Fundraising for ROI is a big mistake

Many fundraisers keep a laser-like focus on return on investment (ROI). The higher, the better.

That seems to make sense. But it can limit your success and scuttle future growth, as described by the Veritus Blog, at Don’t Be Obsessed with ROI:

There are far too many non-profit leaders who are obsessed with having a high return on investment – so they don’t take any risks, don’t support their staff, fail to properly invest in their major gift pipeline and ultimately don’t grow as an organization.

ROI is a handy little number that can help you understand what’s going on with your fundraising. You can improve ROI at the expense of net revenue. If you focus on ROI, you will do exactly that.

ROI is not a goal; it’s a useful under-the-hood indicator that can help you fine-tune your work.

But the goal is net revenue. That’s what funds your mission.