Traditional Campaigns
Fundraising Online
Internet Marketing
Development Services
Resources and Articles
About Affinity Resources
Contact Affinity Resources
Request Alerts

You are here: Home 

Change text size:   A   A   A
Affinity Resources logo: Fundraising Counsel for a changing world
877-320-2299 toll free
Search: Advanced

How Much Does Fundraising Cost?

Annual Giving
The standard that many folks quote when identifying an appropriate cost per dollar raised for Annual Fundraising is often 20% or 20 cents for every dollar raised. This number has its origins in the book, Fund-Raising: Evaluating and Managing the Fund Development Process (1999), in which James Greenfield observed the following costs associated with different kinds of fundraising:

Fundraising Activity/Method

Average Cost to Raise One Dollar

Capital Campaign/Major Gifts

$0.05 to $0.10 per dollar raised

Corporations and Foundations (Grant Writing)

$0.20 per dollar raised

Direct Mail Acquisition

$ 1.00 to $1.25 per dollar raised

Direct Mail Renewal

$0.20 per dollar raised

Planned Giving

$0.25 per dollar raised

Benefit/Special Events

$0.50 of gross proceeds

National Average

$0.20

The Association of Fundraising Professionals sites similar numbers.

Fundraising Activity/Method

Average Cost to Raise One Dollar

Capital Campaigns

$0.05 to $0.10 per dollar raised.

Corporations and Foundations (Grant Writing)

$0.20 per dollar raised.

Direct Mail Acquisition (with a 1% or better rate of return)

$ 1.25 to $1.50 per dollar raised.

Direct Mail Renewal (with a 50% or better rate of return)

$0.25 per dollar raised.

Planned Giving

$0.25 per dollar raised.

Benefit/Special Events

$0.50 of gross proceeds.

These are averages and there are many variables involved.

Generally speaking the most significant variable is your organization's experience with fundraising. Size matters as well. In larger operations there is also an economy of scale that can be achieved.

It is important to bear in mind the words of Mal Warwick who has written extensively on fundraising. "The 'overall fundraising Cost to Raise a Dollar' is a myth. There is NO such standard, and anyone who tells you there is one should survey the real world of fundraising in all its diversity. One organization might be embarrassed to spend more than a dime to raise a dollar, while another might be fortunate to squeak by with 40 or 50 cents on a dollar -- and both might be ethically run, well managed organizations."

In every instance these costs should be inclusive of all direct staff support to conduct the activity.

For the tax year 2000 (as reported on 990 tax forms) the median level of funds raised was $5.40 for every $1.00 spent.

Online Donations
The cost of processing online donations ranges from 3% to 7.5% of the amount of each gift.

For a comparison of costs associated with fundraising online, see our online fee comparison table.

 

Contact Us | Ethics | Privacy Policy | Site Map | Web Design | AffinityReports | Home