ROI on Donor Relations & Stewardship

Programs

Definition

Definition of 'Return On Investment - ROI'

A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments.

Courtesy of investopedia.com

CalculationTo calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. The return on investment formula:

(Gain on Investment – Cost of Investment)

ROI = Cost of Investment

Family Talk

What is your leadership really asking for when they talk about ROI and metrics?

It’s More than Measuring Quantity

It’s More Than Tracking Activity

Measuring Impact, Affect, Change

• Track what you do• Observe affect; Observe donor behavior• Measure results• Apply the ROI formula• Supplement with qualitative returns

Survey says…

Three Key Areas for DR&S ROI

• Retention• Upgrades• Lifetime Value

Story Time

Know Your Value

What is your leadership really asking for when they talk about ROI and metrics?

• Start Small• Set aside Time at Weekly or Monthly Intervals• Make it a Personal Priority• Get Buy In and Feedback from Leadership• Be Strategic!

Questions? Comments

• Lynne Wester

wester@yu.edu

www.donorrelationsguru.com

Follow me on Twitter @donorguru

• Colleen A. Brade, CFRE

colleen.brade@ruffalocody.com