Analytics for Nonprofit Growth

5 Metrics Every Nonprofit Board Director Should Master As a nonprofit CEO, I’ve witnessed how powerful a well-informed board can be. To lead with purpose, every director must go beyond governance—they must own the numbers that shape mission, trust, and momentum. |• These five metrics aren’t just indicators—they’re leadership in action. { 1. Fundraising Efficiency . Measures how cost-effectively your nonprofit raises money. A gold standard is $0.20 or less per $1 raised. . Why does it matter? Because every dollar saved is a dollar redirected to impact. - I’ve helped boards recalibrate their strategies using this metric, building donor confidence and financial integrity. { 2. Program Expense Ratio . Reflects the proportion of funds invested directly in mission work—aim for 70%+. . This is more than optics; it’s a signal of alignment between your values and your budget. - Boards that internalize this ratio steer the organization with purpose and precision. { 3. Donor Retention Rate . Tracks how many supporters return year after year. . A rate above 60% indicates trust and a compelling mission narrative. - I’ve seen firsthand how boards that prioritize relational stewardship cultivate reliable, long-term revenue. { 4. Cash Reserves . Measure how long your organization could operate without new income. . The ideal is 3–6 months. . This buffer empowers bold decisions and ensures resilience during disruptions. - A strong reserve isn’t excess—it’s strategic foresight. { 5. Volunteer Engagement . Reveals how time, not just money, fuels your mission. . Track hours and impact—10+ hours per volunteer annually signals a thriving ecosystem of shared purpose. - Boards that elevate this metric unlock new capacity and deeper community roots. | These aren’t vanity metrics—they’re a leadership compass. - Fundraising and Program ratios show stewardship. - Retention and Reserves reflect trust and foresight. - Volunteer data reveals your human capital engine. Master these, and you lead with clarity, credibility, and courage. 𝐈𝐧 𝐭𝐡𝐞 𝐧𝐨𝐧𝐩𝐫𝐨𝐟𝐢𝐭 𝐬𝐩𝐚𝐜𝐞, 𝐢𝐧𝐟𝐥𝐮𝐞𝐧𝐜𝐞 —and these five metrics are where transformation begins. Thinkers360 #NonprofitLeadership #InspiringTheBusinessWorld #Leadership #ThoughtLeadership

My nonprofits in the community - are you planning a donor survey in the next two months? Here are some examples of how you can ensure that the data does not sit silently in your work folders but actually lets it help you take meaningful actions. Example 1: Say your survey question is: "How likely are you to continue donating to our organization in the next year?" ● Data says: If 60% of donors say they are "very likely" to continue donating, but 30% are "somewhat likely" and 10% are "unlikely," this indicates a potential drop-off in donor retention. ● Turning that data into action: Focus retention efforts on the "somewhat likely" group. Create a targeted campaign that re-engages these donors by highlighting recent successes, impact stories, or new initiatives they might care about. Additionally, reach out to the "unlikely" group to understand their concerns and see if any issues can be addressed. Example 2: Say your survey question is: "Which of the following areas do you believe your donation has the most impact?" ● Data says: 50% of respondents say their donation has the most impact on "Education Programs," while only 10% say "Healthcare Initiatives." ● Turning that data into action: Understand the why and promote the success and need for your "Healthcare Initiatives" more prominently, aiming to increase donor awareness and support in this underfunded area. Example 3: Say your survey question is: "What is your primary reason for donating to our organization?" ● Data says: If the top reason to engage is "Alignment with my values" (40%) followed by "Transparency in how funds are used" (35%). ● Turning that data into action: Emphasize your organization's values and transparency in all communications. Regularly update donors on how their funds are being used with clear, detailed reports, and align your messaging with the core values that resonate with your donor base. Example 4: Say your survey question is: "How satisfied are you with the level of communication you receive from our organization?" ● Data says: If 70% of donors are "satisfied", 20% are "neutral," and 10% are "dissatisfied," there's room for improvement in communication. ● Turning that data into action: Understand the "neutral" and "dissatisfied" groups to pinpoint where communication may be lacking. This could involve increasing the frequency of updates, personalizing communications, or providing more opportunities for donor feedback and engagement. Sit with the data you collect. Read the numbers. Read the stories. Read the hopes, barriers, and interests of those humans in your data. The best possibility of a survey is to make the humans in that data feel included and belong by listening and acting on their perspectives. Co-create change with your community in those surveys. #nonprofits #nonprofitleadership #community #inclusion

