Evaluating Your Fundraising Efforts: The Importance of a Fundraising Review
New year – time to review? Fundraising is a dynamic process that requires regular evaluation and adaptation. A fundraising review is a powerful tool for assessing your current strategies, identifying areas for improvement, and ensuring your efforts align with your organisation’s mission and goals. At Craigmyle, we’ve helped numerous organisations conduct comprehensive fundraising reviews that lead to stronger outcomes. In this blog, we’ll explore why a fundraising review is essential and how to conduct one effectively.
What is a Fundraising Review?
A fundraising review is a systematic evaluation of your organisation’s fundraising activities, performance, and processes. It’s an opportunity to reflect on what’s working, address challenges, and identify opportunities for growth.
Why is a Fundraising Review Important?
- Measure Progress Against Goals A fundraising review helps you assess how well your efforts are meeting your financial and organisational goals. Are you on track to achieve your targets? If not, what adjustments are needed?
- Identify Strengths and Weaknesses By analysing your performance, you can pinpoint areas of success and areas that require improvement. This insight allows you to build on what’s working and address inefficiencies or gaps.
- Adapt to Changing Circumstances The fundraising landscape is constantly evolving, with new trends, technologies, and donor expectations emerging regularly. A fundraising review ensures your strategies remain relevant and effective in a changing environment.
- Strengthen Stakeholder Confidence Conducting a fundraising review demonstrates accountability and a commitment to continuous improvement. Sharing the results with stakeholders can build trust and reinforce their confidence in your organisation.
How to Conduct an Effective Fundraising Review
- Gather Key Data Start by collecting quantitative and qualitative data on your fundraising activities. This includes:
- Financial performance metrics (e.g., revenue by source, return on investment).
- Donor engagement statistics (e.g., retention rates, donor growth).
- Campaign performance data (e.g., success rates, costs).
- Feedback from staff, volunteers, and donors.
- Evaluate Each Revenue Stream Break down your fundraising efforts by revenue stream (e.g., major gifts, events, grants, corporate sponsorships) and evaluate the effectiveness of each. Identify which streams are performing well and which may need additional focus or adjustment.
- Assess Donor Engagement Donor engagement is a key indicator of fundraising health. Analyse donor retention rates, average gift sizes, and patterns in donor behavior. Consider whether your stewardship efforts are effectively building long-term relationships.
Key Questions to Ask:
- Are donors receiving personalised and timely communication?
- How are you recognising and thanking donors for their support?
- Are lapsed donors being re-engaged?
- Review Your Internal Processes Strong internal processes are the backbone of successful fundraising. Evaluate your team’s capacity, skills, and resources, as well as the effectiveness of your CRM system, reporting tools, and communication platforms.
- Benchmark Against Industry Standards Compare your organisation’s performance to industry benchmarks to identify areas where you may be falling behind or excelling. This can provide valuable context for setting future goals.
- Involve Stakeholders Engage key stakeholders, including board members, staff, and donors, in the review process. Their perspectives can provide valuable insights and help build a shared understanding of your organisation’s strengths and challenges.
- Develop an Action Plan Use the findings from your review to create a clear action plan for improvement. Prioritise the most impactful changes and set specific, measurable goals for the next phase of your fundraising efforts.
Conclusion
A fundraising review is a vital step in ensuring your organisation’s efforts remain effective, efficient, and aligned with its mission. By regularly evaluating your performance and making data-driven improvements, you can build a stronger, more sustainable fundraising programme. At Craigmyle, we offer expert support for conducting comprehensive fundraising reviews that drive meaningful results. Contact us today to learn how we can help your organisation achieve fundraising excellence.
