
Benchmarking is not just about comparing numbers; it’s about gaining insight into how other organizations in your sector operate and perform. By engaging in this process, nonprofits can achieve several key objectives:
- Guides Goal Setting and Growth
Benchmarking helps organizations set realistic, data-driven goals. Understanding how your peers are performing enables you to align your development strategies with best practices, ensuring your organization is on the path to growth. - Offers Insight into Peer Activities
Knowing what peer organizations are doing in three critical areas can shape your approach:- Operationally: How do other nonprofits structure their teams and manage resources?
- Programmatically: What programs and initiatives are driving impact, and how can you enhance or expand yours?
- Philanthropically: How are peer organizations raising funds and engaging with donors?
Uncover key metrics, as well as those of your peer organizations such as:
- Cost Per Dollar Raised (CPDR)
- Return on Investment (ROI)
- Staffing Structure (# of Full-time & Part-time employees and how that correlates with philanthropic revenue)
- Giving by Constituency (Board, Alumni, Corporations, Foundations, etc.)
- Participation rates among your donor pool