Measuring Success In Fundraising Efforts

The Two Types of Metrics Every Business Needs 📊 Every founder I work with eventually hits the same wall. They're drowning in data but starving for insights. Spreadsheets full of numbers that don't connect to any clear action plan. The problem isn't tracking the wrong things, it's mixing up two completely different purposes for metrics. While many of these metrics overlap (because good business metrics are good business metrics), I've organized them by their PRIMARY focus during fundraising vs daily operations. Think of it as two different lenses for viewing the same business. ➡️ VENTURE CAPITAL METRICS These tell a story of scale, momentum, and market opportunity. ARR and MRR show recurring revenue strength that investors love because it means predictable income streams. Growth rate demonstrates month over month momentum and shows investors you're accelerating, not just maintaining. Burn rate and runway answer the critical investor question: "How long will my money last?" CAC and LTV prove your unit economics work at scale and show whether more marketing spend will generate returns. Revenue multiples help investors benchmark your valuation against comparable companies. Churn rate reveals retention risk and tells investors whether you have a leaky bucket problem. Market size using TAM, SAM, and SOM shows this is a billion dollar opportunity, not just a nice business. Logo count provides social proof that other smart people believe in your solution enough to pay for it. ➡️ OPERATING METRICS These power decisions, accountability, and optimization. Active users, DAUs, and MAUs reveal real product usage patterns and tell you if people find value in what you've built. Conversion rates expose exactly where prospects drop off so you know where to focus optimization efforts. Sales pipeline health compares forecasted deals against closed deals, helping you predict revenue and spot problems early. Gross margin shows profitability of your core product after direct costs. Headcount and hiring plans manage your biggest expense category since most companies spend 60-70% on people. Support tickets and NPS scores measure customer satisfaction and predict churn before it happens. Product engagement reveals which features customers actually use, helping you prioritize development resources. Unit economics breaks down real cost vs return per customer segment for optimized marketing spend. === The best founders track both sets religiously. Use your operating metrics to build compelling investor stories, and let investor feedback guide your operational focus. What metrics are you tracking that I missed?

It's pretty rare to find someone who has both a partnerships and finance background, but a while back I sat down with Wendy Weisman from DirectTV and she has this brilliant combination of skills. Her insights on the right metrics to be following in partnerships are super insightful. Number one: Revenue is only the beginning when evaluating deals. There are so many key metrics that often get overlooked. Gross margin is huge is a dealmaker or breaker. Many teams focus on revenue growth, but gross margin is what really impacts long-term success. Costs can’t be ignored, and margins are critical for understanding profitability. Customer loyalty is another underrated metric. Metrics like reorder rate and NPS score may not show up in financial statements, but they drive forecasts and impact cash flow in the long run. Operating efficiencies like improving your supply chain, engineering costs, or other operational metrics can also be a game-changer. At the end of the day, it’s all about profitability, growth, and efficiency. Successful partnership don't just impact the top line - you've got to look at their impact across the entire financial picture.

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

The average partnerships team is leaving over 30% of their revenue potential on the table. Here’s the problem (and how one new metric can help you fix it): PROBLEM: The average partner manager: - Is managing 50 to 100 partners - Only knows core performance metrics on the top 20% of them - Spends 90%+ of their “relationship” time with these top 10-20 partners - Spends <10% of their time on the other 80% of their partners That’s why 20% of your partners are driving 80% of your partner revenue. It’s not because that other 80% of your partners are a bad fit. It’s not because you’ve squeezed all of the value out of those relationships. Most of them are probably a good fit. And it's likely they do have additional value to provide. But... they’re not getting enough attention (engagement, enablement, or value). HERE'S THE SOLUTION: Partner Health Scores. An objective scorecard, based on key metrics, that measures the health of each partnership. This could be based off of leads, deals, revenue, engagement, certifications, etc. Whatever metrics are relevant, and valuable, to your business and partners. This can be a game changer. HOW TO DO IT: 1. Determine what you consider to be a healthy partnership.  2. Create a scorecard based off of these metrics. 3. Score all of your partners. 4. Re-allocate resources. You may find that your partner managers are spending their time with the wrong partners. Partners that are doing great and don’t need as much attention. Partners that have not (and likely will not) produce despite getting lots of attention. Partners that have a lot of potential but have not been getting enough attention. And some partners that are just a bad fit. But there’s no way to determine this without an objective scorecard. HERE'S THE OUTCOME: Partner managers will optimize their time and maximize their relationships (read: MORE REVENUE). Partner executives will have a more accurate view into their team’s portfolios (read: BETTER MANAGEMENT). C-suite executives will love the data driven approach (read: STRONGER ALIGNMENT). P.S. Partner Health Scores can be a lot of work to manage and update. Luckily, EULER has custom Partner Health Scores built right into the platform. We show you the health of ALL of your partners, in REAL time, ANYTIME. DM me to find out more.

