Getting the Best Return on Investment for Your Fundraiser

Return on Investment, or ROI, is a business concept. But it is just as important in fundraising. For more fundraising strategies, explore our 100 school fundraising ideas.

If you want your school, PTO, or nonprofit to thrive long term, you cannot just look at how much money was raised. You need to look at what it cost you to raise it.

What Does ROI Mean in Fundraising?

In business, ROI measures the net gain after accounting for money spent, assets used, and time invested.

In fundraising, your investment includes:

• Upfront expenses
• Materials or assets used
• The value of volunteer time

Your return is the net amount left after all of those costs are considered.

Looking at gross revenue alone does not tell the full story.

1. Analyze Upfront Costs vs. Net Gain

Every fundraiser requires some level of investment. That might include printing, venue hire, marketing, supplies, or technology.

Before committing to spending, ask a simple question:

Will this expense increase our net result?

For example, if you are considering paid advertising, test it first. Run a small campaign. Measure the response. If it performs well, scale it. If it does not, adjust or stop.

Strong ROI usually comes from:

• Clear communication
• Targeted outreach
• Effective reminders
• Simple systems that reduce friction

Spend intentionally. Do not spend out of habit.

2. Lowering Costs Improves ROI

Reducing unnecessary expenses directly improves your return.

However, cutting costs blindly can hurt results. If a previous investment consistently produced strong outcomes, consider maintaining or even increasing that allocation.

It is not about spending nothing. It is about spending wisely.

Strategic investment can multiply results. Poor spending drains them.

3. Value Volunteer Time Properly

This is the area most groups overlook.

Volunteer time has value. Even if no one is paid, those hours matter. Learn more about the unseen value of volunteer time.

As a simple benchmark, each volunteer hour should generate at least the equivalent of minimum wage in net fundraising return. Ideally, much more.

For example, imagine 1,000 volunteer hours were spent organizing an auction that netted $5,000.

At first glance, $5,000 sounds positive. But when you divide that by the time invested, the return per hour is modest. That can lead to volunteer fatigue.

Volunteers want to feel their time made a difference.

4. Be Strategic With Business Partnerships

If you work with local merchants or sponsors, maximize everyone's time.

Rather than approaching dozens of businesses with generic requests, focus on building genuine relationships with a smaller group of aligned partners. Learn more about partnering with local businesses.

Provide value throughout the year. Promote their support. Be organized and clear in your requests.

Specific asks get better results than scattered outreach.

Protect Your Volunteer Energy

Every fundraiser depends on people who are giving their time freely.

If volunteers feel their time is wasted, they may not return next year.

Low ROI often leads to burnout. High ROI builds momentum.

To improve your fundraising return:

• Focus on strategies that generate strong net results
• Eliminate activities that consume time without meaningful return
• Assign clear roles and responsibilities
• Measure results honestly

The Bigger Picture

ROI is not just a number. It is a reflection of how healthy and sustainable your fundraising efforts are.

When your return is strong, volunteers feel encouraged. Your community feels energized. Your programs benefit.

When your return is weak, frustration builds and participation declines.

Design your fundraising strategy with ROI in mind, and you will position your group for long term success. For planning guidance, check out our article on planning your fundraising timeline.