A data-driven annual giving program relies on key metrics to track progress and optimize results. At the University of Tennessee, a custom dashboard provides a quick visual overview of annual giving key performance indicators (KPIs) which drive strategic decisions.
Eric William, Director of Annual Giving at UT, emphasizes focusing on metrics that directly correlate with donor giving.
For UT, six key metrics matter most: cash receipts, donor retention, new donors, average gift, direct cost ratio, and appeals ROI.
The annual giving dashboard projects how the program is tracking against yearly goals for each metric.
Cash receipts is the amount of actual money raised annually from annual giving channels like direct mail, phone, and online. Donor retention tracks the percentage of donors who give again within one year. New donors measures the number of first-time givers acquired. Average gift calculates the mean gift across all annual donors. The direct cost ratio compares annual expenses to the revenue raised. Finally, appeals ROI evaluates the return on investment from each annual giving solicitation campaign.
The metrics provide a high-level sense of annual giving health and performance. But the dashboard’s real value comes from analyzing trends over time and testing new strategies. UT reviews dashboard data monthly to determine what’s working, adjust course, and plan for the future. For example, noticing a drop in online giving response rates led UT to upgrade their website payment options to include PayPal and Venmo. After adding these options, 22% of donors gave via PayPal on their giving day.
Dashboards condense reams of data into a concise story about your program. But they must focus on the metrics most meaningful for your organization and fundraising goals. Track the numbers that influence revenue and relationships. Then monitor performance regularly and make data-driven decisions to strengthen your annual giving strategy. With a tailored dashboard and a commitment to continuous optimization, your annual giving program will thrive.
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