𝗜𝘁 𝘁𝗼𝗼𝗸 𝗺𝗲 𝗮 𝗹𝗼𝗻𝗴 𝘁𝗶𝗺𝗲 𝘁𝗼 𝗿𝗲𝗮𝗹𝗶𝘇𝗲 𝘁𝗵𝗮𝘁 𝗜 𝗮𝗹𝘀𝗼 𝗻𝗲𝗲𝗱𝗲𝗱 𝘁𝗼 𝗯𝗲 𝘀𝗲𝗹𝗲𝗰𝘁𝗶𝘃𝗲 𝗮𝗻𝗱 𝗽𝗶𝗰𝗸𝘆 𝗮𝗯𝗼𝘂𝘁 𝘁𝗵𝗲 𝗳𝘂𝗻𝗱𝗶𝗻𝗴 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗜 𝗽𝘂𝗿𝘀𝘂𝗲𝗱. Early on, I chased every funding opportunity that vaguely aligned with our mission. When resources are tight, it’s easy to reshape your work to meet funders’ interests—even if it feels like squeezing a round peg into a square hole. Over time, I learned that this approach comes with costs that can be more detrimental than the reward they bring. These include: 🍃 𝗠𝗶𝘀𝘀𝗶𝗼𝗻 𝗗𝗿𝗶𝗳𝘁: We move away from our original purpose when we adjust our programs to fit a funder’s requirements. This “mission drift” can dilute our core impact, spreading us thin and lessening our unique value. 💪🏿𝗧𝗲𝗮𝗺 𝗠𝗼𝗿𝗮𝗹𝗲: Constantly pivoting to satisfy funders’ priorities rather than focusing on a clear mission can lead to burnout and disillusionment, making retaining talented, passionate staff harder. 🎯𝗟𝗮𝗰𝗸 𝗼𝗳 𝗙𝗼𝗰𝘂𝘀: Casting a wide net without a strategy leads to scattered efforts and less productive results. This especially affects the development team, making them less efficient and the relationships they build more surface-level and less impactful. So, how do you ensure funder alignment? I use a weighted rubric that keeps us focused on impact. I rate each funder on key criteria—like mission alignment, application ease, and grant size—scoring them as low, medium, or high. We only pursue funders who meet our threshold so we can focus on partnerships that genuinely support our mission and goals. The criteria include: 🚀 𝗠𝗶𝘀𝘀𝗶𝗼𝗻 𝗔𝗹𝗶𝗴𝗻𝗺𝗲𝗻𝘁 (𝟮𝟬%): Does the funder have a history of supporting causes like yours? Funders interested in your mission area will likely be a better fit. 💰 𝗚𝗿𝗮𝗻𝘁 𝗦𝗶𝘇𝗲 (𝟮𝟱%): Does the grant amount align with your financial needs? You also need to factor in the costs of applying for the opportunity. Does the team time pay off? 👥 𝗖𝗼𝗻𝗻𝗲𝗰𝘁𝗶𝗼𝗻 𝘁𝗼 𝗬𝗼𝘂𝗿 𝗡𝗲𝘁𝘄𝗼𝗿𝗸 (𝟭𝟬%): Is there an existing link through board members or mutual partners? Familiarity can create a trust-based relationship, often leading to a smoother collaboration. 🧘🏿♀️ 𝗘𝗮𝘀𝗲 𝗼𝗳 𝗚𝗿𝗮𝗻𝘁 𝗣𝗿𝗼𝗰𝗲𝘀𝘀 (𝟮𝟬%): A clear, grantee-focused application process means your team can focus more on impact than on admin. 🧩 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗔𝗹𝗶𝗴𝗻𝗺𝗲𝗻𝘁 (𝟮𝟱%): Does the funder’s mission support your core priorities? Funding that aligns naturally with your main programs allows you to focus on impact without significant shifts in strategy. 💬 How do you evaluate funding opportunities? What would you add to the above criteria? #internationaldevelopment #fundraising #nonprofitafrica #fundingafrica

