Efficiency and effectiveness of the fundraising effort

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Reference no: EM133324658

Question: Efficiency and effectiveness are two bases for evaluating fundraising production. Efficiency is a measure of fundraising cost or fundraising share. One management task is to create efficiency in fundraising by reducing fundraising costs. Effectiveness in fundraising refers to the increase in fundraising productivity even at the expense of increased cost. The IRS Form 990 asks nonprofit organizations to report their fundraising income and expenses (among other income and expense items). Pick one fundraising activity at your organization (this could be their direct mail program, a special event, etc.). Find out how much it costs to conduct this activity, and also find out how much the organization raised from the activity.

Then, using the information calculate the ROI (return on investment) and "cost to raise a dollar" figures for the activity. Write an assessment of the efficiency and effectiveness of the fundraising effort. Is this activity a good use of the organization's fundraising resources?

Are there ways in which the organization could more efficiently use the fundraising resources devoted to this activity? Use what you have learned so far in the course to justify your answers

Reference no: EM133324658

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