I said I didn’t believe diversified funding was a smart strategy for most nonprofits, and the post exploded. People had a LOT of feelings on the subject, but you also wanted more recent research. So I found it for you: https://lnkd.in/gWVQb-aU And if you were on team diversification, you aren’t going to like this very much: The original Bridgespan study found the vast majority of nonprofits that reached $50M+ didn’t get there by diversifying. They grew by concentrating on one primary type of funding, ranging from individual donors, foundations, corporations, government, and fees. What they didn’t do was chase all funding types at once. Fast-forward to the 2024 update from SSIR (which expanded the data set from 144 organizations to 297), and the conclusion remained: Concentrated funding is the dominant pattern among the largest, fastest-growing nonprofits. So the findings from almost 20 years ago weren’t a historical quirk. Most nonprofits that scale successfully tend to double down on what works, not spread themselves thin across every revenue stream imaginable. But just to be clear… This is NOT a recommendation to “put all your eggs in one basket.” No responsible strategist would suggest that! Risk management and contingency planning still matter. What this IS about is recognizing that: → Pursuing every revenue stream divides capacity you don’t actually have. → Managing multiple distinct funding models requires expertise that most organizations can’t maintain simultaneously. → The nonprofits that get big usually do so by choosing one primary funding type and building systems within it. Not by dabbling in 8-10 different approaches. Or as Katie Curran put it on my last post: “Double down where you do well and don’t spread yourself too thin chasing every pot.” Or Lisa Moultrie shared "If your organization wants to grow, the question isn’t, “How many kinds of funding can we add?” It’s, “What type of funding can we build real capacity around?” The latest data tells the same story, and it continues to inform my strategic approach for the nonprofits I consult with: Focus fuels growth. Dilution does not. 👋Hi, I’m Lori, the strategic consultant who helps nonprofits focus on what matters most: turning big-picture ideas into action and elevating your social impact.

AI is eating the world… but nonprofits are still serving sandwiches. While startups sprint ahead with AI, most nonprofits are stuck debating if ChatGPT is “ethical.” AI is NOT optional. It’s the single biggest force multiplier in history. Yet, most nonprofits are: Drowning in admin work Burning out on low-impact tasks Struggling with donor engagement Meanwhile, AI-driven orgs are: Automating back-office work Personalizing donor outreach Running impact programs with 10X efficiency Let’s talk about what nobody tells nonprofits about AI (with real evidence). 1. AI can 10X donor engagement. Most nonprofits still send generic mass emails. AI changes that. Harvard research shows personalized donor messaging increases retention by 80%. How? AI tools like Rasa and Drift tailor responses in real time. ChatGPT-style assistants craft hyper-personalized donation asks. AI sentiment analysis ensures every message hits the right emotional tone. Nonprofits using AI in fundraising see a 44% increase in donor conversion. 2. AI slashes admin work (so teams can focus on impact). Nonprofits waste 40% of their time on admin. AI eliminates that. AI automation can: Process tax receipts Automate grant applications Manage volunteer scheduling Example? GiveDirectly uses AI to verify beneficiaries, cutting admin costs by 70%. 3. AI predicts & prevents crises. Most nonprofits react after disasters strike. AI-driven analytics change that. Example? Red Cross uses AI to predict hurricanes and deploy aid faster. AI processes satellite data, social media, and weather reports. Early warnings improve response times by 50%. More lives saved, less money wasted. 4. AI makes small teams operate like big ones. Think AI is only for giant NGOs? Think again. Mama Hope used AI chatbots to handle donor FAQs, freeing 30% of staff time. Charity: Water automates donor follow-ups to boost retention. Team Rubicon uses AI logistics to deploy volunteers faster than FEMA. AI levels the playing field. 5. AI doesn’t replace humans, it amplifies them. Biggest fear? “AI will take our jobs.” Reality? AI eliminates low-impact tasks so teams can focus on real mission work. AI writes reports—humans build relationships. AI analyzes data—humans make decisions. AI sends emails—humans inspire action. The question isn’t “Will AI replace us?” The question is “How fast will we fall behind if we ignore it?” Nonprofits that adopt AI now will dominate the next decade. The biggest threat to nonprofits isn’t funding, it’s irrelevance. Want to get started? Pick ONE thing to automate this month: AI-powered donor messaging? (Try ChatGPT or Jasper) AI-driven grant writing? (Check out Grantable) AI for impact measurement? (Look into DataRobot) The nonprofits that embrace AI will scale 10X. The ones that don’t? They’ll keep serving sandwiches. With purpose and impact, Mario

