ADRFM Insight Reporting

What to count and where the pitfalls are

Depending on their specific goals and objectives, charities can benefit from tracking a variety of key metrics. Some common metrics to consider for charities include:

  1. Donor acquisition and retention: Tracking the number of new donors acquired as well as the percentage of donors who continue to give over time can assist a charity in understanding the health of its donor base and identifying areas for growth.
  2. Measuring the cost of acquiring a new donor or the return on investment of various fundraising efforts can assist a charity in understanding the effectiveness of its fundraising efforts and identifying areas for improvement.
  3. Tracking the number of people served or the outcomes achieved by the charity’s programmes can assist in demonstrating the impact of the organization’s work and identifying areas for growth.
  4. Monitoring financial metrics such as revenue, expenses, and profitability can assist a charity in understanding its financial health and identifying areas for improvement.

When tracking metrics for a charity, there are a few potential pitfalls to be aware of. One common stumbling block is focusing too much on short-term metrics, such as the number of donations received in a given month, rather than taking a long-term perspective. It is critical to consider how various metrics may impact the organisation in the long run, rather than just in the short term.

Another stumbling block is relying on metrics that are simple to track but may not be the most meaningful or relevant to the organisation. Tracking the number of website visitors, for example, may be simple, but it may not provide much insight into the effectiveness of the organization’s efforts.

It is critical to carefully consider which metrics are most important and meaningful to the organisation and to track them consistently over time.

Finally, it is essential to comprehend the limitations of any metrics that are tracked. No single metric can provide an accurate picture of an organization’s performance, so it’s critical to consider how different metrics are related and how they are influenced by external factors.