The formulas
- Cost to raise one dollar = fundraising expenses / contributions raised
- Return per dollar spent = contributions raised / fundraising expenses
- Net raised = contributions - fundraising expenses
How it works
Column (D) of Form 990 Part IX holds the expenses of soliciting cash and noncash contributions, gifts and grants, including allocable overhead. Direct expenses of fundraising events go on Part VIII line 8b, not in column (D), so event-heavy organizations should decide whether to add those costs back before comparing.
Contributions on Part VIII line 1 include government grants. If you want the cost of raising private money only, remove government grants from the denominator and the cost of applying for them from the numerator.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
Why is my cost per dollar higher in a capital campaign year?
Campaign costs are expensed as incurred while pledges may be recognized in a different year, so match periods or use a multi-year average.
Should bequests count?
They are contributions on line 1. Many organizations show the ratio with and without large one-time gifts so a single bequest does not flatter the result.
Sources
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.