If you want Your NGO to grow, learn how to track what you are doing (Here is Simple Guide to Monitoring and Evaluation for Beginners) When I started my nonprofit journey, I thought passion alone would carry every project. I thought if you show up, distribute relief items, support communities and work hard, the impact would speak for itself. It took me a while to realize something important. Impact does not speak for itself. You must track it. You must measure it. You must show it clearly. That is where Monitoring and Evaluation comes in. A lot of new NGO founders avoid M&E because they think it is complicated or only for big INGOs. But if you want donors to trust your work, if you want communities to benefit more, and if you want your organization to grow, you must understand the basics. Here is a simple guide for beginners: 1. Know what you want to achieve Before you start any project, write down your goals. Are you trying to improve school attendance? Give shelter? Reduce hunger in a community? If you are not clear on your goal, you cannot measure progress. 2. Set simple indicators An indicator is just a way to track your progress. Examples: • Number of children who now attend school • Number of households who received clean water • Number of caregivers trained Keep the indicators realistic and connected to your goals. 3. Collect the right data Your data does not need to be complicated. You can use: • Short surveys • Attendance sheets • Photos • Lists of beneficiaries • Interviews • Field observations Good data makes your work believable. 4. Track changes over time Do not wait until the end of the project. Monitor every week or every month. Ask yourself: Are things improving? Is something going wrong? Should we change our approach? Monitoring helps you fix problems early. 5. Talk to the community Sit with people. Ask questions. Listen to their feedback. Sometimes what you are measuring is not what they truly need. Real impact comes from real listening. 6. Evaluate honestly At the end of the project, sit down and ask: What worked? What failed? What will we do differently next time? Honesty is how NGOs grow. 7. Share your results Donors want to see numbers. Communities want to see improvements. Your team wants to feel proud. Share success stories, lessons learned, and clear evidence. Transparency builds trust. Final thought M&E is not about big grammar or complex tools. It is simply documenting your work, learning from it, and using the lessons to do better next time. If you take it seriously, it will transform how you run your organization and how the world sees your impact. If you want a part two that breaks down how to create a simple M&E plan, let me know.

The smartest investment we made as a nonprofit in 2025? It wasn’t fundraising. It was data. 📊 I say this as someone who often warns about measurability bias. But over the past few years, I’ve become one of the strongest advocates for 𝘥𝘢𝘵𝘢-𝘪𝘯𝘧𝘰𝘳𝘮𝘦𝘥 decision-making. 2025 was New Roots Institute's first full year with a dedicated R&D department, and it has transformed our fundraising, our strategy, and the quality of our programs. For a long time, “number of students reached” was our primary metric. That incentivized us to simply reach more people. We could 𝘵𝘩𝘦𝘰𝘳𝘦𝘵𝘪𝘤𝘢𝘭𝘭𝘺 scale volume, sacrifice program quality, have no strategy around who we were reaching, and still look successful on paper while making limited progress toward ending factory farming. We now evaluate every session, track the efficacy of our campaigns, and identify which tools, training, and support actually help students succeed as organizers and campaigners. That learning feeds directly back into program design and how we support fellows in real time. Our work is complex, relational, and long-term. Embracing monitoring, evaluation, and learning hasn’t flattened that complexity. It’s strengthened our ability to navigate it with nuance. As more nonprofits take on hard-to-measure challenges, I hope we stop treating R&D as a luxury. It’s a commitment to learning, humility, and building organizations that get smarter over time. Is R&D part of your work these days? I’m curious how your organization approaches data. Our fellows are reaching over 𝟯 𝗺𝗶𝗹𝗹𝗶𝗼𝗻 𝗽𝗲𝗼𝗽𝗹𝗲, shifting dining behaviors, and removing plant-milk upcharges. Explore their impact here: https://hubs.ly/Q03YSvbX0 Grateful for our incredible R&D team Sean Rice, Jiwon Joung, and Nichalus Vali who push us, and our movement, to learn faster and adapt smarter. 💜 #Leadership #Nonprofit #Data #MeasurabilityBias #R&D #Impact #Strategy #Evaluation #MovementBuilding

"What's your fundraising ROI?" is the wrong question. Here's what smart nonprofit leaders track instead: • Cost per dollar raised (by channel) • Donor retention rate (by segment) • Lifetime value (by acquisition source) • Second gift conversion rate • Average gift growth year-over-year These metrics reveal the true health of your fundraising program beyond simple ROI calculations. The most valuable insight? Understanding which donors stay with you longest and increase their giving over time. What metrics have been most valuable for your organization's fundraising strategy?

