5 KPIs for Small Nonprofits to Track
For nonprofit professionals working on a small team, there are many priorities. Between planning your fundraising activities, or building relationships with your donors, how do you know if your efforts are worthwhile, or where you may need improvement. This can be done by using key performance indicators otherwise known as KPIs.
What is a key performance indicator?
KPIs are values that can be measured, and most importantly, they allow your organization to evaluate its fundraising progress. They use what’s referred to as a data-driven approach to fundraising, which means that you can make strategic decisions based on fact, rather than feeling. And, these indicators make it easier for your team to zero in on your fundraising objectives, and help your organization to understand the reasons behind a successful fundraising activity.
For example, an organization might want to gauge if personalized messages are more effective than generic "Dear Donor" letters in improving their donor retention rate. But, without comparing the retention rates before and after adopting this new approach, it can be tough to determine the effectiveness of personalizing donor communications.
When you are starting out it can be challenging to determine which KPIs to monitor, or where your fundraising efforts need a boost. So, here is a list of five simple yet effective KPIs that your organization can begin tracking to improve its fundraising performance.
Donor retention rate. Your donor retention rate tells you how many donors gave last year and gave again this year, and it’s one of the strongest signs that your message is resonating and your stewardship activities are effective. Retention rates vary from organization to organization, but even if you retain about half of your donors each year, your donor base will still gradually shrink unless you’re consistently re‑engaging supporters. Because donor acquisition is more expensive than keeping the donors you already have, a lower‑than‑expected retention rate is often a sign that donors may need clearer communication or quicker thank‑you messages, and even small improvements can make a meaningful difference to your annual revenue.
Average gift amount. Your average gift size shows how much donors typically give, and it’s a simple number that can help you plan your fundraising more confidently. Tracking this number over time helps you see whether donors are giving more or less, and understanding the average gift within different donor segments, such as monthly donors, first‑time donors, or long‑time supporters, can help you tailor your messages and annual appeals. If your average gift size starts to decrease, it may mean donors need clearer communication or it may simply reflect changes in their capacity this year. Either way, keeping an eye on this number helps you adjust your outreach, and even small increases can strengthen your fundraising results.
Major donor prospects. These are donors who give an amount that feels like a significant contribution for your organization, whether that’s $500, $1,000, or $10,000 and depends on your donor base. Identifying these supporters helps you understand who may be able to provide more support over time, and it gives you a clearer picture of where future growth might come from. By keeping track of who your higher‑capacity donors are, even by creating an indicator with a formula or highlighting them in a simple spreadsheet, you can plan more intentional outreach and make sure these relationships receive the attention they need.
Average number of days to thank a donor. Acknowledging a donor’s contribution in a timely manner can influence whether they choose to give again. If donors feel their gifts were not valued, it might affect future giving. Tracking the average number of days it takes your organization to send a thank‑you helps you understand how consistent your stewardship is and whether your process needs attention. You don’t need a complex formula to calculate it; simply look at the dates gifts were received and the dates thank‑you messages were sent, then find the typical timeframe. Knowing this number helps you set realistic expectations, improve your acknowledgment process, and make sure donors feel valued.
Event cost per dollar raised. When you look at the cost of an event, it’s important to consider what your organization is trying to achieve. Raising money might not be the main goal, but you still need to weigh the cost of staff and volunteer time against the amount raised. If an event brings in a significant amount of revenue but the time and energy required far exceed your capacity, you don’t have to stop running it, but you may want to reconsider how it fits within your resources and goals. Understanding this balance helps you make clearer decisions about which events support your mission and which ones may need to be adjusted.
If tracking your organization’s performance is new, start with one KPI, and as you get accustomed to this process, gradually introduce more KPIs. By keeping an eye on even just a few KPIs, you can gain a clearer picture of what strategies are effective and which ones may need to be re-evaluated in your fundraising approach. The most critical factor, however, is consistency. Regular tracking of KPIs can significantly aid in advancing your organization towards achieving its fundraising goals.
New to KPIs? If you're new to key metrics and want a simple place to start, our Small Nonprofit KPI Cheat Sheet breaks down the basics. Subscribe to our newsletter and we'll send it straight to your inbox so you can share it with your team.