Your fundraising event raised $50,000. Success, right? Maybe. But maybe not. Standard event metrics often miss the full picture: - Dollars raised ÷ Attendees = $500/person But what about the value of relationships built? - Net revenue after expenses = $35,000 But how much staff time did it really take? - New donors acquired = 15 But did existing donors deepen their commitment? Even when resources are tight, some teams are starting to track: 📊 Relationship-based metrics - Meaningful conversations with major gift prospects - Signs of increased donor interest or trust - Referrals or introductions from attendees 📈 Long-term revenue indicators - Giving increases 6–12 months post-event - Retention rates of attendees vs. non-attendees - New names added to your major gifts pipeline 💬 Mission advancement signs - New ambassadors or advocates identified - Improved understanding of your mission (pre/post) - Compelling stories gathered for future use The most valuable outcomes of your events often don’t show up in the final revenue report. What metrics do you track to measure success beyond dollars raised?

My favorite partner slide of all time. Jay McBain’s “Partner Value Iceberg” captures what most dashboards miss. At the top? The two metrics that get all the attention: • Sourced leads • Sourced resell But underneath the surface is where the real magic happens: • Implementation quality • Product feedback • Blocking competition • Expansion support • Integration stickiness …and 15 other hidden growth levers. This iceberg is a strategy filter. If you only measure the top, you miss the compounding value that makes partnerships scale. Want the proof? Partner-attached deals consistently win at a higher rate than deals without a partner involved. That’s not anecdotal, I have been measuring it for years. (partner win rates versus direct without a partner specifically) I’ve stopped asking, “Did the partner source it?” Now I ask: “Are we measuring the impact of partner-attached deals the way we measure sourced pipeline?” Because partner win rate is one of the most important metrics every partner leader should be using. What other “below-the-surface” metrics should make it onto more dashboards?

"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?

I built a partnerships team from 1 → 15 people worldwide. Data was the number #1 thing that made that possible. If I had to do it again this is how I would do it: 1. Start with revenue. Always. New revenue generated should be your north star. It justifies your existence by taking you from a cost center to a revenue generator 2. Partner-influenced revenue. Show the total value you're driving WITH partners, not just FROM them. This helps expand the value you and your partners are bringing to all revenue conversations 3. Measure partner efficiency. Start tracking ACV, Deal Velocity, CAC and LTV:CAC ratios for partner-sourced deals vs. direct sales. Once you're able to prove that deals from partners are better deals from a financial perspective then you'll get a lot more buy-in 4. Partner activation rates. What percentage of your partners are actively engaging and driving results? This helps you justify the need for further resources if you can improve the activation rate from 10 -> 20% that's often a significant increase in revenue 5. Measure retention rates & adoption metrics - Are partner-sourced customers stickier? - Are customers using more of your product when partners are involved? This is where you need to get CSM involved and something you can only track after a while, but once you have the new revenue metrics locked down then look at how your partners help improve value for existing customers 6. Track cross-functional alignment. How many internal teams are actively engaging with partners? Partnerships can't exist in a vacuum, and you need the entire organization to be onboard, once you can prove positive metrics for new & existing customers then you should work on getting the entire organization involved The goal isn't just to measure for the sake of measuring. It's about proving value, driving alignment, and continuously improving your program. Start with these, but don't be afraid to get creative. The best KPIs are often unique to your business and strategy. Just make sure they're tied to real business outcomes. And if you're struggling to get buy-in, remember: data is your best friend in partnerships. Use it wisely, and you'll never have to justify your existence again. What would you add?