𝗪𝗵𝗲𝗻 “𝗕𝗮𝗱” 𝗗𝗮𝘁𝗮 𝗶𝘀 𝗔𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗚𝗼𝗼𝗱 Looks can be deceptive.  Ask the nonprofit that pursued a flashy corporate partner to make their Annual Report look good.  The corporate partner turned around and twisted the org to make major changes in their programs to better match their brand and required impossible reporting timelines. The same lesson applies to your data, but in reverse.  Real progress can actually be mistaken for decline. Consider the following: 𝗤𝘂𝗮𝗹𝗶𝘁𝘆 > 𝗤𝘂𝗮𝗻𝘁𝗶𝘁𝘆 • 𝘚𝘶𝘳𝘷𝘦𝘺 𝘳𝘦𝘴𝘱𝘰𝘯𝘴𝘦 𝘳𝘢𝘵𝘦𝘴 𝘧𝘦𝘭𝘭: Did the feedback quality improve because only recipients genuinely vested in the cause responded? • 𝘕𝘰 𝘰𝘧 𝘱𝘢𝘳𝘵𝘯𝘦𝘳𝘴𝘩𝘪𝘱𝘴 𝘥𝘦𝘤𝘳𝘦𝘢𝘴𝘦𝘥: Have you started focusing on value alignment instead of logos? • 𝘌𝘮𝘢𝘪𝘭 𝘭𝘪𝘴𝘵 𝘴𝘩𝘳𝘢𝘯𝘬: Have you invested hours cleaning it up? Gone are all the ghosts.  Is your open rate higher?   𝗖𝗹𝗮𝗿𝗶𝘁𝘆 > 𝗖𝗼𝗺𝗽𝗹𝗲𝘅𝗶𝘁𝘆 • 𝘋𝘢𝘴𝘩𝘣𝘰𝘢𝘳𝘥 𝘒𝘗𝘐𝘴 𝘥𝘦𝘤𝘭𝘪𝘯𝘦𝘥 𝘧𝘳𝘰𝘮 20 𝘵𝘰 10 𝘮𝘦𝘵𝘳𝘪𝘤𝘴: Is clarity your new mantra?  Have you gotten off the “just in case” data collection bandwagon? • 𝘙𝘦𝘷𝘦𝘯𝘶𝘦 𝘥𝘦𝘤𝘳𝘦𝘢𝘴𝘦𝘥: Is it because you said "No" to restricted-funds that came with strings attached?   𝗗𝗲𝗽𝘁𝗵 > 𝗕𝗿𝗲𝗮𝗱𝘁𝗵 • "𝘔𝘦𝘴𝘴𝘺" 𝘯𝘰𝘯-𝘯𝘶𝘮𝘦𝘳𝘪𝘤 𝘥𝘢𝘵𝘢 𝘪𝘯𝘤𝘳𝘦𝘢𝘴𝘦𝘥: Kudos!  Have you started listening and capturing the stories that factor intangible impact your programs are having? • 𝘌𝘷𝘦𝘯𝘵 𝘈𝘵𝘵𝘦𝘯𝘥𝘢𝘯𝘤𝘦 𝘳𝘦𝘥𝘶𝘤𝘦𝘥: Is headcount no longer your goal?  Have you shifted attention to designing experiences that attract authentic engagement and behavioral change? • 𝘝𝘰𝘭𝘶𝘯𝘵𝘦𝘦𝘳 𝘴𝘪𝘨𝘯-𝘶𝘱𝘴 𝘧𝘦𝘭𝘭: Has your volunteer retention rate increased?  Are volunteer satisfaction levels and engagement up? • 𝘕𝘦𝘸 𝘪𝘯𝘪𝘵𝘪𝘢𝘵𝘪𝘷𝘦 𝘥𝘦𝘭𝘢𝘺𝘦𝘥: Have you started running test pilots before scaling to ensure higher probability of impact? 𝗧𝗵𝗲 𝗕𝗼𝘁𝘁𝗼𝗺𝗹𝗶𝗻𝗲 I could go on but you get the drift. The drops above reflect an org’s growing maturity when it comes to its mission, staff, volunteers and data.  They are indicators that you are making hard choices over vanity metrics. 𝘏𝘰𝘸𝘦𝘷𝘦𝘳, 𝘯𝘰𝘵 𝘦𝘷𝘦𝘳𝘺 𝘥𝘦𝘤𝘭𝘪𝘯𝘦 𝘪𝘮𝘱𝘭𝘪𝘦𝘴 𝘱𝘳𝘰𝘨𝘳𝘦𝘴𝘴 - 𝘤𝘰𝘯𝘵𝘦𝘹𝘵 𝘮𝘢𝘵𝘵𝘦𝘳𝘴. 𝗪𝗵𝗮𝘁’𝘀 𝗮 𝗻𝗲𝘄 𝗺𝗮𝗻𝘁𝗿𝗮 𝗶𝗻 𝘆𝗼𝘂𝗿 𝗼𝗿𝗴 𝘁𝗵𝗮𝘁 𝗹𝗼𝗼𝗸𝘀 𝗹𝗶𝗸𝗲 𝗮 𝘀𝘁𝗲𝗽 𝗯𝗮𝗰𝗸 𝗯𝘂𝘁 𝗶𝘀 𝗮𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗴𝗿𝗼𝘄𝘁𝗵?

