5 Fundraising KPIs Nonprofits Should Monitor

While the nonprofit sector saw a slight increase in donations in 2024, many other factors shape its status and the success of organizations everywhere. Therefore, it’s up to nonprofits to maintain whatever momentum they can to beat uncertainty in the market. That is why collecting, maintaining, and critically analyzing data is so essential.

Fundraising pipeline key performance indicators (KPIs) show nonprofits whether they’re meaningfully progressing towards their goals—and if not, what they can do to course-correct.

As all nonprofits have unique goals, challenges, and donor communities, there’s no perfect combination of KPIs that works for everyone. However, in this guide, we’ll explore some useful KPIs to track fundraising pipeline success, why they matter, and how to start using them effectively.

5 Fundraising Pipeline KPIs to Track

1. Potential New Supporter Touchpoints

• What it is: The number of new individuals who express interest in your organization without having donated yet. Think of this as the number of people in the very top of your fundraising funnel.
• Why it matters: The more people enter your pipeline, the more opportunities you have to build relationships and convert interested supporters into loyal donors. Initial supporter touchpoints indicate overarching awareness of your nonprofit and the effectiveness of your marketing messages.
• How to track it: Start by looking at marketing metrics that convey the reach of your messages, such as social media impressions or growth in your website’s traffic. Then, measure how many people have actively engaged with your promotional materials via methods like first-time event RSVPs, email newsletter subscriptions, or volunteer signups. This information tells you how far your messages have spread and if they’re effective at engaging viewers.

2. Donor Conversion Rate

• What it is: The measure of how many prospects in your pipeline actually become donors over a specific timeframe or campaign.
• Why it matters: This metric is the foundation of donor acquisition efforts. It directly reflects the effectiveness of your fundraising appeals, events, and tech stack in convincing casual or new supporters to give.
• How to track it: Analyze the number of people who have donated for the first time over the past month, quarter, or year. Divide this number by the total number of prospective supporters engaged during that same time period. It can be challenging to pinpoint the total number of prospective supporters across your nonprofit; to calculate a more accurate rate, look at smaller segments of donors via certain channels or fundraising tactics, such as email, fundraising events, and campaigns.

3. Average Gift Size by Pipeline Stage

• What it is: The average gift size of donations within a certain pipeline stage (e.g., identification, qualification, cultivation, and retention).
• Why it matters: Your pipeline represents the donor journey, and understanding where donors make certain giving decisions can help you tailor strategic approaches. It also helps you identify bottlenecks (i.e., phases with lower average gifts) and measure whether cultivation and stewardship efforts actually lead to larger commitments.
• How to track it: First, clearly stratify your donor journey into different stages if you haven’t already done so. Then, divide the total dollar amount of gifts from donors in that stage by the number of gifts made in that stage.

4. Lapsed Donors Re-engaged

• What it is: The number of previous donors who haven’t interacted with your nonprofit after a certain period of time, but eventually re-engage.
• Why it matters: Studies show that on average, nonprofits spend $1.50 per dollar raised to acquire a new donor, but only $0.20 to retain an existing donor. Tracking re-engaged lapsed donors shows whether your nonprofit’s outreach resonates, and can help you create sustainable donor management practices.
• How to track it: First, determine how long it takes before your nonprofit considers a donor “lapsed” (most organizations start at one year). You should also decide what types of interactions constitute “re-engagement”—some organizations only count donating, while others also count volunteering or attending an event. Then, divide the number of lapsed donors who re-engaged by the total number of lapsed donors.

5. Pipeline Velocity

• What it is: The speed at which donors progress through pipeline stages.
• Why it matters: The most successful nonprofits continuously engage their donors, not just when it’s time to make an ask. This KPI helps you identify points of friction so you can provide a great donor experience and secure more gifts, faster.
  
• How to track it: Let’s say you want to measure how long it takes for a donor to commit to a planned gift after they first express interest. Use your customer relationship management (CRM) software to note when the donor first engaged with your planned giving materials or indicated interest. Then, calculate the length of time between this date and the date when they confirmed their planned gift. To find averages across your planned giving prospects, add up the total number of days it took to move through these stages and divide by the total number of closed planned gifts.

Best Practices for Choosing, Tracking, and Acting on Fundraising Pipeline KPIs

Every nonprofit tracks a different combination of KPIs, but these tips are useful for acquiring the most actionable information across the board.

Tips for Choosing Fundraising Pipeline KPIs

• Start small. Tracking too many KPIs all at once can muddle your efforts and prevent you from finding the best insights for your goals. Choose no more than five KPIs to start. Once you become more comfortable with the reporting process and tech, you can increase or swap out KPIs.
• Choose both short-term and long-term KPIs. Certain KPIs require a larger scope of data than others. For example, discerning pipeline velocity for a capital campaign will take longer than calculating the number of lapsed donors re-engaged for a single auction. When possible, choose KPIs for both scopes—comparing them can reveal quick-win opportunities and long-term patterns that impact fundraising results.

Tips for Tracking Fundraising Pipeline KPIs

• Choose the best tech. Your CRM will be your best friend when it comes to tracking KPIs. According to Kindful, an effective CRM will automate tasks, ensure data is easily accessible, organize records, and reveal actionable insights to give your team real-time snapshots of your success. Set up custom fields and tags in your CRM to log interactions and gifts automatically across your pipeline.
• Schedule regular KPI check-ins. While you can (and should) configure your CRM to notify you when significant discrepancies occur between current data and expected results, remember to set regular meetings with your team to review overarching trends in the data.

Tips for Acting on Fundraising KPI Insights

• Delegate responsibilities. When choosing each KPI, note which area of your nonprofit it impacts the most. For instance, initial supporter touchpoints impact marketing the most, while average gift size primarily affects fundraising. Then, choose a team member to own each KPI, which involves monitoring it and developing an action plan based on results.
• Take external context into account. Your nonprofit doesn’t operate in a vacuum, and your analysis should reflect that. For more well-rounded insights, compare your KPIs against industry benchmarks, seasonal giving patterns, and broader economic or social trends. For example, a dip in donor conversion during the summer may reflect typical fundraising slowdowns rather than a problem with your pipeline strategy.

Continuously iterate on your KPI management strategies to align with current best practices and your nonprofit’s needs. Focus on KPIs throughout the year in your strategic planning meetings—if a new KPI takes precedence, adjust your tactics accordingly.

Wrapping Up

You don’t need complex tools or a large team to start tracking your fundraising pipeline. By tracking just a few core KPIs, you can turn data into action quickly. Regardless of your nonprofit’s priorities, these insights will help you strengthen strategic plans, focus your efforts, personalize your outreach, and increase your fundraising impact.

Katie Nickels 

As the Director and Head of Growth at Orr Group, Katie plays a key role in advancing the firm’s mission to empower nonprofit organizations. She leads the firm’s branding, marketing, communications, thought leadership, and business development efforts. With over 8 years of experience, Katie is well-versed in optimizing marketing initiatives, driving business success, and fostering strategic relationships. She connects nonprofits with the fundraising, development, and strategic planning experts at Orr Group, ensuring they receive the support needed to thrive.