Let’s Banish the Cost Income Ratio

A free offer for FIA members.

For way too long the “go to” measure of fundraising effectiveness has been the division of costs by income to give a simple and uninformative measure of “how much of your donation is wasted on fundraising”.

In a randomized experiment More Strategic tested asking donors and the public about their views on whether a cost income ratio of 33% was good or bad. Unsurprisingly they said it was bad. However, when More Strategic turned the equation upside down, and divided income by costs and called it a multiplier of 3 to 1, they thought it was good.

More Strategic has changed their benchmarking reports to reflect the multiplier, or fundraising returns. So what is yours….and how does it compare?

More Strategic’s new, Topline More Profitability benchmarking will show you how your multiplier compares to 66 other organisations with over $4b of income collected over the past 5 years using accurate management accounts (not annual reports). We can even show your return on salaries and per staff member compared to the market.

And, exclusively for FIA members, the Topline report is FREE.

Find out more here. Morestrategic.com.au/benchmarking