Some nonprofits obsess over the wrong numbers. Open rates. Social likes. Event RSVPs. And then wonder why 𝘳𝘦𝘷𝘦𝘯𝘶𝘦 𝘪𝘴 𝘧𝘭𝘢𝘵 and donors are disappearing. Here’s the truth: 𝗡𝗼𝘁 𝗮𝗹𝗹 𝗺𝗲𝘁𝗿𝗶𝗰𝘀 𝗮𝗿𝗲 𝗺𝗼𝗺𝗲𝗻𝘁𝘂𝗺. I call them 𝘃𝗮𝗻𝗶𝘁𝘆 𝗺𝗲𝘁𝗿𝗶𝗰𝘀 𝗶𝗻 𝗺𝗶𝘀𝘀𝗶𝗼𝗻 𝗰𝗹𝗼𝘁𝗵𝗲𝘀. They look good in a dashboard. But they don’t move the mission. Here’s what high-performing organizations track instead: 𝗗𝗼𝗻𝗼𝗿 𝗿𝗲𝘁𝗲𝗻𝘁𝗶𝗼𝗻 Because keeping a donor is cheaper—and more powerful—than chasing a new one. 𝗦𝗲𝗰𝗼𝗻𝗱 𝗴𝗶𝗳𝘁 𝗿𝗮𝘁𝗲 Because a second gift turns interest into belief. 𝗟𝗶𝗳𝗲𝘁𝗶𝗺𝗲 𝘃𝗮𝗹𝘂𝗲 Because impact multiplies when donors stay, grow, and refer. 𝗖𝗼𝘀𝘁 𝗽𝗲𝗿 𝗱𝗼𝗹𝗹𝗮𝗿 𝗿𝗮𝗶𝘀𝗲𝗱 Because sustainability matters more than the hype of “big numbers.” 𝗗𝗼𝗻𝗼𝗿 𝗲𝗻𝗴𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗱𝗲𝗽𝘁𝗵 Not how many saw it. How many felt it. Shared it. Acted on it. Data should serve decisions, not just presentations. The best fundraisers don’t just measure what’s easy. They measure what 𝘮𝘢𝘵𝘵𝘦𝘳𝘴. 𝗪𝗵𝗮𝘁 𝗺𝗲𝘁𝗿𝗶𝗰𝘀 𝗱𝗼 𝘆𝗼𝘂 𝘁𝗿𝗮𝗰𝗸 𝘁𝗵𝗮𝘁 𝗺𝗼𝘃𝗲 𝘆𝗼𝘂𝗿 𝗻𝗼𝗻𝗽𝗿𝗼𝗳𝗶𝘁 𝗳𝗼𝗿𝘄𝗮𝗿𝗱?

Should your nonprofit annual giving program target 10% or 20% growth next year? I get that question, or something similar to it on the regular from fundraisers who are scrambling to pull together their annual giving plan for the upcoming year. But it's the wrong question to be asking. Pulling a percentage out of thin air is how you set yourself up to fail. And it's also the question that a lot of boards and C-suite execs will ask because they simply don't understand how fundraising really works. Here's what actually works: Review each revenue stream separately. What's your donor retention rate? Are major donors upgrading or plateauing? Has your acquisition budget increased or decreased? Factor in economic changes. How did donor behavior shift nationally and in your file over the last 1-3 years? Then build your goal from the data up—not from an arbitrary number down. Your board wants a growth number. Give them one that's actually achievable based on reality, not hope. What does your data say about next year?