Direct Mail Fundraising Arithmetic: Avoid Blunders By Knowing Your Numbers.

Your direct mail fundraising results never lie. But they mislead you if you let them. I worked as Director of Development for a national charity that held a lavish fundraising banquet each year. The staff, from the executive director down to the receptionist, including the development staff, thought this banquet was the organization's most successful fundraiser. Shortly after being hired, I conducted a comprehensive development audit that measured the profitability of the organization's fundraising methods, including this annual banquet. I added up the cost of the venue, catering, table and chair rental, lighting, sound, speaker honorarium, invitation printing, postage and every other related cost and subtracted this number from the gross income. What a surprise we got! What looked like a successful fundraiser was actually the organization's least-effective fundraiser. In 1999, they spent 89