Fundraising · Efficiency

Cost per dollar raised.

What it costs to raise a dollar, and the return on fundraising spend.

CPDRROIBBB 35 cent standard

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Cost Per Dollar Raised Calculator: how it works

Cost per dollar raised = fundraising costs / amount raised. Fundraising ROI = (amount raised - costs) / costs. Net raised = amount raised - costs. The BBB Wise Giving Alliance standard asks a charity to spend no more than 35% of related contributions on fund raising, which is 35 cents to raise a dollar.

Worked example. A campaign that cost $4,500 and raised $18,000 has a CPDR of $0.25, a net of $13,500 and an ROI of 300%. That is within the 35 cent standard. If the same $18,000 had cost $9,000, the CPDR would be $0.50, which is over the 35 cent standard.

Count the same costs the standard counts. The BBB standard compares total fund raising expenses with related contributions for the year. Include staff time, events, mailings and fees, or the figure will look better than it is. Event galas often cost more per dollar than direct appeals.

Frequently asked questions

What is cost per dollar raised?

Fundraising costs divided by money raised. $4,500 / $18,000 = $0.25 per dollar.

What is a good cost per dollar raised?

The BBB Wise Giving Alliance standard says a charity should spend no more than 35 cents to raise a dollar. Many campaigns aim for well under that, but the standard is the published figure.

How is fundraising ROI different from CPDR?

ROI is net return over cost: ($18,000 - $4,500) / $4,500 = 300%. CPDR is the cost of each dollar raised: $0.25.

Which costs should I include?

All costs of raising the money: events, mailings, staff time, platform and processing fees. Leaving costs out understates CPDR.

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Not professional advice

Arithmetic only. Not financial or accounting advice.

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