vary based on size of program and various variables at work. Mal Warwick, who has written extensively on fundraising, says the cost to raise a dollar idea is a myth. He believes there is no such standard due to the complex nature of nonprofit systems.
According to Charity Village, the cost of raising money is in the forefront of many people’s minds. The Canada Revenue Agency considers the fundraising ratio (revenue versus expenses) as only one factor in the analysis of a well-run organization. The objective is not to spend as little as possible but to maximize the dollars raised.
Additionally, according to Charity Village, costs of fundraising vary according to a variety of factors, such as age and maturity of the organization and development department, size of the charity and its budget, financial methods used, sources of raised income, use of volunteers and averaging costs. Four measures that need to be analyzed include percentage rate of return, average gift size, average cost per gift and overall cost percentage of fundraising costs by total contributions, multiplied by 100.
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Duke Haddad, Ed.D., CFRE, is currently associate director of development, director of capital campaigns and director of corporate development for The Salvation Army Indiana Division in Indianapolis. He also serves as president of Duke Haddad and Associates LLC and is a freelance instructor for Nonprofit Web Advisor.
He has been a contributing author to NonProfit PRO since 2008.
He received his doctorate degree from West Virginia University with an emphasis on education administration plus a dissertation on donor characteristics. He received a master’s degree from Marshall University with an emphasis on public administration plus a thesis on annual fund analysis. He secured a bachelor’s degree (cum laude) with an emphasis on marketing/management. He has done post graduate work at the University of Louisville.
Duke has received the Fundraising Executive of the Year Award, from the Association of Fundraising Professionals Indiana Chapter. He also was given the Outstanding West Virginian Award, Kentucky Colonel Award and Sagamore of the Wabash Award from the governors of West Virginia, Kentucky and Indiana, respectively, for his many career contributions in the field of philanthropy. He has maintained a Certified Fund Raising Executive (CFRE) designation for three decades.